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Introduction to this document

In-year pension contribution - claim for tax relief

Anyone who pays tax through PAYE can obtain tax relief for pension contributions by an adjustment to their tax code. One way to achieve this is to write to HMRC.

When to use this form

If you pay contributions to a:

  • pension plan, e.g. a personal pension plan or similar pension arrangement, and pay tax at the higher (40%) or additional (45%) rates; or
  • retirement annuity contract; that’s a pension plan started prior to June 1988, and pay tax at any rate

you are entitled to claim a reduction in your tax liability.

 

Tax relief for pension contributions must be claimed on your self-assessment tax return. However, where you make a one-off additional pension contribution, or increase your regular contributions, leaving your claim until you complete and submit your tax return can mean you have to wait much longer to receive tax relief; almost two years from the date of the contribution wouldn’t be unusual. But if you pay tax through the PAYE system you can receive the tax relief earlier by making an in-year claim.