If you are a higher rate taxpayer with a relief-at-source pension and you have not been filing Self Assessment returns, you may be owed significant tax relief going back up to four years. The process to reclaim it is straightforward — here is exactly how.
How Pension Tax Relief Works
There are two methods pension schemes use:
| Method | How relief is given | Who claims the extra? |
|---|---|---|
| Relief at source | Provider reclaims 20% basic rate from HMRC; you receive gross amount | Higher/additional rate taxpayers must claim extra via SA |
| Net pay | Contribution deducted before tax is calculated; full relief automatic | No additional claim needed |
Most personal pensions (SIPPs, personal pensions, stakeholder pensions) use relief at source. Most workplace defined benefit and many defined contribution pensions use net pay.
If you are unsure which method applies to you, check your pension provider’s documentation or ask your HR department.
The Extra Relief Higher Rate Taxpayers Are Missing
Under relief at source, your provider handles the basic 20% — but nothing more. If you pay Income Tax at 40% or 45%, you are entitled to additional relief that the provider does not claim for you.
In 2026/27:
- Higher rate taxpayers (income £50,271–£125,140): entitled to additional 20%
- Additional rate taxpayers (income over £125,140): entitled to additional 25%
Example — Claire, age 45, earns £68,000:
- Contributes £800/month net into her personal pension = £9,600/year
- Provider reclaims 20% basic rate → gross contribution = £12,000
- Claire is entitled to additional 20% on £12,000 gross = £2,400 extra relief per year
If Claire has not been filing Self Assessment returns, she has not claimed this relief. Over four years that is up to £9,600 unclaimed.
Key Figures 2026/27
| Amount | |
|---|---|
| Annual allowance | £60,000 |
| Money Purchase Annual Allowance (post-drawdown) | £10,000 |
| Basic rate relief (auto via provider) | 20% |
| Additional relief — higher rate (40%) | Extra 20% to claim |
| Additional relief — additional rate (45%) | Extra 25% to claim |
| Claim window | Current + 4 prior tax years |
How to Claim: Via Self Assessment
If you are registered for Self Assessment, you claim additional pension tax relief on your Self Assessment return each year:
- In the Reliefs section, enter the total gross pension contributions
- HMRC calculates the additional relief and reduces your tax bill accordingly
- Any overpaid PAYE tax is refunded
For previous years where you did not file a return, you need to:
- Register for Self Assessment if you are not already registered
- File a return for each relevant year (up to four years back)
- HMRC will process the amended position and issue a repayment
How to Claim: Without Filing a Full Return
If you are not required to file a Self Assessment return (for example, all your income is via PAYE with no other complications), you can write to HMRC directly to claim additional pension relief.
Write to: HMRC, Pay As You Earn and Self Assessment, BX9 1AS
Your letter should include:
- Your full name and National Insurance number
- Each tax year you are claiming for
- The pension provider name and reference number
- Total net contributions each year
- Statement that contributions were to a relief-at-source scheme
- Confirmation you were a higher or additional rate taxpayer in those years
HMRC may ask for evidence (pension statements, P60s, or P2 coding notices). It processes these claims within 4–8 weeks.
Carry Forward: A Different but Related Opportunity
If you have also unused annual allowance from the past three years (not used up contributions), you can carry it forward and make larger contributions now. In 2026/27, this allows contributions above the standard £60,000 annual allowance — provided you have been a pension scheme member in the years you carry forward from.
Carry forward and retrospective relief claims can both apply if you want to:
- Make a large pension contribution this year (using carry forward)
- Also reclaim higher rate relief on contributions from previous years
These are separate tax operations — you can do both.
What If You Have Exceeded the Annual Allowance in a Past Year?
If your total pension contributions (including employer contributions) exceeded the annual allowance in a past year, you may have an Annual Allowance charge. Claiming higher rate relief does not affect this — the Annual Allowance charge and the tax relief calculation are independent. Confirm your contribution history with your pension provider.
See our income tax guide, self-assessment guide, and personal pension explained guide.