If you’ve made personal pension contributions during the last tax year, we want to make you aware that additional tax relief may be available from HMRC.

Whilst this won’t apply to everyone, it’s worth taking a moment to check whether you’re entitled to make a claim.

How does pension tax relief work?
If you’re a basic-rate taxpayer (20%), your pension provider will typically claim basic-rate tax relief from HMRC, increasing the amount invested into your pension.

If you’re a higher-rate taxpayer (40%) or an additional-rate taxpayer (45%), you may be entitled to claim further tax relief from HMRC.

Importantly, this additional relief is not usually paid into your pension. Instead, it is claimed directly from HMRC and, if eligible, may be paid to you as a tax refund or a reduction in your tax bill.

For example, if you contribute £8,000, your pension provider will typically reclaim £2,000 from HMRC, meaning £10,000 is invested into your pension.

If you are a higher-rate taxpayer you would typically be entitled to a further £2,000 or, for an additional-rate taxpayer, the amount is £2,500. This additional relief may be paid to you as a tax refund or to reduce your tax bill.

How do I claim?
If you complete a Self Assessment tax return, any additional pension tax relief should normally be claimed through your return.

If you do not complete a Self Assessment tax return, you can make a claim directly to HMRC using their online service: Claim tax relief on your private pension payments

HMRC provides further information on the claiming process and what you will need to make a claim.

Can I claim for previous tax years?
In many cases, pension tax relief claims can be backdated for up to four previous tax years.

If you’ve made personal pension contributions in recent years and have not previously claimed additional tax relief, it may be worth reviewing whether a claim is available.