How to Carry Forward Pension Allowance (and Boost Your Tax Relief)

Pensions are one of the most tax-efficient ways to save for the future — but many people never use their full allowance.

The good news? If you haven’t maximised your pension contributions in recent years, you may be able to carry forward unused pension allowance and make a much larger contribution – while still benefiting from full tax relief.

In this guide, we explain:

• What pension allowance carry forward is
• How much you can carry forward
• Which tax years are still available
• And how to claim the tax relief you’re entitled to

What is pension allowance carry forward?

Each tax year, most people can contribute up to £60,000 into their pension (or 100% of their earnings, if lower) and receive tax relief. If you don’t use all of that allowance, it doesn’t have to be wasted. Carry forward lets you:

• Use unused pension allowance from the previous three tax years
• Combine it with the current year’s allowance
• Make a one-off larger contribution with tax relief

This can be especially useful if:

• You’ve had a pay rise or bonus
• You’re self-employed with fluctuating income
• You’ve recently sold a business or asset
• You’re catching up after a few low-contribution years

The key rules you need to know

To use pension carry forward, all of the following must apply:

• You must have been a member of a pension scheme: You don’t need to have contributed – just held a pension.
• You must use the current year’s allowance first: Carry forward only applies once the current £60,000 allowance is used.
• You can only go back three tax years: Older unused allowances are lost.
• You’re still limited by your earnings: You can’t contribute more than 100% of your income in a tax year (unless contributions are made by an employer).

Which tax years can I carry forward from?

For the 2025/26 tax year, you can carry forward unused allowance from:

• 2022/23 (annual allowance: £40,000)
• 2023/24 (annual allowance: £60,000)
• 2024/25 (annual allowance: £60,000)

⚠️ Important: After 5 April 2026, any unused allowance from 2022/23 will expire and can no longer be used. This makes tax year end an important deadline if you’re planning a large contribution.

How much pension allowance can I carry forward?

The maximum you can carry forward depends on:

• How much you contributed in each of the last three years
• Whether you had a pension in those years
• Your income in the year you make the contribution

The amount you can carry forward depends on how much you’ve paid in and how much you earn. You only accrue an allowance by holding a pension. You can’t open a pension today and claim tax relief for the last three years. Additionally, you can only contribute up to the equivalent of 100% of your earnings in a tax year - even if you have a larger unused allowance.

For example, if you earn £50,000 a year, the maximum you can only contribute into your pension for the tax year is £50,000. You’ve carried forward £10,000 of your allowance.

How many years back can I contribute?

You had a pension for the last four years, you made no contributions at all, and you earn enough to support the contribution - you could potentially contribute:

• £60,000 (2025/26 allowance)
• £60,000 (2024/25 unused allowance)
• £60,000 (2023/24 unused allowance)
• £40,000 (2022/23 unused allowance)

Total: £220,000 in one tax year, with tax relief – provided your earnings (or employer contributions) allow it. You’re effectively “banking” unused allowances and using them all at once.

If you’re a very high earner (over £240,000 a year) you’ll also be limited by the tapered pension allowance. More on that later.

Can I make pension contributions for previous tax years?

No, this is a common misunderstanding. You can:

• Carry forward unused allowance
• But you can’t carry back contributions

All payments are made in the current tax year – they’re just allowed to exceed the normal annual limit because of unused allowance from earlier years.

If you’re planning very large contributions, it may still make sense to split them across two tax years to manage earnings limits and tax planning.

Do I have to use the oldest allowance first?

Yes. When carrying forward, you must use the earliest available tax year first. Example:

• You want to contribute £80,000 in 2025/26
• £60,000 uses your current allowance
• £20,000 must come from 2022/23

If you don’t use it in time, that older allowance will be lost.

How do I claim the tax relief?

How tax relief is applied depends on your tax rate.

• Basic Rate Taxpayers: Your pension provider automatically claims 20% tax relief. You’ll see it added to your pension within a few weeks
• Higher or Additional Rate Taxpayers: Basic-rate relief is applied automatically. Extra relief must be claimed via Self Assessment. If you’ve never done this before, our guide to adding pension contributions to your tax return walks you through it step by step.

What about the tapered pension allowance?

If you’re a high earner, carry forward still applies but your annual allowance may be reduced. For the 2025/26 tax year:

• Tapering starts at £240,000 adjusted income
• For every £2 above this, your allowance falls by £1
• The minimum annual allowance is £4,000

Even if you have unused allowance from previous years, the tapered limit still applies to the current year’s allowance, which can reduce how much you can use.

Is pension carry forward worth using?

For many people, yes. Carry forward can help you:

• Turn unused allowances into meaningful retirement savings
• Reduce your tax bill in a high-income year
• Make a one-off contribution without breaking pension rules

If you’ve had a pension for a few years and haven’t always paid in the maximum, there’s a good chance you have unused allowance waiting to be used.

Final thought: don’t let allowances expire

Unused pension allowance doesn’t roll forward forever. Each year, the oldest allowance drops off, and once it’s gone, it’s gone for good.

If you’re considering a large contribution, especially before tax year end, it’s worth checking how much allowance you’ve built up and whether now is the right time to use it.