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SIPP carry forward allowance query
NotSureWhichUsername
Posts: 14 Forumite
Hello. Long time lurker; first time poster!
I’ve recently come into some money and want to top up my SIPP to maximise the tax relief available. This year, I’ve maxed my contribution, but as my earnings are below £40k, I’ve not been able to use the full possible allowance.
I opened a HL SIPP in Jan-16 to consolidate small bits of pension from previous employers. I didn’t contribute anything to the SIPP in the 15-16 (other than transferring over older pensions), 16-17 or 17-18 tax years.
I’ve read around to try to find the answer to this query without success:
As I’ve not been able to use the full £40k allowance this tax year, am I barred from carrying forward my unused allowance from the previous tax years? Or, can I still invest a sum equal to my earnings from each of those previous tax years?
Hope this makes some sense. Thanks 👍🏻
I’ve recently come into some money and want to top up my SIPP to maximise the tax relief available. This year, I’ve maxed my contribution, but as my earnings are below £40k, I’ve not been able to use the full possible allowance.
I opened a HL SIPP in Jan-16 to consolidate small bits of pension from previous employers. I didn’t contribute anything to the SIPP in the 15-16 (other than transferring over older pensions), 16-17 or 17-18 tax years.
I’ve read around to try to find the answer to this query without success:
As I’ve not been able to use the full £40k allowance this tax year, am I barred from carrying forward my unused allowance from the previous tax years? Or, can I still invest a sum equal to my earnings from each of those previous tax years?
Hope this makes some sense. Thanks 👍🏻
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Comments
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your contributions this year cannot exceed your gross earnings this year .I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.0 -
Thanks MallyGirl, so it’s only if you have spare earnings (over £40k) in the current tax year, you can look to use up previous years’ pension allowances?0
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That's right
- To use carry forward, you must make the maximum allowable contribution in the current tax year (£40,000 in 2018-19) and can then use unused annual allowances from the three previous tax years, starting with the tax year three years ago.
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