SIPP Contribution Limits UK 2026/27

How much can you pay into a Self-Invested Personal Pension this tax year, and what tax relief do you get?

What is the SIPP annual allowance?

The annual allowance is the maximum amount you can contribute to all your pensions (SIPP, workplace pension, personal pension) in a single tax year while still receiving tax relief. For 2026/27, the standard allowance is £60,000.¹

This limit applies across all your pension schemes combined, not per scheme. If you pay £30,000 into a SIPP and £20,000 into a workplace pension, you've used £50,000 of your £60,000 allowance.

The allowance includes both your personal contributions and any employer contributions. If your employer pays £15,000 into your pension, and you add £25,000 yourself, that's £40,000 against your allowance.

Standard annual allowance

£60,000 (2026/27 tax year)

Minimum tapered allowance

£10,000 (for adjusted income ≥ £360,000)

Carry forward period

3 previous tax years

Lifetime allowance

Abolished April 2024 (no cap)

How much can I contribute in 2026/27?

You can contribute up to £60,000 or 100% of your UK earnings (whichever is lower) in the 2026/27 tax year and receive tax relief.¹

If you earn £45,000, your maximum tax-relieved contribution is £45,000 (100% of earnings), not the full £60,000 allowance. If you earn £80,000, you can use the full £60,000 allowance because your earnings exceed it.

Non-earners (or those earning less than £3,600) can still contribute up to £2,880 per year and receive basic-rate tax relief, bringing the gross contribution to £3,600.² This applies to children, homemakers, and retirees with no UK earnings.

What counts as UK earnings?

UK earnings include employment income, self-employment profits, and rental income from UK property. They do not include dividend income, interest, or capital gains. If your only income is £50,000 in dividends, you can only contribute the non-earner limit of £2,880 (£3,600 gross with relief).

Tapered annual allowance for high earners

If your adjusted income exceeds £260,000 in 2026/27, your annual allowance reduces by £1 for every £2 over the threshold, down to a minimum of £10,000.¹

The taper only applies if both conditions are met:

• Threshold income (income before pension contributions) exceeds £200,000
• Adjusted income (threshold income plus employer pension contributions) exceeds £260,000

Example: you earn £280,000 salary, and your employer pays £20,000 into your pension. Your threshold income is £280,000 (above £200,000), and your adjusted income is £300,000 (above £260,000). The taper applies.

Your allowance reduces by (£300,000 - £260,000) ÷ 2 = £20,000. So your allowance is £60,000 - £20,000 = £40,000.

At adjusted income of £360,000 or above, you hit the minimum allowance of £10,000. The taper cannot reduce it below this floor.

Carry forward rules

If you didn't use your full annual allowance in the previous three tax years, you can carry forward the unused amounts and add them to your 2026/27 allowance.³

Rules:

• You must have been a member of a registered pension scheme in the years you're carrying forward from (even if you didn't contribute).
• You use your current year's allowance first, then carry forward from the oldest year.
• Unused allowances from 2023/24, 2024/25, and 2025/26 are available for carry forward in 2026/27.
• Your contribution cannot exceed 100% of your current year's earnings, even with carry forward.

Example: you earned £70,000 in 2026/27 and used none of your £60,000 allowance in the three previous years. You could theoretically contribute £240,000 (£60,000 × 4 years) with carry forward, but your earnings cap it at £70,000. If you earn £150,000, you can contribute up to £150,000 using the current year plus three years' carry forward.

How tax relief works on SIPP contributions

SIPPs use relief-at-source. You pay in the net amount, and the pension provider claims 20% basic-rate relief from HMRC and adds it to your pot.²

If you pay in £8,000, the provider claims £2,000 from HMRC, and your pension gets £10,000. This happens automatically regardless of your tax band.

Higher-rate (40%) and additional-rate (45%) taxpayers can claim the extra relief through their tax return or by calling HMRC. The extra 20% or 25% comes as a reduction in your tax bill or a refund.

Example: you pay £16,000 into your SIPP. The provider claims £4,000, making it £20,000 gross. If you're a higher-rate taxpayer, you can claim an additional £4,000 (20% of the £20,000 gross) through self-assessment. Total relief: £8,000 (40% of £20,000).

What happens if I exceed the allowance?

If you contribute more than your annual allowance (and have no carry forward available), you pay an annual allowance charge. The charge recovers the tax relief at your marginal rate on the excess amount.⁴

Example: you contribute £70,000 with no carry forward. Your allowance is £60,000, so the excess is £10,000. If you're a higher-rate taxpayer, the charge is £4,000 (40% of £10,000). You report this on your self-assessment return.

You can choose to have the pension scheme pay the charge from your pot (scheme pays) if the charge exceeds £2,000. This avoids an immediate cash-flow hit, but reduces your pension.