How to Claim your Higher Rate Pension Tax Relief

A pension tax rebate can potentially be due in specific circumstances for individuals who pay tax at or above the higher rate of tax.

The pension tax relief available is not automatically given for higher rate and additional rate taxpayers.

If you are basic rate taxpayer tax relief for pension contributions is applied automatically so you don’t need to make a claim.

UK non resident tax payers who pay tax on pension income from the UK can also be eligible depending on the double taxation agreement with the country you reside in.

A four year time limit is applicable and you can backdate a claim within this time frame.

How to Claim Higher Rate Pension Tax Relief

Paying into a private pension means you can claim back an extra 20% tax relief if you’re a higher rate tax payer (paying tax at 40% or higher).

It’s reported in the region of 250,000 higher rate tax payers don’t claim back the additional tax relief they are entitled to.

If you complete a self assessment tax return you should include your private pension contributions for that tax year on your tax return and any overpayment of tax will be repaid to the bank account given on your tax return.

For any higher rate taxpayers who don’t complete a tax return you should write to HMRC directly at:

Pay As You Earn and Self Assessment
HM Revenue and Customs
BX9 1AS
United Kingdom

Or you can HMRC on:

0300 200 3300

HMRC will send you a P800 tax calculation through the post and repay any overpaid income tax by BACS online or by cheque.

How to claim Additional Rate Pension Tax Relief

For those who have paid tax at the additional rate of tax the same applies as above for higher rate taxpayers.

The only difference is that the rate of 45% is used to calculate the pension tax relief due.

As an additional rate taxpayer you will have to complete a self assessment tax return and you should include your private pension contributions on your tax return.

When HMRC processes your tax return you will usually receive any overpaid income tax directly into your bank account.

Non Resident Pension Tax Relief

Hundreds of thousands of UK expats pay income tax on their government and private pension income even though they aren’t resident in the UK.

Depending on the country(s) you are living in you might be able to reclaim some or all of the tax you have paid on your UK pension income over the last four years.

A non resident can also be entitled to claim a tax rebate on any pension lump sums received within the last four tax years.

How you claim back non resident pension tax relief will depend on your circumstances.

For individuals who complete a self assessment tax return in the UK the relief will have to be claimed back by completing the necessary section on your tax return.

If you don’t complete a self assessment tax return in the UK you will normally have to complete HMRC form R43 and post it to HMRC at:

Pay As You Earn
HM Revenue and Customs
BX9 1AS
United Kingdom

Find out more about pensions and being a UK non resident in our Non Residents Pension Tax Relief Guide and Non Residents Tax Return Guide.