Bonus pension tax relief for Scottish taxpayers

HMRC has confirmed that pension scheme administrators using the relief-at-source mechanism can continue to claim tax relief at the rate of 20% under the Scottish income tax regime.

Administrators will continue to claim relief at 20% and HMRC will not recover the difference between the Scottish starter and basic rates.

This means that pension scheme members paying 19% or no tax continue to receive relief at 20%. However those paying 21% income tax will have to claim the extra 1% relief due on some or all of their contributions above the 20% relief paid to their scheme administrators.

These members will be able to claim the additional relief for 2018-19 by contacting HMRC if they do not complete self-assessment returns or through their return if they do. Scottish taxpayers liable to income tax at the higher rate (41%) and top rate (46%) will be able to claim additional...