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.

Carry forward lets you use unused annual allowance from the previous three tax years, on top of the current year's £60,000. If you have had a windfall, sold a business, or want to make a large one-off contribution, this is the rule to know. There are conditions, and carry forward must be used in a set order.

What is pension carry forward?

The annual allowance for 2026/27 is £60,000. That is the maximum total contributions to registered pension schemes in a tax year while still getting tax relief. Carry forward lets you add unused allowance from the three previous years on top. Your effective limit for a single year can be well above £60,000.

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 that year's annual allowance minus your total pension input amount. Total pension inputs include all contributions, employer and employee, to all registered schemes.

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 but contributed nothing in a past year, the full allowance for that year carries forward. Contributed something but not everything? Only the unused portion carries.

Important restriction: the MPAA

Carry forward does not apply to the Money Purchase Annual Allowance (MPAA). If you have flexibly accessed a DC pension, such as taking income from flexi-access drawdown, the £10,000 MPAA applies to your money purchase contributions. You cannot use carry forward to exceed £10,000 for DC schemes.

But carry forward is available for defined benefit pension accrual, even if the MPAA has been triggered. The alternative annual allowance for DB inputs remains available alongside the MPAA. If you are unsure whether the MPAA applies to you, check with your pension provider.

Worked example

Sarah wants to contribute £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 uses the current year first: £60,000. She then needs £20,000 more. Carry forward comes from the oldest year first, so she draws from 2023/24, which has £40,000 available. More than enough.

If she used all available carry forward: £60,000 + £40,000 + £25,000 + £60,000 = £185,000. For the £80,000 contribution, only £20,000 of 2023/24 carry forward is needed.

Sarah was a member of a registered scheme in each carry forward year, so she qualifies.

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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.