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).
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 utilise HMRC’s online dedicated portal.
It’s specifically designed for higher rate pension relief claims and can be accessed through the official .GOV website.
Alternatively, if you prefer a more traditional approach, you may submit a written application along with supporting documentation for each individual tax year to the following address:
Pay As You Earn and Self Assessment
HM Revenue and Customs
BX9 1AS
United Kingdom
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 might 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 “Tax Reliefs” 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.
