Pensions Annual Allowance Calculation Question

[Ecosseven]

Afternoon all,

I’m trying to work out how much I can pay into my pension this tax year without going over the annual allowance and incurring an extra tax charge. I’m aware that I can use any unused allowance from the previous 3 tax years but I’m not sure how this is calculated. I’ve outlined my situation below.

Tax year 2022 / 2023 (£40k annual allowance) – Total pension contributions exceeded the annual allowance by around £3,500. There was no tax charge as I had unused allowance from the previous 3 tax years. This was the first time I had exceeded the annual allowance.
Tax year 2023 / 2024 (£60k annual allowance) – Total contributions were below the annual allowance.
Tax year 2024 / 2025 (£60k annual allowance) – Total contributions were below the annual allowance.

Is it as simple as taking the sum of the annual allowances for the previous 3 tax years (£60k + £60k + 40k = £160k) and subtracting the total value of contributions over this same period in order to calculate the extra I can contribute in this tax year over and above the annual allowance of £60k?

Thanks in advance.

Edited by Ecosseven on Tuesday 19th August 14:26

[Darlo74]

Yes, just don’t forget to include the tax relief as part of the overall contribution to the limit

[Darlo74]

Yes, just don’t forget to include the tax relief as part of the overall contribution to the limit

[5pen]

Use the calculator on HMRC's website.

https://www.tax.service.gov.uk/pension-annual-allo...

As long as you have accurate records for all years, it will give you a definitive answer.

[Ecosseven]

Darlo74 said:

Yes, just don’t forget to include the tax relief as part of the overall contribution to the limit

Thanks. All contributions come from my pre-tax salary so no relief to claim from HMRC.

[Ecosseven]

5pen said:

Use the calculator on HMRC's website.

https://www.tax.service.gov.uk/pension-annual-allo...

As long as you have accurate records for all years, it will give you a definitive answer.

Thanks.

I'll have a look this evening.