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What tax relief is available on SIPP contributions?

Personal contributions are treated as being net of basic rate income tax and we can therefore reclaim a further 20% on your contribution from HMRC, which we will pay into the scheme bank account. You are entitled to this relief so long as you are a UK resident for tax purposes and it is within your tax relievable limits.

Contributions to registered pension schemes are wholly free of income tax. If you are a higher rate tax payer you can claim a further 20% from HMRC via your self assessment form on your gross contribution. Unlike the tax reclaimed by Liberty, this further relief does not need to be paid into your pension.

Worked Example:

You make a personal contribution of £800 to the scheme in the tax year 2013/14. Liberty would reclaim £200 from HMRC which will be paid into your scheme bank account, making the payment up to £1,000. If you are subject to 40% income tax you can claim 20% on your £1,000 contribution via self-assessment.

EBS Pensions Ltd will not reclaim tax from HMRC for employer contributions. These are considered to be paid gross. Instead, tax relief on employer contributions is offset in the company tax return.


Please note the value of investments, and any income from them can go down as well as up and you may not get back your original investment. We do not offer advice about the suitability of our products or any investments held within them. Should you require financial advice you should consult a suitably qualified financial adviser


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