Carry-forward allowance - rules

ELM_Herts

Hi All.  I understand that if I haven't used the full £40k allowance in the previous three years, I can carry-forward unused allowance and overpay.  Let's say this is the current scenario:

Previous 3 years contributions
2018-19: £20k
2019-20: £30k
2020-21: £30k

So say in 2021-2022 I pay in £60k, that uses up this tax year's allowance and the unused allowance from 2018-19.  My question is: am I then still able to use my allowance from years 2019-20 and 202-21?  Since the next tax year, my previous 3 years would look like this and, taken as an average, mean I'd used £40k per year:

2019-20: £30k
2020-21: £30k
2021-22: £60k

I hope this is clear!  Thank you in advance for any advice.

hugheskevi

Yes, carry-forward always uses oldest available carry forward up first, so 2018-19 in your example.

So for 2022-23 you would have £20K of carry-forward remaining.

ELM_Herts

hugheskevi said:

Yes, carry-forward always uses oldest available carry forward up first, so 2018-19 in your example.

So for 2022-23 you would have £20K of carry-forward remaining.

Brilliant, thanks so much.  That's great news.

jamesd

Just to give the common reminder: you also need to have at least 60k of pay before any salary sacrifice to do this.