Private pension contributions tax relief
17/11/2022

Under current rules, you can claim tax relief for your private pension contributions within certain limitations.

The current annual allowance for tax relief on pension contributions is £40,000. You can also carry forward any unused amount of your annual allowance from the last three tax years if you have made pension savings in those years.

Additionally, there is a lifetime limit for tax relief on pension contributions. The limit is currently £1,073,100.

You can qualify for tax relief on private pension contributions worth up to 100% of your annual earnings, subject to the overriding limits. Tax relief is paid on pension contributions at the highest rate of Income Tax paid.

This means that if you are:

  • A basic rate taxpayer qualifies for 20% pension tax relief.
  • A higher rate taxpayer qualifies for 40% pension tax relief.
  • An additional rate taxpayer qualifies for 45% pension tax relief.

The first 20% of tax relief is usually applied by your employer with no further action required. If you are a higher rate or additional rate taxpayer, you can claim back any further reliefs on your Self-Assessment tax return.

The above applies for claiming tax relief in England, Wales or Northern Ireland. There are regional differences if you are based in Scotland.


Central London Office

5th Floor, Watson House
54-60 Baker Street, London
W1U 7BU
Phone: 020 7493 7302
Fax: 020 7493 4120
Email: info@king-king.co.uk

North West London Office

1st Floor
65 - 67 Wembley Hill Road
Wembley
Middlesex
HA9 8DP
Tel: +44 (0) 20 8902 7451

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