I have been paying additional pension contributions through my employers pay roll. Is the full tax relief (40%) applied automatically for these contributions when paid in this way or is a separate claim required through self assessment process?
If you complete a Self Assessment for every year your would include any additional contributions you make on your return alongside any other contributions you make (essentially add them together and put them in the same box). If these contributions have been made from net income, as a higher rate taxpayer you would be due a 20% tax rebate for these contributions, the reason for this is most pension providers add 20% to the contribution as it enters the pension pot. Meaning HMRC only need to refund the extra 20% you have paid to make up 40%. There are rare situations where the pension provider does not add 20% when paying in but we would require evidence of this in writing.
Thanks I have not done so. Can you let me know how I claim this retrospectively? Apologies if this does not appear to relate to property but it is the property income which is putting me into the 40% bracket.
To claim it retrospectively you would need to amend your previous returns (if you were submitting them during those years), if you were not in Self Assessment for the years you wish to claim for you could call up and complete the claim if it is under £10000 of contributions for in date years, if it is over that amount you will need to write in.
If you are attempting to amend returns before 16-17 you will need to write in as there is a time limit on amending previous years of one year.