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Taxionary

Relief at Source

[rɪˈliːf æt sɔːs]

Term

Summary:

Relief at Source is a method of receiving tax relief for contributions made to a pension scheme that have been made from after-tax income.

More detail:

Relief at Source is a method of tax relief for people making contributions to their Pension scheme. It is only available for individuals making pension contributions from their after-tax income. However, pension contributions that are made before tax already include any tax that would have been paid on that income so it is pretty much the same result.

Pension providers automatically claim the basic tax rate tax relief and add it to the pension pot.

For individuals who pay the higher rate and Additional Rate, they will need to submit a Self Assessment tax return to claim the rest.

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