Enter Statutory HMRC Income Figures
Threshold Income and Adjusted Income have statutory definitions. Salary and employer pension contributions alone do not equal these numbers. This tool evaluates the taper against your pre-calculated HMRC inputs.
2026/27 Pension Allowance Taper Evaluator
Calculates reduced allowance based on Threshold Income (£200k) & Adjusted Income (£260k)
£
Taper test applies if Threshold Income > £200,000£
Taper limit is £260,000 (£1 reduction per £2 excess)Tapered Allowance Calculation Result
Standard Base
£60,000
Taper Reduction
-£10,000
Tapered Allowance
£50,000
| Threshold Income Test (> £200,000) | Passed (£210,000) |
| Adjusted Income Test (> £260,000) | Passed (£280,000) |
| Excess Adjusted Income | £20,000 |
| Effective 2026/27 Tapered Allowance | £50,000 |
2026/27 Tapered Annual Allowance Schedule
| Adjusted Income | Taper Reduction | Available Annual Allowance |
|---|---|---|
| £260,000 or less | £0 | £60,000 (Full Standard) |
| £280,000 | £10,000 | £50,000 |
| £300,000 | £20,000 | £40,000 |
| £320,000 | £30,000 | £30,000 |
| £340,000 | £40,000 | £20,000 |
| £360,000 or more | £50,000 (Max Taper) | £10,000 (Minimum Floor) |
Carry Forward & Tax Charge Rules
Carry Forward Rules
- Unused allowance from 3 previous tax years can be used.
- Must have been a registered pension scheme member in those years.
- Current year allowance is used first, then earliest unused year.
Annual Allowance Tax Charge
- Excess pension input is added to taxable income.
- Taxed at marginal income tax rate (40% or 45%).
- "Scheme Pays" option available if charge exceeds £2,000.
Frequently Asked Questions (6 Detailed FAQs)
The standard Pension Annual Allowance is £60,000 for the 2026/27 tax year. It is the amount of pension savings that can normally be tested against the Annual Allowance before an Annual Allowance charge can arise, subject to tapering, the Money Purchase Annual Allowance and available carry forward.
For 2026/27, tapering applies where both your HMRC-calculated Threshold Income is more than £200,000 and your HMRC-calculated Adjusted Income is more than £260,000. The standard £60,000 Annual Allowance is then reduced by £1 for every £2 of Adjusted Income above £260,000, subject to the £10,000 minimum.
For 2026/27, the minimum tapered Annual Allowance is £10,000. The maximum reduction from the standard £60,000 allowance is therefore £50,000. The minimum is reached at an Adjusted Income of £360,000 or more where tapering applies.
They are separate statutory calculations. Threshold Income starts from net income and includes specific statutory additions and deductions. Adjusted Income then adds pension input amounts into the HMRC calculation. They cannot reliably be calculated from salary alone.
Unused Annual Allowance can normally be carried forward from the previous 3 tax years. You must have been a member of a registered pension scheme in each year from which you are carrying forward unused allowance.
For 2026/27 the Money Purchase Annual Allowance is £10,000. It is triggered when you flexibly access a money-purchase pension, limiting money-purchase pension contributions.
Official HMRC Pension Manual Sources
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2026/27 Pension Benchmarks
Standard Allowance£60,000
Threshold Income Floor£200,000
Adjusted Income Floor£260,000
Minimum Taper Floor£10,000
MPAA Limit£10,000