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Will the tax relief increase with the minimum contributions?

The tax relief amount will increase as the minimum contribution rates increase.

The basic rate of tax relief is 20 per cent. This means, for every £1 of your contribution we’ll claim 20p from the government.

Using a qualifying earnings basis, the tax relief will change as follows:

  • From October 2012 - for a worker contribution of 1 per cent, we claimed 0.2 per cent in tax relief.
  • From April 2018 - for a worker contribution of 3 per cent, we’ll claim 0.6 per cent in tax relief.
  • From April 2019 - for a worker contribution of 5 per cent, we’ll claim 1 per cent in tax relief.

If a worker is eligible for tax relief, the tax rate will be determined by where the worker lives. For example, Wales, England and N. Ireland or Scotland. This will be based on the information provided to us by HMRC.

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