This tax year (2025/26)
Prior year contributions
Enter total pension contributions (employee + employer combined) for each year.
2024/25
Allowance: £60,000
2023/24
Allowance: £60,000
2022/23
Allowance: £40,000
Carry-forward figures are based on the standard allowance. If you had a tapered allowance in any prior year, your unused carry-forward may be lower than shown.
Your pension allowance
Annual Allowance
£60,000
Used This Year
£0
Remaining This Year
£60,000
| Tax year | Allowance | Contributed | Unused |
|---|---|---|---|
| 2024/25 | £60,000 | £0 | £60,000 |
| 2023/24 | £60,000 | £0 | £60,000 |
| 2022/23 | £40,000 | £0 | £40,000 |
| Total carry-forward available | £160,000 | ||
Maximum you can contribute this year
£60,000 remaining + £160,000 carry-forward
£220,000
What is the pension annual allowance?
The pension annual allowance is the total amount you — and your employer — can pay into your pension each tax year and still receive tax relief. For 2025/26, the standard allowance is £60,000, or 100% of your earnings if that is lower. Exceed it and HMRC will add an annual allowance charge to your income tax bill, calculated at your marginal rate.
Employer contributions count towards the limit just as much as your own. So if your employer pays in £20,000, you can only contribute a further £40,000 yourself (assuming the standard allowance applies).
Tapered annual allowance for high earners
If your income is high enough, your annual allowance is reduced through tapering. Two figures matter:
- Threshold income — your net income for the year, before pension contributions. If this is £200,000 or below, tapering does not apply at all.
- Adjusted income — threshold income plus employer pension contributions. Tapering kicks in when adjusted income exceeds £260,000, reducing your allowance by £1 for every £2 over that figure.
For example, if your adjusted income is £300,000, your allowance is reduced by £20,000 (£40,000 ÷ 2), leaving you with an annual allowance of £40,000. The minimum tapered allowance is £10,000, reached when adjusted income hits £360,000.
Carry-forward: using unused allowances from prior years
If you did not use your full annual allowance in the previous three tax years, you can carry those unused amounts forward and add them to your current-year allowance. This lets you make a much larger pension contribution in a single year — useful if you receive a bonus, complete a business sale, or simply want to top up your pension.
Key rules to keep in mind:
- You must have been a member of a registered pension scheme in each year you carry forward from.
- You must exhaust your current-year annual allowance first — carry-forward only applies to contributions above that amount.
- HMRC applies unused allowances from the oldest year first (three years ago, then two years ago, then last year).
- The prior-year allowances were £40,000 for 2022/23 and £60,000 for 2023/24 and 2024/25.
For full HMRC guidance, see Pension schemes: work out your annual allowance.
Frequently asked questions
- What is the pension annual allowance?
- The pension annual allowance is the maximum you can contribute to your pension each tax year while still receiving tax relief. For 2025/26 it is £60,000 (or 100% of your earnings if lower). The limit covers employee and employer contributions combined.
- What is the tapered annual allowance?
- High earners with adjusted income above £260,000 have their annual allowance reduced — tapering by £1 for every £2 over £260,000. The minimum tapered allowance is £10,000.
- How does pension carry-forward work?
- If you did not use your full annual allowance in any of the previous three tax years, you can carry forward the unused amount. You must have been a member of a registered pension scheme in each year you carry forward from, and you must use your current-year allowance in full before carry-forward applies.
- Can I use carry-forward if I haven't used this year's full allowance?
- No. You must exhaust your current-year annual allowance before you can use carry-forward. HMRC applies unused allowances from the oldest year first.
- Do employer contributions count towards the annual allowance?
- Yes. The annual allowance covers the combined total of employee and employer contributions. Employer contributions are not excluded.
- What is the minimum tapered annual allowance?
- The minimum annual allowance after tapering is £10,000. This applies where adjusted income is £360,000 or more.
- How many years can I carry forward unused pension allowance?
- You can carry forward unused allowances from the previous three tax years. Allowances from four or more years ago are lost.
- What happens if I exceed my annual allowance?
- Contributions above your total available allowance — annual allowance plus any applicable carry-forward — are subject to an annual allowance charge, added to your income tax bill. You report this through Self Assessment.
Spotted an error or have a suggestion? Let us know — we read every message.