Claire Trott: Pension contribution limit breaches explained

What can happen depends on the circumstances

clock • 5 min read

Claire Trott looks at the consequences of breaching pension contribution limits in her latest article for Professional Adviser...

Contributions are sometimes paid which exceed the amount the member can reclaim tax relief on or which are in excess of their annual allowance (AA) after carry forward. What can happen depends on the circumstances of the excess contribution. It is important to distinguish between contributions in excess of a client's relevant UK earnings and contributions in excess of the AA. This has become even more complex for those without advisers because of the difference in the figures used for tapered AA  calculations and those used for relevant UK earnings. Exceeding relevant UK earnings T...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Pensions gender gap: A low-profile injustice that deserves more attention

Pensions gender gap: A low-profile injustice that deserves more attention

'Pensions are one of the few financial products where time is the single biggest driver of outcome'

Jessica Cook
clock 24 August 2026 • 4 min read
Advisers place focus on retirement support as providers lack 'meaningful' engagement

Advisers place focus on retirement support as providers lack 'meaningful' engagement

People’s Pension poll shows 54% of IFAs say providers struggle to create ‘meaningful’ engagement

Martin Richmond
clock 19 August 2026 • 3 min read
Pensioner poverty has risen for more than a decade, warns LCP

Pensioner poverty has risen for more than a decade, warns LCP

Single and divorced pensioners most affected and should be focus for future policy

Alex Levy
clock 18 August 2026 • 4 min read