How much can I contribute to my SIPP?

If you're a UK resident under the age of 75, the general rule is you can contribute to all of your pensions as much as you earn and you will receive tax relief on your contributions.

For example: If you earn £30,000, you should be able to contribute £30,000 gross to your pension. The payment you make will be £24,000, to which the taxman will add basic-rate (20%) tax relief of £6,000.

Higher and top-rate taxpayers can claim back the additional tax they have paid through their tax return.

A pension annual allowance applies. For most people this is £40,000 but if you have income over £150,000 your annual allowance is tapered down from £40,000. Please read our taper relief guide for more information. Once you access your pension your annual allowance may drop to £4,000. Please see our Money purchase annual allowance information page. 

If your total pension contributions, including any contributions your employer makes, exceed your annual allowance you will be you will be subject to a tax charge, known as the annual allowance charge (AAC). For more information on this charge and how to pay it please read our guide.

Please remember that tax rules can change in the future and there are other factors that affect how much you can pay into your pension, which you may need to consider.