Your private pension contributions are tax-free up to a certain limit.
This applies to most private pension schemes, for example:
Remember, you pay tax when you take money out of a pension.
You usually pay tax if savings in your pension pots go above:
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You also pay tax on contributions if your pension provider:
is not registered for tax relief with HM Revenue and Customs (HMRC)
does not invest your pension pot according to HMRC’s rules
You can get tax relief on private pension contributions worth up to 100% of your annual earnings.
You get the tax relief automatically if your:
If your rate of income tax in Scotland is 19% your pension provider will claim tax relief for you at a rate of 20%. You do not need to pay the difference.
You get relief at source in all personal and stakeholder pensions, and some workplace pensions.
UK tax relief is also available on contributions made to certain types of overseas pension schemes.
It’s up to you to make sure you’re not getting tax relief on pension contributions worth more than 100% of your annual earnings. HM Revenue and Customs (HMRC) can ask you to pay back anything over this limit.
You may be able to claim tax relief on pension contributions if:
You can claim tax relief on your SATR for:
You can claim tax relief on your SATR for:
You can also contact HMRC to claim if you pay Income Tax at 21 or 40%.
Claim tax relief in your self assessment tax return (SATR) if your pension scheme is not set up for automatic tax relief.
You cannot claim tax relief if your pension provider is not registered with HMRC.
When someone else (for example your partner) pays into your pension, you automatically get tax relief at 20% if your pension provider claims it for you (relief at source).
If you’re in a workplace pension that allows other people to contribute you may need to claim the tax relief on those contributions.
If both of the following apply you still automatically get tax relief at 20% on the first £2,880 you pay into a pension each tax year (6 April to 5 April):
You cannot get tax relief if you use your pension contributions to pay a personal term assurance policy, unless it’s a protected policy.
Personal term assurance is a life insurance policy that either: