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Posted 30 days ago by mathsjunky
This year I have received a salary and I am also receiving some UK dividends. I would like to make a pension contribution to reduce my tax bill. Am I able to make a pension contribution that is equal to the sum of my salary and the dividends and offset the income tax and dividend tax that would otherwise be due on these? I have enough carry forward allowance to do this, but I am not sure if the dividends count towards taxable income in this way. thank you!
Posted 30 days ago by maxb
As you suspect, dividends are not eligible for this - https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm044100#earnings
Posted 29 days ago by mathsjunky
Got it. Thanks for the help.
Posted 22 days ago by HMRC Admin 32 Response
Hi,
You can get tax relief on private pension contributions worth up to 100% of your annual earnings. Dividends are taxable income but not earnings.
Thank you.

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