Every UK resident under 75 qualifies for basic-rate (20%) tax relief on pension contributions (incl. children & non-taxpayers.)

Normally you can use the higher of:

- amount you earn, or £3,600, and

-receive tax relief each year.

Usually there is an limit of £40,000 in a year.

Contribution equals to the money you put in, and what the government adds in tax relief.

If you pay basic-rate tax (20%) you can claim up 20% in tax relief through your tax return.

If you pay higher-rate tax (40%) you can claim up to a further 20% in tax relief through your tax return.

Top-rate taxpayers (45%) can claim back up to a further 25%. But you must pay enough tax to claim it all back

Tax rules can change over time and the relief you receive depends on your circumstances.

When you die your pension is passed to your beneficiaries e.g. your spouse, child, normally this is free from inheritance tax.

If you die before you’re 75, your beneficiaries do not need to pay tax on the withdrawal amounts.

If you die after your 75th birthday, dependent on the beneficiary’s income, withdrawals could be taxed.

Please remember tax rules may change in the future

The lifetime allowance is £1,073,100 and is expected to stay at this level until April 2026.

If you’ve already built up a large pension pot, you might be able to register for protection with HMRC https://www.gov.uk/guidance/pension-schemes-protect-your-lifetime-allowance. Tax rules can change.