Question regarding higher rate tax relief on pension contributions

TanDiy

Hi, I just wondered whether you can claim higher rate tax relief for tax paid in the previous year.

I stopped paying in to my private pension 10 years ago and it is now considered paid up and cannot accept any further payments (current value around 50K). This year I will be paying higher rate tax and am thinking that it might be worth making a lump sum payment to a pension policy so that I can claim back the higher rate tax. However, I am wondering whether the new pension scheme would need to be opened before the end of the current tax year for me to qualify or whether I could still claim the relief if the pension was not opened until the next tax year (after 6th April 2014).

Also, are there any particular pension companies that are known as being particularly good in respect of returns and fees, etc. I am aged mid 40's and would need the company to manage the investment as I do not really have the skills to pick funds, etc.

Thank you very much indeed for any advice.

Linton

The pension can be opened at any time. The only thing that matters is how much you contribute in each tax year.

TanDiy

Linton wrote: »

The pension can be opened at any time. The only thing that matters is how much you contribute in each tax year.

Thank you for coming back on this. If I open the pension after 6th April 6th 2014 and make a lump sum contribution then this will be in the new tax year. Can I still claim the higher rate relief against the higher rate tax I have paid in this current tax year.

Thank you

zagfles

TanDiy wrote: »

Thank you for coming back on this. If I open the pension after 6th April 6th 2014 and make a lump sum contribution then this will be in the new tax year. Can I still claim the higher rate relief against the higher rate tax I have paid in this current tax year.

Thank you

No. You'll need to pay in before the end of this tax year. You should still have time to open a pension before then.

paul5046

To carry forward allowances, you need to have one open in the year you are carrying from. Its a pity your old one is closed. You can carry forward allowances, but pay them into a different pension.
However, im not an expert on what constitutes a qualifying pension????

zagfles

paul5046 wrote: »

To carry forward allowances, you need to have one open in the year you are carrying from. Its a pity your old one is closed. You can carry forward allowances, but pay them into a different pension.
However, im not an expert on what constitutes a qualifying pension????

You can carry fowards the annual allowance but not the tax relief. You get the tax relief in the year you contribute.