Tapered annual allowance
A reduced annual allowance for high earners — the £60,000 limit drops by £1 for every £2 of adjusted income above £260,000, to a floor of £10,000.
The taper only applies when BOTH conditions are met: threshold income above £200,000 AND adjusted income above £260,000. Threshold income is broadly your income minus personal pension contributions. Adjusted income is threshold income plus employer pension contributions.
The floor of £10,000 is reached at £360,000 adjusted income. The taper is designed to limit tax relief for the highest earners, but it creates complexity — especially for people with volatile income (bonuses, share vestings) who may not know their adjusted income until the tax year ends.
This calculator provides estimates based on 2025/26 tax rates and is not financial advice. Scottish taxpayers are subject to different income tax rates and bands. The calculations assume your salary is your only source of income and do not account for benefits in kind or other taxable income.
For personalised guidance on your pension contributions, speak to an FCA-regulated financial adviser. You can find one via Unbiased or VouchedFor.