What is the Annual Allowance?
The Annual Allowance is the maximum amount your pension savings can grow in a tax year without triggering a tax charge. For NHS pension scheme members, this is particularly important due to the generous benefits provided by the schemes.
Standard Annual Allowance
For the 2026/27 tax year
Tapered Annual Allowance
For high earners (income over £260,000)
Key Points for NHS Staff
Pension Input Amount (PIA)
Your annual allowance usage is measured by your Pension Input Amount, which includes employer and employee contributions plus benefit improvements.
Carry Forward
You can carry forward unused annual allowance from the previous three tax years, subject to certain conditions.
Tax Charges
Exceeding your annual allowance results in a tax charge at your marginal rate. You may be able to use Scheme Pays to pay this from your pension.
Need Help with Annual Allowance Planning?
Our AI-powered tools can help you understand your annual allowance position and plan effectively for future years.