Annual allowance | Practical Law
Annual allowance
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Annual allowance
Practical Law UK Glossary 6-201-6478
(Approx. 6 pages)
Glossary
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
.