Can I Claim Extra Pension Tax Relief for a Spouse or Partner?

Introduction

Pension tax relief is one of the most valuable benefits available to UK taxpayers. It allows you to save for retirement in a tax-efficient way by reducing the amount of tax you pay on pension contributions. However, many people wonder if they can extend this benefit to their spouse or partner by claiming extra tax relief on their behalf.

The short answer is that you cannot directly claim extra pension tax relief for your spouse or partner, but there are several legitimate ways to help them boost their pension and make the most of the tax system together. This article explains how pension tax relief works, what options exist for couples, and how you can both maximise your retirement savings.

How Pension Tax Relief Works

When you contribute to a pension, the government gives you tax relief to encourage saving for retirement. The amount of relief depends on your income tax rate.

• Basic-rate taxpayers (20%) receive 20% tax relief automatically. For example, if you pay £80 into a pension, the government adds £20, making a total contribution of £100.

• Higher-rate taxpayers (40%) can claim an extra 20% relief through their Self Assessment tax return.

• Additional-rate taxpayers (45%) can claim an extra 25% in the same way.

Tax relief is available on pension contributions up to 100% of your earnings or the annual allowance, which is currently £60,000 for the 2024 25 tax year (whichever is lower).

Can You Claim Pension Tax Relief for a Spouse or Partner?

You cannot claim tax relief for contributions made to your spouse or partner’s pension from your own income. Tax relief applies only to contributions you make to your own pension or those deducted from your salary.

However, you can contribute to your partner’s pension as a form of financial support. The contribution goes into their pension pot, but the tax relief is given based on their income, not yours.

Contributing to a Non-Earning Spouse’s Pension

If your spouse or partner earns little or no income, they can still benefit from tax relief on pension contributions.

The government allows non-earners to contribute up to £2,880 per tax year into a personal pension. The government then adds 20% tax relief, bringing the total contribution to £3,600.

This rule applies even if your partner does not pay any tax, making it a useful way to build pension savings for non-working partners such as stay-at-home parents or part-time workers.

Example Scenario

Emma works full-time and pays tax through PAYE. Her husband, Tom, stays at home to look after their children and has no income.

Emma decides to help Tom save for retirement by contributing £2,880 into his personal pension. The government adds 20% tax relief (£720), so Tom’s pension receives £3,600 in total.

The contribution is made in Tom’s name, and he receives the tax benefit, but Emma effectively funds the payment. This strategy helps them both build long-term retirement savings in a tax-efficient way.

Couples with Unequal Earnings

If one partner earns significantly more than the other, there are still ways to optimise pension contributions together.

1. Higher earner maximises their own pension relief:
   The higher earner can take advantage of their higher tax band to claim greater relief. For example, a 40% taxpayer receives double the tax relief of a 20% taxpayer.

2. Low earner still contributes to a pension:
   Even if the lower earner pays little or no tax, contributing up to £2,880 per year ensures they receive 20% government top-up.

3. Spreading retirement savings:
   Building pension savings in both partners’ names can reduce the tax you pay in retirement, as each partner benefits from their own personal allowance (currently £12,570 per year).

Using Workplace Pensions

If both you and your partner are employed, each of you can benefit from auto-enrolment into a workplace pension. Employers must contribute at least 3% of qualifying earnings, while employees contribute 5% including tax relief.

Encouraging your partner to stay enrolled in their workplace pension is an easy way to secure extra contributions and long-term benefits. If they opt out, they may lose valuable employer contributions and tax relief.

Higher-Rate Taxpayers and Partner Contributions

If you are a higher-rate taxpayer, you cannot transfer your tax relief directly to your partner. However, you can increase your own contributions to take advantage of your higher tax rate. This reduces your overall tax bill and can strengthen your household’s combined retirement savings.

For instance, if you earn £70,000 and contribute £10,000 to your pension, you can claim an extra 20% (£2,000) through your Self Assessment, reducing the total cost of that contribution to £8,000.

Marriage Allowance and Pension Planning

Although you cannot share pension tax relief, married couples and civil partners can benefit from the Marriage Allowance if one partner earns less than the personal allowance threshold.

The lower-earning partner can transfer up to £1,260 of their personal allowance to their spouse, saving up to £252 per year in tax. This extra money could then be redirected into pension savings for either partner.

Keep Track of Allowances

When contributing to pensions, couples should keep an eye on:

• The annual allowance (£60,000 limit per year)

• The money purchase annual allowance (MPAA), which drops to £10,000 once you start drawing pension benefits

• The lifetime allowance, which was abolished in 2024 but may still affect older pension savings

Exceeding these limits can trigger tax charges, so it’s important to monitor contributions if both partners are saving aggressively.

How an Accountant or Adviser Can Help

An accountant or financial adviser can help couples plan their pensions efficiently by:

• Reviewing your income levels and tax positions

• Ensuring both partners maximise available allowances

• Helping non-earners set up personal pensions

• Advising on whether to increase contributions or use other savings vehicles

• Making sure you stay compliant with HMRC rules

Professional advice is particularly useful if one of you is self-employed, has irregular income, or receives variable bonuses.

Conclusion

You cannot claim extra pension tax relief directly for your spouse or partner, but you can help them build their retirement savings in several ways. By contributing to their pension, supporting them to stay enrolled in a workplace scheme, or using allowances like Marriage Allowance, couples can grow their pensions together in a tax-efficient way.

Reviewing your finances as a household rather than individually ensures both partners benefit from tax relief and build a secure retirement plan. If you are unsure how much to contribute or how tax relief applies, an accountant or financial adviser can guide you to make the most of your allowances.