Annual allowance

The annual limit on the amount of tax-relieved saving an individual can make in a registered pension scheme. For the 2024/25 tax year, the annual allowance is £60,000 for most people. For high-income individuals, the annual allowance is tapered down to £10,000. Pension saving that exceeds the annual allowance triggers an annual allowance charge. See also money purchase annual allowance. (Section 228, Finance Act 2004.) For more information, see Practice note, Annual allowance: overview.