Annual allowance

Your annual allowance is the amount the value of your pension benefits can grow in a tax year without you having to pay a tax charge. If the value of your pension savings from 6th April to 5th April is more than your annual allowance, the excess will be taxed as income.

From 6th April 2023, the standard annual allowance changed from £40,000 to £60,000. As a result, it does not affect most pension scheme members.

Each September the Clwyd Pension Fund does an annual allowance check on the pension you have with us.

If your benefits with us are close to, or over the standard annual allowance, you will receive a Pensions Saving Statement from us by 6th October. This statement shows you the details and explains what to do next if you have to pay a tax charge.

If your benefits with us are under the standard annual allowance, we do not contact you.

Although you may not go over your annual allowance with the pension you have in the Clwyd Pension Fund, you need to take all of your pensions into account, including pensions you have elsewhere, to see if you have gone over the annual allowance.

For more information about working out your annual allowance, download our Pensions Taxation: Annual Allowance factsheet from the forms and resources section of our website.

If you would like to check your annual allowance, you can use the AA Quick Check Tool. Please read the instructions before using the tool.