Pension tax relief and the annual allowance
A clear UK guide to pension tax relief, the £60,000 standard annual allowance, carry forward and tapered allowance rules.
Last reviewed 4 September 2026
Frequently asked questions
Is the annual allowance £60,000 for everyone?
No. The tapered annual allowance or MPAA may reduce it, and tax relief on personal contributions is also constrained by relevant UK earnings.
Do employer pension contributions count?
Yes. Employer payments generally count towards the annual allowance, although they are not limited by your relevant UK earnings in the same way as personal contributions.
Can I carry forward unused allowance?
Potentially, from the previous three tax years, provided the detailed rules are met. You normally use the current year's allowance first.