Relief at source (pension)
UK tax glossary · Last reviewed: April 2026
Your employer deducts pension from net pay after tax. The pension provider claims 20% tax relief from HMRC and adds it to your pot — so a £80 contribution becomes £100 for basic-rate taxpayers.
Higher-rate taxpayers claim additional relief through Self Assessment or HMRC adjustment.
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TaxHelper provides general information based on published HMRC rates and guidance. It is not regulated financial or tax advice. For decisions involving significant sums, complex circumstances, or if you are unsure, speak to a qualified accountant or HMRC directly.