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UK Tax Tools

UK Pension Tax Relief Calculator

Calculate the tax relief on your pension contributions for 2025/26 or 2024/25. See your basic rate relief, any additional higher-rate claim, your Annual Allowance position, and the true effective cost of your contribution.

Calculate Your Pension Tax Relief

Enter the total unused Annual Allowance you can carry forward from the past 3 tax years.

Total Tax Relief

£3,946

£2,000 basic + £1,946 additional

Effective Cost of Contribution

£6,054

After relief

Annual Allowance Status

Within Limit

£10,000 of £60,000 used (17%)

Annual Allowance Breakdown
Standard Annual Allowance£60,000
Total Allowance (before earnings cap)£60,000
Earnings Cap£60,000
Effective Annual Allowance£60,000
Tax Relief Breakdown
Contribution within Annual Allowance£10,000
Basic Rate Relief (20%) — auto-applied by provider+£2,000
Additional Relief — claim via Self Assessment+£1,946
Total Tax Relief£3,946
Effective Cost of £10,000 Contribution£6,054

Frequently Asked Questions

How does pension tax relief work in the UK?

When you contribute to a pension, the government tops up your contribution with tax relief. Basic rate taxpayers receive 20% relief automatically — for every £80 you contribute, £100 goes into your pension. Higher rate taxpayers (40%) and additional rate taxpayers (45%) can claim back extra relief through Self Assessment, reducing the effective cost further. In Scotland, different rates apply to the intermediate (21%), higher (42%), advanced (45%), and top (48%) bands.

What is the Annual Allowance for pensions?

The Annual Allowance (AA) is the maximum amount you can contribute to your pension in a tax year while still receiving tax relief. For 2025/26 and 2024/25 the standard AA is £60,000. You can also contribute no more than 100% of your earnings in a tax year. Contributions above the AA are subject to an Annual Allowance Charge, which claws back the tax relief at your marginal rate.

What is the tapered Annual Allowance?

High earners may have a reduced (tapered) Annual Allowance. The taper applies when your threshold income exceeds £200,000 and your adjusted income exceeds £260,000. For every £2 of adjusted income above £260,000, the AA reduces by £1, down to a minimum of £10,000. If your adjusted income reaches £360,000 or more, your AA is capped at £10,000.

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