by Asim Abbas
11 November 2026 
Claiming higher rate pension tax relief on your tax return
Claiming higher rate pension tax relief on your tax return
If you pay into a personal pension or a workplace scheme that uses relief at source, your provider only adds basic rate tax relief. Higher and additional rate taxpayers have to claim the rest themselves.
- Providers add 20% relief automatically
- Higher rate taxpayers claim an extra 20%
- Additional rate taxpayers claim an extra 25%
- Claim on your tax return or by contacting HMRC
Thousands of people miss out on this every year, but you can claim it back for up to four years.
This guide explains how pension tax relief works, how to claim the extra and how it can protect allowances.
Two ways relief is given
| Method | How it works | Do you need to claim? |
|---|---|---|
| Net pay | Contributions taken before tax from salary | No, full relief is automatic |
| Relief at source | You pay net and the provider adds 20% | Yes, if you pay higher or additional rate tax |
| Salary sacrifice | Salary reduced, employer pays in | No |
Personal pensions, SIPPs and many workplace schemes use relief at source.
How the extra relief works
Higher rate relief is given by extending your basic rate band by the gross contribution. This moves income from 40% to 20% tax.
Laura earns £70,000 and pays £8,000 into a SIPP. The provider adds £2,000, so £10,000 goes into her pension. On her tax return, she enters £10,000 gross. Her basic rate band extends to £60,270, so £10,000 that was taxed at 40% is now taxed at 20%, giving her an extra £2,000 back. The pension costs her £6,000 overall.
Pension tax relief calculator
See the extra relief you can claim.
How to claim
- If you file a tax return: enter the gross contributions in the pension section
- If you don’t: contact HMRC by phone, letter or online, if your extra relief is up to a certain level, and it can adjust your tax code
- Earlier years: claim back up to four years
Extra benefits of contributing
Gross personal pension contributions reduce your adjusted net income, which can:
- Restore your personal allowance if income is between £100,000 and £125,140, where the effective rate is 60%
- Reduce or remove the High Income Child Benefit Charge
- Help you keep tax-free childcare, which stops at £100,000
Fixed-fee accountancy support
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Get a fixed-fee quoteCall 0161 531 4179Limits to watch
- Annual allowance: £60,000, including employer contributions
- Tapered annual allowance: can fall to £10,000 for very high earners
- Relevant earnings: personal relief is limited to your earnings, or £3,600 gross if lower
- Carry forward: unused allowance from the previous three years
Scottish taxpayers
Scottish taxpayers claim relief at their own rates. Intermediate rate taxpayers at 21% can claim an extra 1%, and higher, advanced and top rate taxpayers more.
Read HMRC’s guidance on pension tax relief, use our pension tax relief calculator, or see our high earner tax returns service.
What should I do next?
Net pay or relief at source?
Net plus 25%.
Or contact HMRC.
Frequently Asked Questions
Do I get higher rate pension relief automatically?
Not with relief at source schemes. You must claim it through your tax return or HMRC.
How far back can I claim pension tax relief?
Up to four tax years.
How is higher rate relief given?
By extending your basic rate band by the gross contribution.
Can pension contributions restore my personal allowance?
Yes. They reduce adjusted net income, which can bring you below £100,000.
What is the annual allowance for 2026/27?
£60,000, though it tapers for very high earners.
Need help with this? Wingate Accountants offers fixed-fee online accountancy support across the UK. Call 0161 531 4179 or request a quote at wingateaccountants.co.uk.
About the Author
Asim Abbas
I’m Asim Abbas, founder of Wingate Accountants and a Chartered Certified Accountant. I help sole traders, landlords and directors stay on top of their tax with fixed fees and plain-English advice.
