Answers · UK 2025/26
What is adjusted net income in UK tax?
Adjusted net income (ANI) is your total income minus reliefs like pension contributions and Gift Aid. It is used to calculate HICBC, personal allowance tapering, and tapered annual allowance.
Full answer
Adjusted net income is calculated starting with total income (employment, self-employment, rental, savings, dividends) and deducting certain reliefs: gross pension contributions paid personally, Gift Aid donations (grossed up), trading losses, and qualifying loan interest. It is the key figure HMRC uses to assess the High Income Child Benefit Charge (which starts at £60,000 ANI), the personal allowance taper (which removes £1 of allowance for every £2 above £100,000), and the tapered annual allowance for pensions (which reduces below £260,000 ANI for threshold income and £360,000 for adjusted income). Reducing ANI via pension contributions is a key tax-planning tool.
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.