Changes to additional rate tax relief

Christo9her

Hi

I have a question related to the changes to tax relief on pensions for additional rate taxpayers from April 2016. I can see how the taper works and I will only get a 10k tax free allowance from that point on. However, if I have unused allowances from the prior 3 years will I still be able to use them?

Thanks,
C

Christo9her

Oh no, almost 100 views and nobody knows the answer!

PKY

Yes, the carry forward rules remain the same. So although next year high earners may have their pension contribution tax relief allowances reduced for the year 2016-17 they can carry forward unused allowances from earlier years where their allowances were not subject to this reduction. Also the 2016-17 reduced allowance, if not used, could be used in later years with the carry forward rules, but will remain reduced based on 2016-17 income.

Christo9her

That's great PKY, just what I wanted to hear. Thanks so much.

xylophone

http://uk.practicallaw.com/5-617-4671

may be worth a read.