Pension tax relief

[audi321]

Hi all. Bit of an odd one, but does anyone know if rather than the automatic recovery of the basic rate tax relief, the provider does not claim this and the member can claim the 20% via a tax code?

It's for an elderly relative who has deferred his state pension. Now has a lump sum of £55k to claim, but needs to be a non tax payer in the year in which he takes the lump sum to avoid paying tax on it. He will be getting £8k in state pension but still works and earns £5k a year from this, so I was thinking a £2k pension contribution would keep his taxable income below the personal allowance, but then realised the pension firm would claim back the tax automatically rather than him adjusting his tax code.

Any ideas?

[ellroy]

Alternatively pal could look at EIS, albeit relief is max 30%, as an added bonus 2 years for IHT relief?

Not sure that may work though?