Answers · UK 2025/26
How does pension carry forward work in the UK in 2026/27?
Carry forward lets you use unused Annual Allowance from the 3 previous tax years, provided you were a pension scheme member in each of those years. The current year's AA must be used first. Prior-year AAs: GBP 60,000 (2023/24 onwards), GBP 40,000 (2020/21 to 2022/23). Maximum potential carry forward in 2026/27 is up to GBP 120,000.
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Pension carry forward allows individuals to make pension contributions exceeding the current year Annual Allowance (GBP 60,000 in 2026/27) by using unused AA from the preceding three tax years. This can significantly increase the amount qualifying for tax relief in a single year. How it works 1. Use the current year's AA first (GBP 60,000 in 2026/27) 2. Then carry forward unused AA from three years prior (2023/24), working forwards in time 3. Then 2024/25, then 2025/26 You must have been a member of a UK-registered pension scheme in each year you wish to carry forward from. "Member" includes active, deferred, or pensioner members of any scheme -- simply being in an employer's final salary scheme you no longer contribute to counts. Prior-year AA figures -- 2023/24: GBP 60,000 (AA increased from GBP 40,000) -- 2024/25: GBP 60,000 -- 2025/26: GBP 60,000 Maximum carry forward available in 2026/27 (if all prior years fully unused): GBP 60,000 (current) + GBP 60,000 (2025/26) + GBP 60,000 (2024/25) + GBP 60,000 (2023/24) = GBP 240,000 in total available, but you can only get relief up to 100% of your UK earnings in the current year. Tapered AA and carry forward Individuals with a tapered AA carry forward their individual reduced figure from each year, not the standard GBP 60,000. Calculating this correctly requires knowing the tapered AA for each prior year. Money Purchase Annual Allowance (MPAA) If the MPAA has been triggered (GBP 10,000), carry forward cannot be used to increase contributions to money purchase (DC) pensions above GBP 10,000. However, carry forward continues to apply to DB pension input amounts. Practical use Common scenarios: large bonus year, sale of a business, year of higher income. Contributions up to 100% of earnings (plus any employer contributions) can receive tax relief in the year of payment.
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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.