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    • economic
    • By economic 6th Jul 17, 4:53 PM
    • 1,735Posts
    • 868Thanks
    economic
    pension top up from previous tax years
    • #1
    • 6th Jul 17, 4:53 PM
    pension top up from previous tax years 6th Jul 17 at 4:53 PM
    hi

    i have never topped up my pension using post tax income and am thinking about doing this. i heard you can top-up upto 40k a year for past 3 years? is this 40k the total after the tax rebate or before?

    my main question is can i top up from say 2 years ago rather then current or previous year or does the allowance have to start from latest years? reason i ask is that my income for the last year is only just over the 40% income tax threshold. for the tax year 2 years ago it was well aove the 40% threshold which is why i would like to top up from that year to maximise the tax rebate.

    also what is the process exactly for topping up? my pension is still with my previous employers plan. how do you get the tax rebate?

    thanks
Page 1
    • xylophone
    • By xylophone 6th Jul 17, 5:41 PM
    • 22,857 Posts
    • 13,211 Thanks
    xylophone
    • #2
    • 6th Jul 17, 5:41 PM
    • #2
    • 6th Jul 17, 5:41 PM
    https://www.pensionsadvisoryservice.org.uk/about-pensions/saving-into-a-pension/pensions-and-tax/carry-forward

    http://adviser.royallondon.com/technical-central/pensions/contributions-and-tax-relief/carry-forward/

    http://www.hmrc.gov.uk/tools/annualallowancelimit/

    http://adviser.royallondon.com/technical-central/pensions/contributions-and-tax-relief/defined-benefits-and-the-mpaa/


    my pension is still with my previous employers plan.
    Have you checked with the provider that you can still contribute to this plan?

    https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief
    • economic
    • By economic 9th Jul 17, 12:17 PM
    • 1,735 Posts
    • 868 Thanks
    economic
    • #3
    • 9th Jul 17, 12:17 PM
    • #3
    • 9th Jul 17, 12:17 PM
    so it looks like i cant make contribution unless i make it for this year (which i dont want to do due to the fact i am not earning anything this year)?

    "To use carry forward, you must make the maximum allowable contribution in the current tax year (£40,000 in 2017-18) and can then use unused annual allowances from the three previous tax years, starting with the tax year three years ago."
    • xylophone
    • By xylophone 9th Jul 17, 12:49 PM
    • 22,857 Posts
    • 13,211 Thanks
    xylophone
    • #4
    • 9th Jul 17, 12:49 PM
    • #4
    • 9th Jul 17, 12:49 PM
    If you have no relevant earnings in this tax year you are limited as to tax relieved pension contributions.

    http://www.pruadviser.co.uk/content/knowledge/technical-centre/tax_relief_members_contributions/

    See also http://www.hl.co.uk/pensions/interactive-calculators/carry-forward-annual-allowance-calculator

    and link in above to "Carry Forward and Annual Allowance Factsheet"

    WHAT IS CARRY FORWARD?
    It is a rule that allows some investors to carry forward unused annual
    allowance from the previous three years and catch up on contributions
    they may have missed.
    There are two conditions. First, you must earn at least the amount
    you wish to contribute in total this tax year (unless your employer
    is making the contribution)
    . Second, you must have been a member
    of a UK-registered pension scheme (this does not include the State
    Pension) in each of the tax years from which you wish to carry
    forward. Membership of any such pension scheme can qualify, even
    if you did not make contributions or were already taking benefits.
    • economic
    • By economic 9th Jul 17, 5:07 PM
    • 1,735 Posts
    • 868 Thanks
    economic
    • #5
    • 9th Jul 17, 5:07 PM
    • #5
    • 9th Jul 17, 5:07 PM
    thanks that confirms it - i dont qualify for this tax year.
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