If you’re subject to the MPAA and you make no contributions to a defined contribution pension scheme, you can still save the standard £60,000 annual allowance into a defined benefit scheme if you’re in one.
Equally, if you were to save the maximum £10,000 a year into a defined contribution scheme, the maximum tax relievable savings you can make in a defined benefit scheme would be £50,000 (known as the alternative annual allowance), giving a combined pensions savings total of £60,000.
On 6 April 2023, the Annual Allowance increased from £40,000 a year to £60,000 a year. You can speak to your pension provider or administrator for more details on how this works.
You can’t bring forward any unused annual allowances from the previous three tax years to allow contributions of more than £10,000 to defined contribution pensions. It might be possible to carry forward unused annual allowance for use in defined benefit pensions.
The MPAA will only start to apply from the day after you’ve taken flexible benefits. This means any previous savings aren’t affected.