RPSM05101370 - Technical Pages: Contributions and tax relief: Member contributions: Methods of claiming tax relief: Relief on making a claim

Relief on making a claim

It will not always be possible to use either the relief at source or the net pay arrangement.

Relief on making a claim may be used instead of the relief at source or net pay methods

• by a holder of a retirement annuity contract (RAC) – where the RAC does not operate the relief at source system,
• by a member of public service pension schemes or a marine pilots’ fund who is not an employee; or
• where contributions are made by a third party if the member is in an occupational pension scheme which accepts contributions under the net pay arrangement.

A marine pilots’ benefit fund is a fund established under section 15(1)(i) of the Pilotage Act 1983, or any scheme supplementing or replacing such a fund.

Individuals will be also able to make a claim for tax relief, generally using the Self Assessment system where the full amount of tax relief has not been given through a net pay arrangement where

• a member makes relievable pension contributions in excess of employment income or
• the sponsoring employer is not able to deduct the contribution from the member’s earnings.

Some individuals are unable to use either the relief at source or the net pay arrangements due to the circumstances of their occupation. Migrant member relief and corresponding relief must be given by making a claim for relief. RPSM13101000 gives more information.