Can I Get Higher Rate Relief If I Pay Into Someone Else’s Pension

At Towerstone, we specialise in higher rate pension tax relief advice and have written this article for people contributing to another person’s pension. The purpose of this article is to explain what relief applies and what conditions must be met, helping you make informed decisions.

In my experience, this question usually comes from a good place. People want to help a partner, a spouse, or sometimes an adult child, and they also want to understand whether there is a tax efficient way of doing so. Very often it comes up in households where one person is a higher rate taxpayer and the other has little or no income. The higher earner quite reasonably asks why they should lose out on tax relief just because the pension is in someone else’s name.

In my opinion, this is one of those areas of pension tax where the rules are logical once you understand them, but deeply frustrating if you only hear half the story. The answer is not a simple yes or no. In some situations you can benefit from higher rate relief indirectly. In others, you cannot claim higher rate relief at all, even though you are the one paying the money.

In this article I am going to explain exactly how pension tax relief works when you pay into someone else’s pension, who gets the relief, when higher rate relief is available, and the common planning approaches I see in practice. Everything here is based on UK rules and real world scenarios I deal with regularly.

The Key Principle You Need to Understand First

Before anything else, there is one core rule that drives everything.

Pension tax relief belongs to the pension member, not to the person who pays the money.

In my experience, this single sentence explains most of the confusion.

It does not matter whose bank account the contribution comes from. What matters is:

• Who owns the pension
• Who the contribution is made for
• What tax that person pays

If you keep this principle in mind, the rest of the rules make much more sense.

Paying Into Someone Else’s Pension Is Allowed

Let us clear this up early.

Yes, you are allowed to pay into someone else’s pension.

This is very common and perfectly legitimate.

Typical examples include:

• Paying into a spouse’s or civil partner’s pension
• Paying into a non working partner’s pension
• Parents paying into an adult child’s pension
• One partner paying into the other’s personal pension

From experience, pension providers rarely have an issue with where the money comes from, as long as the contribution limits are respected.

But Who Gets the Tax Relief?

This is where expectations and reality often diverge.

When you pay into someone else’s pension:

• The pension contribution is treated as theirs
• The tax relief is based on their tax position
• Not yours

In my opinion, this is the most important thing to understand.

You do not get tax relief just because you paid the money.

How Basic Rate Relief Works in This Situation

Most personal pensions operate under relief at source.

This means:

• The pension provider claims basic rate tax relief
• That relief is added to the pension pot
• It is based on the member’s entitlement

If you pay £2,880 into your spouse’s pension:

• The provider adds £720
• The pension receives £3,600 in total

This basic rate relief is available even if the person has no income at all.

From experience, this surprises many people and is one of the most generous features of the system.

The Special Rule for Non Earners

There is a specific rule that applies to people with little or no earnings.

A person with no earnings can still receive tax relief on pension contributions up to a certain limit.

This allows:

• Non working spouses
• Stay at home parents
• People between jobs

To build pension savings with tax relief.

In my opinion, this is one of the most underused pension planning opportunities for couples.

Where Higher Rate Relief Comes Into the Picture

Now to the heart of the question.

Can you get higher rate relief if you pay into someone else’s pension?

In almost all cases, the answer is no.

Higher rate relief is only available to the person whose pension it is, and only if they pay higher rate tax.

If the pension holder is a basic rate taxpayer or a non taxpayer, there is no higher rate relief to claim, regardless of who funded the contribution.

From experience, this is the point where people feel disappointed.

Why Higher Rate Relief Cannot Be Transferred

Higher rate relief exists to refund tax that the pension member has paid at higher rates.

If the pension member has not paid higher rate tax, there is nothing to refund.

Even if you personally pay higher rate tax, the system does not allow you to attach your tax relief to someone else’s pension.

In my opinion, this is internally consistent, even if it feels restrictive.

A Common Scenario, One Higher Earner and One Non Earner

Let us look at a very common household setup.

• One partner earns £80,000
• The other partner does not work
• The higher earner pays into the non earner’s pension

What happens tax wise?

The non earner can receive:

• Basic rate tax relief on contributions up to the non earner limit

But there is:

• No higher rate relief available
• No reclaim through the higher earner’s tax return

In my experience, this catches many people out because they assume household tax position matters. It does not.

So Is It Ever Worth Paying Into Someone Else’s Pension?

Absolutely yes, and in my opinion, often very much so.

Even without higher rate relief, paying into someone else’s pension can be extremely tax efficient.

The reasons include:

• Basic rate relief still applies
• Pension growth is tax free
• Future income can be taxed more efficiently
• It balances retirement income between partners

From experience, this is more about long term planning than short term relief.

The Advantage of Using Two Pensions Instead of One

One of the biggest benefits of paying into a partner’s pension is income splitting in retirement.

In retirement:

• Each person has their own personal allowance
• Each person has their own tax bands

If all pension income sits with one person, more of it may be taxed at higher rates.

If income is spread across two people, total household tax can be significantly lower.

In my opinion, this is where the real value lies.

Higher Rate Relief, The Indirect Route

While you cannot claim higher rate relief directly on someone else’s pension, there is an indirect planning approach that often works better.

This involves:

• Using your own pension for higher rate relief
• Using your partner’s pension for basic rate relief
• Balancing contributions across both

From experience, this approach maximises relief overall, even though it is not obvious at first glance.

A Practical Planning Example

Consider a couple where:

• One partner is a higher rate taxpayer
• The other partner has little or no income

A common approach I see working well is:

• Higher earner pays heavily into their own pension to get higher rate relief
• Also pays up to the non earner limit into the partner’s pension
• Both pensions grow tax efficiently
• Retirement income is spread across both

In my opinion, this usually produces a better long term outcome than trying to force higher rate relief into the wrong structure.

What About Paying Into a Spouse’s Workplace Pension?

The same principle applies.

If you pay into your spouse’s workplace pension:

• The pension belongs to them
• The relief belongs to them
• Not to you

If their workplace pension uses relief at source:

• Basic rate relief is added
• Higher rate relief only applies if they are a higher rate taxpayer

If their pension uses a net pay arrangement:

• Full relief is given automatically
• But again, only based on their tax rate

From experience, the method of contribution does not change the ownership of the relief.

Salary Sacrifice Does Not Work Across People

Another common misunderstanding involves salary sacrifice.

You cannot sacrifice your salary into someone else’s pension.

Salary sacrifice must relate to your own employment and your own pension.

In my opinion, any suggestion that you can salary sacrifice into a spouse’s pension should be treated with extreme caution.

What About Additional Rate Taxpayers?

The same rules apply at additional rate.

If you pay additional rate tax and pay into someone else’s pension:

• You do not get additional rate relief
• The pension holder’s tax position still controls the relief

From experience, this can feel particularly painful for very high earners, but the logic is consistent.

Gifting Money Versus Paying Directly

In practice, whether you:

• Pay directly into someone else’s pension
• Or gift them money to pay in themselves

The tax outcome is the same.

The contribution is treated as theirs.

There is no income tax charge on the gift itself.

In my opinion, the simplicity of this is helpful, even if it does not unlock higher rate relief.

Inheritance Tax Considerations

One important point from experience is that pension contributions can also have inheritance tax implications.

Money paid into someone else’s pension:

• Leaves your estate
• Is usually outside their estate too
• Can be very efficient for IHT planning

This is especially relevant for higher earners with estate planning concerns.

In my opinion, this is another indirect benefit that is often overlooked.

Contribution Limits Still Apply

Even when you pay into someone else’s pension, the usual limits apply.

These include:

• The annual allowance
• The non earner contribution limit
• Relevant earnings limits

Exceeding these can result in tax charges.

From experience, people sometimes assume limits apply per payer. They apply per member.

Common Misunderstandings I See

Over the years, I see the same mistakes repeatedly.

These include:

• Assuming the payer gets the tax relief
• Thinking household income determines relief
• Believing higher rate relief can be transferred
• Overpaying beyond non earner limits
• Ignoring the long term income planning benefits

In my opinion, most of these come from applying income tax logic to pensions, which does not work.

What HMRC’s Position Is

HMRC is very clear on this point.

Tax relief is given to the pension member, not the contributor.

This is consistent across:

• Personal pensions
• Workplace pensions
• SIPPs

From experience, HMRC challenges arise when people try to bend this rule rather than work with it.

When Professional Advice Is Helpful

You do not always need advice to pay into someone else’s pension.

However, advice can be useful if:

• One partner is a higher rate taxpayer
• One partner has no income
• You are planning long term retirement income
• Inheritance tax is a concern
• Contributions are large

From experience, a short planning conversation can clarify years of uncertainty.

My Professional View

In my opinion, the question should not be can I get higher rate relief if I pay into someone else’s pension.

The better question is how do I structure pension saving across our household in the most tax efficient way overall.

From experience, the answer is almost always a combination of:

• Using higher rate relief on your own pension
• Using basic rate relief on your partner’s pension
• Planning retirement income across two people

Trying to force higher rate relief into someone else’s pension usually leads to frustration rather than better outcomes.

Where this leaves you

So, can you get higher rate relief if you pay into someone else’s pension?

In almost all cases, no. Higher rate relief belongs to the pension holder, not the person paying the money.

However, that does not mean paying into someone else’s pension is a bad idea. On the contrary, it is often one of the most effective long term planning strategies available to couples.

In my experience, the people who get the best outcomes are those who stop chasing relief in isolation and start thinking about pensions as a shared, long term household strategy.

If you would like to explore related pension guidance, you may find Can I still claim higher rate relief if I have changed jobs and Do I get higher rate tax relief automatically through my employer useful. For broader pension guidance, visit our pensions knowledge hub.