Glossary · UK
What is Tapered Annual Allowance?
Reduced pension Annual Allowance for high earners — tapers down from £60,000 to a £10,000 floor.
Full Definition
Since April 2023 the Tapered Annual Allowance applies if your Threshold Income exceeds £200,000 AND your Adjusted Income exceeds £260,000. For every £2 of Adjusted Income above £260,000 your Annual Allowance is reduced by £1, down to a £10,000 floor at £360,000 Adjusted Income or above. Most high earners check Threshold Income first — it is broadly taxable income minus personal pension contributions — and if it is below £200,000 they escape the taper entirely. Carry Forward can still be used against the tapered amount.
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Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.