Higher Rate Tax Relief on Pension Contributions Example
See how higher rate tax relief works with real-life examples. Discover how much you can claim and how it affects your tax bill.
If you're a higher rate taxpayer, you may be entitled to claim extra tax relief on your pension contributions beyond the 20% automatically added by your provider. But how does this actually work in practice?
To make things clearer, we’ve put together real-life higher rate tax relief on pension contributions examples showing exactly how higher rate tax relief applies. Whether you’re paying into a workplace pension or a personal pension, these examples will help you understand how much you can save on tax.
The examples cover the income tax bands and the proportion of the contribution that falls into each one; the personal allowance (£12,570 in 2024/25) and the gradual loss of personal allowance between an income of £100,000 and £125,140. Tax relief can only be claimed on contributions up to your earnings. You must pay sufficient tax at the higher or additional rate to claim the full 40% or 45% tax relief.
Annual Salary Before Tax
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3% Pension Contributions = £1,650
To make a gross pension contribution of £1,650 you only need to pay: £1,320. The government will add 20% basic rate tax relief: £330.
As a 40% higher rate taxpayer you can claim back up to an extra £330 which you can receive as a tax refund or add it to your existing pension contributions.
For as little as £100, Towerstone Accountants will secure your tax refund with no upfront costs, handling all the paperwork from start to finish. Contact us today to claim your tax refund.
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3% Pension Contributions = £1,800
To make a gross pension contribution of £1,800 you only need to pay: £1,440. The government will add 20% basic rate tax relief: £360.
As a 40% higher rate taxpayer you can claim back up to an extra £360 which you can receive as a tax refund or add it to your existing pension contributions.
For as little as £100, Towerstone Accountants will secure your tax refund with no upfront costs, handling all the paperwork from start to finish. Contact us today to claim your tax refund.
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3% Pension Contributions = £1,950
To make a gross pension contribution of £1,950 you only need to pay: £1,560. The government will add 20% basic rate tax relief: £390.
As a 40% higher rate taxpayer you can claim back up to an extra £390 which you can receive as a tax refund or add it to your existing pension contributions.
For as little as £100, Towerstone Accountants will secure your tax refund with no upfront costs, handling all the paperwork from start to finish. Contact us today to claim your tax refund.
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3% Pension Contributions = £2,100
To make a gross pension contribution of £2,100 you only need to pay: £1,680. The government will add 20% basic rate tax relief: £420.
As a 40% higher rate taxpayer you can claim back up to an extra £420 which you can receive as a tax refund or add it to your existing pension contributions.
For as little as £100, Towerstone Accountants will secure your tax refund with no upfront costs, handling all the paperwork from start to finish. Contact us today to claim your tax refund.
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3% Pension Contributions = £2,250
To make a gross pension contribution of £2,250 you only need to pay: £1,800. The government will add 20% basic rate tax relief: £450.
As a 40% higher rate taxpayer you can claim back up to an extra £450 which you can receive as a tax refund or add it to your existing pension contributions.
For as little as £100, Towerstone Accountants will secure your tax refund with no upfront costs, handling all the paperwork from start to finish. Contact us today to claim your tax refund.
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3% Pension Contributions = £2,400
To make a gross pension contribution of £2,400 you only need to pay: £1,920. The government will add 20% basic rate tax relief: £480.
As a 40% higher rate taxpayer you can claim back up to an extra £480 which you can receive as a tax refund or add it to your existing pension contributions.
For as little as £100, Towerstone Accountants will secure your tax refund with no upfront costs, handling all the paperwork from start to finish. Contact us today to claim your tax refund.
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3% Pension Contributions = £2,550
To make a gross pension contribution of £2,550 you only need to pay: £2,040. The government will add 20% basic rate tax relief: £510.
As a 40% higher rate taxpayer you can claim back up to an extra £510 which you can receive as a tax refund or add it to your existing pension contributions.
For as little as £100, Towerstone Accountants will secure your tax refund with no upfront costs, handling all the paperwork from start to finish. Contact us today to claim your tax refund.
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3% Pension Contributions = £2,700
To make a gross pension contribution of £2,700 you only need to pay: £2,160. The government will add 20% basic rate tax relief: £540.
As a 40% higher rate taxpayer you can claim back up to an extra £540 which you can receive as a tax refund or add it to your existing pension contributions.
For as little as £100, Towerstone Accountants will secure your tax refund with no upfront costs, handling all the paperwork from start to finish. Contact us today to claim your tax refund.
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3% Pension Contributions = £2,850
To make a gross pension contribution of £2,850 you only need to pay: £2,280. The government will add 20% basic rate tax relief: £570.
As a 40% higher rate taxpayer you can claim back up to an extra £570 which you can receive as a tax refund or add it to your existing pension contributions.
For as little as £100, Towerstone Accountants will secure your tax refund with no upfront costs, handling all the paperwork from start to finish. Contact us today to claim your tax refund.
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3% Pension Contributions = £3,000
To make a gross pension contribution of £3,000 you only need to pay: £2,400. The government will add 20% basic rate tax relief: £600.
As a 40% higher rate taxpayer you can claim back up to an extra £600 which you can receive as a tax refund or add it to your existing pension contributions.
For as little as £100, Towerstone Accountants will secure your tax refund with no upfront costs, handling all the paperwork from start to finish. Contact us today to claim your tax refund.
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3% Pension Contributions = £3,150
To make a gross pension contribution of £3,150 you only need to pay: £2,520. The government will add 20% basic rate tax relief: £630.
As a 40% higher rate taxpayer you can claim back up to an extra £1,260 which you can receive as a tax refund or add it to your existing pension contributions.
For as little as £100, Towerstone Accountants will secure your tax refund with no upfront costs, handling all the paperwork from start to finish. Contact us today to claim your tax refund.
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3% Pension Contributions = £3,300
To make a gross pension contribution of £3,300 you only need to pay: £2,640. The government will add 20% basic rate tax relief: £660.
As a 40% higher rate taxpayer you can claim back up to an extra £1,320 which you can receive as a tax refund or add it to your existing pension contributions.
For as little as £100, Towerstone Accountants will secure your tax refund with no upfront costs, handling all the paperwork from start to finish. Contact us today to claim your tax refund.
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3% Pension Contributions = £3,450
To make a gross pension contribution of £3,450 you only need to pay: £2,760. The government will add 20% basic rate tax relief: £690.
As a 40% higher rate taxpayer you can claim back up to an extra £1,380 which you can receive as a tax refund or add it to your existing pension contributions.
For as little as £100, Towerstone Accountants will secure your tax refund with no upfront costs, handling all the paperwork from start to finish. Contact us today to claim your tax refund.
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3% Pension Contributions = £3,600
To make a gross pension contribution of £3,600 you only need to pay: £2,880. The government will add 20% basic rate tax relief: £720.
As a 40% higher rate taxpayer you can claim back up to an extra £1,440 which you can receive as a tax refund or add it to your existing pension contributions.
For as little as £100, Towerstone Accountants will secure your tax refund with no upfront costs, handling all the paperwork from start to finish. Contact us today to claim your tax refund.
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3% Pension Contributions = £3,750
To make a gross pension contribution of £3,750 you only need to pay: £3,000. The government will add 20% basic rate tax relief: £750.
As a 40% higher rate taxpayer you can claim back up to an extra £1,500 which you can receive as a tax refund or add it to your existing pension contributions.
For as little as £100, Towerstone Accountants will secure your tax refund with no upfront costs, handling all the paperwork from start to finish. Contact us today to claim your tax refund.
HELP & GUIDANCE
Lost, puzzled or confused? Our team have put together comprehensive guidance articles based on frequently asked questions that arise during consultation stages. Whether you are looking to obtain a refund, want to understand how higher rate tax relief on pension contributions works or want to find out if you can benefit then click below to find out more.
Refund estimate based on 4 submissions with earnings between £55k to £125k
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