Pensions glossary of terms

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance

Pensions glossary of terms

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance
imgtext

Annual allowance

The annual allowance is the maximum amount which can be contributed (or deemed to be contributed) in a pension input period without the member incurring a tax charge.

The annual allowance for 2023/24 onwards is £60,000. The annual allowance from 2014/15 to 2022/23 was £40,000.

The annual allowance is tapered where an individual’s adjusted income is over the high income threshold of £260,000 (£240,000 for tax years 2020/21 to 2022/23 inclusive) and their threshold income is over the permitted amount of £200,000 (which has applied since 6 April 2020). The amount of the annual allowance is reduced by £1 for every £2 of the excess over the threshold for the tax year down to a minimum of £10,000 (£4,000 for tax years 2020/21 to 2022/23 inclusive).

The annual allowance and the tapering of the annual allowance is discussed in detail in the Annual allowance guidance note.

Automatic enrolment

Employers are required to automatically enrol eligible employees into a qualifying pension scheme and make contributions on the employees’ behalf. Employees may voluntarily opt out

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Powered by Tolley+
  • 13 Nov 2025 11:41

Popular Articles

Non-trading deficits on loan relationships

Non-trading deficits on loan relationshipsOverview of non-trading deficits (NTDs)When a company’s debits on its non-trading loan relationships and derivative contracts in an accounting period exceed the credits on its non-trading loan relationships and derivative contracts in the same period (the

14 Jul 2020 12:17 | Produced by Tolley Read more Read more

FRS 102 ― tax presentation and disclosures

FRS 102 ― tax presentation and disclosuresPresentation of tax under FRS 102An entity must present changes in a current tax liability (or asset) and changes in a deferred tax liability (or asset) as a tax expense (or income) unless the item creating the current or deferred tax amount is recognised in

14 Jul 2020 11:46 | Produced by Tolley in association with Steve Collings Read more Read more

Loans written off

Loans written offCompanies sometimes provide directors, employees or shareholders with low interest or interest-free loans either as part of the reward package or on special occasions to help the individual meet significant expenditure. The employment income implications of these loans are discussed

14 Jul 2020 12:11 | Produced by Tolley Read more Read more