SIPP & Pension Annual Allowance Calculator (UK 2026/27)
Calculate your UK pension Annual Allowance — including tapered allowance for high earners, Money Purchase Annual Allowance, and carry-forward from prior 3 tax years.
UK Pension Annual Allowance Guide 2026/27
What the Annual Allowance Is
The Annual Allowance is the maximum pension contribution you can make in one tax year while still receiving tax relief. Standard 2026/27 limit: £60,000 (raised from £40,000 in April 2023). This includes: your personal contributions (grossed up to include basic-rate tax relief). Employer contributions. Any tax relief HMRC adds. Defined Benefit accrual: 'pension input amount' calculated as 16 × increase in pension entitlement. Earnings limit: cannot contribute more than your annual earnings (limit
Tapered Annual Allowance for High Earners
Taper applies if BOTH conditions met: 'threshold income' over £200,000 (income excluding pension contributions). 'Adjusted income' over £260,000 (income including all pension contributions). Both must be exceeded — common misunderstanding. Taper rate: AA reduced by £1 for every £2 of adjusted income over £260,000. Minimum AA: £10,000 (for adjusted income £360,000+). 2026/27 example: adjusted income £320,000. Excess: £60,000. Taper: £30,000 reduction. AA reduced from £60,000 to £30,000. Adjusted
Money Purchase Annual Allowance (MPAA)
If you've flexibly accessed a defined contribution pension (taken any taxable amount beyond the 25% tax-free), MPAA is triggered. From the date of first flexible access: future Annual Allowance for DC contributions = £10,000 (not £60,000). MPAA applies for life — cannot be reversed. Does NOT affect: DB scheme contributions. Carry-forward from years before MPAA triggered. Triggers MPAA: taking taxable income via flexi-access drawdown. Taking a UFPLS (uncrystallised funds pension lump sum). Trigge
Carry-Forward Rules
Carry-forward lets you use unused Annual Allowance from the previous 3 tax years (after using current year first). Rules: must have been a member of a registered pension scheme in the year you carry forward from. Must use current year's full Annual Allowance before carrying forward. Carry-forward only counts if you had income in current year sufficient to support the contribution. 2026/27 carry-forward limits (this is current year + 3 back): 2021/22: £40,000 max. 2022/23: £40,000 max. 2023/24: £
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