Government bonus (tax relief)

What is the government bonus?

Every time you add money to your pension pot, you’ll get a 25% bonus from the government. This is added to your pension pot automatically.

So, the more you save, the bigger your bonus.

We call this a bonus as it’s like free money from the government, which you’ll only get from saving into your pension.

It’s technically called tax relief, and it’s to refund tax you’ve already paid, or will pay, on your income (as pensions are tax-free).

If you pay 40% or 45% tax, you can claim more back via a Self Assessment tax return (we can help point you in the right direction).

Note: the government could change these tax rules in the future, and your overall tax treatment will depend on your individual circumstances.