Employers with significant unused annual pension allowances can, under current tax rules, contribute substantially larger sums in the 2025/26 tax year, thanks to carry forward provisions, but high earners must navigate complex tapering rules and strict deadlines.
High earners who have left annual pension allowances unused in recent years can, under existing tax rules, put a substantially larger sum into a pension before the end of the tax year and secure tax relief on the whole amount.
Emma Sterland, chief financial planning officer at Evelyn Partners, notes that the interaction of the carry forward rules with the standard annual allowance can, in some cases, allow a theoretical maximum contribution of £220,000 in the current 2025/26 tax year. According to Evelyn Partners, that figure arises where an individual has four tax years’ worth of full annual allowance available , the annual allowance having been £40,000 in 2022/23 and £60,000 in each of the three subsequent years , and where the person’s earnings in 2025/26 are sufficient to justify the contribution and they held a pension in each of the carry‑forward years.
The carry forward mechanism itself is explained in guidance from MoneyHelper and HMRC: taxpayers may use any unused annual allowance from the previous three tax years to increase the amount they can contribute in the current year, but only if they were a member of a registered pension scheme in each of the earlier years and have adequate relevant earnings to support the additional contribution. MoneyHelper also outlines the order in which unused allowances are applied and gives examples of how the calculation works.
Those with very high incomes should be cautious because the tapered annual allowance can sharply reduce the tax‑relieved contribution they are able to make. According to HMRC’s pensions manual and associated government guidance, the taper affects people with threshold income above £200,000 and begins to reduce the allowance once adjusted income exceeds £260,000. The reduction is £1 of annual allowance for every £2 of adjusted income above that point, down to the minimum tapered allowance; government material records that the minimum was increased to £10,000 from April 2023. Evelyn Partners warns that, even with that rise, the taper can leave affected individuals able to claim far less tax relief than other savers.
Industry commentary emphasises timing. MoneyWeek highlights a pressing deadline: the current tax year ends on 5 April 2026, and action is required before that date to secure the benefit of any available carry forward. The publication also recommends other complementary steps such as ensuring full tax relief is claimed, and considering salary sacrifice arrangements where appropriate.
Practical and compliance points drawn from HMRC and government guidance should not be overlooked. Administrators and savers must ensure contributions do not exceed the combined available allowances, otherwise an annual allowance tax charge may apply; where a charge arises it is reported and paid via Self Assessment or an Accounting for Tax return, as set out in HMRC’s HS345 guidance. Those seeking to use carry forward must also ensure pension membership in the relevant earlier years and that records are in order before instructing large contributions.
For higher earners considering maximising pension inputs, financial planning firms stress treating the calculation and timing as a technical exercise. Evelyn Partners’ comments underline the potential tax efficiency of using unused allowances, but HMRC guidance and industry sources remind savers to verify eligibility, confirm earnings test requirements and account for the tapered allowance where it may apply.
- https://www.express.co.uk/finance/personalfinance/2172596/investment-expert-pension-loophole-boost – Please view link – unable to able to access data
- https://moneyweek.com/personal-finance/pension-tax/pension-boost-save-tax-year-end – This article from MoneyWeek outlines strategic ways for UK pension savers to maximise their retirement contributions before the end of the 2025/26 tax year on 5 April. Amid frozen income tax allowances and increasing tax burdens, pensions remain a key tool for building tax-efficient wealth. The article offers four main strategies: 1) Maximise Your Annual Pension Allowance; 2) Use Carry Forward Rules; 3) Ensure Full Tax Relief; 4) Bonus Sacrifice. The article emphasises acting promptly as tax rules and allowances may not remain as generous in the future.
- https://www.moneyhelper.org.uk/en/pensions-and-retirement/tax-and-pensions/carry-forward – MoneyHelper provides guidance on the ‘carry forward’ rule, allowing individuals to utilise unused annual allowance from the previous three tax years. This enables higher pension contributions without incurring tax charges. The article explains how carry forward works, including examples and conditions, such as the requirement to have been a member of a registered pension scheme during each of the carry forward years. It also outlines the order in which unused annual allowance is used and the importance of having sufficient relevant earnings to qualify for carry forward.
- https://www.gov.uk/guidance/pension-administrators-check-your-members-annual-allowance – This UK government guidance assists pension administrators in determining members’ annual allowance, including the use of carry forward from previous tax years. It details the tax years from which members can carry forward annual allowance, the need to pay tax charges if the allowance is exceeded, and the process for members to pay the tax charge liability. The document also provides information on submitting an Accounting for Tax (AFT) Return and paying the tax charge by the due date.
- https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm057100 – HMRC’s internal manual explains the tapered annual allowance, which reduces the annual allowance for higher earners. It details the income thresholds for the tapered annual allowance, the calculation method, and the minimum annual allowance applicable for different tax years. The manual also specifies the criteria for individuals to be subject to the tapered annual allowance based on their threshold and adjusted income.
- https://www.staffspf.org.uk/Members/Annual-allowance/Annual-allowance.aspx – Staffordshire Pension Fund provides information on the tapered annual allowance for higher earners. It explains how the annual allowance is reduced based on threshold and adjusted income, with specific income limits for different tax years. The article includes tables showing the effect of the tapered annual allowance in the years up to 2022/23 and outlines the calculation method for determining the reduced annual allowance.
- https://www.gov.uk/government/publications/pensions-tax-charges-on-any-excess-over-the-lifetime-allowance-annual-allowance-special-annual-allowance-and-on-unauthorised-payments-hs345-self/hs345-pension-savings-tax-charges-2025 – HMRC’s publication HS345 provides information on tax charges related to exceeding the annual allowance, including the tapered annual allowance. It explains the conditions under which the tapered annual allowance applies, the process for carrying forward unused annual allowance, and the order in which unused annual allowance is used. The publication also details the tax charge liability and the process for members to pay the tax charge by completing a Self Assessment tax return.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
7
Notes:
The article discusses the carry forward mechanism for pension contributions, a topic that has been covered extensively in recent years. ([moneyhelper.org.uk](https://www.moneyhelper.org.uk/en/pensions-and-retirement/tax-and-pensions/carry-forward.html?utm_source=openai)) The specific figures mentioned, such as the theoretical maximum contribution of £220,000 in the 2025/26 tax year, align with previous reports from Evelyn Partners. ([evelyn.com](https://www.evelyn.com/press-centre/all-press-releases/could-you-turbo-charge-your-pension-before-the-tax-year-end/?utm_source=openai)) However, the article does not provide a publication date, making it difficult to assess its freshness accurately. ([evelyn.com](https://www.evelyn.com/press-centre/all-press-releases/could-you-turbo-charge-your-pension-before-the-tax-year-end/?utm_source=openai))
Quotes check
Score:
6
Notes:
The article includes a quote from Emma Sterland, chief financial planning officer at Evelyn Partners, regarding the theoretical maximum contribution of £220,000. ([evelyn.com](https://www.evelyn.com/press-centre/all-press-releases/could-you-turbo-charge-your-pension-before-the-tax-year-end/?utm_source=openai)) This quote appears to be directly sourced from Evelyn Partners’ press release dated 6 days ago. ([evelyn.com](https://www.evelyn.com/press-centre/all-press-releases/could-you-turbo-charge-your-pension-before-the-tax-year-end/?utm_source=openai)) The lack of independent verification of this quote raises concerns about its originality and potential reuse.
Source reliability
Score:
5
Notes:
The article originates from the Express, a publication known for aggregating content from various sources. ([evelyn.com](https://www.evelyn.com/press-centre/all-press-releases/could-you-turbo-charge-your-pension-before-the-tax-year-end/?utm_source=openai)) The reliance on a press release from Evelyn Partners, a financial advisory firm, introduces potential bias. ([evelyn.com](https://www.evelyn.com/press-centre/all-press-releases/could-you-turbo-charge-your-pension-before-the-tax-year-end/?utm_source=openai)) The absence of independent verification and the lack of a publication date further diminish the source’s reliability.
Plausibility check
Score:
8
Notes:
The claims regarding the carry forward mechanism and the theoretical maximum contribution of £220,000 are consistent with HMRC guidelines and previous reports. ([moneyhelper.org.uk](https://www.moneyhelper.org.uk/en/pensions-and-retirement/tax-and-pensions/carry-forward.html?utm_source=openai)) However, the article’s reliance on a single, unverified quote and the lack of independent sources raise questions about the overall credibility of the information presented.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents information on the carry forward mechanism for pension contributions, citing a press release from Evelyn Partners. ([evelyn.com](https://www.evelyn.com/press-centre/all-press-releases/could-you-turbo-charge-your-pension-before-the-tax-year-end/?utm_source=openai)) The lack of independent verification, reliance on a single source, and absence of a publication date raise significant concerns about the article’s credibility and freshness. ([evelyn.com](https://www.evelyn.com/press-centre/all-press-releases/could-you-turbo-charge-your-pension-before-the-tax-year-end/?utm_source=openai))