Carry forward

What carry forward means

Carry forward means using eligible unused annual allowance from earlier tax years in the current pension-saving tax check. It is unused allowance, not money transferred between pension pots or a refund of contributions.

For 2026/27, the three previous tax years are 2023/24, 2024/25 and 2025/26. Each year needs its own records. An old statement showing a pension balance does not establish unused allowance.

Sources: HMRC: Unused annual allowance and carry forward

Membership and earlier-year conditions

Earlier-year membership must satisfy HMRC’s registered-scheme or qualifying overseas-scheme conditions. Registered membership includes active, deferred, pensioner and pension credit members; contributions that year are not essential.

Use the allowance that actually applied in each earlier year, including any taper. Check total pension input and whether unused amounts have already been used. Do not apply today’s headline allowance to every historical year.

Sources: HMRC: Carry forward order and conditions (PTM055100)HMRC: Unused annual allowance and carry forward

Current year first, then oldest first

Use the current-year allowance first. Eligible unused amounts are then used from the oldest of the three previous years before later years. A remaining amount can only be used while its year is still inside the three-year window.

Sources: HMRC: Carry forward order and conditions (PTM055100)

A fictional order-of-use example

Suppose Morgan has checked eligible unused amounts: £6,000 from 2023/24 and £4,000 from 2024/25, never previously used. Assume the current allowance is exhausted and £7,000 of input remains.

The order would use £6,000 from 2023/24, then £1,000 from 2024/25. The remaining £3,000 belongs to 2024/25; it is not a new allowance. These assumed figures illustrate order only. They do not calculate Morgan’s eligibility, tax relief or a tax charge, and are not a recommended contribution.

Sources: HMRC: Carry forward order and conditions (PTM055100)

Flexible access needs a separate check

Carry forward cannot increase the money purchase annual allowance (MPAA). Unused MPAA cannot be carried forward either. Where the MPAA rules apply, eligible unused annual allowance may instead affect the separate alternative annual allowance for other pension input.

Ask for any flexible-access notification and retain its date. A combined total below ordinary annual allowance plus carry forward does not, by itself, rule out a charge under MPAA rules. Use HMRC’s specific guidance for that situation.

Sources: HMRC: Money purchase annual allowance after flexible access

Tax relief is a different question

Carry forward does not increase the earnings-related limit for tax relief on your own contributions. Available annual allowance and entitlement to personal contribution relief are separate checks. Do not treat unused allowance as permission to claim relief on the same amount.

Keep your payment separate from its gross amount after any relief at source. A provider statement may already include that relief. Ask what the label means before adding figures; counting it twice would distort the record.

Sources: GOV.UK: Tax relief on private pension contributions

Why it matters and where to check

Eligible unused allowance can affect whether pension saving above the current-year allowance leads to an annual allowance tax charge. Carry forward itself does not need to be reported to HMRC; a charge that remains due has separate reporting requirements.

HMRC’s calculator cannot be used for hybrid defined benefit and defined contribution arrangements, or where a flexible-drawdown declaration was made before 6 April 2015. Follow the official guidance and seek appropriate tax help when records or rules are unclear.

Sources: HMRC: Unused annual allowance and carry forward

Make the records useful

Keep a private year-by-year table with scheme names, original document dates, pension input figures, earlier allowance checks and any previous use. Label missing information as unknown. For defined benefit arrangements, ask for the scheme’s pension input amount rather than substituting payslip deductions.

All Pensions helps organise records. This public definition does not assess your tax position, file a return or instruct a pension contribution. You do not need to enter personal details to read it.

• Request figures for each relevant tax year from every scheme.
• Keep flexible-access and earlier carry-forward records with the original sources.
• Separate “records received” from “tax position checked”.

Sources: GOV.UK: Pension annual allowance

Keep learning

• Annual allowance →
• Defined contribution →
• Defined benefit →
• Pension scheme →
• Pension tax relief: understand the method and keep the right records →
• How to read a pension statement →
• Money purchase annual allowance →