£40,000 annual Pension contribution limit

[rfisher]

Contribution		Remaining
0		40,000
0		40,000
0		40,000
160,000		0
25,000		?
0		?
0		?

So the limit rolls over from the previous 3 years, but is the £160,000 contribution only relevant to the previous 3 years, or does it affect the 3 years that follow it?

Edited by rfisher on Tuesday 30th January 14:30

[Ollerton57]

The question isn't that clear. But based on what I think I'm seeing (3 years of 0 contributions followed by 1 year of a £160k contribution), the large contribution utilises the previous years allocation. It doesn't and cannot use any of the upcoming years allocation.

Does that help at all?

[rfisher]

Yes that's what I thought - thanks.

It's just a bit confusing, unless you only look at what is remaining for 3 previous years.

IYKWIM

Edited by rfisher on Tuesday 30th January 14:24

[trickywoo]

Don't forget that to use the three years worth of rollovers a pension scheme needs to have been in place even if not contributed to.

[Jockman]

You will use current year allowance first then go back three years, two years, one year.

Yes a pension scheme needs to be in place during the carry forward period.

Keep your eye on adjusted income and threshold income.

You will not receive tax relief if you didn't have relevant earnings for that period. Unless of course its an Employer Contribution.