A type of pension arrangement whereby contributions into a pension are made from net income, i.e. after income tax has been deducted. Tax relief is not implicit as for net-pay schemes; therefore, the pension provider claims back the 20% basic rate tax from HMRC with any further relief (for higher and additional rate tax payers) claimed via the Self Assessment.
This is the norm for contract-based personal pension schemes.
See also our tax benefits of a pension blog post.
