Each tax year, there is a limit to how much you can contribute to your pension and receive tax relief. This is known as the annual allowance, and for most persons, the current ceiling is £60,000.

If you earn a higher earner, your annual allowance may be lowered. This is referred to as the tapered annual allowance.

However, you may be able to contribute more than the annual allowance in one tax year if you didn’t use all of your allowance in any of the previous three tax years. This is known as ‘carry forward’. Remember, you can’t usually access the money invested in your pension until you are 55 (this is due to change to 57 in 2028).