If you're a high-income earner, the standard annual pension allowance of £60,000 might not be applicable to you. A Tapered Annual Allowance applies if you meet both of the following conditions:
- Your threshold income is more than £200,000.
- Your adjusted income is more than £260,000.
If you meet both criteria, your annual allowance is reduced by £1 for every £2 your adjusted income goes above £260,000. The maximum reduction is £50,000, meaning you will always retain a minimum annual allowance of £10,000.