Glossary · UK
What is Relief at Source (Pension)?
Pension method where contributions come from net pay and the provider claims 20% tax relief from HMRC.
Full Definition
Relief at Source (RAS) is the method used by personal pensions, SIPPs and many master-trust workplace schemes (including NEST). You contribute from after-tax income; the provider claims back 20% basic-rate relief from HMRC and adds it to your pot — so an £80 net contribution becomes £100 gross. Higher-rate and additional-rate taxpayers can claim the extra 20% or 25% via Self Assessment or by writing to HMRC. RAS works even if you pay no income tax — non-earners can still contribute up to £3,600 gross (£2,880 net) per year and receive the basic-rate top-up.
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Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.