Complete guide to Annual Allowance for NHS pension scheme members. Understand pension growth limits, tapered allowance, and tax implications.
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.
For the 2025/26 tax year
For high earners (income over £260,000)
Your annual allowance usage is measured by your Pension Input Amount, which includes employer and employee contributions plus benefit improvements.
You can carry forward unused annual allowance from the previous three tax years, subject to certain conditions.
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.
Our AI-powered tools can help you understand your annual allowance position and plan effectively for future years.
Our AI-powered system can analyse your specific circumstances and provide personalised recommendations based on this guidance.
Get Started Today