What is pension tax relief?

When you pay into your pension, the government gives you a top-up. This is called 'tax relief'. It's a bit like getting a bonus on your savings! If you’re a Scottish taxpayer, tax rates and bands differ, and so the tax relief you get will be different too.

How much can you get? You can get tax relief on your pension contributions up to 100% of your earnings, or up to £60,000 each year—whichever amount is lower. Any money you put in above this limit won't be eligible for the top-up. You must be under age 75 to get tax relief.

What we do for you As a basic-rate taxpayer, you're entitled to a 20% top-up. We handle this for you automatically. This means for every £80 you pay in, the government will add £20 in tax relief into your pension within 6-10 weeks. So, your £80 contribution becomes £100.

If you're a higher-rate taxpayer If you're a higher or additional-rate taxpayer, you could be entitled to even more tax relief. You'll need to claim this yourself by completing a Self-Assessment tax return. For more details on how to do this, it's best to check the UK government's website.