Pension carry forward rules and corporation tax

mobime

Hi

I run a small limited company and in the process of setting up a SIPP. I understand that I can make employer contributions into my pension as I'm also an employee of the company up to £40,000 which would not attract corporation tax. My question is regarding carry forward. Is it too late to make employer contributions for previous years and get corporation tax relief whether or not I use the full £40,000 allowance for this year? My tax year ends in May and I want to reduce my corporation tax bill for 2015/2016 if possible using carry forward.

Any advice would be greatly appreciated. Many thanks!

HappyHarry

mobime wrote: »

Is it too late to make employer contributions for previous years and get corporation tax relief whether or not I use the full £40,000 allowance for this year? My tax year ends in May and I want to reduce my corporation tax bill for 2015/2016 if possible using carry forward.

You can use any unused carry forward allowances from the previous three years.

You will be able to get corporation tax relief on the contributions.

You must use this year's £40,000 allowance first.

You must have had a pension in place. i.e. if this is your first pension, then you can't use carry forward.

mobime

@HappyHarry - thanks for clarifying.