Basic Rate Taxpayer
For any contributions (i.e. top-ups) made to your CIRCA5000 personal pension you’ll receive a 25% top-up from the Government. For example, if you add £800 to your CIRA5000 pension you’ll receive a top up payment of £200 in tax relief from the Government. This is known as 20% tax relief because the figure you end up with after the bonus has been paid in will be 20% bonus and 80% contribution (even though the bonus was 25% of your top-up amount - confusing we know!).
We'll automatically claim this basic rate tax relief for you so there's nothing further you need to do.
Once payment is received it's added to the cash allocation of your portfolio and will be invested the next time your account is rebalanced.
Higher rate or Additional rate taxpayer
In addition to the basic rate tax relief we'll claim for you, you can claim further tax relief of:
20% for any income you've paid 40% tax on, or;
25% for any income you've paid 45% tax on.
This is usually done via your self-assessment. CIRCA5000 does not facilitate tax relief claims above the basic rate tax relief.