How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TonyTax Your Own Question
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15979
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
Type Your Tax Question Here...
TonyTax is online now

Can I lower, via an AVC (into my pension), my income tax threshold

This answer was rated:

Can I lower, via an AVC (into my pension), my income tax threshold to the lower rate for Capital Gains Tax purposes?

How do you pay your AVC? Is it a gross payment into an employer scheme or is it paid into the scheme via your payslip?
Customer: replied 3 years ago.

I just need to check with my HR Dept - I'll come back shortly.

OK. You should ask them if tax relief is given via the payslip, ie is the contribution deducted from the pay before the tax is worked out?
Customer: replied 3 years ago.

Not sure if my last reply went through?

This is what HR told me:

AVC’s are paid through payroll, your contribution is deducted after the tax has been calculated




However, the answer from your HR people seems somewhat ambiguous? Are they saying that no tax relief is given at source and that the gross AVC which is deducted from your pay will be paid direct to the pension plan provider so that they don't need to reclaim the basic rate tax relief?
Customer: replied 3 years ago.

I'm not 100% sure. I will go and ask them a bit later. Thanks for your help so far

OK. Either way, it will affect the CGT rates applied to any capital gains.

TonyTax and other Tax Specialists are ready to help you
Thanks for accepting my answer.