This page applies to the 2020/21 tax year onwards – if you’re working out your position for 2019/20 or earlier then you’ll need to use different figures. Prior to 6 April 2020, tapering applied if you had both a threshold income over £110,000 and an adjusted income over £150,000. The tapering worked by reducing your AA by £1 for every £2 of your adjusted income over £150,000 (subject to a minimum AA of £10,000 for adjusted incomes of £210,000 or more).
What is a Tapered Annual Allowance?
A Tapered Annual Allowance (AA) is lower than the standard AA and applies to those on a higher income.
Will it affect me?
Tapering only applies if you have both a threshold income over £200,000 and an adjusted income over £240,000 (this applies from 6 April 2020 – if you’re looking at an earlier year then see our FAQs below).
To help you estimate whether the Tapered AA will apply to you, give our Annual Allowance Modeller a go. It’ll give you an idea of how much AA you’ve used up in a tax year, and an estimate of your Tapered AA. Or you can use our worksheet.
You’ll need to work out your threshold and adjusted income yourself – or with the help of a financial adviser. If you want to seek guidance or take financial advice on the options available to you, visit the guidance and financial advice page. You’ll find a range of resources to support your planning and you can also find information on how to access an independent financial adviser.
Here’s how the taper works
Your standard AA is reduced by £1 (to a minimum AA of £4,000) for every £2 your adjusted income is over £240,000. This table gives an example of what your Tapered AA might look like:
| Adjusted income | Tapered AA |
| £312,000 and above | £4,000 |
| £300,000 | £10,000 |
| £290,000 | £15,000 |
| £280,000 | £20,000 |
| £270,000 | £25,000 |
| £260,000 | £30,000 |
| £250,000 | £35,000 |
| £240,000 and below | £40,000 |
Got a question?
Document downloads
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Annual Allowance worksheet pdf (351kb)
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Annual Allowance worksheet docx (377kb)