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How tax relief helps your pension grow

Frankie Dewar avatar
Written by Frankie Dewar
Updated today

When you pay into your Penfold pension, the government gives your savings a boost through tax relief. This means for every £100 you add, the government usually adds another £25 on top – helping your pension pot grow faster.

Think of it like watering a plant: every contribution you make gets an extra sprinkle from the government, and over time, that growth really adds up.

Here’s how it works:

  • Personal contributions you make to your pension qualify for a 25% top-up.

  • Penfold automatically claims this for you and adds it straight into your account.

  • It normally takes 6–11 weeks for HMRC to process and pay in your top-up.

💡 Higher and additional rate taxpayers can claim back even more on their Self Assessment tax return. You can learn how in our guide: How much tax top-up will I get from the government?

👉 Keep in mind: contributions from your employer, salary sacrifice payments, or transfers from another pension don’t qualify for this tax relief, because they’re already made pre-tax.

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