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Why do I get a 25% top-up when the basic tax rate is 20%?
Why do I get a 25% top-up when the basic tax rate is 20%?
Lucy avatar
Written by Lucy
Updated over a week ago

Good question!

If basic rate tax is 20% on your salary, for each £100 you make, you pay £20 in tax.

In order to receive this basic rate back again, you need to receive 25% of your contribution.

25% of £80 is £20, so this is how much we will claim from HMRC!

For more on pension tax relief, check out this page we have put together to explain it all!

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