Annual pension contribution allowance

[rfisher]

So this is 40,000 per year plus the last 3 years carry over, so potentially 160,000 in any 1 year.

If I have;

3 years back 40,000
2 years back 40,000
1 year back 40,000
This year -140,000 pension contribution made, 20,000 available to carry forward

What is left for next year?

Is it;

3 years back already used
2 years back already used
1 year back 20,000
This year 40,000 = 60,000 total

Or;

3 years back 40,000
2 years back 40,000
1 year back 20,000
This year 40,000 = 140,000

Thanks.

[PurpleMoonlight]

Your £140,000 contribution will use the following:

2014-15 £40,000
2015-16 £40,000
2016-17 £20,000
2017-18 £40,000

Next year you will have the following available:

2015-16 £0
2016-17 £20,000
2017-18 £0
2018-19 £40,000

I assume you have some pension provision from prior to 2014-15.

[rfisher]

Thanks.

Didn't something funny happen in 15/16, so there were actually 2 £40,000 allowances for that tax year?

[PurpleMoonlight]

There was but you needed to have utilised it at the time. It doesn't apply to carry forward.

[rfisher]

Shame.

And tax relief on the pension contribution (assuming it's not more than your taxable income) is paid at 40%, or is it the same as the amount of tax you actually paid on your taxable earnings?

[oop north]

But it tapers if he relevant income figure (prob not correct terminology there) is greater than £150,000. And if income more than £210,000 there is only £10k relief available in a year...

[Jockman]

oop north said:

But it tapers if he relevant income figure (prob not correct terminology there) is greater than £150,000. And if income more than £210,000 there is only £10k relief available in a year...

Good point.