New regulations will be implemented in early September targetting high income earners who claim additional rate pension tax relief.
HMRC isn’t changing the rules around who is eligible to claim higher rate pension tax relief just the process on how you claim the relief.
The department indicated the adjustments in claiming follows an internal assessment revealing approximately one-third of claims up to £10,000 contained errors. HMRC data suggests roughly 80,000 personal pension relief applications are processed annually.
Common issues included submissions from individuals who weren’t higher-rate taxpayers, incorrect reporting of contributions, or claims relating to pensions already managed through “net pay” systems.
A spokesperson for HMRC told the Telegraph: We’re lowering the threshold to ensure that people claim the right amount of relief and protect taxpayers’ money. This comes after we conducted a review which revealed that many claims below the current evidence threshold were incorrect.”
The stricter measures means that claims worth up to £10,000 are now under heavier scrutiny and increased numbers of taxpayers will need to demonstrate eligibility for claims, regardless of the amount involved.
HMRC stated in their August 2025 newsletter that “some individuals may be asked to provide evidence where it would not previously have been required.”
How do I claim higher rate pension tax relief 2025?
Going forward, taxpayers must submit their claims for higher rate pension tax relief via their online portal or through postal correspondence.
If you complete a self assessment tax return you should include your claim on your tax return.
HMRC will cease accepting telephone applications for additional relief from September 2025.
Tax relief by self assessment tax return
For those who submit a self assessment tax return, claims must be made through this process (for both current and previous tax years).
Within your self assessment tax return:
- Navigate to the “Tax Reliefs” section.
- Input your total gross pension contributions (your payment plus the basic 20% tax relief added by your provider).
Your additional rate tax relief will be calculated automatically as part of the self assessment process.
HMRC’s new online pension relief claim tool
Starting September 2025 the new additional rate pension tax relief claim tool becomes available for non-tax return filers.
How to Claim:
- Access the system using your Government Gateway credentials (or create an account if needed).
- Enter the requested pension contribution information.
- Complete your submission (with the option to save and continue later).
To use HMRC’s online service, you’ll require:
- Your national insurance (NINO) number.
- Details of pension type.
- Your pension provider’s name.
- Net pension contributions for each tax year.
- Payment confirmation from your pension provider.
- Your payroll or reference number.
Example letter to claim higher rate pension tax relief
To make a claim for higher rate pension tax relief by letter you can use the template below as a guide. It’s recommended that you keep a copy of your correspondence and any evidence for future reference.
Your Full Name
Your Full Address and Postcode
Your National Insurance Number
Date
HM Revenue and Customs
Pay As You Earn and Self-Assessment
HM Revenue and Customs
BX9 1AS
United Kingdom
Subject: Claim for Higher Rate Tax Relief on Pension Contributions
Dear Sir/Madam,
I am writing to claim higher rate tax relief on my personal pension contributions for the tax year [insert tax year, e.g., 2024/2025].
I am a higher rate taxpayer and have been making personal pension contributions to a [type of pension scheme, e.g., SIPP or personal pension plan] during the above tax year. My contributions have been made from my net income and basic rate relief has been applied at source by the pension provider.
However, as I am subject to the higher rate of income tax, I understand that I am entitled to claim an additional 20% tax relief by writing directly to you, which I am doing here.
Below are the details of my pension contributions:
Total gross contributions made: £[insert amount]
Pension provider: [insert name of provider]
Type of plan: [e.g., personal pension / SIPP]
Period of contributions: [e.g., April 2024 – March 2025]
Please process the additional tax relief due to me, either by adjusting my tax code or issuing a repayment, whichever is appropriate.
If you require any further details or documentation to support this claim, please let me know and I will be happy to provide them.
Thank you for your assistance in this matter.
Yours faithfully,
[Your Full Name]
[Contact number and/or email address]
Check your eligibility before you make a claim
Pension tax relief functions by returning the income tax you’ve paid on your retirement savings.
The principle is simple (but not everyone qualifies): the higher your tax bracket, the greater your potential tax rebate.
If you make a claim incorrectly HMRC will ask for any tax you have had refunded to be repaid.
While most individuals understand the basic 20% tax boost on pension payments, those in higher tax brackets can receive additional relief – but they need to actively claim it.
Currently if you’re paying income tax at 40% or 45% (or 42% and 47% in Scotland), you may be overlooking substantial pension tax relief worth hundreds or thousands of pounds.
Most higher earners participating in workplace schemes typically don’t need to make additional claims.
Individuals holding personal pensions under the “relief at source” method — where only basic-rate relief is automatically included — must still claim or forfeit the relief.
Let’s break it down:
- Higher-rate taxpayers (40%) are eligible for 40% total relief on pension payments. This translates to a £10,000 pension contribution potentially costing just £6,000.
- Additional-rate taxpayers (45%) can receive 45% total relief. This means a £10,000 pension contribution could effectively cost only £5,500.
- In Scotland, the rates differ slightly: 42% and 47% for higher and top-rate taxpayers.
