Guide

How to Claim Higher Rate Pension Tax Relief 2026/27

Published by the UK Money Calculators editorial team. Last updated for the 2026/27 tax year.

If you pay income tax at 40% or 45% and contribute to a pension using relief at source, you are entitled to more than the basic 20% that your provider automatically claims. The extra relief does not arrive automatically — you need to claim it, usually through Self Assessment or by contacting HMRC. The good news is that this can mean hundreds or even thousands of pounds back each year.

How pension tax relief works by scheme type

Relief at source

With relief at source — used by most personal pensions, SIPPs and some workplace schemes — you pay a reduced contribution and your provider tops it up by claiming basic rate relief (20%) from HMRC. So if you contribute £800, your pension receives £1,000 gross.

This automatic top-up covers only the basic rate. If you pay income tax at 40% (higher rate) or 45% (additional rate), you are entitled to further relief on top. That extra relief is not claimed by your provider — you must claim it yourself, either through a Self Assessment tax return or by asking HMRC to adjust your tax code.

Net pay arrangement

Net pay arrangements work differently. Your pension contribution is deducted from your gross salary before income tax is calculated. This means your full marginal rate of tax relief is applied automatically — a higher-rate taxpayer gets 40% relief without doing anything. There is no extra claim to make via Self Assessment for the basic pension relief itself.

Salary sacrifice

Salary sacrifice reduces your contractual salary before tax and National Insurance are calculated. You pay less income tax and employee NI automatically. Like net pay, there is nothing extra to claim via Self Assessment for the pension element — the savings happen through payroll. Your employer may also pass on their NI saving to your pension.

How to claim the extra higher-rate relief (relief at source)

If you are in a relief at source scheme and pay tax at 40% or 45%, you can claim extra relief in two ways:

Self Assessment tax return: Enter your total gross pension contributions in the pensions section of your SA return. HMRC calculates the additional relief owed and reduces your tax bill accordingly (or issues a refund).
HMRC tax code adjustment: If you do not normally complete a Self Assessment return, you can write to HMRC or call them to request an adjustment to your PAYE tax code. This spreads the relief over the remainder of the tax year rather than paying it as a lump sum.

Worked example

Alex earns £60,000 a year and contributes to a SIPP (relief at source). Alex makes a gross contribution of £5,000 to the SIPP.

Alex pays £4,000 into the SIPP; the provider claims £1,000 (20%) from HMRC — the pension receives £5,000 gross.
Alex pays 40% tax on income above £50,270. The £5,000 contribution falls in the higher-rate band.
Additional relief: 20% × £5,000 = £1,000 (the difference between 40% and the 20% already claimed).
Alex claims this £1,000 via Self Assessment, reducing their tax bill.
Total relief received: £2,000 (£1,000 from provider + £1,000 from SA claim).
Effective net cost of the £5,000 gross contribution: £3,000.

Common mistakes

Forgetting to claim at all: The most common and costly mistake for higher-rate taxpayers in relief at source schemes. HMRC will not prompt you — it is your responsibility to claim.
Claiming the wrong gross figure: Make sure you claim on the gross contribution (what goes into the pension), not the net amount you paid. Your pension provider's annual statement will show the gross figure.
Assuming net pay works the same way: If you switch from a net pay to a relief at source scheme, the extra relief no longer happens automatically. Many people miss this when changing employers.
Missing time limits: You can back-claim higher-rate relief for up to four tax years via Self Assessment. Do not leave old years unclaimed.

See your own numbers

Use our pension tax relief calculator to see exactly how much relief you could be entitled to — broken down by scheme type and tax rate.

Open the calculator

Frequently asked questions

How do I claim the extra higher-rate relief via Self Assessment?

On your Self Assessment return, go to the "Pension contributions" section. Enter the total gross amount paid to relief at source schemes during the tax year. HMRC automatically calculates the extra relief owed and either reduces your tax bill or issues a refund. Your pension provider's annual statement shows the gross contribution figure to use.

Does my employer's pension scheme matter?

Yes, significantly. If your employer uses a net pay arrangement, higher-rate relief is applied automatically and there is nothing extra to claim. If the scheme uses relief at source, you must claim the extra via Self Assessment or a tax code adjustment. Check your payslip or ask your pension provider if you are unsure which method applies.

What if I am borderline between basic rate and higher rate?

Only the portion of your pension contribution that falls within the higher-rate band attracts 40% relief. If your income is £52,000 and you make a £5,000 gross contribution, roughly £1,730 of the contribution pushes income below the £50,270 threshold — that portion gets only basic rate relief. The remaining £3,270 gets higher-rate relief. HMRC's Self Assessment calculation handles this automatically.

Can I claim extra relief if I am an additional-rate taxpayer?

Yes. Additional-rate taxpayers pay 45% income tax. The extra relief to claim via Self Assessment is 25% of the gross contribution (45% minus the 20% basic rate already claimed by the provider). The calculator shows the full breakdown for additional-rate taxpayers.

Do Scottish taxpayers follow the same rules?

Scottish taxpayers face different income tax rates and bands, but pension providers still claim 20% basic rate relief from HMRC regardless. Scottish higher-rate (42%) and advanced-rate (45%) taxpayers claim the additional relief via Self Assessment — the extra percentage is larger than for rUK higher-rate taxpayers. The calculator handles Scottish rates separately.

How far back can I claim unclaimed higher-rate relief?

HMRC allows back-claims for pension relief for up to four tax years. So in 2026/27 you can still claim for 2022/23, 2023/24, 2024/25 and 2025/26. You will need records of your contributions for each year — your pension provider can supply annual statements.

Official sources

Disclaimer: This guide is for general information only and does not constitute financial or tax advice. Pension tax rules are complex and individual circumstances vary. Figures shown are for England, Wales and Northern Ireland unless stated. Consult a qualified financial adviser or HMRC for personalised guidance.