Pension Tax Relief Refund: How HMRC Pays Higher-Rate Relief
If you pay 40% or 45% tax into a personal pension or SIPP, the provider adds 20% and the rest of your relief comes from HMRC. That extra money comes to you, not your pension, and how it arrives depends on whether you file a tax return. Here is what to expect, how to check it has happened and whether to pay it back into the pension.
The higher-rate part of your relief is never added to your pension. If you file Self Assessment, you must claim on the return and your tax bill is adjusted 12. If you don't, HMRC's online service gives the relief through your tax code for the current year 1, and HMRC aims to reply within 28 working days 1. You can claim up to four years back 3. The money is yours to keep, but if you pay it into your pension it becomes a new contribution that gets relief of its own.
- Relief-at-source providers only ever add basic-rate relief of 20%. 4
- Self Assessment filers must claim through the return, for this year and earlier years. 1
- The online service is for claiming through your tax code for the current tax year only. 1
- You need proof of the contribution for each tax year you claim. 1
- Claims must be made within four years of the end of the tax year. 3
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How the extra relief reaches you
| Your situation | How you claim | How the relief arrives |
|---|---|---|
| You file a Self Assessment return | Enter the gross contribution on the return | Your tax bill is lower; HMRC adjusts it automatically 2 |
| PAYE only, claiming for this tax year | HMRC's "Claim tax relief on your private pension payments" service | Through your tax code 1 |
| Can't use the online service, or you're an agent | Letter to HMRC with the same details | HMRC reviews the claim and contacts you 1 |
| Net pay or salary sacrifice scheme | Nothing to claim | Full relief already given through payroll |
On a tax return the relief works by extending your basic-rate band by the gross contribution, so more of your income is taxed at 20% instead of 40% 4. That only helps to the extent you actually have income in the 40% band: the extra relief is 20% of the smaller of your gross contribution and your income above £50,270.
Worked example: what you get back
Sam earns £70,000 and pays £8,000 into a SIPP in 2026/27.
| Paid by Sam | £8,000 |
| Added by the provider (20% of gross) | £2,000 |
| Gross contribution | £10,000 |
| Income above £50,270 | £19,730 |
| Extra relief from HMRC: 20% × £10,000 | £2,000 |
| Real cost of £10,000 in the pension | £6,000 |
If Sam files a return, the £2,000 comes off his 2026/27 bill. If he claims through his tax code, he pays less tax through payroll instead.
Can you pay the refund into your pension?
Yes. Once HMRC has given you the relief it is simply your money. If you pay it into your pension, it is a new contribution in the tax year you pay it, with the same rules as any other: the provider adds 20%, and you can claim higher-rate relief on it, as long as it fits within your earnings, your annual allowance and your 40% income.
| Round | Paid in | Gross | Extra relief from HMRC |
|---|---|---|---|
| 1 | £8,000 | £10,000 | £2,000 |
| 2 (refund reinvested) | £2,000 | £2,500 | £500 |
| 3 (refund reinvested) | £500 | £625 | £125 |
| Every refund reinvested | £10,667 (£8,000 after refunds) | £13,333 | £2,667 in total |
You can get to the same place in one step: pay £10,667 now (£13,333 gross) and the £2,667 of extra relief brings your real cost back to £8,000. Either way, a higher-rate taxpayer puts £13,333 into the pension for £8,000, as long as the whole gross amount sits within income taxed at 40% (Sam's £19,730 covers it).
Backdating: how far back you can claim
Income Tax relief claims must be made within four years of the end of the tax year 3. As at October 2026:
| Tax year of the contribution | Last day to claim |
|---|---|
| 2022/23 | 5 April 2027 |
| 2023/24 | 5 April 2028 |
| 2024/25 | 5 April 2029 |
| 2025/26 | 5 April 2030 |
If you file returns, claim through them (or amend a return within 12 months of its filing deadline 5). For each year you claim, have your provider's statement showing your name, the contributions and the tax year 1. Start with 2022/23: it is the one about to close.
If the relief seems to be missing
- You entered the net figure. The tax return asks for the gross amount (what you paid plus the 20%). The online service asks for net. Mixing them up under-claims by a fifth.
- Only part of your contribution was above £50,270. Relief at 40% only applies to the slice that matches 40% income; the rest only ever gets 20%.
- Your scheme is net pay. Full relief was given through payroll, so there is nothing more to come. Don't enter it on your return as a relief-at-source payment.
- Your contributions changed. A tax-code claim is based on what you told HMRC. If you pay more or less, update HMRC so next year's code is right.
Frequently asked questions
Is higher-rate pension tax relief paid into my pension?
No. Under relief at source your provider adds only the basic 20%. The extra relief for 40% or 45% taxpayers is given to you by HMRC, as a lower tax bill on your return or through your tax code.
How does HMRC pay the extra relief if I don't file a tax return?
HMRC's online service gives the relief through your tax code for the current tax year. HMRC says it will review the claim and contact you within 28 working days.
Can I put the refund into my pension?
Yes. It becomes a new contribution in the tax year you pay it. The provider adds 20%, and you can claim higher-rate relief on it if it fits within your earnings, your annual allowance and your income taxed at 40%.
How far back can I claim higher-rate pension relief?
Four years after the end of the tax year you paid the contribution. As at October 2026 you can still claim for 2022/23 until 5 April 2027.
What do I need to make a claim?
Your National Insurance number, the pension type and provider, the net amount you paid in each tax year, your payroll or reference number, and proof of the contributions for each tax year you claim.
Why is my refund smaller than I expected?
The most common reasons are entering the net instead of the gross figure on your return, or only part of the contribution matching income taxed at 40%. Relief at 40% only applies up to the amount of income you pay 40% on.
Related: how to claim higher-rate relief · which box on your tax return · higher-rate relief calculator
Sources & references
- Claim tax relief on your private pension payments — GOV.UK
- Tax overpayments and underpayments — GOV.UK
- Taxes Management Act 1970, section 43: time limit for claims — legislation.gov.uk
- Pension tax relief — GOV.UK
- Self Assessment tax returns: corrections — 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: General information for the 2026/27 tax year, England, Wales and Northern Ireland rates. Scottish taxpayers claim extra relief at 1%, 22%, 25% or 28%; see the Scotland guide.