Higher-Rate Taxpayer? Here's How to Reclaim the Extra 20–25% on Pension Contributions

If you pay tax at 40% or 45% and you’re contributing to a personal pension or SIPP, there’s a good chance you’re only getting part of the tax relief you’re entitled to - and the rest is sitting unclaimed until you ask HMRC for it. Here’s how the system works and how to make sure you’re not leaving money behind.

The two ways pension relief is given

How much relief you get automatically depends on how your pension scheme processes contributions:

• Relief at source (most personal pensions, SIPPs, and many workplace pensions): you pay in from your take-home pay, and your provider automatically claims basic-rate (20%) relief from HMRC and adds it to your pot. So an £80 contribution becomes £100 in your pension. If you’re a higher or additional-rate taxpayer, the extra 20% or 25% relief is not added automatically - you have to claim it yourself.
• Net pay arrangements (common in many workplace pension schemes): your contribution comes out of your salary before tax is calculated, so you automatically get relief at your full marginal rate with nothing to claim. If your workplace pension works this way, this article doesn’t apply to you for that contribution.

If you’re not sure which type you have, check your payslip or ask your pension provider or HR/payroll team - it changes whether you need to do anything.

How much extra relief you’re due

For the 2026/27 tax year, Income Tax rates for most of the UK are 20% (basic rate, up to £50,270), 40% (higher rate, £50,271 to £125,140) and 45% (additional rate, above £125,140). On a relief-at-source pension:

• Basic-rate taxpayers: get the full 20% relief automatically. Nothing further to claim.
• Higher-rate taxpayers: get 20% automatically, and can claim a further 20% back - taking total relief to 40%.
• Additional-rate taxpayers: get 20% automatically, and can claim a further 25% back - taking total relief to 45%.

On a £10,000 gross pension contribution, that’s the difference between £2,000 of unclaimed relief (higher rate) or £2,500 (additional rate) sitting with HMRC rather than in your pocket or your pension.

How to actually claim it

• If you complete a Self Assessment tax return: there’s a specific box for pension contributions under ‘Tax reliefs’. Enter the gross amount you contributed (what you paid in, plus the 20% already added by your provider), and HMRC calculates the extra relief due.
• If you don’t normally file a Self Assessment return: you can still claim by phone, post, or via HMRC’s online service, using form P810 or simply writing to HMRC with details of your contributions.
• You can backdate claims for up to 4 tax years if you’ve been making pension contributions without claiming the extra relief - so this is worth checking even if it’s not the first time you’ve made a contribution.
• If you’re planning a larger contribution this year, it’s also worth checking whether carry forward lets you use unused annual allowance from the previous three tax years as well.

What HMRC does with the extra relief

Unlike the automatic 20%, which goes straight into your pension, the extra relief you claim as a higher or additional-rate taxpayer is usually paid to you - either as a reduction in your tax bill, a refund, or an adjustment to your tax code for future years. It doesn’t automatically go into your pension pot unless you specifically arrange to pay it back in.

Why this matters more in 2026/27

The income tax personal allowance, the higher-rate threshold (£50,270) and the additional-rate threshold (£125,140) have been frozen since 2021/22 and are now confirmed frozen until April 2031. As wages rise with inflation but thresholds don’t move, more people are being pulled into the higher and additional rate bands each year without a pay rise in real terms - HMRC estimates the number of people losing some or all of their personal allowance will keep climbing. If you weren’t a higher-rate taxpayer a couple of years ago but are now, it’s easy to miss that your pension relief entitlement has changed too.

The bottom line

If you’re a higher or additional-rate taxpayer paying into a relief-at-source pension - check your last few years of contributions and make sure you’ve claimed the extra relief you’re owed. It’s one of the simplest, most overlooked wins in UK personal tax.