Pensions · 2025/26
UK Pension Annual Allowance — Contribution Modelling 2025/26
Pre-built worked examples for UK pension contributions from £10,000 to £100,000 — showing tax relief at basic, higher and additional rates, position against the £60,000 Annual Allowance, taper for high earners and carry-forward considerations.
The Annual Allowance & taper at a glance
The Annual Allowance caps total tax-relieved pension input in a tax year. For 2025/26 the standard AA is £60,000 across all UK registered pensions, covering personal contributions (gross), employer top-ups and the deemed benefit growth in defined benefit schemes.
High earners with adjusted income over £260,000 have their AA tapered — losing £1 of allowance for every £2 of excess, down to a floor of £10,000 once adjusted income reaches £310,000. Triggering flexible access to a DC pension also drops the limit on future money-purchase input to the Money Purchase Annual Allowance of £10,000.
Carry-forward of unused AA from the previous three tax years can shelter a single larger contribution, provided you were a pension scheme member in each of those years. Personal contributions also need to be backed by at least that much relevant UK earnings to attract relief.