Carry Forward Impacted By Contributions 06/04/2015 to 08/07/2015?

wary

I've used my £40K contribution limit for each of 2014/15 & 2015/16 but made no contributions in 2013/14, so presumably should be able to make use of carry forward to allow me to make up to £80K contributions during 2016/17. (These are made direct from my own company so limits should not be constrained by my salary.) However, for 2015/16, I only kept to my 40K limit due to the clock effectively being reset on 9 July, having contributed an additional £13500 from 6 April to 8 July.

Will this £13500 impact my carry forward limit available to me for 2016/17 from the past 3 years? i.e. will it effectively reduce the unused £40K from 2013/14 to £26500?

Thanks

kidmugsy

It was £50k for 13/14.

As far as I know, your additional £13500 was a pure one-off increase in your allowance.

sandsy

kidmugsy wrote: »

It was £50k for 13/14.

As far as I know, your additional £13500 was a pure one-off increase in your allowance.

This is also my understanding.

wary

Thanks. So I actually have £50K unused limit that I can carry forward to 2016/17 ...

zagfles

Were you a member of a pension scheme in 2013/14? If not you can't carry forwards.

wary

zagfles wrote: »

Were you a member of a pension scheme in 2013/14? If not you can't carry forwards.

Depends on what is meant by a "scheme"? My current pension policy was in place and I'd made ad hoc contributions into it prior to this tax year, although none of these were paid by my current LTD company. Does this qualify me to use carry-forward from 2013/14?

zagfles

wary wrote: »

Depends on what is meant by a "scheme"? My current pension policy was in place and I'd made ad hoc contributions into it prior to this tax year, although none of these were paid by my current LTD company. Does this qualify me to use carry-forward from 2013/14?

I think so - check https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm055100#IDALX1SB

wary

zagfles wrote: »

I think so - check https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm055100#IDALX1SB

Thanks. For 2015/16, I contributed £13500 pre-alignment & £40000 post-alignment. This article to which you sent me the link suggests that I have a carry-forward entitlement for 2015/16 of £26500 which I can use in 2016/17 (along with any entitlement from 2013/14 & 2014/15).

Have I understood correctly?

lifecanbetough4

The allowance for the post alignment was £0 but you can carry forward a maximum of £40k from the pre alignment. So I don't think you can carry forward the extra £26500 since you have already carried forward the maximum £40k allowed from the pre alignment.

zagfles

wary wrote: »

Thanks. For 2015/16, I contributed £13500 pre-alignment & £40000 post-alignment. This article to which you sent me the link suggests that I have a carry-forward entitlement for 2015/16 of £26500 which I can use in 2016/17 (along with any entitlement from 2013/14 & 2014/15).

Have I understood correctly?

No. It states

Despite the annual allowance for the pre-alignment tax year being £80,000, if the amount of unused annual allowance for that year exceeds £40,000, the maximum amount that can be carried forward is limited to £40,000.

You used that entire £40k in the post-alignment year, so you have nothing left to carry forwards. That's my understanding anyway.

wary

Get it now, thanks both. I was assuming that pre-al & post-al each had a £40K contribution limit, and the restriction referred to in the article was that the carry-forward for the whole year could not exceed £40K. However, it seems that the contribution limit split was set at £80K & £0K respectively, with the carry-forward from pre-al being capped at £40K.

So my contributions from 9 July were not actually making use of my post-al limit (as it is £0k) but were actually making use of the pre-al carry-forward.

Does that sound correct?