Answers · UK 2025/26
How does pension carry forward work to make large pension contributions?
Pension carry forward lets you use unused Annual Allowance from the previous three tax years to make a larger pension contribution in the current year. In 2026/27 the Annual Allowance is £60,000. If you did not use your full allowance in 2023/24, 2024/25, or 2025/26, you can carry that unused amount forward -- potentially allowing contributions up to £240,000 in a single year.
Full answer
Pension carry forward is a powerful rule that allows high earners and business owners to make large one-off pension contributions by using Annual Allowance left unused in previous years. **The basic rule** In 2026/27, the Annual Allowance (AA) is £60,000. If you contribute less than £60,000 in any of the three previous tax years, the unused allowance can be carried forward and added to your current year's allowance. **Three-year lookback** You can look back to: - 2023/24: AA was £60,000 - 2024/25: AA was £60,000 - 2025/26: AA was £60,000 Maximum theoretical carry forward: 3 x £60,000 = £180,000 Maximum total contribution in 2026/27: £60,000 + £180,000 = £240,000 **Worked example** David is a company director with contributions history: - 2023/24: contributed £10,000 -- unused allowance: £50,000 - 2024/25: contributed £12,000 -- unused allowance: £48,000 - 2025/26: contributed £15,000 -- unused allowance: £45,000 Total carry forward available: £50,000 + £48,000 + £45,000 = £143,000 Current year allowance: £60,000 Maximum contribution in 2026/27: £60,000 + £143,000 = £203,000 **Key conditions** 1. You must have been a member of a registered pension scheme in each year you want to carry forward from (even if contributions were £0) 2. Your total contribution cannot exceed 100% of your earnings in the current tax year 3. If you have triggered the MPAA, carry forward cannot increase the £10,000 money purchase limit 4. If you are subject to the Tapered Annual Allowance, your available current-year allowance may already be reduced **Using oldest years first** Carry forward must be used in order -- current year allowance first, then the oldest carried forward year. **No HMRC notification** You do not need to notify HMRC separately; it is declared on your Self Assessment tax return if contributions exceed the current year AA.
More answers
This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.