Pension schemes Make hay while higher rate relief is available For many years Chancellors have threatened to reduce the Income Tax relief that can be claimed for payments into a private pension scheme. The hidden 60% tax rate Most people think the highest rate of income tax in the UK is 45%. But in fact there are two situations where you could be paying much more. The hidden 60% tax rate Most people think the highest rate of income tax in the UK is 45%. But in fact there are two situations where you could be paying much more.