You can receive up to 46% pension tax relief for this tax year (2018/2019) 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.