PAYE10065 - Coding: coding allowances and reliefs: registered pension schemes

Basic rate relief for member contributions into registered pension schemes is usually given at source.

You will only need to give coding relief where the individual is liable to tax at intermediate, higher and additional rates. The allowance gives relief for the difference between the basic and the highest rate at which the individual is liable.

Note: If the basic rate for Scottish and/or Welsh taxpayers differs from the UK basic rate, the pension company will be advised of the correct rate of relief to give. If the status changes during the year the amount of basic rate relief will be corrected through reconciliation.

Use the description Personal Pension Relief (PPR).

Note: NPS will use the Scottish or Welsh rates where appropriate. NPS will use the Scottish or Welsh tax rates for Scottish/Welsh taxpayers who are liable at rates above the basic rate.

Guidance on tax relief on member pension contributions is contained in the Pensions Tax Manual starting at PTM044200.

You do not need to give further relief for payments deducted from an individual's pay before it is taxed (net pay arrangements). If payments to an employer’s occupational pension scheme are deducted from an individual’s pay before it is taxed then the full amount of tax relief will already have been given.