Pension tax relief calculator
How little could your pension contribution cost you?
You can receive up to 45% pension tax relief for this tax year (2019/20) when you make a contribution to a pension such as the HL SIPP. The higher your rate of tax, the more you could receive.
Example for UK (not Scottish) tax payer:
- 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.
If you’re a Scottish tax payer different tax bands and rates apply to your income. This means the tax relief available will be slightly different. We have more information on our Scottish income tax changes page.
Calculate your tax relief
Why have we used these figures?
The chancellor will announce the outcome of a review of pension tax relief on 16 March 2016. It has been widely reported he is considering introducing a single savings incentive of between 25% and 33% for everyone.
It is important to note nothing has been confirmed. The chancellor could decide to change nothing or choose a different system.