Guide
Pension Carry Forward 2026/27 — Contribute More Than the Annual Allowance
Published by the UK Money Calculators editorial team. Last updated for the 2026/27 tax year.
The pension carry forward rule allows you to use unused annual allowance from the previous three tax years, on top of the current year's £60,000 annual allowance. This can be valuable if you have had a windfall, sold a business, or simply want to make a large one-off pension contribution. There are conditions to meet, and carry forward must be used in the right order.
What is pension carry forward?
The annual allowance for 2026/27 is £60,000 — the maximum amount you (and your employer) can contribute to registered pension schemes in a tax year while still receiving tax relief. Carry forward lets you top this up with unused allowance from the three previous tax years, meaning your effective limit for a single year can be considerably higher.
To use carry forward you must:
- Have been a member of a UK-registered pension scheme in each year you wish to carry forward from — even a basic workplace pension qualifies.
- Use the current year's full annual allowance first, before dipping into carry forward years.
- Carry forward from the oldest eligible year first.
How unused allowance is calculated
Your unused allowance for each past year is the difference between that year's annual allowance and your total pension input amount (all contributions, including employer contributions, to all registered pension schemes) in that year.
Annual allowances for recent years:
- 2023/24 — £60,000
- 2024/25 — £60,000
- 2025/26 — £60,000
- 2026/27 — £60,000 (current year)
If you were a member of a pension scheme but contributed nothing in a past year, you carry forward the full allowance for that year. If you contributed some but not all of the allowance, only the unused portion carries forward.
Important restriction: the MPAA
Carry forward does not apply to the Money Purchase Annual Allowance (MPAA). If you have flexibly accessed a defined contribution pension (for example, started taking income from flexi-access drawdown), the MPAA of £10,000 applies to your money purchase contributions. You cannot use carry forward to exceed £10,000 for defined contribution schemes.
However, carry forward is available for defined benefit (final salary) pension accrual, even if the MPAA has been triggered. The alternative annual allowance for defined benefit inputs remains available alongside the MPAA. If you have any doubt whether the MPAA applies to you, check with your pension provider.
Worked example
Sarah wants to make a large pension contribution of £80,000 in 2026/27. Her pension inputs in recent years were:
- 2023/24: contributed £20,000 against a £60,000 allowance — unused: £40,000
- 2024/25: contributed £35,000 against a £60,000 allowance — unused: £25,000
- 2025/26: contributed £0 against a £60,000 allowance — unused: £60,000
- 2026/27: current year allowance £60,000
Sarah must use the current year's allowance first: £60,000. She then needs a further £20,000. She carries forward from the oldest year first — 2023/24 has £40,000 available, more than enough to cover the remaining £20,000.
Total available if she used all carry forward: £60,000 + £40,000 + £25,000 + £60,000 = £185,000. For the £80,000 contribution she only needs to use £20,000 from 2023/24 carry forward.
Sarah must have been a member of a registered pension scheme in each of the three carry forward years — in this case she was a member throughout, so she qualifies.
Calculate your pension tax relief
Use our pension tax relief calculator to see how much relief you could receive on your contributions — at basic, higher or additional rate.
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Frequently asked questions
How do I use carry forward?
You do not need to formally apply to HMRC to use carry forward — it is simply a rule that allows you to contribute more than the current year's annual allowance. However, you should keep clear records of your pension inputs for the relevant years and be prepared to demonstrate to HMRC (for example, in a Self Assessment return) how you have calculated the unused allowance available.
Do I need to inform HMRC I am using carry forward?
There is no specific form to notify HMRC, but if you make a large contribution that exceeds the current year's annual allowance, you should record the carry forward calculation. If HMRC ever questions the contribution, you will need to show membership of a registered pension scheme in each carry forward year and the pension input amounts for those years. Your pension providers can supply annual benefit statements.
Can I carry forward if I was only in a workplace pension?
Yes. You simply need to have been a member of any UK-registered pension scheme — a basic auto-enrolment workplace pension fully qualifies. You do not need to have made significant contributions; membership alone is sufficient for carry forward eligibility in that year.
What if I was not a member of any pension in one of the three prior years?
You cannot carry forward unused allowance from a year in which you were not a member of any UK-registered pension scheme. You can still carry forward from the other two eligible years where you were a member.
Does carry forward increase the tax relief I can claim?
Carry forward increases how much you can contribute with tax relief, but the relief itself is still subject to the 100% of UK earnings limit. You cannot receive tax relief on contributions that exceed your annual UK earnings, even if your carry forward allowance is larger. Employer contributions are not subject to this earnings cap.
Official sources
Disclaimer: This guide is for general information only and does not constitute financial or tax advice. Pension tax rules are complex and individual circumstances vary. Figures shown are for England, Wales and Northern Ireland unless stated. Consult a qualified financial adviser or HMRC for personalised guidance.