Pension Carry Forward: Using Three Years of Unused Allowance
Unused annual allowance from the previous three tax years can be carried forward, potentially letting you contribute far more than £60,000 in one year.
The three-year rule
If you didn't use your full annual allowance in any of the previous three tax years, the unused amount can be carried forward and added to this year's allowance. For 2026/27 that means unused allowance from 2023/24, 2024/25 and 2025/26.
The membership requirement
You can only carry forward from a tax year in which you were a member of a registered pension scheme – any UK scheme counts, even one you paid nothing into. If you had no pension at all in a year, that year's allowance is lost.
Oldest year first
You must use the current year's allowance first, then unused allowance from the oldest year of the three. Unused allowance from the oldest year drops out of the window each 6 April, so large one-off contributions are often time-sensitive.
Worked example
- 2023/24: contributed £20,000 → £40,000 unused
- 2024/25: contributed £30,000 → £30,000 unused
- 2025/26: contributed £60,000 → £0 unused
- 2026/27 allowance: £60,000
Maximum pension input for 2026/27 = £60,000 + £40,000 + £30,000 = £130,000, with the 2023/24 allowance used first once the current year is exhausted.
Remember: carry forward increases the annual allowance, not the tax-relief limit. Personal contributions still can't exceed 100% of this year's earnings if you want relief – employer contributions are often the practical route to using large carry forward amounts.
Records matter: you'll need pension input amounts for each year, which your providers can supply. An adviser can assemble the full picture and confirm how much headroom you genuinely have.
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