What's the annual allowance?
The annual allowance is the amount of pension contributions you can make each year that will receive tax relief. It's based on your earnings for the year, and for 2016/17 onwards is capped at £40,000. There will normally be a tax charge to pay if you contribute more than this amount.
The value of any tax relief depends on your individual circumstances. This information is based on our understanding of current, taxation law and HMRC practice, which may change.
A reduced annual allowance of £4,000 will apply to money purchase pension contributions if you've flexibly accessed pension benefits.
Find out more information on the annual allowance limits and when the reduced limit applies.