Pension Annual Allowance 2026/27
The annual allowance limits how much can be contributed to your pension with tax relief. Here's everything you need to know.
2026/27 Limits
| Allowance Type | Amount |
|---|---|
| Standard Annual Allowance | £60,000 |
| Minimum Tapered Allowance | £10,000 |
| Money Purchase Annual Allowance | £10,000 |
Tapered Annual Allowance
If you earn over £260,000 "adjusted income":
| Adjusted Income | Annual Allowance |
|---|---|
| Up to £260,000 | £60,000 |
| £260,001 - £360,000 | Reduces by £1 per £2 |
| £360,000+ | £10,000 (minimum) |
Carry Forward
Unused allowance from the previous 3 years can be carried forward:
| Tax Year | Unused Allowance | Can Use In 2026/27? |
|---|---|---|
| 2023/24 | Any unused | Yes |
| 2024/25 | Any unused | Yes |
| 2025/26 | Any unused | Yes |
Must use current year first, then oldest to newest.
Annual Allowance Charge
If you exceed your allowance:
- Excess is added to your income
- Taxed at your marginal rate
- Reported on Self Assessment
Related Calculators
- Pension Calculator - Plan contributions
- Annual Allowance Calculator - Check limits