Technical question of lump sum pension contribution

IamWood

Thank you @Dazed_and_C0onfused.

To be clear, In order to make use of the carry-forward facility, I can only make a single lumpsum payment to my chosen pension provider. Do I understand it right?

Dazed_and_C0nfused

I'm not aware of any requirement to make a single lump sum payment.

This might be worth a read,
https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/annual-allowance-carry-forward/

IamWood

Thanks!
Looks like I am able to do what I need to do:

Pension           2019-2020.      2020-2021.    2021-2022
WorkPension          10K.                 10K.               40K
SIPP.                       0.                      30K.              30K (carry-forward from 2019-2020) 

Am I correct?

TheAble

How far are you from retirement? If a long way you may be overly stressing about timing risk.

IamWood

I am 47 and aiming to semi-retire at 55/57 if I can  

TheAble

Your calculation looks correct as far as I can tell. But bear in mind you can only claim tax relief according to this year's earnings.
So say your earnings for 20/21 will be 90k. You can only therefore claim 40% relief on your 70k contribution to the extent that your 90k earnings are in the 40% bracket. The rest will get 20%.

TheAble

Ps no it doesn't need to be a lump sum I don't believe. You could put in 3.5k/day on each of the next 20 days. Just as long as it's in before the tax year ends. 

IamWood

Thank you, @TheAble! This is helpful.