Tax coding & additional pension contributions

[CaptainSlow]

Quick question on additional pension contributions and changes in tax coding. Assuming higher rate tax payer.

If an additional payment of £16,000 was paid, am I correct in thinking that the pension fund would claim the standard tax credit of £4,000 and the tax coding would increase by £12,500 (£20,000 * 1.25/5)/.4? Doesn't seem quite right to me.

[CaptainSlow]

OK thanks, but assuming all relief is at 40%, do you know that coding change amount?

[CaptainSlow]

Thanks Eric...assume current year for simplicity.

[CaptainSlow]

OK thanks.

Anyone know the answer?

[CaptainSlow]

Yes, seems strange to me, however, this is the guidance on a tax forum. I think you're correct though it should be £10,000.

Edited by CaptainSlow on Monday 30th March 11:49