The Pensions Regulator

About stakeholder pensionsAbout stakeholder pensions

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Tax and national insurance

Tax relief

Normally there will be tax relief on any payments into a stakeholder pension. HM Revenue and Customs will send the amount direct to the trustees or stakeholder pension scheme manager. To find out more about stakeholder pensions and tax, please see leaflet PSO2 Personal pensions (including stakeholder pensions) - a guide to tax.

People who pay income tax at the higher rate (40%) will be able to claim back the tax difference from HM Revenue and Customs at the end of the tax year through self assessment.

Contracting out

If an individual contracts out of the State Second Pension (used to be called SERPS) using a stakeholder pension plan, a rebate of National Insurance contributions is paid into their stakeholder plan.

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