www.gov.uk
Open in
urlscan Pro
2a04:4e42:600::144
Public Scan
URL:
https://www.gov.uk/guidance/pension-schemes-work-out-your-tapered-annual-allowance
Submission: On August 22 via api from US — Scanned from DE
Submission: On August 22 via api from US — Scanned from DE
Form analysis 5 forms found in the DOM
GET /search
<form class="gem-c-layout-super-navigation-header__search-form" id="search" data-module="ga4-form-tracker"
data-ga4-form="{ "event_name": "search", "type": "header menu bar", "section": "Search GOV.UK", "action": "search", "url": "/search/all" }"
data-ga4-form-include-text="" action="/search" method="get" role="search" aria-label="Site-wide" data-ga4-form-tracker-module-started="true">
<div class="gem-c-search govuk-!-display-none-print gem-c-search--large gem-c-search--on-white gem-c-search--separate-label" data-module="gem-toggle-input-class-on-focus" data-gem-toggle-input-class-on-focus-module-started="true">
<label for="search-main-6ec5c13f" class="govuk-label govuk-label--m">Search GOV.UK</label>
<div class="gem-c-search__item-wrapper">
<input enterkeyhint="search" class="gem-c-search__item gem-c-search__input js-class-toggle" id="search-main-6ec5c13f" name="q" title="Search" type="search" value="">
<div class="gem-c-search__item gem-c-search__submit-wrapper">
<button class="gem-c-search__submit" type="submit" data-track-category="headerClicked" data-track-action="searchSubmitted" data-track-label="/search/all" data-track-dimension="Search on GOV.UK" data-track-dimension-index="29"
data-module="gem-track-click" enterkeyhint="search" data-gem-track-click-module-started="true"> Search <svg class="gem-c-search__icon" width="27" height="27" viewBox="0 0 27 27" fill="none" xmlns="http://www.w3.org/2000/svg"
aria-hidden="true" focusable="false">
<circle cx="12.0161" cy="11.0161" r="8.51613" stroke="currentColor" stroke-width="3"></circle>
<line x1="17.8668" y1="17.3587" x2="26.4475" y2="25.9393" stroke="currentColor" stroke-width="3"></line>
</svg>
</button>
</div>
</div>
</div>
</form>POST /email/subscriptions/single-page/new
<form class="gem-c-single-page-notification-button" action="/email/subscriptions/single-page/new" method="POST" data-track-label="/guidance/pension-schemes-work-out-your-tapered-annual-allowance" data-track-action="Subscribe-button-top"
data-track-category="Single-page-notification-button" data-button-location="top" data-button-text-subscribe="Get emails about this page" data-button-text-unsubscribe="Stop getting emails about this page">
<input type="hidden" name="base_path" value="/guidance/pension-schemes-work-out-your-tapered-annual-allowance">
<button class="govuk-body-s gem-c-single-page-notification-button__submit" type="submit"
data-ga4-link="{"event_name":"navigation","type":"subscribe","index":{"index_link":1},"index_total":2,"section":"Top","url":"/email/subscriptions/single-page/new"}">
<svg class="gem-c-single-page-notification-button__icon" aria-hidden="true" xmlns="http://www.w3.org/2000/svg" height="18" width="18" viewBox="0 0 459.334 459.334">
<path fill="currentColor"
d="M177.216 404.514c-.001.12-.009.239-.009.359 0 30.078 24.383 54.461 54.461 54.461s54.461-24.383 54.461-54.461c0-.12-.008-.239-.009-.359H175.216zM403.549 336.438l-49.015-72.002v-89.83c0-60.581-43.144-111.079-100.381-122.459V24.485C254.152 10.963 243.19 0 229.667 0s-24.485 10.963-24.485 24.485v27.663c-57.237 11.381-100.381 61.879-100.381 122.459v89.83l-49.015 72.002a24.76 24.76 0 0 0 20.468 38.693H383.08a24.761 24.761 0 0 0 20.469-38.694z">
</path>
</svg><span class="gem-c-single-page-notication-button__text">Get emails about this page</span>
</button>
</form>POST /email/subscriptions/single-page/new
<form class="gem-c-single-page-notification-button" action="/email/subscriptions/single-page/new" method="POST" data-track-label="/guidance/pension-schemes-work-out-your-tapered-annual-allowance" data-track-action="Subscribe-button-bottom"
data-track-category="Single-page-notification-button" data-button-location="bottom" data-button-text-subscribe="Get emails about this page" data-button-text-unsubscribe="Stop getting emails about this page">
<input type="hidden" name="base_path" value="/guidance/pension-schemes-work-out-your-tapered-annual-allowance">
<button class="govuk-body-s gem-c-single-page-notification-button__submit" type="submit"
data-ga4-link="{"event_name":"navigation","type":"subscribe","index":{"index_link":2},"index_total":2,"section":"Footer","url":"/email/subscriptions/single-page/new"}">
<svg class="gem-c-single-page-notification-button__icon" aria-hidden="true" xmlns="http://www.w3.org/2000/svg" height="18" width="18" viewBox="0 0 459.334 459.334">
<path fill="currentColor"
d="M177.216 404.514c-.001.12-.009.239-.009.359 0 30.078 24.383 54.461 54.461 54.461s54.461-24.383 54.461-54.461c0-.12-.008-.239-.009-.359H175.216zM403.549 336.438l-49.015-72.002v-89.83c0-60.581-43.144-111.079-100.381-122.459V24.485C254.152 10.963 243.19 0 229.667 0s-24.485 10.963-24.485 24.485v27.663c-57.237 11.381-100.381 61.879-100.381 122.459v89.83l-49.015 72.002a24.76 24.76 0 0 0 20.468 38.693H383.08a24.761 24.761 0 0 0 20.469-38.694z">
</path>
</svg><span class="gem-c-single-page-notication-button__text">Get emails about this page</span>
</button>
</form>POST /contact/govuk/problem_reports
<form action="/contact/govuk/problem_reports" id="something-is-wrong" class="gem-c-feedback__form js-feedback-form" data-track-category="Onsite Feedback" data-track-action="GOV.UK Send Form" method="post" hidden="">
<div class="govuk-grid-row">
<div class="govuk-grid-column-two-thirds">
<div class="gem-c-feedback__error-summary gem-c-feedback__js-show js-errors" tabindex="-1" hidden=""></div>
<input type="hidden" name="url" value="https://www.gov.uk/guidance/pension-schemes-work-out-your-tapered-annual-allowance">
<h3 class="gem-c-feedback__form-heading">Help us improve GOV.UK</h3>
<p id="feedback_explanation" class="gem-c-feedback__form-paragraph">Don’t include personal or financial information like your National Insurance number or credit card details.</p>
<div class="govuk-visually-hidden" aria-hidden="true">
<label for="giraffe">This field is for robots only. Please leave blank</label>
<input id="giraffe" name="giraffe" type="text" pattern=".{0}" tabindex="-1" autocomplete="off">
</div>
<div class="gem-c-textarea govuk-form-group govuk-!-margin-bottom-6">
<label for="textarea-4077927d" class="gem-c-label govuk-label">What were you doing?</label>
<textarea name="what_doing" class="govuk-textarea" id="textarea-4077927d" rows="3" spellcheck="true" aria-describedby="feedback_explanation"></textarea>
</div>
<div class="gem-c-textarea govuk-form-group govuk-!-margin-bottom-6">
<label for="textarea-fdab9254" class="gem-c-label govuk-label">What went wrong?</label>
<textarea name="what_wrong" class="govuk-textarea" id="textarea-fdab9254" rows="3" spellcheck="true"></textarea>
</div>
<button class="gem-c-button govuk-button" type="submit"
data-ga4-event="{"event_name":"form_submit","type":"feedback","text":"Send","section":"Help us improve GOV.UK"}">Send</button>
<button class="govuk-button govuk-button--secondary gem-c-feedback__close gem-c-feedback__js-show js-close-form" data-track-category="Onsite Feedback" data-track-action="GOV.UK Close Form" aria-controls="something-is-wrong"
aria-expanded="true"> Cancel </button>
</div>
</div>
<input type="hidden" name="javascript_enabled" value="true"><input type="hidden" name="referrer" value="unknown"><input type="hidden" name="timer" value="0">
</form>POST /contact/govuk/email-survey-signup
<form action="/contact/govuk/email-survey-signup" id="page-is-not-useful" class="gem-c-feedback__form gem-c-feedback__form--email gem-c-feedback__js-show js-feedback-form" data-track-category="yesNoFeedbackForm" data-track-action="Send Form"
method="post" hidden="">
<div class="govuk-grid-row">
<div class="govuk-grid-column-two-thirds" id="survey-wrapper">
<div class="gem-c-feedback__error-summary js-errors" tabindex="-1" hidden=""></div>
<input name="email_survey_signup[survey_id]" type="hidden" value="footer_satisfaction_survey">
<input name="email_survey_signup[survey_source]" type="hidden" value="/guidance/pension-schemes-work-out-your-tapered-annual-allowance">
<h3 class="gem-c-feedback__form-heading">Help us improve GOV.UK</h3>
<p id="survey_explanation" class="gem-c-feedback__form-paragraph">To help us improve GOV.UK, we’d like to know more about your visit today. We’ll send you a link to a feedback form. It will take only 2 minutes to fill in. Don’t worry we won’t
send you spam or share your email address with anyone.</p>
<div class="govuk-form-group">
<label for="input-e6a56252" class="gem-c-label govuk-label">Email address</label>
<input aria-describedby="survey_explanation" autocomplete="email" class="gem-c-input govuk-input" id="input-e6a56252" name="email_survey_signup[email_address]" spellcheck="false" type="email">
</div>
<button class="gem-c-button govuk-button" type="submit"
data-ga4-event="{"event_name":"form_submit","type":"feedback","text":"Send me the survey","section":"Help us improve GOV.UK"}">Send me the survey</button>
<button class="govuk-button govuk-button--secondary gem-c-feedback__close js-close-form" data-track-category="yesNoFeedbackForm" data-track-action="ffFormClose" aria-controls="page-is-not-useful" aria-expanded="true"> Cancel </button>
</div>
</div>
</form>Text Content
Skip to main content
COOKIES ON GOV.UK
We use some essential cookies to make this website work.
We’d like to set additional cookies to understand how you use GOV.UK, remember
your settings and improve government services.
We also use cookies set by other sites to help us deliver content from their
services.
You have accepted additional cookies. You can change your cookie settings at any
time.
You have rejected additional cookies. You can change your cookie settings at any
time.
Accept additional cookies Reject additional cookies View cookies
Hide this message
GOV.UK
NAVIGATION MENU
Menu Menu
Search GOV.UK × Search GOV.UK
TOPICS
* Benefits
* Births, death, marriages and care
* Business and self-employed
* Childcare and parenting
* Citizenship and living in the UK
* Crime, justice and the law
* Disabled people
* Driving and transport
* Education and learning
* Employing people
* Environment and countryside
* Housing and local services
* Money and tax
* Passports, travel and living abroad
* Visas and immigration
* Working, jobs and pensions
GOVERNMENT ACTIVITY
* Departments
Departments, agencies and public bodies
* News
News stories, speeches, letters and notices
* Guidance and regulation
Detailed guidance, regulations and rules
* Research and statistics
Reports, analysis and official statistics
* Policy papers and consultations
Consultations and strategy
* Transparency
Data, Freedom of Information releases and corporate reports
SEARCH
Search GOV.UK
Search
POPULAR ON GOV.UK
* Get support with the cost of living
* Find out about the Energy Bills Support Scheme
* Find a job
* Universal Credit account: sign in
* Check your National Insurance record
1. Home
2. Work
3. Working, jobs and pensions
4. Workplace and personal pensions
Guidance
WORK OUT YOUR REDUCED (TAPERED) ANNUAL ALLOWANCE
Work out how much annual allowance you get for your pension savings for 2016 to
2017 and each later tax year.
From: HM Revenue & Customs Published 27 September 2016 Last updated 6 April 2023
— See all updates
Get emails about this page
CONTENTS
1. Work out your net income
2. Work out your pension savings
3. Work out your threshold income
4. Work out your adjusted income
Print this page
To work out if you have a reduced (tapered) annual allowance for a tax year,
you’ll need to work out your:
* net income in that tax year
* pension savings in that tax year
* threshold income in that tax year
* adjusted income in that tax year
If your adjusted income is over £260,000 your annual allowance in the current
tax year will be reduced.
It will not be reduced if your threshold income for the current tax year is
£200,000 or less, no matter what your adjusted income is.
For every £2 your adjusted income goes over £260,000, your annual allowance for
the current tax year reduces by £1. The minimum reduced annual allowance you can
have in the current tax year is £10,000.
For tax years up to and including 2022 to 2023 the threshold income and adjusted
income limits are different.
Whichever type of pension scheme you’re in (for example, a career average
scheme), you’ll need to know your pension savings so you can work out both your:
* threshold income
* adjusted income
If the pension savings made in the tax year are more than your available annual
allowance, you should include the excess amount on your Self Assessment return.
Your available annual allowance is your reduced annual allowance plus any unused
allowance from the previous 3 tax years.
This amount is added to your taxable income and you will pay Income Tax on it,
at the tax rate that applies to you.
WORK OUT YOUR NET INCOME
1. Add up your taxable income for the tax year.
2. Deduct any tax reliefs that apply, like payments made to your pension scheme
that had tax relief but were paid before the relief was given (because your
pension scheme was not set up for automatic relief or someone else paid into
your pension).
Your taxable income could include:
* earnings from employment
* earnings from self-employment or partnerships
* most pensions income (State, occupational and personal pensions)
* interest on most savings
* income from shares (dividend income)
* rental income
* income received by an individual from a trust
If you do not know how to calculate your net income, a financial adviser
specialising in tax and pensions should be able to help you.
WORK OUT YOUR PENSION SAVINGS
You may receive annual pension savings statements from each of your pension
schemes, showing your savings for the tax year. If you have not received this
information, you can ask your pension administrators for it.
For defined contribution schemes (money purchase schemes), your pension savings
are usually the amount of pensions contributions made by you or someone on your
behalf during the pension input period. This includes your employer.
To find out the amount of your pension savings in your defined benefit schemes
(for example, career average schemes), deduct the opening value from the closing
value for the pension input period.
From the 2016 to 2017 tax year, the pension input period is 6 April to 5 April
(the same as the tax year).
CALCULATE THE AMOUNT OF PENSION SAVINGS YOUR EMPLOYER MADE FOR YOU
1. Start with your total pension savings made during the pension input period.
2. Deduct the pension contributions you made during this period (or that
someone else made for you, except your employer). The result will be the
amount of contributions your employer made for you. You’ll need to know the
amount of contributions your employer made for you to calculate your
adjusted income.
WORK OUT THE OPENING VALUE OF YOUR DEFINED BENEFIT PENSION BENEFITS
The opening value is the amount of pension benefits that have built up so far at
the end of the previous pension input period.
1. Start with your annual pension built up so far at the end of the previous
pension input period.
2. Multiply this amount by 16.
3. Add any separate lump sum built up at the end of the previous pension input
period.
4. Increase this by the Consumer Price Index on the Office for National
Statistics website for the previous September — this increased amount is
your opening value.
WORK OUT THE CLOSING VALUE OF YOUR DEFINED BENEFIT PENSION BENEFITS
The closing value is the amount of pension benefits that has built up so far at
the end of the pension input period.
1. Start with your annual pension built up so far at the end of the pension
input period.
2. Multiply this amount by 16.
3. Add the value of any separate lump sum you would receive — this is your
closing value.
Deduct the opening value from the closing value. If the difference is a:
* negative amount, then your pension savings are nil for that period
* positive amount, then this is the amount of your pension savings
WORK OUT YOUR THRESHOLD INCOME
1. Start with your net income for the tax year.
2. Deduct the gross amount of your pension contributions to all schemes where
you had ‘relief at source’. Relief at source usually applies to personal and
stakeholder pension schemes, and some workplace pension schemes. They are
contributions made by you or someone else on your behalf, but exclude
contributions made by your employer.
3. Deduct the amount of any lump sum death benefits you received from
registered pension schemes.
4. Add any reduction of employment income for pension provision through any
relevant salary sacrifice arrangements made after 8 July 2015.
5. Add any reduction of employment income for pension provision through any
relevant flexible remuneration arrangements made after 8 July 2015.
WORK OUT YOUR ADJUSTED INCOME
1. Start with your net income for the tax year.
2. Add the amounts of claims made for tax relief on pension savings where they
were paid before tax relief was given. For example, because your pension
scheme was not set up for automatic relief or someone else paid into your
pension.
3. Add pension savings made to your pension schemes where tax relief was given
(because your employer took them out of your pay before deducting Income
Tax).
4. If you are a non-domicile individual (your permanent home is outside the
UK), add any relief claimed on pension savings you made to overseas pension
schemes.
5. Add the amount of pension savings your employer made for you.
6. Deduct the amount of any lump sum death benefits you received from
registered pension schemes.
Published 27 September 2016
Last updated 6 April 2023 + show all updates
1. 6 April 2023
The rates of adjusted income and annual allowance have been updated.
2. 6 April 2020
The threshold income has increased to £200,000 and the adjusted income has
increased to £240,000. The minimum reduced annual allowance you can have has
decreased to £4,000.
3. 22 May 2019
The guidance has been updated to clarify the types of income that may be
included in your taxable income. How to work out your threshold income, your
pension savings and how to calculate the amount of pension savings your
employer made for you has also been updated.
4. 6 March 2018
Instructions for defined benefit pension schemes, like career average
schemes, have been added.
5. 27 September 2016
First published.
Get emails about this page
Print this page
Contents
RELATED CONTENT
* Check if you have unused annual allowances on your pension savings
* Who must pay the pensions annual allowance tax charge
* Pension schemes rates and allowances
* Self Assessment: claim tax relief on pension contributions
* Protect your pension lifetime allowance
* Tax on your private pension contributions
DETAILED GUIDANCE
* Check if you have unused annual allowances on your pension savings
EXPLORE THE TOPIC
* Workplace and personal pensions
IS THIS PAGE USEFUL?
* Maybe
* Yes this page is useful
* No this page is not useful
Thank you for your feedback
Report a problem with this page
HELP US IMPROVE GOV.UK
Don’t include personal or financial information like your National Insurance
number or credit card details.
This field is for robots only. Please leave blank
What were you doing?
What went wrong?
Send Cancel
HELP US IMPROVE GOV.UK
To help us improve GOV.UK, we’d like to know more about your visit today. We’ll
send you a link to a feedback form. It will take only 2 minutes to fill in.
Don’t worry we won’t send you spam or share your email address with anyone.
Email address
Send me the survey Cancel
TOPICS
* Benefits
* Births, death, marriages and care
* Business and self-employed
* Childcare and parenting
* Citizenship and living in the UK
* Crime, justice and the law
* Disabled people
* Driving and transport
* Education and learning
* Employing people
* Environment and countryside
* Housing and local services
* Money and tax
* Passports, travel and living abroad
* Visas and immigration
* Working, jobs and pensions
GOVERNMENT ACTIVITY
* Departments
* News
* Guidance and regulation
* Research and statistics
* Policy papers and consultations
* Transparency
* How government works
* Get involved
--------------------------------------------------------------------------------
SUPPORT LINKS
* Help
* Privacy
* Cookies
* Accessibility statement
* Contact
* Terms and conditions
* Rhestr o Wasanaethau Cymraeg
* Government Digital Service
All content is available under the Open Government Licence v3.0, except where
otherwise stated
© Crown copyright