The government tops up your pension by adding basic rate tax relief of 20% to all your personal contributions (up to the maximum of 100% of your relevant UK earnings or £2,880 if this is greater).
If you pay tax at a rate higher than basic rate, you're entitled to extra tax relief on top of this on your personal contributions.
You can claim this:
- At the end of each tax year through self assessment.
- Or, if you don’t complete a self-assessment tax return, by using the HM Revenue & Customs (HMRC) online service or contacting HMRC in writing.
Under HMRC’s revised approach, you’ll have to upload or send proof of the contributions you've made into your pension for each tax year, if you’re not claiming the extra tax relief through your self-assessment tax return. We'll send you a yearly statement, which you should be able to use as proof. If HMRC needs any more evidence, please get in touch so we can help you.
You should speak to your financial adviser, if you have one, about your options before making any decisions. There’s likely to be a charge for this. If you don’t have a financial adviser, you can find one in your area by visiting MoneyHelper, or find out more about advice services supported by Aegon by visiting Origen. Origen Financial Services Ltd is wholly owned by Aegon UK plc but operates independently to us.
Important notes
- This information is based on our understanding of current taxation law and HMRC practice, which may change.
- The value of any tax relief will depend on individual circumstances.
- The information we've given here is a guide to the ways you can reclaim the additional tax relief you're entitled to if you pay income tax at higher than basic rate. It is relevant to schemes that use the relief at source method of collecting personal contributions (this is typically personal pensions). How you choose to receive that tax relief is entirely up to you.
- You can still fill in a self-assessment form or contact HMRC at the end of the tax year even if you've already had your tax code adjusted. You may need to do this if you've increased your payment level or made a number of one-off payments throughout the year, and your tax code hasn't been amended to take account of this.