Pension contribution tax relief

[leosayer]

In the telegraph at the weekend they stated the following figures:

£20,000 invested into a SIPP attracts basic rate tax relief of £5,641 and a further tax relief of 18% ie. £4,615 for higher rate tax payers, making a total of £30,526.

Are these figures correct? The higher rate one looks wrong to me.

[leosayer]

Thanks for the link, using that formula, I make it that the telegraph should have stated the figures as follows:

20,000 Paid in
7,333 Relief at source 22%
6,000 Reclaim 18%
=======
33,333 total contribution

[leosayer]

I understand it now, thanks for explaining.

So from April 2008, higher rate tax payer can increase the amount they reclaim from 18% to 20%. Less in the pension, more in the pocket.