Overview

• HMRC will lower the threshold at which claimants must provide evidence for personal pension tax relief, increasing the volume of claims that require documentation.
• From 1 September, the tax authority will stop accepting claims by telephone, directing people to submit online or by post instead.
• A review of claims for up to £10,000 found nearly one-third were for incorrect amounts, including errors by people not entitled to higher-rate relief.
• Officials say the changes aim to protect taxpayers’ money and come alongside Labour’s push to boost HMRC compliance capacity and raise revenue.
• About 80,000 personal pension relief claims are filed each year and pension income tax relief cost an estimated £29.5bn in 2024–25, while industry voices warn the removal of phone claims could disadvantage those without digital access.