How Higher Rate Taxpayers Can Claim Back Pension Tax Relief

If you’re a higher-rate taxpayer, you could be missing out on valuable tax relief on your pension contributions. While basic-rate relief is usually added automatically, any additional relief you’re entitled to must be claimed by you.

How Pension Tax Relief Works 

• You pay pension contributions from your after-tax income.
• Your pension provider automatically claims 20% basic-rate tax relief from HMRC.
• If you’re a higher-rate (40%) or additional-rate (45%) taxpayer, you’re entitled to extra relief — but this is not added automatically.

For example:

• You pay £8,000 into your pension.
• Your provider claims £2,000 from HMRC.
• Total invested = £10,000.
• If you’re a 40% taxpayer, you’re entitled to another £2,000 in tax relief.

So if you don’t claim it then you are letting HMRC keep your £2,000 – very generous of you 😳.

This does not apply if your employer uses salary sacrifice for your work pension as they deduct it from your gross pay, so this is already taken into account. 

How to Claim the Extra Relief

Add it to your self assessment tax return

If you don’t complete a tax return you can claim by following this link https://www.gov.uk/guidance/claim-tax-relief-on-your-private-pension-payments

Deadlines Matter

You normally have four years from the end of the relevant tax year to claim relief.

For example:

• For the 2021/22 tax year, the deadline is 5 April 2026.

Don’t leave it too late — unclaimed relief can’t be recovered after the deadline.