How carry-forward works for SSAS contributions
Carry-forward is one of the most powerful but most-misunderstood SSAS contribution rules. Used correctly, a member can contribute up to four years’ worth of annual allowance in a single tax year — a useful tool for one-off windfalls or catching up after lean years. This guide explains the mechanics, the tapered-allowance interaction, and a worked example.
SSAS carry-forward lets you use unused annual allowance from the previous three tax years on top of the current year’s £60,000. Per PTM053900, this means a member who has fully used 2023/24, 2024/25 and 2025/26 zero contributions could theoretically contribute up to £240,000 in a single tax year (3 × prior + current). The member must have been in any registered pension scheme during the years they’re carrying forward from, and the tapered annual allowance reduces both current and historical allowances for high earners.
Last updated: July 2026 · 8 min read · UK 2026/27 tax year
The basic carry-forward rule
The standard annual allowance is £60,000 for 2026/27. Carry-forward (PTM053900) allows a member to use unused allowance from the previous three tax years — provided they were a member of a registered pension scheme in those years (even if no contributions were made).
The lookback works oldest-first: current year’s allowance is used first, then the oldest carry-forward year, then the second-oldest, then the third-oldest. Any unused allowance beyond three tax years back is lost.
Worked example: a single £240,000 contribution
Consider a director who has been a SSAS member since 2023 but the company has not made any contributions to date. In 2026/27 the available allowance is:
- Current year (2026/27): £60,000
- Carry-forward from 2025/26: £60,000 (unused)
- Carry-forward from 2024/25: £60,000 (unused)
- Carry-forward from 2023/24: £60,000 (unused)
- Total available in 2026/27: £240,000
The company could make a single £240,000 contribution in 2026/27 with full corporation-tax deduction (subject to the “wholly and exclusively for trade” test — HMRC will scrutinise large one-off contributions for genuine commercial justification).
The tapered annual allowance trap
For members with adjusted income above £260,000, the annual allowance is tapered down (PTM057100). For every £2 of adjusted income above £260,000, the allowance reduces by £1, down to a minimum of £10,000 at adjusted income of £360,000+.
Crucially, the tapered allowance applies both to the current year and to historical years being carried forward. A member who had £300,000 income in 2024/25 would have had their allowance tapered down to £40,000 that year — so the £60,000 carry-forward shown above would actually be only £40,000.
What counts as 'being a member of a pension scheme'?
To carry forward unused allowance from a tax year, the member must have been a member of a UK registered pension scheme at some point during that tax year. This includes:
- Active member of an occupational scheme (SSAS, DB, group personal pension)
- SIPP or personal pension holder
- Deferred member of a previous workplace scheme
If a member had no pension scheme membership at all in a given tax year, no carry-forward is available from that year.
Practical use cases for SSAS carry-forward
- Bonus year: Director receives a one-off bonus or sells part of the company; contributes the lump sum to SSAS using carry-forward.
- Catching up after lean years: SSAS contributions were paused while the company invested in growth; carry-forward lets you backfill the lean years once cashflow allows.
- Pre-retirement boost: Director close to retirement uses carry-forward to maximise the SSAS fund before drawdown.
- Family SSAS staged contributions: Stage contributions across multiple family members’ allowances using their respective carry-forward.
How it works
3 years + current year
- Current year allowance: £60,000
- Plus 3 prior years' unused allowance
- Lookback is oldest-first
- Max single-year contribution: £240,000 (standard allowance)
The taper trap
Tapered annual allowance
- Adjusted income > £260,000 triggers taper
- Allowance reduces £1 for every £2 above
- Minimum: £10,000 at £360,000+ income
- Applies to historical years too
Frequently asked questions
How many years can I carry forward?
Up to 3 tax years of unused annual allowance, on top of the current year's allowance. Anything older than 3 years is lost.
Do I need to have made any contribution in the carry-forward years?
No. You just need to have been a member of any UK registered pension scheme during those years. You don't need to have contributed.
Does the tapered annual allowance affect carry-forward?
Yes — both directions. The taper applies in the current year AND in historical years. A high-earner's prior-year allowance carry-forward is also tapered if their income was above £260,000 in those years.
Can I carry forward from a SIPP or personal pension into a SSAS?
Yes. Carry-forward is about unused annual allowance, not about which scheme you were in. Membership of any UK registered scheme qualifies.
Is carry-forward limited per scheme or per individual?
Per individual. Your annual allowance and carry-forward are personal to you, regardless of how many pension schemes you're a member of.
Will my company get corporation tax relief on a carry-forward contribution?
Yes — provided the contribution passes HMRC's 'wholly and exclusively for trade' test. Large one-off contributions attract more scrutiny, so the contribution should be commercially justifiable as employee remuneration.
What's the largest possible single-year SSAS contribution using carry-forward?
For a standard-allowance member (no taper): £60,000 current + 3 × £60,000 carry-forward = £240,000. For tapered-allowance members, the figure is lower.
Sources & references
- HMRC: PTM053900 — Annual allowance carry-forward
- HMRC: PTM057100 — Tapered annual allowance
- HMRC: PTM050000 — Member duties
- Finance Act 2004 — Annual allowance
Disclaimer: This article is for educational purposes only and does not constitute financial advice. SSAS pensions are corporate occupational pension schemes registered with HMRC and overseen by The Pensions Regulator (TPR); they do not fall under FCA regulation. For personalised advice, consult a separately FCA-authorised independent financial adviser.