Tax Relief on Pension Contributions

How you could turn £5,000 into £10,000

When you contribute to a pension, basic rate tax relief is automatically added to your contribution by the government. For instance, invest £8,000 and the government tops this up by £2,000 to make a total of £10,000.

If you're a higher rate taxpayer (40%) you can claim any higher rate tax relief you are owed via your tax return - up to a further £2,000 in this example. £10,000 in your personal pension could therefore cost you as little as £6,000.

If you're an additional rate tax payer (50% tax introduced this tax year for income over £150,000), you can claim back up to a further £3,000 in the above example. £10,000 in your personal pension could therefore cost you as little as £5,000.

Contact us to find out more about how we can help you with tax relief on pension contributions.
Please note that initial pension advice consultations are free of charge and at no obligation.