Pensions: use the tax rules to advantage

Pensions provide significant planning opportunities. But as high-profile news on NHS pensions made plain this year, it's important that the rules work in your favour.

The Annual Allowance (AA) is the most you can contribute to a pension during a tax year and still get tax relief. It is currently £40,000. Where this is exceeded, there may be an AA clawback charge. AA can be lower if you've flexibly accessed a pension pot, or have a high income.


There may be unused AA from the three previous years, which, if used in 2019/20, gives scope for significant pension contribution without a charge. We are happy to advise here.