How is tax relief claimed on my payments to my Ready-made pension?

When you pay money into your Ready-made pension, we’ll reclaim tax relief from HMRC for you. Any payments you make, up to the amount you earn, will receive basic-rate tax relief at 20%.

For example, if you pay £800 into your Ready-made pension, the taxman will add another £200 to bump it up to £1,000.

When you receive your tax relief depends on when you make your payment. If we receive your payment on or before the 5th of the month, we’ll pay the tax relief into your Ready-made pension on the 25th of the following month.

For instance, a payment made on 1 April will have tax relief paid on 25 May. If we receive your payment on 6 April, we’ll pay your tax relief on 25 June.

Once your tax relief has been added to your Ready-made pension, it’ll automatically be invested in your chosen AJ Bell fund. This deal will usually go through within one working day of when the tax relief arrives in your Ready-made pension.

If you’re a higher or top-rate taxpayer, you can claim additional tax relief from HMRC. We aren’t able to do this for you. Most people claim their extra tax relief via their tax return. Please remember that tax rules and allowances may change in the future.