What are the tax relief amounts on pension contributions?
The following tax facts should be viewed as an indication of the rates and allowances available and relate to the current tax year (2022/2023) unless stated otherwise. Tax law is notoriously complex and we cannot replicate every rule, nuance or exemption here. Therefore you should not make, or refrain from making, any decisions based on this information alone. If you are in any doubt as to the suitable course of action we recommend you seek tax advice. Remember tax rules can change and depend on your personal circumstances.
| Tax status | Tax relief 2022/23* | Net cost of £1,000 gross contribution 2022/23 |
|---|---|---|
| Non-taxpayer (including children) and Scottish Starter rate | 20% | £800 |
| Scottish intermediate rate | 21%* | £790 |
| Scottish higher rate | 41%* | £590 |
| Scottish additional rate | 46%* | £540 |
| Basic rate taxpayer | 20% | £800 |
| Higher rate taxpayer | 40%* | £600 |
| Additional rate taxpayer | 45%* | £550 |
* Any tax relief above basic rate is restricted to the amount of tax paid at that rate. This assumes no other taxable income.