Guide to pension tax relief
In the 2021/22 tax year, the government gave over £51 billion back to investors as tax relief on their pension contributions. And last tax year it’s estimated they gave back around £27 billion.
If you’re a UK resident under 75 you can get tax relief, even if you don’t pay tax.
Our straightforward guide gives a run-down on:
- How pension tax relief currently works
- How much you can contribute to maximise tax relief
- How some high earners could receive up to £81,000 in tax relief
- Restrictions affecting higher earners
This isn’t personal advice, consider taking advice if you’re not sure. You can’t normally access money in a pension until age 55 (57 from 2028) when up to 25% is usually tax free and the rest taxable. Pension and tax rules can change and any benefits will depend on your circumstances.