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Tax relief on pension contributions, meaning some of the money that would go to tax goes into your pension instead.
Pension tax relief means that when you contribute to a pension, the government adds tax relief at your marginal rate. For most employees, relief is given at source — you contribute from after-tax pay, and the pension provider claims basic rate relief (20%) from HMRC. Higher and additional rate taxpayers claim the extra relief through their Self Assessment or by contacting HMRC.
This definition is for informational purposes only and does not constitute tax, legal, or financial advice. Rules may change and outcomes depend on your circumstances.
These GOV.UK and HMRC sources provide the official context for this glossary entry. The definition is educational and does not determine your individual tax position.