By Alison Campsie

The Herald
Friday 20 July 2012

HIGH earners across the country are failing to claim back their full tax relief on pension contributions in an "astonishing" lack of awareness of their entitlements.

RETIREMENT BOOST: Alan Steel said he was 'astonished' by the figures and urged higher rate payers to claim their full entitlement.

Research found nearly six out of 10 higher rate taxpayers - those on salaries between £44,871 and £160,500 - are not cashing in on the full incentives made available by the Treasury to encourage saving for life after work.

Financial giant Prudential said the unclaimed tax relief could be worth an additional £1,020 every year to a higher rate taxpayer - with potentially £295.8 million going unclaimed every year.

The research also showed fewer than one in five (19%) higher rate taxpayers knew whether they had claimed tax relief or not, while 22% said they did claim all the pension tax relief to which they were entitled.
While the standard 20% tax relief is automatically taken from income at source, those in the 40% tax bracket have to contact Her Majesty's Revenue and Customs (HMRC) to arrange a claim.

Alan Steel, of Alan Steel Asset Management, said he was "astonished" by the figures.

Mr Steel, who is based in Linlithgow, said: "The figures would suggest these people don't have advisers and it just beggars belief. Having been a higher rate tax payer for a number of years, I wouldn't dream of not claiming the tax relief, which is a relatively simple thing to do. I can't imagine why people would turn their backs on a couple of thousand pounds."

According to HMRC, 55% of the estimated 900,000 higher rate taxpayers in the UK contribute to defined contribution pension schemes. ......
Quote courtesy of The Herald
Friday 20 July 2012