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Calculating your
Annual Allowance

Falkirk Wheel, Scotland

Your Annual Allowance is the maximum Pension Input Amount that can be paid each year to all your pension arrangements without incurring a tax charge. You can use the flow chart below to determine your Annual Allowance limit.


Have you have already flexibly accessed benefits from a defined contribution (DC) arrangement?

Yes

No

My Money Purchase Annual
Allowance is £10,000 NB: if you are subject to the Money Purchase Annual Allowance (MPAA) you will have been issued with a certificate by the provider of the pension arrangement


Is my Threshold Income under £200,000?

Yes

No

My Annual Allowance is £60,000


Is my Adjusted Income under £260,000?

Yes

No

My Annual Allowance is £60,000


Your Annual Allowance is reduced by £1 for every £2 your Adjusted Income is over £260,000

Please note that the minimum Annual Allowance is £10,000

HMRC Annual Allowance calculator

HMRC have created a pension savings Annual Allowance calculator to help you work out your Annual Allowance and whether you have a tax charge.

The calculator will work out:

  • your available Annual Allowance (including any Carry Forward amount)
  • your available Money Purchase Annual Allowance (MPAA) (if applicable to you)
  • the amount of your pension savings on which tax is due (if applicable)
  • your unused 2023/24 Annual Allowance (if applicable).

To be able to use the HMRC calculator you will need to know the following information:

  • your Pension Input Amount for all pension arrangements for the tax years you want to check (you will need to get details about any benefits you have built up within any other pension schemes from the administrators of those schemes) Please note that you may need to put in more than three years of history to get an accurate calculation of your Carry Forward
  • if and when you have flexibly accessed your defined contribution (DC) pension savings
  • if your Threshold Income is more than £110,000 for tax years 2018/19 and 2019/20, and more than £200,000 between 2020/21 and 2023/24
  • your Adjusted Income for each year that your Threshold Income is more than £110,000 for tax years 2018/19 and 2019/20, and more than £200,000 between 2020/21 and 2022/23, and more than £260,000 for 2023/24

The HMRC calculator works for members of UK registered pension schemes and qualifying overseas pension schemes. The HMRC calculator cannot be used by members of hybrid schemes (which offer a mixture of defined benefit (DB) and DC pension rights).


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