Pension Carry Forward Calculator
About Pension Carry Forward
This calculator helps you work out your available pension carry forward allowance based on your income and previous pension contributions. The carry forward rules allow you to make use of any unused annual allowance from the previous three tax years.
Standard Annual Allowances by Tax Year:
- 2024/25: £60,000
- 2023/24: £60,000
- 2022/23: £40,000
- 2021/22: £40,000
Understanding Tapered Annual Allowance
The tapered annual allowance reduces your pension annual allowance if you have a high income. Here's how it works:
1. Threshold Income
Your threshold income is calculated as:
Base Salary + Other Taxable Income - Your Pension Contributions
If this is over £200,000, you may be affected by tapering.
2. Adjusted Income
Your adjusted income is calculated as:
Threshold Income + Employer Pension Contributions
If this is over £260,000, your annual allowance will be reduced.
3. Tapering Reduction
If both conditions are met:
- Your threshold income is over £200,000
- Your adjusted income is over £260,000
Your annual allowance is reduced by £1 for every £2 your adjusted income exceeds £260,000.
The minimum tapered allowance is £10,000.
Example:
If your:
- Base salary: £185,000
- Other income: £120,000
- Your pension contribution: £15,000
- Employer pension contribution: £12,000
Then:
- Threshold income = £185,000 + £120,000 - £15,000 = £290,000 (over £200,000)
- Adjusted income = £290,000 + £12,000 = £302,000 (over £260,000)
- Excess = £302,000 - £260,000 = £42,000
- Reduction = £42,000 ÷ 2 = £21,000
- Tapered allowance = £60,000 - £21,000 = £39,000