Guide

Pension Carry Forward 2026/27 — Contribute More Than the Annual Allowance

Written by James Whitfield·Updated August 2026·Checked against 2026/27 HMRC rates

Carry forward lets you use unused annual allowance from the previous three tax years on top of this year's £60,000. 1 If you've had a windfall, sold a business, or just want to make one big catch-up contribution, this is the rule to know — but it comes with conditions, and you have to use it in a set order.

Key takeaways
  • The 2026/27 annual allowance is £60,000; carry forward stacks unused allowance from the previous three years on top. 12
  • You must have been a member of a UK-registered pension in each year you carry forward from — a workplace pension counts. 1
  • Use this year's allowance first, then draw from the oldest year first. 1
  • Relief is still capped at 100% of your UK earnings, however much allowance you've carried forward. 3
  • Carry forward can't lift the £10,000 MPAA once you've flexibly accessed a DC pension. 2

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 put £80,000 into her pension in 2026/27. She was a member of a registered scheme in each earlier year, so she qualifies. Here's what she has to work with:

Sarah's available allowance · £80,000 target contribution in 2026/27
2023/24 — put in £20,000 of a £60,000 allowance£40,000 unused
2024/25 — put in £35,000 of a £60,000 allowance£25,000 unused
2025/26 — put in £0 of a £60,000 allowance£60,000 unused
2026/27 — current-year allowance (used first)£60,000
Maximum she could contribute this year£185,000

Sarah uses this year's £60,000 first, then needs £20,000 more. Carry forward always comes from the oldest year first, so she draws £20,000 from the £40,000 sitting in 2023/24. Her £80,000 is comfortably covered, and she still has unused allowance left over for a future year. Relief on personal contributions is capped at 100% of her earnings, so she needs relevant earnings of at least £80,000 to get full relief. 3

Calculate your pension tax relief

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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.

Sources & references

  1. Check for unused annual allowance (carry forward) — GOV.UK
  2. Pension annual allowance — GOV.UK
  3. Pension tax relief — GOV.UK

Every headline figure above is checked against the official GOV.UK / HMRC guidance listed here for the 2026/27 tax year. Links open on GOV.UK.

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.