This document discusses conditions for tax relief to be claimed, amount of contributions made, income tax relief for contributions made net. It also covers premium for life assurance schemes and implications of employer contributions.
The completion of Boxes 1 to 4 at the top of page TR4 of the Main Tax Return allows a taxpayer to claim tax relief on pension contributions made in the tax year.
Most contributions to registered pension schemes are paid net of basic rate tax relief (via a relief at source scheme), so the only additional relief sought by entry on the Tax Return is relief at higher rates of tax.
For Scottish taxpayers, relief at source is at the Scottish basic rate. For 2017/18 onwards, due to the di-vergence in the Scottish bands and rates from the rest of the UK, multiple bands need to be extended where pension contributions are paid to relief at source schemes. Scottish bands need to be extended for calculating tax on non-savings, non-dividend income. UK bands need to be extended for calculating tax on savings and dividend income. This is discussed further below.
Contributions are paid gross to occupational schemes that use a net pay arrangement.
For the meaning of a registered pension scheme, relief at source scheme and net pay arrangement, see the Pensions glossary of terms guidance note.
The tax relief available for pension contributions is summarised in the Flowchart - tax relief for contribu-tions to a UK registered pension scheme.