How is tax relief applied to my pension?

For all personal and third-party contributions, we claim basic rate tax relief of up to 20% on the gross value. 

For example, this turns a net £80 contribution into a £100 gross contribution (with £20 given as tax relief).    

You can see this in your 'Cash statement' in the 'Transactions' tab.

If your rate of income tax in Scotland is 19%, we will claim tax relief for you at a rate of 20%. You do not need to pay the difference. 
Tax relief takes 6 to 11 weeks after a payment to be applied to your account. The tax relief paid into your account will follow the original investment instruction.

For example, if you leave the payment as cash, the tax relief will be left as cash. If you invested the payment in a fund, we will invest your tax relief in the same fund. 
If you are a higher rate (40%) or additional rate (45%) taxpayer, you need to claim the higher rates of tax relief through Self Assessment or by contacting HMRC.   
Higher rate tax relief will either be:

  • repaid as a rebate at the end of the year

  • a reduction in your tax liability

  • a change to your tax code  

If you’re a director or shareholder of a limited company and making employer contributions from your business account, you receive tax relief by allowing pension contributions to be deducted as a legitimate business expense.

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Our UK-based team is ready to answer your questions

Our UK-based team is ready to answer your questions.

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