Annual allowance and money purchase annual allowance
The annual allowance is the maximum amount of pension savings an individual can make each year without an annual allowance charge applying. This includes pension contributions made by the individual, their employer, a company or a 3rd party.
Since 6 April 2015 there has been an additional annual allowance called the money purchase annual allowance. This is normally triggered by taking income from a flexi-access drawdown plan or taking an uncrystallised funds pension lump sum. However, other actions can trigger it.
| Tax year | Annual allowance | Money purchase annual allowance |
|---|---|---|
| 2024/2025 | £60,000 | £10,000 |
| 2023/2024 | £60,000 | £10,000 |
| 2022/2023 | £40,000 | £4,000 |
| 2021/2022 | £40,000 | £4,000 |
| 2020/2021 | £40,000 | £4,000 |
| 2019/2020 | £40,000 | £4,000 |
| 2018/2019 | £40,000 | £4,000 |
| 2017/2018 | £40,000 | £4,000 |
| 2016/2017 | £40,000 | £10,000 |
| 2015/2016 | £40,000 | £10,000 |
| 2014/2015 | £40,000 | |
| 2013/2014 | £50,000 | |
| 2012/2013 | £50,000 | |
| 2011/2012 | £50,000 | |
| 2010/2011 | £255,000 | |
| 2009/2010 | £245,000 | |
| 2008/2009 | £235,000 | |
| 2007/2008 | £225,000 | |
| 2006/2007 | £215,000 |