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.

The Clwyd Pension Fund doesn’t check your deferred pension with us against the annual allowance because you are no longer paying pension contributions into it. However, if you are paying into another pension scheme, your current pension provider will do annual allowance checks on the pension you have with them.

Although you may not go over your annual allowance with your current pension provider, you need to take all of your pensions into account, including the one with us, 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.