Carry Forward

If you have not used your full allowance in the past three years you could use the Carry Forward rule. 

Input period Annual allowance Total contributions What can be carried forward? 
2014/15  £40,000 £40,000 £0
6 April 2015 - 8 July 2015 Up to £80,000* £0 £0
9 July 2015 - 5 April 2016 Up to £40,000* £20,000 £20,000
2016/17 £40,000^ £10,000 £30,000

Based on the above you could carry forward £50,000, meaning you could invest £90,000 in this tax year.**

* In 2015/2016 the rules were slightly amended to align the pension contribution year to the tax year. During this year you were able to invest twice, allowing you to invest up to £80,000.

^2016/2017 and 2017/2018 saw the introduction on the tapered allowance. If you earn over £110,000 your annual allowance could be reduced to £10,000. This would mean the amount you could carry forward would also be reduced. You can find out more about the tapered allowance here.

**Please be aware, the amount of tax relief you will receive depends on individual circumstances, and this may change over time. You must have been a member of a UK-registered pension scheme in each of the year from which you are carrying forward, even if you have not made contributions. You can only contribute as much as you earn, and receive tax relief.

Published on 29/08/2017