Pension Annual Allowance Calculator
Estimate the current-year pension annual allowance before carry forward. Use pension-specific threshold and adjusted income, rather than substituting ANI.
Rule year: 2026/27 · GBP · Sources checked
Current-year annual allowance before carry forward
Threshold income, adjusted income and all-scheme pension input amount already established using HMRC definitions. Money purchase annual allowance cases are rejected. No carry-forward entitlement, tax-charge amount, defined-benefit valuation, overseas scheme exception or earnings-based contribution tax-relief cap assessment.
For informational purposes only. This estimate is not financial advice, a tax return, a payroll calculation or a lender decision. See the supported circumstances and exclusions below.
How this calculator works
The standard current-year annual allowance is £60,000. The high-income taper applies only when threshold income exceeds £200,000 and adjusted income exceeds £260,000. It reduces the allowance by £1 for each £2 of adjusted income above £260,000, down to £10,000. Pension input amount includes the relevant employer and personal inputs and, for defined-benefit schemes, the statutory measured increase rather than cash deposits alone. Excess before carry forward does not by itself establish a tax charge; eligible earlier-year allowances may matter.
Formula and rules
If both income tests are met: allowance = max(£10,000, £60,000 − (adjusted income − £260,000) / 2). Otherwise allowance = £60,000. Excess before carry forward = max(0, pension input amount − allowance).
Assumptions and limitations
Threshold income, adjusted income and all-scheme pension input amount already established using HMRC definitions. Money purchase annual allowance cases are rejected. No carry-forward entitlement, tax-charge amount, defined-benefit valuation, overseas scheme exception or earnings-based contribution tax-relief cap assessment.
Worked example
Threshold income £220,000 and adjusted income £300,000 satisfy both taper tests. The £40,000 adjusted-income excess reduces allowance by £20,000 to £40,000. A £45,000 pension input shows £5,000 excess before any valid carry forward.
- Current-year annual allowance before carry forward
- £40,000.00
- Remaining current-year allowance
- £0.00
- Excess before eligible carry forward
- £5,000.00
- Taper reduction from standard allowance
- £20,000.00
Official sources and review
Reviewed against the sources below on 2026-10-06. Rates are held in versioned rule modules. Versioned rules, official source review and year-specific calculation tests.
- GOV.UK: pension annual allowance ↗
£60,000 standard allowance; taper requires threshold income above £200,000 and adjusted income above £260,000.
- HMRC: calculate tapered annual allowance ↗
£1 reduction for each £2 of adjusted income above £260,000; minimum allowance £10,000.
Common questions
Can I use Adjusted Net Income as pension adjusted income?
No. Pension threshold and adjusted income have distinct definitions, including pension-specific adjustments. Establish those values separately.
Does shown excess mean I definitely owe a charge?
No. Eligible carry forward and other conditions can change the final position. This page reports current-year excess before those checks.
What if I triggered the money purchase annual allowance?
This model does not assess MPAA or its interaction with other pension inputs. It returns a clear unsupported-case message.