All Collections
Government tax relief
Does my pension contribution qualify for tax relief?
Does my pension contribution qualify for tax relief?
Laura avatar
Written by Laura
Updated over a week ago

All personal contributions made into your Penfold pension will receive the 25% (basic rate) tax top up from the government. We automatically claim this basic rate tax top up for you, and then add it to your Penfold pension. πŸ˜ƒ

It normally takes around 6 to 11 weeks, from the date of your payment, for the government to process the tax top-up into your account. Please see our article How long does it take to receive tax top ups? to find out more.

Higher rate taxpayers are eligible to claim an additional 20% tax relief on their personal contribution, on top of the basic rate tax relief that Penfold claims for you. Find out how to claim this by visiting our article How to claim higher rate tax relief on pension contributions.

The following contributions into your Penfold pension will not qualify for a tax top up:

  • Payments from your employer

  • Payments from your limited company bank account

  • Pension transfers

This is because employer and business contributions made into your pension are pre-tax contributions. A pension transfer is not a new contribution, so no tax relief is allowable on the funds transferred.

Did this answer your question?