Can SIPP contributions be refunded in same tax year?

OH has been maxing his usage of the AA with personal SIPP contributions on top of his DB pension for the last few years ( not as AVCs as the SIPP was designed to help bridge the gap to NRA and AVCs had to be drawn at the same time). Due to his length of service he is still in a scheme that has inflation protection in his final salary calculation despite not having actual pay increases in line with inflation.  The PIA for this has been consistently low the last few years and we didn’t really understand how the inflation protection impacted the PIA calc.  

For 2021/22 the PIA was a shock, we understand why now due to the high closing inflation it is based on -  closing RPI Mar 22 when statutory revaluation of opening pension was based on Sep 2020 CPI. It led to an unexpected annual allowance charge as he had no carry forward available, which he paid rather than using scheme pays.  We have decided to look at the tax charge as a by product of unexpected extra pension as if he had bought an annuity or added years cheaply.

With the RPI running as it is and where it could get to in March 23 compared to CPI at Sep 21 we realise we will be in the same boat this year and will have another large tax bill to “buy” a higher inflated pension. 

But before we worked this all out - due to the timing of last year’s pension statement - OH had already made a sizeable contribution to his HL SIPP during the current tax year. So my question is, can that be refunded this tax year, or do we have to just accept he won’t have any tax relief on it and will also likely pay tax on it on the way out too? I’m assuming the answer is no as it has been invested since then but thought I would check “in case”. 



  • zagfleszagfles Forumite
    19.4K Posts
    Part of the Furniture 10,000 Posts Name Dropper Chutzpah Haggler
    Generally pension contributions can't be refunded, one exception is exceeding the tax relief limit but that doesn't apply here as it's the AA you've exceeded not the tax relief limit. You can't get a refund if you exceed the available AA, you have to declare it on tax return and pay the charge. Might be worth looking into "scheme pays", though there are limits below which schemes aren't obliged to pay, see

  • AlbermarleAlbermarle Forumite
    16.3K Posts
    10,000 Posts Fourth Anniversary Name Dropper
     or do we have to just accept he won’t have any tax relief on it and will also likely pay tax on it on the way out too? 

    The provider has no knowledge of your financial situation and will just apply tax relief to all contributions automatically.

    It is up to you not to contribute too much. If you do then as above it will have to go on your tax return.

  • Workerbee999Workerbee999 Forumite
    88 Posts
    Tenth Anniversary 10 Posts Combo Breaker
    Following on from my earlier posts, does anyone know if it would be possible to pay the annual allowance charge via scheme pays out of OHs SIPP with Hargreaves Lansdown when he will end up over the AA this year and has made contributions into this and his DB? 

    And if he can, do they still accrue interest like the DB would, or does it just come off the balance held in the SIPP now?

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