Who is affected by the annual allowance taper?

Only those with threshold income over £200,000 AND adjusted income over £260,000. Both tests must be met; meeting only one does not trigger the taper.

How far back can I carry forward unused allowance?

Up to three previous tax years, using the current year's allowance first and then the oldest unused year, provided you were a member of a registered pension scheme in the years you are carrying forward from.

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Annual allowance

Pension Carry-Forward and the Tapered Annual Allowance

7 min read. Last verified 22 June 2026. 2026/27 rules.

The short answer

The standard pension annual allowance is £60,000 for 2026/27, but it tapers down to a £10,000 floor if your threshold income exceeds £200,000 and adjusted income exceeds £260,000. Unused allowance from the previous three tax years can be carried forward to fill the gap.

Key facts

Standard annual allowance: £60,000 for 2026/27, including employer contributions.
Taper applies only if threshold income is over £200,000 AND adjusted income is over £260,000.
The allowance reduces by £1 for every £2 of adjusted income above £260,000, down to a £10,000 floor.
Up to 3 prior tax years of unused allowance can be carried forward if you were a pension scheme member then.

The annual allowance is the most you can put into a pension each year with tax relief: £60,000 for 2026/27, including employer contributions. Two rules change the real figure for high earners.

The taper

If your threshold income is over £200,000 and your adjusted income is over £260,000, the allowance is reduced by £1 for every £2 of adjusted income above £260,000, down to a floor of £10,000. Both tests must be met for the taper to apply.

Carry-forward

Unused allowance from the previous three tax years can be added to this year's, as long as you were a member of a pension scheme in those years. You use the current year's allowance first, then the oldest unused year.

Common questions

Who is affected by the annual allowance taper?: Only those with threshold income over £200,000 AND adjusted income over £260,000. Both tests must be met; meeting only one does not trigger the taper.
How far back can I carry forward unused allowance?: Up to three previous tax years, using the current year's allowance first and then the oldest unused year, provided you were a member of a registered pension scheme in the years you are carrying forward from.

Related playbooks

Sources

GOV.UK: Pension annual allowance

Figures verified against gov.uk and gov.scot on 30 June 2026. Constants version 2026/27.3. 2026/27 tax year. This is a modelling tool for general insight, not financial or tax advice.