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.

This calculator shows you how much tax relief you can receive now. It does not show if you're eligible to make a contribution. You can only contribute tax-efficiently up to as much as you earn. The annual allowance (including the money purchase annual allowance or tapered annual allowance, if applicable) could also affect you. Check how much you can contribute.

You must pay sufficient tax at the intermediate (Scottish tax payers only), higher or top rate to claim the full tax relief. Scottish taxpayers can claim up to 46% tax relief. Tax rules can change over time and the benefits will depend on your individual circumstances.

Find out more about pension tax relief - Download our guide

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

Your annual income

How much would you like to contribute £

I pay income tax in Scotland

What could you consider next?

Make a pension contribution now

Top up your SIPP

Start a SIPP

More information

Download our tax relief guide

More about the HL SIPP

Any questions? Contact us:

0117 980 9926

Important information

This calculator does not confirm the amount you are eligible to invest. If you exceed the annual allowance (including the money purchase annual allowance or tapered annual allowance, if applicable) your contribution will be subject to a tax charge. Find out more about how much you can invest.

The calculator covers the income tax bands and the proportion of the contribution that falls into each one; the personal allowance (£12,500 in 2019/20) and the gradual loss of personal allowance between an income of £100,000 and £125,000. However, other factors may affect how much tax relief you're eligible to claim.

Monies in a pension cannot normally be accessed until age 55 (57 from 2028).

Tax rules can change over time and the relief you receive will depend on your individual circumstances. Non-Scottish UK taxpayers must pay sufficient tax at the higher or top rate to claim the full higher (40%) or top (45%) rate tax relief. Scottish UK taxpayers must pay sufficient tax at the Scottish intermediate, higher or top rate to claim the full Scottish intermediate (21%), higher (41%) or top (46%) rate tax relief. This calculator is for illustrative purposes and cannot cover every nuance of the rules. It is not personal advice. Correct at 1 April 2019.

For more details of the Scottish rate of Income Tax please see GOV.UK

This is your current annual taxable income. It will be used to calculate the amount of tax relief you are eligible to receive.

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. A £40,000 annual allowance currently applies to most people, although you may be able to carry forward unused allowances to invest as much as £160,000 now. The figures are for the 2019/2020 tax year.

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.