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Pension drawdown glossary

Tapered annual allowance

A reduced annual allowance for people with very high incomes. It applies when threshold income is over £200,000 and adjusted income is over £260,000, and falls by £1 for every £2 over that, to a minimum of £10,000.

Source: GOV.UK: annual allowance · Last reviewed 24 September 2026

Related terms

See every term in the A–Z glossary. Definitions are general information for the 2026/27 tax year, not personal advice.

Important: The value of investments can fall as well as rise. You may get back less than you invest. Tax rules can change and benefits depend on individual circumstances. This is not financial advice.