Pension contribution tax relief (UK)

Eligible pension contributions can receive income-tax relief through different arrangements. Under relief at source the member pays a net amount and the pension provider claims basic-rate relief to add to the pension; additional relief may be available according to the taxpayer’s circumstances. Under a net pay arrangement the employer generally deducts the contribution from pay before income tax is calculated. Eligibility, earnings and annual-allowance limits and the assessment year must be checked; the two arrangements should not be grossed up in the same way.