tax relief
Tax relief is payable at your marginal rate of income tax. This
means that if you are basic rate taxpayer, you receive 20 per cent
income tax relief on any pension contributions you make.
(Contributions can be up to 100 per cent of your earned
income).
If you are a higher rate taxpayer, you get a
further 20 per cent tax relief (in addition to the 20 per cent
automatically given).
Whatever rate of tax you pay, your pension
contributions are automatically paid net of basic rate (20
per cent), even if you are a non taxpayer on contributions of up to
£2,808 pa).
If you are a higher rate taxpayer, you claim the extra 20 per
cent tax relief through your self assessment tax return.