Most people know about the Personal Allowance and ISA limits, but there’s a whole range of tax reliefs that go unclaimed every year. Whether you’re employed, self-employed, or retired, you’ll likely be missing out on at least one of these.
The good news is that many of these reliefs are straightforward to claim once you know they exist. Read on to find out which ones you might have overlooked and how they could reduce your tax bill this April.
What Are the Most Overlooked Tax Reliefs Available to UK Taxpayers?
Marriage Allowance
Marriage Allowance lets one partner transfer up to £1,260 of their Personal Allowance to the other. To qualify, one of you must be a basic-rate taxpayer and the other must earn below the Personal Allowance threshold (currently £12,570).
It’s worth noting that you can backdate a claim by up to four tax years, which means the savings can add up quickly. Many couples don’t realise this relief exists at all, or assume they won’t qualify.
Working from Home Relief
If you work from home, even part of the time, you may be able to claim working from home tax relief. HMRC allows employees to claim a flat rate of £6 per week without needing receipts, or a higher amount if you can show your actual costs are greater.
You’ll need to check that your employer hasn’t already reimbursed you for home working costs. If they haven’t, a claim through your Self Assessment return or directly via HMRC’s online portal could put money back in your pocket.
Pension Contributions and Higher-Rate Relief
Basic-rate taxpayers get 20% tax relief added to their pension contributions automatically. What many people don’t realise, though, is that higher and additional-rate taxpayers need to claim the extra relief themselves through Self Assessment.
If you’re a 40% taxpayer and you’ve been contributing to a pension without filing a return, you could be owed years of unclaimed relief. It’s worth reviewing your contribution history before the tax year closes to make sure you’re not leaving money on the table.
For a fuller breakdown of how to make the most of your allowances before the deadline, take a look at these tips for tax year end.
Gift Aid and Charitable Donations
Gift Aid means that charities can reclaim 25p for every £1 you donate. But if you’re a higher or additional-rate taxpayer, you can also claim back the difference between the basic and higher rate on your donation.
For example, on a £100 donation made under Gift Aid, a 40% taxpayer can claim back £25 in personal tax relief. Many donors forget to include their charitable giving in their tax return, which means they’ll miss out on this entirely.
Blind Person’s Allowance
Blind Person’s Allowance is one of the most overlooked reliefs on the HMRC books. For 2024/25, it’s worth £3,070 on top of your Personal Allowance, meaning more of your income will be free of tax.
You don’t need to be completely blind to qualify. If you have a certificate of visual impairment from a consultant ophthalmologist, you’ll likely be eligible. If you don’t use the full allowance yourself, you can transfer any unused portion to your spouse or civil partner.
Rent a Room Relief
If you let out a furnished room in your home, you can earn up to £7,500 per year tax-free under the Rent a Room scheme. This applies whether you’re letting to a lodger long-term or hosting short-term guests through platforms like Airbnb.
The relief applies automatically if your rental income stays below the threshold, and you won’t need to do anything extra. If your income goes above £7,500, you’ll need to declare it, but you can still choose to use the scheme and only pay tax on income above that amount instead of on your full profit.
Wrapping Up
Tax reliefs don’t find you or apply automatically to your taxes. You’ll need to claim them, and many people simply don’t know where to start. Taking some time to review your situation before the end of the tax year can make a real difference to what you owe.
The reliefs covered here aren’t niche or complicated. They’re available to a wide range of UK taxpayers and, in most cases, they’re not difficult to claim. If you’ve been filing returns without reviewing these areas, now is a good time to take a closer look.
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested. Past performance should not be seen as an indication of future performance.
