What’s ‘relief at source’?


This is one of the two ways you can get tax relief on the money you add to your pension pot.

Relief at source means your contributions are taken from your net pay (after your wages are taxed). Then we (or any other pension provider) automatically claim tax relief for you from HM Revenue & Customs (HMRC), adding the basic tax rate of 20% to your pension contributions.

  • You’d get the basic 20% rate in tax relief added to your pension savings, even if you don’t actually pay tax (for example, even if you earn less than the standard personal allowance of £12,570 a year for the 2021/22 tax year).
  • If you pay a higher rate of tax, you can claim the extra tax relief back from HMRC in your tax return.
  • The alternative is a net pay arrangement.

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