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 tax at 40% or 45% and contribute to a relief at source pension, you are entitled to more than the 20% your provider claims automatically. The extra relief does not arrive on its own. You have to claim it, usually through Self Assessment or by contacting HMRC. For many people that means hundreds or 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 claims 20% basic rate relief from HMRC. Contribute £800 and your pension receives £1,000 gross.

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 contributes to a SIPP under relief at source. The gross contribution is £5,000.

• 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.

Frequently asked questions

Official sources

• GOV.UK — Pension schemes rates and allowances
• GOV.UK — Income Tax rates and Personal Allowances
• GOV.UK — Tax on your private pension contributions