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Retrospective tax relief?
Rov
Posts: 37 Forumite
I have 2 pensions, but haven't contributed to either for 3 years. I should pay 40% tax and need to do a tax return because of saving interest and a basic (wrong) tax code.
Is it possible for me to open a new SIPP today and contribute say £10k to it now. Then fill in my tax return for 11/12 in the next 15 days
and claim tax relief on that £10k as if it were a pension contribution from 11/12 tax year?
I understand the concept of carry forward for using up tax allowance from previous years, and I've seen examples of using pension input period out of sync with the tax year, but not to do what I've suggested here.
Is this just wishful thinking? or is there some way to access previous year tax relief by paying in later?
Is it possible for me to open a new SIPP today and contribute say £10k to it now. Then fill in my tax return for 11/12 in the next 15 days
I understand the concept of carry forward for using up tax allowance from previous years, and I've seen examples of using pension input period out of sync with the tax year, but not to do what I've suggested here.
Is this just wishful thinking? or is there some way to access previous year tax relief by paying in later?
0
Comments
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I think it is wishful thinking but not doubt one of the experts will be along shortly to confirm.Thinking critically since 1996....0
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The ability to "Carry forward" unused pension relief (i.e. nominate a pension contribution as applying to a prior tax year) stopped several years ago.
http://www.barnett-waddingham.co.uk/news/2000/10/carry-forward-on-personal-pensions/
The carry forward which is allowed now relates to the £50k "annual allowance" on contributions, you can use any unused "limit" from up to 3 years ago.
http://www.hmrc.gov.uk/pensionschemes/understanding-aa.htm
If you were a higher rate tax payer last year but a basic rate payer this year, for example, you cannot nominate a contribution you make now as applying to the last tax year. Prior to 2001, you could have done so.We need the earth for food, water, and shelter.
The earth needs us for nothing.
The earth does not belong to us.
We belong to the Earth0
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