Pay into a SIPP and the government tops it up. Enter your contribution and tax rate to see the 20% basic-rate relief added automatically, the extra higher or additional-rate relief you claim back, and what the contribution really costs you.
Relief at source · 2026/27
A SIPP (Self-Invested Personal Pension) gets tax relief through a system called relief at source. You pay in from your taxed income, and your provider reclaims 20% basic-rate relief from HMRC and adds it to your pot. So for every £80 you pay in, the government adds £20, giving £100 in the pension.
If you pay tax above the basic rate, there is more to come — but you have to claim it:
| Your tax rate | Relief you get | Cost of £1,000 in the pension |
|---|---|---|
| Basic rate (20%) | 20% | £800 |
| Higher rate (40%) | 40% | £600 |
| Additional rate (45%) | 45% | £550 |
You get relief on contributions up to 100% of your earnings, within the annual allowance of £60,000 for most people in 2026/27. High earners may have a tapered allowance as low as £10,000 — check this with the pension annual allowance calculator. Unused allowance from the last three years may be available via carry forward. Non-earners can still pay £2,880 net (£3,600 gross) a year.
When you pay into a SIPP, your provider claims 20% basic-rate relief from HMRC and adds it to your pot automatically. So a £800 payment becomes £1,000 in the pension. If you are a higher (40%) or additional (45%) rate taxpayer, you claim the extra 20% or 25% through Self Assessment or your tax code, making the real cost much lower.
A higher-rate taxpayer gets 40% relief overall. On a £1,000 gross contribution (£800 paid in, £200 added at source), you claim back a further £200 through your tax return, so the real net cost is only £600. Additional-rate (45%) taxpayers get £250 back, costing £550 net for £1,000 in the pension.
Yes. You get tax relief on personal contributions up to 100% of your earnings, capped by the annual allowance — £60,000 for most people in 2026/27, though high earners can have this tapered to as low as £10,000. Contributions above the allowance can trigger a tax charge. Non-earners can still pay in £2,880 and receive £720 of relief.
Yes — only the basic-rate 20% is added automatically. Higher and additional-rate taxpayers must claim the extra relief themselves, usually through a Self Assessment tax return or by contacting HMRC to adjust their tax code. Many people miss this, leaving relief unclaimed, so it is worth checking.
