Potentially stupid pension question

[HouseHelpRequired]

If you are a higher rate taxpayer and make pension contributions into a SIPP you can get the tax back at 40% (20% given at source and the rest claimed).

But what if your net income once you've paid into a pension takes you below the 40% tax threshold? E.g. you earn £80k and are able to pay total contributions of £60k. Can you claim 40% on the whole of your contributions or only to the level where you would be a higher rate taxpayer?

Once your pension contribution including any tax relief exceeds the income you are paying higher rate tax on (approx £30k in your example), any additional contributions will only attract 20% relief. That £30k pre-tax is £18k after tax at 40%, so once your contribution with your taxed income exceeds £18k additional contributions only get 20% relief. Thus every additional £1000 pounds over £18k corresponds to £1250 including tax relief.

Thank you. That's what I assumed but that sort of example is never mentioned. It's only ever said that you can contribute up to £60k at 40% if you're a higher rate taxpayer and doesn't take that into account.