Pension annual allowance

cb4fwh

Ok, what I couldn't get my head around was how HMRC worked out the carry over unused annual allowance figure, but PTM055100 - Annual allowance: carry forward: general - HMRC internal manual - GOV.UK (www.gov.uk) has the detail that I was looking for.

'If one of the previous tax years in the previous tax year set has a total pension input amount of more than the annual allowance for the previous tax year concerned then that excess input amount may have used up any amount of available annual allowance from the preceding year(s) in the previous tax year set first. If so, this will reduce the available annual allowance to be carried forward from the previous tax year set to the current year.'

So, in my case for 22/23 I made an 'overpayment' of £7361.33 (as I contributed £47361.33) and this was acceptable as I had only contributed £4500 in 19/20. £4500+£7361.33 is £11861.33. I will then 'lose' my remaining allowance of £28138.67 in 23/24.

My allowance in 23/24 will be £78834.00 - my £40000 allowance for 23/24, plus my unused £35000 from 20/21 and £3333.37 in 21/22.

Appreciate all of the help :-:smile:

cb4fwh

Just for clarity, just in case anyone else is reading this in the future, my allowance for 24/25 would be £43333.37 (assuming the pension allowance stays at £40000), £40000 plus £3333.37 - my unused pension allowance from 21/22. There would be no carry-over from 22/23 or 23/24 as I exceeded the £40000 in both years.