Answers · UK 2025/26
How does relief at source pension tax relief work?
Under relief at source (RAS), you pay net contributions and your pension provider claims basic rate (20%) tax relief from HMRC on your behalf.
Full answer
With relief at source (RAS), you contribute a net amount and your pension provider tops it up by 20% (reclaiming it from HMRC). A £800 net contribution becomes £1,000 gross. Higher rate taxpayers can claim additional 20% relief through self-assessment, and additional rate taxpayers can claim 25% extra. Scottish taxpayers at 19% (starter rate) over-receive 1% through RAS, while at 21-42% they can claim the difference. Non-taxpayers also receive the 20% top-up.
This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.