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Posted Wed, 08 Jan 2025 08:39:27 GMT by Colin Tempest
I have two defined pensions, one with my current employer which I am paying into, and one from a previous employer which I no longer pay into and which only increases in line with inflation. Does the annual allowance count as the total of how much both pensions have increased over the year, or just how much the pension I’m paying into increases? Thanks.
Posted Thu, 23 Jan 2025 09:29:18 GMT by HMRC Admin 25 Response
Hi Colin Tempest,
It is only your earning income that determines the annual allowance.
Increases arising inside your pension pot do not count towards this threshold.
Thank you. 
 

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