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Step-by-step Guide

Why am I not receiving tax relief for my pension contributions?

Article ID: 819
Last updated: 20 Aug, 2019

You'll only see tax relief for your pension contributions if you pay tax at the higher rate.

You make pension contributions net of basic tax. If you are a basic rate taxpayer, you receive tax relief in the form of HMRC topping up your payment by 20%.

You get the tax relief automatically if your:

For example: If you pay £80 into your pension fund your actual contribution will be £100.

If you pay tax at the higher rate of 40%, you'll receive additional tax relief of 20%. When you pay into your pension fund your basic rate band is extended by the gross amount of the contribution so that more of your income is taxed at 20% rather than 40%.

The calculations can be seen in step 4 of the TaxCalc Summary (Summary > TaxCalc Summary).

Article ID: 819
Last updated: 20 Aug, 2019
Revision: 5
Views: 2104
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folder Tax Return Production -> SA100 Individual Return