UK SIPP Tax Relief Calculator
See how much UK pension tax relief your SIPP contribution attracts: basic-rate relief added at source (£80 becomes £100), plus the extra relief higher-rate (40%) and additional-rate (45%) taxpayers can claim, and your real out-of-pocket cost.
- Page updated:
- Jul 14, 2026
- Tool version:
- v1.2.0
Overview
When you pay into a SIPP, the government tops up your contribution with pension tax relief. Under the usual 'relief at source' method, you contribute from your take-home pay and your provider automatically reclaims basic-rate (20%) relief from HMRC — so every £80 you pay in becomes £100 in your pension.
Higher-rate and additional-rate taxpayers can claim further relief through their Self Assessment tax return. This calculator shows what lands in your pension, the extra you can reclaim, and your true out-of-pocket cost.
Results
Total paid into your pension
$10,000.00
Basic-rate relief added at source (20%)
$2,000.00
Extra relief you claim via Self Assessment
$2,000.00
Your real cost after all relief
$6,000.00
Total tax relief
$4,000.00
Effective relief rate
40
How to read the result
- What it means
- The displayed value is an estimate based on your inputs. It represents the calculated scenario under current assumptions, not a guaranteed amount.
- Next step
- Use the result as a starting point. Adjust parameters to compare scenarios and validate with a professional when needed.
- Calculation limits
- The model uses simplified formulas and cannot account for all variables in your specific case (local regulations, personal conditions, temporal changes).
Methodology
Relief at source: the gross contribution = your net payment ÷ 0.8 = net × 1.25. The 20% basic-rate relief added at source equals net × 0.25.
Higher-rate (40%) taxpayers reclaim a further 20% of the gross contribution via Self Assessment; additional-rate (45%) taxpayers reclaim a further 25% of the gross.
Real cost = your net payment − the extra relief you reclaim. Total tax relief = gross contribution − real cost.
Effective relief rate = total relief ÷ gross contribution. This comes out at 20% for basic-rate, 40% for higher-rate and 45% for additional-rate taxpayers.
Limits: tax-relievable contributions are capped at the annual allowance (£60,000 for 2025/26, tapered for very high earners) and at 100% of your UK relevant earnings. Scotland has different Income Tax bands, so the extra relief there differs. Source: GOV.UK.
Key takeaways
Estimate your SIPP tax relief: basic-rate relief turns £80 into £100 in your pension, and higher (40%) or additional-rate (45%) taxpayers reclaim more via Self Assessment, lowering your real cost.
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Savings & InvestmentWorked examples
£8,000 paid in by a higher-rate taxpayer
You pay £8,000 from take-home pay and pay 40% Income Tax.
Interpretation
Basic-rate relief makes it £10,000 in your pension. You reclaim a further 20% of £10,000 = £2,000 via Self Assessment, so your real cost is £6,000 — total relief of £4,000 (40%).
£8,000 paid in by a basic-rate taxpayer
Same £8,000 contribution, but you only pay 20% Income Tax.
Interpretation
Your pension still receives £10,000 thanks to basic-rate relief, but there is nothing extra to reclaim. Your real cost is £8,000 and total relief is £2,000 (20%).
Frequently asked questions
How does 'relief at source' work?
You pay into your SIPP from money you have already paid tax on, and the provider claims 20% basic-rate relief from HMRC and adds it to your pot. So £80 of your money becomes £100 invested — a 25% uplift on what you paid.
How do higher-rate taxpayers get the rest?
The extra 20% (or 25% for additional-rate taxpayers) is not added automatically. You claim it through your Self Assessment tax return or by contacting HMRC, and it usually comes back as a reduced tax bill or a rebate.
Is there a limit to how much relief I can get?
Yes. You get tax relief on contributions up to the annual allowance — £60,000 for 2025/26 — or 100% of your earnings if lower. Very high earners have a tapered allowance, and contributions above the limit can trigger a tax charge.
Does this apply in Scotland?
The relief-at-source mechanism is the same, but Scotland has its own Income Tax bands, so the extra relief higher and top-rate Scottish taxpayers can claim differs from the figures here. Check GOV.UK for Scottish rates.
Sources & references
- GOV.UK - Tax on your private pension contributions: tax relief: https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief
- GOV.UK - Tax on your private pension contributions: annual allowance: https://www.gov.uk/tax-on-your-private-pension/annual-allowance
Quality & oversight
- Author
- Ugo Candido, MBA
- Maintained by
- Ugo Candido, MBA
- Page updated
- Jul 14, 2026
- Tool version
- v1.2.0