Drawdown and unused pension allowance

Markdavid1962

Just a question with regard to can you used an unused allowance from 3 years ago if you have now entered pension income drawdown.

So I retired in Nov 2022 and have lived of growth/interest from  investments and pension income since that date, I have 3 pension pots, I have taken the 25% tax free from all three pots and one is in income drawdown.

So I have a decision to make as I also have some inheritance which I need to invest and am basically looking at options

My question is can I use  the 'carry forward unused pension allowances from the previous three years, ie 2022/23 tax year' and invest in one of the three pension pots (and gain the tax relief), would this be at the normal tax rate of 20% or the higher rate of 40% which I was on in 2022/23

Or is this not available now and is limited to £10k

Dazed_and_C0nfused

Markdavid1962 said:

Just a question with regard to can you used an unused allowance from 3 years ago if you have now entered pension income drawdown.

So I retired in Nov 2022 and have lived of growth/interest from  investments and pension income since that date, I have 3 pension pots, I have taken the 25% tax free from all three pots and one is in income drawdown.

So I have a decision to make as I also have some inheritance which I need to invest and am basically looking at options

My question is can I use  the 'carry forward unused pension allowances from the previous three years, ie 2022/23 tax year' and invest in one of the three pension pots (and gain the tax relief), would this be at the normal tax rate of 20% or the higher rate of 40% which I was on in 2022/23

Or is this not available now and is limited to £10k

If you aren't going to contribute £60k in the current tax year how do you think you can utilise carry forward 🤔

zagfles

If you've got no earned income you can only get tax relief on £3600 gross (£2880 net). Period. There is no carry forwards with the tax relief limit. Pension and investment income doesn't count. See PTM044100 - Contributions: tax relief for members: conditions - HMRC internal manual - GOV.UK

MX5huggy

Additionally by taking 1 penny or more of taxable income from a DC pension you trigger MPAA limiting contributions to £10000 even if you did have other income over this. 

SVaz

And this is why Martin Lewis has to make things a whole lot clearer on his shows.
This kind of question is the direct result of his poor information given on the retirement ‘special’. 

Albermarle

SVaz said:

And this is why Martin Lewis has to make things a whole lot clearer on his shows.
This kind of question is the direct result of his poor information given on the retirement ‘special’. 

Although the confusion about carry forward allowances has been a regular feature of many threads for many years.