Are you leaving higher-rate pension relief unclaimed?

If you're a higher or additional-rate taxpayer paying into a personal pension or a workplace “relief at source” scheme, there's a decent chance HMRC owes you money you've never asked for. The reason is buried in how pension tax relief is delivered — and it's one of the most common, most expensive oversights in personal tax.

The relief you get automatically

Under relief at source — how most personal pensions and SIPPs work — you pay in from your already-taxed money, and the pension provider claims 20% basic-rate relief from HMRC and adds it to your pot. Pay in £80 and the provider tops it up to £100. That happens automatically, for everyone, whatever your tax rate.

The relief you have to claim

Here's the catch: 20% is all you get automatically. If you pay tax at 40% or 45%, you're entitled to a further 20% or 25%— but HMRC doesn't hand it over unless you ask. On a £10,000 gross contribution that's £2,000 or £2,500 a year sitting unclaimed.

How to claim it

1. If you file Self AssessmentEnter your gross personal pension contributions in the reliefs section. The extra relief either reduces your tax bill or comes back as a refund.
2. If you don't file a returnTell HMRC directly — online through your Personal Tax Account, by phone, or in writing. For ongoing contributions they can adjust your tax code so you get the relief through your pay.
3. Keep the evidenceHold on to your annual pension statements showing the gross contributions, in case HMRC asks.

How far back you can go

You don't only get to fix this year. You can generally claim overpaid relief going back four tax years. For a consistent higher-rate saver, four years of unclaimed 20% relief can run well into five figures — a one-off windfall worth the afternoon it takes to sort out.

The annual allowance catch

Before you maximise contributions to grab the relief, check you're within your annual allowance— £60,000 for most people in 2025-26, or as little as £10,000 if you're a very high earner caught by the tapered allowance, or if you've flexibly accessed a pension and triggered the £10,000 money purchase annual allowance. Contributions above your allowance trigger a tax charge that can wipe out the relief. You can also carry forward unused allowance from the previous three years if you need headroom.