How it works
Enter your annual pension contributions, your adjusted income and your threshold income. Say whether you have flexibly accessed a pension (triggering the MPAA). We work out your available allowance in your browser.
In detail
The annual allowance is the most you can pay into pensions each year and still get tax relief. For most people in 2026/27 it is £60,000.
Taper for high earners
If your adjusted income exceeds £260,000 and your threshold income exceeds £200,000, the allowance tapers: it falls by £1 for every £2 of adjusted income above £260,000, down to a floor of £10,000 once adjusted income reaches £360,000.
Money Purchase Annual Allowance (MPAA)
If you have flexibly accessed a defined-contribution pension (for example taken an uncrystallised funds pension lump sum), your allowance drops to the MPAA of £10,000.
| Scenario | Allowance |
|---|---|
| Standard | £60,000 |
| Tapered (high earner) | £10,000–£60,000 |
| MPAA (after flexible access) | £10,000 |
Worked examples
Income £80,000, no flexible access: standard allowance of £60,000 applies.
Adjusted income £300,000, threshold income £220,000: taper = (£300,000 − £260,000) ÷ 2 = £20,000 reduction → available allowance £40,000.
Adjusted income £360,000: taper hits the floor → available allowance £10,000.
Related calculators
Once you know your allowance, project your pot with our Pension projection tool, and check the income that drives the taper with our Income Tax calculator.
Contributions above your allowance are taxed via the annual allowance charge. The authoritative source is GOV.UK — Tax on your private pension.
Worked example · 计算示例
Worked example: £300,000 income (tapered allowance)
Your adjusted income is £300,000 in 2026/27:
- Standard annual allowance: £60,000.
- Taper: £1 lost for every £2 of income above £260,000.
- Excess: £300,000 − £260,000 = £40,000 → reduction £20,000.
- Reduced allowance: £60,000 − £20,000 = £40,000 (still above the £10,000 minimum).
Below £260,000 adjusted income the full £60,000 applies. Unused allowance from the previous three years can be carried forward.
计算示例：收入 £300,000（递减免税额）
你 2026/27 调整后收入为 £300,000：
- 标准年免税额：£60,000。
- 递减规则：收入每超出 £260,000 的 £2 减少 £1。
- 超出额：£300,000 − £260,000 = £40,000 → 减少 £20,000。
- 递减后免税额：£60,000 − £20,000 = £40,000（仍高于 £10,000 下限）。
调整后收入低于 £260,000 时全额 £60,000 适用。前三年未用免税额可结转。
FAQ
What is the pension annual allowance in 2026/27?
£60,000 for most people — the maximum you can contribute and still get tax relief in a year.
When does the allowance taper?
It tapers once adjusted income exceeds £260,000 and threshold income exceeds £200,000, falling to a £10,000 floor at £360,000 of adjusted income.
What is the MPAA?
The Money Purchase Annual Allowance is £10,000, applied after you flexibly access a defined-contribution pension.
What happens if I exceed the allowance?
The excess is taxed through the annual allowance charge, reducing the tax relief you get.
What counts towards the allowance?
Your own contributions, employer contributions and any third-party contributions all count together against the £60,000.
Can I carry forward unused allowance?
Yes. You can usually use unused annual allowance from the previous three tax years (if you were a scheme member), which helps higher earners who have maxed out a single year.
Does the allowance include the state pension?
No. It applies to private (defined contribution and defined benefit) pensions; the state pension is separate.
What is the difference between threshold and adjusted income?
Threshold income is broadly your taxable income before pension contributions; adjusted income adds back contributions you or your employer made. Both tests must be met for the taper to apply.