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Pensions and tax relief

I am confused about pension contributions. Are GPs normally taxed before they are deducted or after? If we are taxed before does that mean we have already paid 40 per cent tax on them so canceling next year's tax relief?

You pay tax on your income after deduction of the pension contributions paid in that tax year. If you income was £100,000 and you had paid contributions of £15,000, then your taxable income would be £85,000. You only receive tax relief on pension contributions paid in the tax year, so for 2009/10 these would be the contributions paid from April 2009 to March 2010.

If you are a GP principal this would also include your NHS employer's contributions into the NHS Pension Scheme.

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