Written by the TaxTune Editorial Team · Reviewed by our qualified accountants · Updated for 2026
The quick answer You get tax relief on pension contributions at your highest rate of tax. Basic rate relief is usually added automatically, but higher and additional rate taxpayers must claim the extra through their tax return. Most people can contribute up to £60,000 a year, or their earnings if lower, with relief.

How relief works

  1. Basic rate relief. On a personal pension, 20% is usually added to your contribution automatically, so £80 becomes £100 in the pension.
  2. Higher rate relief. Higher rate taxpayers claim a further 20% through Self Assessment, and additional rate taxpayers a further 25%.
  3. The annual allowance. Most people can contribute up to £60,000 a year with relief, including employer contributions, or their earnings if lower.
  4. Carry forward. Unused allowance from the previous 3 years can sometimes be used to contribute more.

The high earner traps

Very high earners have a tapered annual allowance, reducing how much they can contribute with relief. Anyone who has flexibly accessed a pension may be limited by the money purchase annual allowance. And higher rate relief is only received if you actually claim it, which many people forget to do.

Claiming all your pension relief?

Higher rate taxpayers routinely leave relief unclaimed, sometimes for years. TaxTune checks your contributions, claims the full relief, and can often reclaim relief you missed in earlier years.

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Frequently asked questions

How does pension tax relief work?

You get relief at your highest rate of tax. Basic rate relief of 20% is usually added automatically, while higher and additional rate taxpayers claim the extra through their tax return.

What is the pension annual allowance?

Most people can contribute up to £60,000 a year with tax relief, including employer contributions, or up to their earnings if lower. Unused allowance from the previous 3 years can sometimes be carried forward.

How do I claim higher rate pension relief?

Through your Self Assessment return, by entering your personal pension contributions. Higher rate taxpayers receive a further 20% and additional rate taxpayers a further 25%.

What is the money purchase annual allowance?

If you have flexibly accessed a pension, your allowance for further contributions with relief is reduced, currently to £10,000 a year.

Can I reclaim relief I missed in past years?

Often yes. You can usually go back several years to claim higher rate relief you did not claim at the time, which can produce a worthwhile refund.