It was also possible to use a stakeholder pension or a personal pension plan to build up retirement funds without contracting out of the Additional Pension, but if this was done, they was no rebate. A person will usually get tax relief on all their contributions into a private pension at the basic rate of income tax (22 percent in tax year 2006/07) irrespective of income tax actually paid. If they have paid income tax at the higher rate (40 per cent in 2006/07) also, their contributions are relieved at this rate, but only against that income on which the higher rate was paid.