The Annual Allowance is the amount by which the value of your pension benefits may increase in any one year without you having to pay a tax charge.
The HMRC has set up an online Annual Allowance calculator so that pension scheme members can check:
- how much annual allowance they have used
- if they have an annual allowance charge to pay
- if they have any unused pension annual allowances to carry forward
The annual allowance calculator is available on the GOV.UK website at https://www.tax.service.gov.uk/paac/start
General information for members about the Annual Allowance (and Lifetime Allowance) can be found at our Tax & your pension benefits page