Carrying Forwards a Pension Allowance

Manch

Hi

Im aware that I can use the previous 3 tax years pension allowance, however am I able to roll back a previous tax years pension contributions in order to create more space. 

For example, if I exceed the Pension allowance for 24/25 and there is not enough left in the 3 previous tax years, can I roll back the 23/24 contributions 3 years to the 19/20 tax year and 22/23 back to 18/19 etc. In order to maximise the amount available to roll back the current tax years exceedance?

Its with noting that this is all the result of the NHS Pension debacle. Any advice would be appreciated. 

Thanks

Marcon

Manch said:

Hi

Im aware that I can use the previous 3 tax years pension allowance, however am I able to roll back a previous tax years pension contributions in order to create more space. 

For example, if I exceed the Pension allowance for 24/25 and there is not enough left in the 3 previous tax years, can I roll back the 23/24 contributions 3 years to the 19/20 tax year and 22/23 back to 18/19 etc. In order to maximise the amount available to roll back the current tax years exceedance?

Its with noting that this is all the result of the NHS Pension debacle. Any advice would be appreciated. 

Thanks

You can only use the previous 3 tax years prior to the current tax year.

Sarahspangles

You have to fully use up the current year - all £60k for 2024/25 and then go back three years and work forward. It means that if you max out your contributions for three years running, you then have no carry forward in the fourth year.

Secret2ndAccount

Short answer, no!  In any year, before you can use carry forward, you must fully use up that year's Annual Allowance. So if you only put in 50k last year, you get 10k to carry forward. You can't say "I want to use up 2021's allowance for my 2024 contributions, leaving me with much more to carry forward". Doesn't work that way.

MetaPhysical

Just done this myself.  Had to fill up this year's £60k allowance first.  Then when I pay £60001 that £1 spills over to fill any allocation left in the 21/22 tax year (which will only have a 40k allowance since that was the max per year that applied for that tax year).  You cannot elect which year you want that £1 to be "allocated" to, it always goes to the earliest year in which there is allowance left over up to a maximum of three years in arrears.  Previous years are lost.

As other say, you have to use up this year's allocation first and this is becoming a rarer thing to do nowadays since to fill up £60000 is a tall order for most.