Guide

How to Claim Higher Rate Pension Tax Relief 2026/27

Written by James Whitfield·Updated August 2026·Checked against 2026/27 HMRC rates

If you pay 40% or 45% tax and pay into a relief-at-source pension, you're owed more than the 20% your provider claims for you 1 — but that extra relief never turns up on its own. You have to go and get it, through Self Assessment or by asking HMRC to change your tax code. For a lot of people that's several hundred to a few thousand pounds a year sitting unclaimed.

Key takeaways
  • Relief at source gives you only 20% automatically — a 40% taxpayer must claim the other 20%, a 45% taxpayer the other 25%. 1
  • You claim the extra through Self Assessment, or by phoning or writing to HMRC to adjust your tax code. 3
  • Net pay and salary sacrifice schemes already give full relief through payroll — nothing extra to claim there. 1
  • You can backdate a missed higher-rate claim up to four tax years. 3
  • Always claim on the gross figure (what landed in the pension), not the amount you paid in. 1

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 amount and your provider reclaims 20% basic-rate relief from HMRC on your behalf. Pay in £800 and your pension receives £1,000 gross. 1

That automatic top-up covers only the basic rate. If you pay 40% or 45% income tax, you are owed more. Your provider does not claim it. You have to do that yourself, either through a Self Assessment return or by asking HMRC to adjust your tax code.

Net pay arrangement

Net pay arrangements work differently. Your pension contribution is deducted from gross salary before income tax is calculated. Full marginal-rate relief is applied automatically. A higher-rate taxpayer gets 40% without doing anything. No extra Self Assessment claim needed for the pension element.

Salary sacrifice

Salary sacrifice reduces your contractual salary before tax and NI are calculated. You pay less income tax and employee NI automatically. Like net pay, there is nothing 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)

Two routes to claim the extra relief in a relief at source scheme:

  • 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 and pays into a SIPP under relief at source, with a gross contribution of £5,000. Because all £5,000 sits above the £50,270 higher-rate threshold 2, the whole contribution qualifies for 40% relief.

Alex · £60,000 salary · £5,000 gross SIPP contribution (relief at source)
Gross contribution into the pension£5,000
What Alex actually pays in£4,000
Basic-rate relief added by the provider (20%)£1,000
Higher-rate relief Alex claims via Self Assessment (20%)£1,000
Total tax relief£2,000
Real net cost of a £5,000 pension top-up£3,000

The £1,000 from the provider lands in the pension automatically. The second £1,000 comes back to Alex — as a lower tax bill or a refund — only after the Self Assessment claim. 3

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

See exactly how much relief you are 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.

Sources & references

  1. Pension tax relief — GOV.UK
  2. Income Tax rates and Personal Allowances — GOV.UK
  3. Self Assessment tax returns — GOV.UK
  4. Pension annual allowance — GOV.UK

Every headline figure above is checked against the official GOV.UK / HMRC guidance listed here for the 2026/27 tax year. Links open on GOV.UK.

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.