HNWs fail to claim top rate pension tax relief

Several tax advisers told the Financial Times that, as high earners are switched from final salary pensions to group personal pensions (GPPs), they are failing to understand the different ways tax relief is credited. In final salary schemes, employee contributions are automatically deducted from gross pay and tax is only paid on what is left. Effectively, tax relief is received automatically. However, in GPPs, only the basic 20% tax relief is credited, and employees must claim higher rate relief through their PAYE codes or on their self-assessment tax returns. "We have seen many ca...