Annual Allowance Taper: Threshold vs Adjusted Income Explained for £200k+ Earners

Last Updated On:
February 25, 2026
About 5 min. read
Written By
Written By
Arun Sahota
Private Wealth Partner
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What This Article Helps You Understand

  • The difference between threshold and adjusted income
  • How taper is calculated at higher income levels
  • How employer contributions affect adjusted income
  • Why bonus timing changes taper exposure
  • How taper interacts with carry-forward
  • Where over-contribution risk arises

FAQs

Does taper apply automatically above £200,000?
Do employer contributions increase adjusted income?
Can carry-forward override taper?
What happens if I over-contribute?
Does taper apply every year?
Should high earners review taper annually?
Written By
Arun Sahota
Private Wealth Partner
View ProfileBook Appointment

Arun Sahota is a UK-regulated Private Wealth Partner at Skybound Wealth, advising high-net-worth and ultra-high-net-worth families, business owners, and senior executives with complex UK and cross-border financial planning needs.

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