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Document What happens if I exceed my Annual Allowance?

If you exceed the Annual Allowance you may have to pay an Annual Allowance charge to HMRC.
If you have any unused Annual Allowance from the previous three tax years you may be able to ‘carry forward’ this amount and add it to the Annual Allowance in the current tax year. This could prevent or reduce the amount of Annual Allowance charge liability you have for the current tax year.
You will automatically be sent an Annual Allowance pension savings statement if either of the following applies to you:
  • Pension growth in either the 1995/2008 NHS Pension Scheme or the 2015 NHS Pension Scheme is more than the Annual Allowance. 
  • You are a transition member and the total pension growth across both the 1995/2008 NHS Pension Scheme and the 2015 NHS Pension Scheme is more than the Annual Allowance.
HMRC’s deadline date for NHS Pensions to send these statements to members is 6 October following the end of the tax year.
We are only able to calculate your pension growth if we receive the annual update of pensionable pay and service from your employer. If your employer sends this annual update after 5 July we will send you a statement within three months of receiving the annual update.
More information about exceeding the Annual Allowance can be found on our website.
exceed aa, exceed Annual Allowance
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