Pension tax limits
The money you pay into your pension arrangements usually gets tax relief. However, there are limits on how much you can save towards your pension before tax will be charged on any excess.
Select from the options below to find out more.
Annual Allowance
The Annual Allowance is currently £60,000. It is the total amount you can pay into all of your pension arrangements each tax year before tax will be charged. Each £1 of annual Defined Benefit pension built up is treated as £16 for this purpose.
You’ll get a statement from your pension provider telling you if you go above the Annual Allowance in that particular arrangement.
You can carry forward any unused Annual Allowance for up to three years.
The previous administrator of the Scheme, Railpen, held a seminar for DB members who were sent a pension saving statement for 2022/23. You can view a copy of the presentation slides here.
Copies of the 2022/23 factsheets that were included with the statements can also be viewed below.Annual Allowance Factsheet - ESPS members
Annual Allowance Factsheet - Ex-UUPS members