Glossary · UK
What is Carry Forward (Pension Annual Allowance)?
A rule letting you use unused pension annual allowance from the previous three tax years to make a larger contribution this year.
Full Definition
Carry forward lets you contribute more than the standard GBP 60,000 pension annual allowance in 2026/27 by adding any unused allowance from the previous three tax years. To use it you must have been a member of a registered pension scheme in those years and have first used your full current-year allowance. Total tax-relieved contributions are still capped by your relevant UK earnings in the contribution year. High earners may have a tapered annual allowance, which reduces the amount available to carry forward. Carry forward is especially useful after a bonus, business sale or inheritance. This is not advice; use the pension calculator and check gov.uk for the taper rules and your own carry-forward position.
How Carry Forward (Pension Annual Allowance) is calculated
max_contribution = current_AA + unused_AA_year1 + unused_AA_year2 + unused_AA_year3- current_AA
- this year's annual allowance (GBP 60,000 standard)
- unused_AA_yearN
- unused allowance from each of the prior 3 years
Worked example: Current GBP 60,000 + unused GBP 10,000 + GBP 20,000 + GBP 0 = GBP 90,000 maximum, capped by relevant earnings.