Your pension annual allowance is the most you can save in your pension pot in a tax year (6 April to 5 April), before you must pay tax. The standard annual allowance for 2024/25 is £60,000.
If your income exceeds the high-income threshold, your annual allowance is tapered by £1 for every £2 in excess of the ‘adjusted income’ threshold.
For the 2025/26 tax year:
- Usually, your annual allowance will be tapered if your ‘threshold income’ exceeds £200,000 and your ‘adjusted income’ exceeds £260,000.
- If your annual allowance is tapered, the minimum allowance after tapering is £10,000.
The total gross pension contributions figure should include gross employer, gross employee, and any personal pension contributions made out of net pay. If any information has been omitted, you will need to let us know, as this is likely to affect your tax position.
Any unused allowances can be carried forward for a maximum of three tax years and must be utilised as set out in accordance with current tax legislation.
Need some guidance?
If you would like assistance with calculating your annual allowance pension charge, or if you may have triggered an annual allowance pension charge and would like this reviewing, please contact us…
