Pensions tax relief — amendments to the relief at source legislation
This measure is about the necessary changes to the legislative framework to modernise the way registered pensions schemes, using relief at source arrangements, claim tax relief on members’ pension contributions from 6 April 2025.
- Policy Paper Pension schemes — relief at source amendments
- Policy Paper Draft legislation (accessible version)
- Explanatory Note Explanatory note (accessible version)
This measure will:
- allow HMRC to provide the correct legislative framework for new relief at source regulations
- include non-compliance with the new relief at source regulations as grounds for deregistration
- make provision for different relevant rates in regulations
New regulations will be needed to cover how pension administrators claim tax relief on eligible contributions made to registered pension schemes from 6 April 2025. These will be published for consultation in due course and will set out the process by which pension scheme administrators can claim relief due to their members under section 192 of the Finance Act 2004.
These changes will not impact who is eligible for tax relief or the principle of relief at source in which relief at ‘the relevant rate’ can be deducted before the contribution is made.