Is there a Pension Provider that will open a pension with a CarryBack lumpsum contribution ?

robbo87

I'm looking for a pension provider that will open a basic pension with a lumpsum 'Carryback/Carry forward contribution', which I'm entitled to make for tax year 2019/20.  Such a 'basic pension' could , I suppose, be a stakeholder or something similar. Not Vanguard's  sipp, they only take current taxyear contributions. Any potential providers??  Thanks for any help..

Dazed_and_C0nfused

You cannot make a pension contribution for 2019:20.  Or 2020:21. 

You have a few months yet to make one for 2021:22.

From the providers perspective I suspect you are overcomplicating things by querying scenarios which do not exist.  No pension company will accept anything other than current tax year contributions for the simple reason no other type of contribution is possible.

dunstonh

I'm looking for a pension provider that will open a basic pension with a lumpsum 'Carryback/Carry forward contribution', which I'm entitled to make for tax year 2019/20. 

Carry back was abolished many years ago. You just have Carry forward nowadays.   All pension providers support carry forward.

robbo87

Dazed_and_C0nfused said:

You cannot make a pension contribution for 2019:20.  Or 2020:21. 

See "Carrying forward unused annual allowance"  http://www.hmrc.gov.uk/tools/annualallowancelimit/

Dazed_and_C0nfused

I'm not sure what you are reading on that link but there is nothing whatsoever to suggest you can make a pension contribution for 2019:20 or 2020:21.

Unless you have a TARDIS maybe.

robbo87

Dazed_and_C0nfused said:

I'm not sure what you are reading on that link but there is nothing whatsoever to suggest you can make a pension contribution for 2019:20 or 2020:21.

Unless you have a TARDIS maybe.

Let me translate for you:

 "unused annual allowance" means 'pension contribution for' year xxxx xx.

If that's too difficult, check dunstonh comment above.

 

robbo87

dunstonh said:

  All pension providers support carry forward.

This is Vanguard when asked to actually do it:

-----------------------

"From: Personal Investor Services

Subject: 'carry forward/back' pension contribution (for 2019/20)

Hi ,

Thanks for your message.

We're unable to backdate unused pension allowances and anything you contribute will be treated as a contribution to the current tax year (2021/22).

If you are non-taxpayer then you can still contribute £2,880 this tax year and receive £720 tax relief from HMRC. I can see that you have done this on 29th July.

If your intention was to make an additional £2,880 this tax year as well as last, then as a non-taxpayer you would still be capped at a single contribution of £2,880. You must have the earnings in the current tax year to support your total contributions and be eligible for the tax relief.

Kind regards,

N*****"

--------------------

As I understand CarryForward, its for use when current_year pension tax allowance is exhausted and (some) allowance from prior 3 years remains unused (plus some other caveats eg UKpension membership etc -  which is the position.)

Presumably N***** knows VG's implementation of those general 'carry forward' rules. So, basically VG don't do it, and the original Q remains:

"Any potential providers??" 

Thanks for any help..

hugheskevi

Carry forward is used when you exceed your Annual Allowance (£40,000 for the vast majority of people) and so potentially have an Annual Allowance tax charge to pay to HMRC.

Carry forward does not enable you to make pension contributions for a previous year, rather, it enables you to avoid or mitigate an Annual Allowance charge in a tax year when your pension inputs (ie contributions) exceed the Annual Allowance.

The HMRC pension rules do not permit contributions for a past tax year to be made, so no pension provider can offer that.

Dazed_and_C0nfused

There are no providers as you are trying to do something that is impossible.

You cannot rewrite history.  You can only ever make a pension contribution in the current tax year.  You may be able to carry forward unused relief to allow a larger contribution in the current tax year but it is still a current tax year contribution.

And any tax relief due will be based on your tax position in the current tax year.

All providers will echo what Vanguard have said.

GunJack

...and your earnings in the current year also need to be big enough  to cover the proposed payment..

NoMore

robbo87 said:

Dazed_and_C0nfused said:

I'm not sure what you are reading on that link but there is nothing whatsoever to suggest you can make a pension contribution for 2019:20 or 2020:21.

Unless you have a TARDIS maybe.

Let me translate for you:

 "unused annual allowance" means 'pension contribution for' year xxxx xx.

If that's too difficult, check dunstonh comment above.

 

Dazed and confused is right, you are not making a contribution for previous years, you can make a contribution for this year. Carry forward MAY extend the amount you can contribute, but its still a contribution for this year and as such any tax relief will be due based on your tax paid this year. It's irrelevant on tax paid in previous years.

I suspect you are running into another problem which means carry forward allowance is not available to you. There are basically two limits to how much you can contribute to a pension:

 1) You can only personally contribute up to your earned income for the year (or £3600 if you are a non taxpayer)

and

 2) The max Pension contribution from all sources (including employer) is 40K p.a. This is known as the Annual Allowance (AA) and can be extended by unused allowance from the previous 3 years.

Note however both rules have to be satisfied, so you may well have unused Allowance of thousands of pounds, generally unless you have the same or more earned income, you can't make use of it.