Junior SIPP- tax relief, parent already over AA
Discussion
As intimated in the title- I'd to start contributing to a Junior SIPP for my daughter, contributions into which are marketed as having 20% tax relief.
However, when I was about to make a payment it asked if I was a higher or additional rate payer because if so I could benefit from increased tax relief.
This gave me pause, because if the tax relief is contingent on the parent's taxable status then for me I'm additional tax rate payer who's already over the annual allowance (it's a DB scheme and I typically exceed the tapered allowance and use scheme pays to settle the tax). So am I excluded from benefiting from tax relief on a Junior SIPP and, if not, can I really benefit from 45% tax relief...?
However, when I was about to make a payment it asked if I was a higher or additional rate payer because if so I could benefit from increased tax relief.
This gave me pause, because if the tax relief is contingent on the parent's taxable status then for me I'm additional tax rate payer who's already over the annual allowance (it's a DB scheme and I typically exceed the tapered allowance and use scheme pays to settle the tax). So am I excluded from benefiting from tax relief on a Junior SIPP and, if not, can I really benefit from 45% tax relief...?
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