With an ageing population, pensions are a key focus and often a political hot potato. The government faces a continual balancing act of wanting to encourage people to save for their retirement by providing tax incentives, while balancing the budget.

The constant changes to the rules around pensions have resulted in a very complex regime, which unfortunately includes potential tax charges that can be inadvertently triggered.

In this article, we focus on just one of these charges, caused by making contributions that exceed your Annual Allowance.

What is the annual allowance?