Policy paper

Pensions tapered annual allowance

This tax information and impact note will mainly affect individuals with income of over £150,000, including the value of any pension contributions, who save in a registered pension scheme.



This measure will restrict pensions tax relief by introducing a tapered reduction in the amount of the annual allowance for individuals with income (including the value of any pension contributions) of over £150,000 and who have an income (excluding pension contributions) in excess of £110,000.

Legislation will also be introduced to align pension input periods with the tax year. This legislation, and to protect any savings will be effective from 8 July 2015 and the taper will have effect on and after 6 April 2016.

Published 8 July 2015