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Pension tax relief calculator

How little could your pension contribution cost you?

Remember, tax rules can change over time and the relief you receive will depend upon your circumstances.

Calculate the tax relief you could receive on your lump sum personal pension contribution below:

£

£

You can receive up to 45% pension tax relief for this tax year (2014/2015) when you make a contribution to a pension such as the Vantage SIPP. Basic, higher and top rate taxpayers can benefit: the higher your rate of tax, the more you could receive.

For example:

  • You contribute £8,000 into your pension.
  • The government adds £2,000, to make a total investment of £10,000.
  • Higher and top rate taxpayers can then claim back even more via their tax return. £10,000 in a pension could therefore effectively cost a 40% rate taxpayer as little as £6,000 and a 45% rate taxpayer as little as £5,500.
Instant download: free guide to pension tax relief

Please note, this calculator illustrates how much tax relief you could receive on your pension contribution, not if you're eligible to make the contribution. Check how much you can contribute

This is your current annual taxable income. It will be used to calculate the top rate of tax relief you are eligible to claim.
This is the (gross) lump sum contribution you would like to pay into your pension. It will be used to calculate the net amount you'll actually pay and the basic rate tax relief you'll receive from the government.

At a glance: pension tax relief

Your personal pension tax relief depends on your circumstances. Below are the generic UK pension tax relief rules for the 2014/2015 tax year.

  • Non-taxpayers - non-taxpayers receive basic rate tax relief. For those without earned income, the maximum payment is £2,880 to which the taxman adds £720, to make a total gross contribution of £3,600.
  • Basic-rate taxpayers - Basic-rate taxpayers receive 20% tax relief. For instance, you make a payment of £8,000 to which the taxman adds £2,000 to make a contribution of £10,000.
  • Higher-rate taxpayers - Higher-rate taxpayers receive 20% pension tax relief, and can claim back up to a further 20% through their tax return. With higher-rate tax relief, a £10,000 contribution could effectively cost as little as £6,000.
  • Top-rate taxpayers - Top-rate taxpayers receive 20% tax relief, and can claim back up to a further 25% through their tax return. With top-rate tax relief, a £10,000 contribution could effectively cost as little as £5,500.