Pension Tax Relief Explained: How to Claim and Maximize Benefits
Pension contributions receive tax relief at your marginal rate. A higher-rate taxpayer saves 40p for every £1 contributed.
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Basic rate taxpayers receive 20% tax relief automatically through relief at source. Higher and additional rate taxpayers can claim extra relief via self-assessment. The annual allowance is £60,000 (or 100% of earnings if lower). Salary sacrifice pension arrangements can also reduce NI bills.
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax laws change frequently — consult a qualified tax professional or official government resources for advice specific to your situation.
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