Pension Carry Forward Calculator
How the Calculator Works
This calculator helps you understand how much unused pension annual allowance you can carry forward from previous tax years. It provides:
- Calculation of your annual allowance for each tax year
- Determination of any tapered annual allowance
- Tracking of used and unused allowances
- Total available carry forward amount
- Visual representation of your pension position
- Impact of flexible drawdown on allowances
Enter your pension details below to calculate your carry forward allowance.
About Pension Carry Forward
This calculator helps you work out your available pension carry forward allowance based on your income and previous pension contributions. The carry forward rules allow you to make use of any unused annual allowance from the previous three tax years.
Standard Annual Allowances by Tax Year:
- 2024/25: £60,000
- 2023/24: £60,000
- 2022/23: £40,000
- 2021/22: £40,000
Understanding Tapered Annual Allowance
The tapered annual allowance reduces your pension annual allowance if you have a high income. Here's how it works:
1. Threshold Income
Your threshold income is calculated as:
Base Salary + Other Taxable Income - Your Pension Contributions
If this is over £200,000, you may be affected by tapering.
2. Adjusted Income
Your adjusted income is calculated as:
Threshold Income + Employer Pension Contributions
If this is over £260,000, your annual allowance will be reduced.
3. Tapering Reduction
If both conditions are met:
- Your threshold income is over £200,000
- Your adjusted income is over £260,000
Your annual allowance is reduced by £1 for every £2 your adjusted income exceeds £260,000.
The minimum tapered allowance is £10,000.
Example:
If your:
- Base salary: £185,000
- Other income: £120,000
- Your pension contribution: £15,000
- Employer pension contribution: £12,000
Then:
- Threshold income = £185,000 + £120,000 - £15,000 = £290,000 (over £200,000)
- Adjusted income = £290,000 + £12,000 = £302,000 (over £260,000)
- Excess = £302,000 - £260,000 = £42,000
- Reduction = £42,000 ÷ 2 = £21,000
- Tapered allowance = £60,000 - £21,000 = £39,000
Key Calculations Explained
Annual Allowance
The annual allowance is the maximum amount you can contribute to your pension each year:
- £60,000 for 2023/24 and 2024/25
- £40,000 for 2021/22 and 2022/23
- May be reduced by tapering for high earners
- Includes both personal and employer contributions
Tapered Allowance
Your annual allowance may be reduced if you have a high income:
- Threshold income over £200,000
- Adjusted income over £260,000
- Reduced by £1 for every £2 over the threshold
- Minimum tapered allowance: £10,000
Carry Forward Rules
You can carry forward unused annual allowance from the previous three tax years:
- Must have been a member of a pension scheme
- Current year allowance must be used first
- Older years' allowances used before newer ones
- Flexible drawdown may affect carry forward
Important Considerations
Tax Year Changes
Annual allowance amounts have changed over recent tax years. The calculator uses the correct allowance for each year.
Flexible Drawdown
If you have accessed your pension flexibly, your annual allowance may be reduced to £10,000 (Money Purchase Annual Allowance).
High Earners
If your income is over £200,000, you should check if the tapered annual allowance applies to you.
Disclaimer: This calculator provides estimates only and should not be considered financial advice. The calculations are based on the information you provide and current tax year rates and thresholds. The calculator assumes you were a member of a registered pension scheme in the relevant tax years. Tax rules, including annual allowance amounts and tapering thresholds, may change in future years. Please consult with a qualified financial advisor for personalized advice regarding your pension contributions and tax planning.