Can I Claim Higher Rate Pension Relief for Previous Tax Years

Introduction

When you make pension contributions, you receive tax relief to encourage saving for retirement. Most workplace and personal pension schemes claim basic rate relief automatically, but if you pay tax at 40 percent or 45 percent, you may be eligible for additional relief.

Many people overlook this and end up missing out on hundreds or even thousands of pounds in unclaimed tax relief. Fortunately, it is possible to claim for previous years, but there are time limits and specific steps you must follow.

How pension tax relief works

Tax relief on pension contributions depends on the type of scheme you use and your income tax band. There are two main methods of claiming relief:

Relief at source: Most personal pensions, including stakeholder and self-invested personal pensions (SIPPs), use this system. The provider automatically adds 20 percent basic rate tax relief to your contribution. For example, if you pay £80, your pension provider claims £20 from HMRC, making a total contribution of £100.

If you are a higher rate taxpayer (40 percent) or additional rate taxpayer (45 percent), you can claim the extra relief through your Self Assessment tax return or by contacting HMRC.

Net pay arrangement: Many workplace pensions operate under this system. Contributions are deducted from your salary before tax is calculated, so you receive full tax relief automatically at your marginal rate.

If your pension uses relief at source, it is your responsibility to claim any extra relief owed.

How much higher rate relief you can claim

If you pay Income Tax at 40 percent, you can claim an extra 20 percent on top of the 20 percent already added by your provider.
If you pay 45 percent, you can claim an extra 25 percent.

For example:

You pay £8,000 into your pension.

Your provider adds £2,000 basic rate relief, bringing the total to £10,000.

If you pay 40 percent tax, you can claim an extra £2,000 through HMRC.

If you pay 45 percent, your additional claim would be £2,500.

The amount you can claim depends on your total income, the tax band you fall into, and your total pension contributions for the year.

Can you claim for previous tax years

Yes. You can claim higher rate pension relief for up to four previous tax years. This means that in the 2025 26 tax year, you can still make claims for:

2024 25

2023 24

2022 23

2021 22

Claims for years earlier than that are usually out of time unless there are exceptional circumstances, such as errors made by HMRC.

How to claim higher rate relief for past years

1. Through your Self Assessment tax return

If you complete a Self Assessment return, you can claim higher rate pension relief by including your total gross pension contributions (the amount you paid plus the 20 percent basic rate top-up) in the “Payments to registered pension schemes” section.

HMRC will calculate any additional relief owed and reduce your tax bill or issue a refund.

If you realise after submitting your tax return that you forgot to claim, you can amend your return within 12 months of the filing deadline.

2. By writing to HMRC

If you do not normally complete a Self Assessment tax return, you can still claim higher rate relief by writing to HMRC. Include the following information in your letter:

Your name, address, and National Insurance number.

The tax years you are claiming for.

The total pension contributions made in each year (gross amount).

The name of your pension provider and confirmation that they operate relief at source.

HMRC will adjust your tax code or issue a refund if relief is due.

3. Via your Personal Tax Account

You can also claim online by logging into your Personal Tax Account on GOV.UK. This allows you to review past contributions and request tax relief adjustments electronically.

How long HMRC takes to process a claim

HMRC processing times vary but typically take between 8 and 12 weeks. If your claim spans multiple tax years or requires additional checks, it may take longer. Any refund will usually be paid directly into your bank account or offset against future tax bills.

Limits and restrictions

You can only claim higher rate relief on contributions up to your annual allowance, which is currently £60,000 (or 100 percent of your earnings, whichever is lower).

If you have already accessed your pension flexibly, your allowance may reduce to £10,000 under the Money Purchase Annual Allowance (MPAA).

Unused allowances from the previous three years can be carried forward if you were a member of a registered pension scheme during those years.

You cannot claim relief on employer contributions or on pension payments made through the net pay arrangement, since higher rate relief has already been applied automatically.

Common mistakes to avoid

Assuming your pension provider claims all the relief for you.

Forgetting to claim for earlier years before the four-year deadline expires.

Using incorrect contribution figures (always use the gross amount, including tax relief added by your provider).

Claiming relief on employer contributions, which is not allowed.

Review your pension statements each year to ensure your contributions and tax relief are recorded correctly.

Example of backdated claim

Sarah is a higher rate taxpayer and contributes £8,000 a year to her personal pension. Her provider adds £2,000 in basic rate relief, making her total annual contribution £10,000.

Sarah realises she never claimed the extra 20 percent higher rate relief for the past four years.
Her additional claim for each year is £2,000, totalling £8,000. HMRC reviews her claim and issues a refund covering the full amount, along with interest.

Conclusion

If you are a higher or additional rate taxpayer with a personal pension, you could be missing out on valuable extra tax relief. You can claim for up to four previous tax years by amending your tax return, contacting HMRC, or using your Personal Tax Account.

Acting sooner rather than later ensures you do not miss the time limit and allows HMRC to refund any overpaid tax promptly. Checking your pension contributions each year and keeping accurate records will help you make the most of the tax relief you are entitled to.