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 |
|---|---|---|
| 2025/2026 | £60,000 | £10,000 |
| 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 |
Disclaimer
The information provided is based on our current understanding of the relevant legislation and regulations and may be subject to alteration as a result of changes in legislation or practice. Also it may not reflect the options available under a specific product which may not be as wide as legislations and regulations allow.
All references to taxation are based on our understanding of current taxation law and practice and may be affected by future changes in legislation and the individual circumstances of the investor.