My total income (salary plus pension from previous employer) is about £52K.However, I pay about £3K pension contributions plus £6K AVC contributions so, obviously, only pay 20% tax. In addition, I receive savings interest. I messed up by investing £10K in a 30 monrh account, but only getting interest at the end of the term, which is due soon. This, with other savings in my, rather than wifes, name will amount to about £1.5 - £2K by the end of this year.
Question: does my pension contributions, bringing my tax rate down to 20%, mean that I receive £1000 personal savings allowance, or does HMRC use the pre pension contribution to decide on the PSA level, bringng that down to £500?
I have searched extensively for this and can find no references, so maybe the answer is more obvious than I think?
Thankyou
