Pension carry-forward allowance?

[tinytim123]

In the fortunate position of trying to use some of my pension 'carry-forward' allowance in the current tax year.

What happens if I make contributions which would take my 2021/22 taxable income to less than £50,240 i.e. the threshold for higher rate tax? Will I only get tax relief at 20%?


Sorry if this has been asked before but I couldn't see it in the searches or existing threads.

[PistonHead007]

Yes, higher rate tax relief against higher rate earnings and basic rate on the rest.

Make sure your total gross contribution is at least matched by relevant UK earnings for this tax year.

[tinytim123]

PistonHead007 said:

Yes, higher rate tax relief against higher rate earnings and basic rate on the rest.

Make sure your total gross contribution is at least matched by relevant UK earnings for this tax year.

Great, thanks for the confirmation.

[samdy]

In effect, any contribution you make in excess of £50,240 will get an effective tax relief of 40%.

So 20% relief up to £50,240 and 40% relief above it.