Loading tools
A reduced pension Annual Allowance for high earners with adjusted income over £260,000.
The Tapered Annual Allowance reduces your pension Annual Allowance if your adjusted income exceeds £260,000 and threshold income exceeds £200,000. For every £2 of adjusted income above £260,000, your allowance is reduced by £1, down to a minimum of £10,000. This affects high-earning professionals, senior executives, and company directors with significant pension savings.
This definition is for informational purposes only and does not constitute tax, legal, or financial advice. Rules may change and outcomes depend on your circumstances.
These GOV.UK and HMRC sources provide the official context for this glossary entry. The definition is educational and does not determine your individual tax position.