The annual allowance is a limit on pension contributions before you pay a tax charge.
It is the most that can usually be added to all your pensions in a tax year before you may need to pay a tax charge.
This includes:
- money you pay in
- money your employer pays in
- tax relief added by HMRC
For most people, the annual allowance is £60,000.
This applies for:
| Tax year | Annual allowance |
|---|---|
| 2026/27 | £60,000 |
| 2025/26 | £60,000 |
| 2024/25 | £60,000 |
| 2023/24 | £60,000 |
Your annual allowance may be lower if:
- you have taken taxable money from a pension - see What is the money purchase annual allowance (MPAA)?
- you have a high income (over £200,000) - see What is the tapered annual allowance?