RPSM05101130 - Technical Pages: Contributions and tax relief: Member contributions: Entitlement to tax relief: Relievable pension contribution

What is a relievable pension contribution?

A relievable pension contribution is a contribution paid to a registered pension scheme by or on behalf of a member of that scheme. This means that the contribution can be paid by the individual member, who must be a relevant UK individual, or by a third party on behalf of the individual member. A contribution will not be a relievable pension contribution if it falls into one of the following categories.

Contributions after age 75

Although contributions can be paid after a member has reached the age of 75, they are not relievable pension contributions and do not qualify for tax relief.

Life assurance premium contributions

Contributions paid to a registered pension scheme after 5 April 2007 (after 31 July 2007 in respect of occupational pension schemes) that are life assurance premium contributions are not relievable pension contributions and do not qualify for tax relief. RPSM05101220 explains what contributions are life assurance premium contributions.

Contributions paid by employers

Contributions paid by a member’s employer do not qualify for tax relief for the member.

No liability to income tax arises to an individual member in respect of earnings where the individual’s employer makes contributions into a registered pension scheme.

Age related or minimum payments

Payments of age related rebates or minimum contributions by HMRC to a contracted-out pension scheme under section 42A(3) or section 43 of the Pension Schemes Act 1993 or the corresponding Northern Ireland legislation are not relievable pension contributions.