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

Timing of disposal for capital gains tax

Timing of disposal for capital gains taxDate of disposalThe date of the disposal determines the period in which the gain is subject to capital gains tax (CGT). When the rates of CGT change, the determination of the date of disposal can also affect the rate of CGT that applies to the gain.See the

14 Jul 2020 13:50 | Produced by Tolley Read more Read more

Tax implications of administration and liquidation

Tax implications of administration and liquidationThis guidance considers the tax implications of a company going into administration or liquidation.Introduction to company administration and liquidationCompany going into administrationA company which is in financial difficulty may go into

14 Jul 2020 15:29 | Produced by Tolley Read more Read more

Overseas property businesses for companies

Overseas property businesses for companiesOverviewReal estate income is generally taxed where the property is located; the UK tax treaties generally allow the jurisdiction where the land is located to tax income from the land.Therefore, a UK company with overseas property may be subject to tax in

14 Jul 2020 12:22 | Produced by Tolley in association with Rob Durrant-Walker of Crane Dale Tax, part of AMS Group Read more Read more