Welcome to TAX relief, the definitive website on tax relief
What is Tax relief:
Amounts that can be deducted from a persons annual income to reduce the amount on which tax is paid. For instance, a pension contribution of £1,000 could be deducted from taxable income of £20,000 to reduce the taxable element to £19,000.
The government encourages you to save for your retirement by giving you tax relief on pension contributions. Tax relief reduces your tax bill or increases your pension fund.
see Tax relief on pension contributions Directgov - Pensions and retirement planning.
A Treasury squeeze on tax relief is cutting by a third the amount of unclaimed tax a quarter of a million pension savers will be allowed to claim back.
Around 250,000 higher rate taxpayers contributing to some types of money purchase pension are missing out on half their tax relief, and in some cases have been doing so for many years, according to Standard Life.