Guide
45% Additional Rate Pension Tax Relief 2026/27
Published by the UK Money Calculators editorial team. Last updated for the 2026/27 tax year.
Income above £125,140 is taxed at 45% in 2026/27. You are entitled to 45% pension relief on your contributions. But your provider only claims 20% automatically. The extra 25% has to be claimed via Self Assessment.
How 45% relief works
The mechanism is the same as for 40% taxpayers. But the extra claim is larger. Under relief at source:
- Provider claims 20% basic-rate relief automatically, £800 becomes £1,000 in the pension
- You claim the additional 25% (45% − 20%) via Self Assessment
- HMRC extends your basic-rate band by the gross contribution, less income is taxed at 45%
Example, Marcus, income £150,000:
- Pays £15,000 net to SIPP
- Provider tops up to £18,750 gross (÷ 0.8)
- Provider claims 20% = £3,750
- Via Self Assessment: 25% × £18,750 = £4,688 additional claim
- Total relief: 45% × £18,750 = £8,438
- Net cost: £15,000 − £4,688 = £10,312
- Effective cost: 55p per £1 in pension
The £100,000–£125,140 band: effective 60% rate
Before the additional rate kicks in at £125,140, income between £100,000 and £125,140 carries an effective 60% marginal rate. Every £2 of ANI in that range costs 40% income tax plus an effective 20% more from the lost personal allowance. Pension contributions that reduce ANI into this band save at 60%.
Take a taxpayer with income of £130,000 making a £10,000 gross pension contribution. The first £4,860 falls in the 60%-effective band, reducing ANI from £130,000 towards £125,140. The remaining £5,140 falls in the 45% band. The blended effective relief rate is well above 45%.
Contribution table: 45% additional rate
| Gross contribution |
Provider claims (20%) |
SA claim (25%) |
Total relief (45%) |
Net cost |
| £5,000 |
£1,000 |
£1,250 |
£2,250 |
£2,750 |
| £10,000 |
£2,000 |
£2,500 |
£4,500 |
£5,500 |
| £15,000 |
£3,000 |
£3,750 |
£6,750 |
£8,250 |
| £20,000 |
£4,000 |
£5,000 |
£9,000 |
£11,000 |
| £30,000 |
£6,000 |
£7,500 |
£13,500 |
£16,500 |
| £60,000 |
£12,000 |
£15,000 |
£27,000 |
£33,000 |
Assumes full additional-rate (45%) income on the contribution. Actual relief may differ where contributions span different rate bands.
Self Assessment claim: what to enter
- Obtain your annual pension statement, find the gross contribution figure (includes provider's top-up)
- Log into HMRC Self Assessment (SA100 online)
- In 'Pension contributions', enter the gross amount under 'relief at source' contributions
- HMRC calculates the band extension and issues repayment or reduction in your tax liability
- File by 31 January 2028 for the 2026/27 tax year
Back-claims are available for up to four prior tax years. If you have not been claiming, the amount could be significant.
Net pay arrangement: simpler for additional-rate payers
If your employer uses a net pay arrangement, the full 45% is applied automatically through payroll. No Self Assessment needed for the pension element. For additional-rate taxpayers, this is the simplest method. It removes any risk of forgetting the SA claim.
Salary sacrifice also delivers 45% automatically, plus saves employee NI at 2% above £50,270. Take a £20,000 salary sacrifice by an additional-rate taxpayer earning £150,000: income tax saving 45% × £20,000 = £9,000; NI saving 2% × £20,000 = £400. Total saving £9,400 on a £20,000 contribution. Effective cost £10,600.
Frequently asked questions
What is the additional rate threshold in 2026/27?
£125,140. Income above this amount is taxed at 45% in England, Wales and Northern Ireland. In Scotland, the top rate is 48% on income above £125,140 (there is no additional rate band as in the rest of the UK, Scotland's rate jumps from 45% at £75,000 directly to 48%).
Can I claim the extra 25% relief through PAYE instead of Self Assessment?
Yes, contact HMRC (0300 200 3300) and request a PAYE code adjustment. HMRC will reduce your tax code to deliver the relief through your monthly payslip. This avoids the need for Self Assessment but achieves the same result. However, you must update HMRC each year with the current year's contributions.
Is the annual allowance the same for additional-rate taxpayers?
The standard AA is £60,000 for all taxpayers. However, additional-rate taxpayers often have high incomes, potentially triggering the tapered annual allowance (for adjusted income above £260,000). Check whether the taper applies before making large contributions.
Disclaimer: General information only, not financial or tax advice. 2026/27 rates for England, Wales and Northern Ireland unless stated.