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Maximise your pension contributions with our Pension Tax Relief Calculator. Designed for UK residents, this tool helps you swiftly calculate the tax relief you’re entitled to on your private pension contributions. Whether you’re self-employed or employed, our calculator provides clear, instant estimations to guide your retirement planning effectively. Simplify your pension contributions and enhance your understanding of the tax benefits available to you.
Your situation
Not sure? It’s best to check with your employer.
Results
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Pension Contribution Paid by you£0
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Automatic Tax Relief£0
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Additional extra tax relief you can claim
Simply claim this via self-assessment
£0
What is Pension Tax Relief?
Pension tax relief is a financial incentive provided by the government to encourage individuals to save for their retirement. When you contribute to a private pension, also known as a personal pension, the government gives you back the tax you've paid on that money. This effectively boosts your pension pot, helping you save more for the future.
There are two primary ways you can receive pension tax relief:
- Automatic Tax Relief:
- If you're part of a workplace pension scheme, your employer deducts your contributions from your pay before applying Income Tax.
- For personal and stakeholder pensions, your provider claims tax relief at the basic 20% rate and adds it to your pension pot.
- Claiming Tax Relief Yourself:
- If you pay a higher rate of Income Tax, you'll need to claim additional tax relief through your Self Assessment tax return. For example, higher rate taxpayers can claim an extra 20%, and additional rate taxpayers can claim an extra 25%.
How Much Can You Claim?
You can receive tax relief on private pension contributions worth up to 100% of your annual earnings. For the 2024/25 tax year, you can contribute up to £60,000 into your private pension. If your earnings exceed £100,000, your annual allowance may be reduced. Exceeding your annual allowance will result in having to repay some of the tax relief.
Specifics of Pension Tax Relief
- Basic Rate Taxpayers: Your pension provider will claim 20% tax relief automatically and add it to your pension pot.
- Higher Rate Taxpayers: You can claim an additional 20% tax relief on your Self Assessment tax return.
- Additional Rate Taxpayers: You can claim an additional 25% tax relief on your Self Assessment tax return.
- Scottish Taxpayers: You can claim varying additional relief rates based on your income band, from 1% to 28%.
Important Considerations
- Contributions from Others: If someone else, such as a partner, contributes to your pension, you can still receive 20% tax relief if your provider claims it for you.
- Non-Taxpayers: Even if you do not pay Income Tax, you can still get 20% tax relief on contributions up to £2,880 annually.
- Overseas Pension Schemes: UK tax relief may also apply to certain overseas pension schemes.
