Answers · UK 2025/26
What is the pension annual allowance for 2025/26?
The pension annual allowance is £60,000 in 2025/26, or 100% of your relevant UK earnings if lower. Earners with adjusted income above £260,000 have a tapered allowance falling £1 for every £2 over the threshold, to a minimum of £10,000. Unused allowance carries forward up to 3 years.
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The annual allowance caps the total tax-relieved contributions to all your registered pensions in a tax year — including employer contributions, salary sacrifice and personal payments. The standard limit is £60,000 in 2025/26. You cannot get tax relief on personal contributions exceeding 100% of relevant UK earnings (or £3,600 gross if you have no earnings). High earners face the tapered annual allowance: for every £2 of adjusted income over £260,000, the allowance reduces by £1, bottoming out at £10,000 once adjusted income hits £360,000. If you have flexibly accessed a defined-contribution pension you trigger the Money Purchase Annual Allowance (MPAA) of £10,000. You can carry forward unused allowance from the previous three tax years, provided you were a member of a registered scheme then, but you must use the current year's allowance first. Exceeding the allowance triggers an Annual Allowance Charge at your marginal Income Tax rate.
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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.