Carry Forward Tax Relief and Pension Contributions
I am looking to maximise my DC pension contribution this financial year and was hoping you could sense-check my thought process. The only recent contribution to my pension was £8k last financial year (22/23). Other than that, for years my only contribution has been my workplace pension contributions of approx. £3k per year. I have approx £16k of higher rate tax that I have paid since the 20/21 tax year (I will do a calculation at the end of this tax year to get a more definite figure) so I am looking to claim as much of this back as possible utilising the Carry Forward option. I will reclaim the higher rate of tax on the £8k (i.e. £3,333) when I get round to doing to my 22/23 tax return.
This year (23/34) I will be earning £60k and will be getting a bonus in region of £40k. The bonus I am looking to pay directly to my DC via salary sacrifice. I am also looking to add £40k from savings to my pension to allow me to claim the £16k higher rate tax, carried forward from the last 3 years.
In doing the above, am I falling within the Tax Relief Carry Forward and Pension Contribution Carry Forward rules?
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