Unused pension allowance from previous years

Dazed_and_C0nfused

p00hsticks said:

rothers said:

p00hsticks said:

rothers said:

doodling said:

Hi,

No.  Tax relief in any tax year is (with the exception of very high earners where there is an additional limit) applied to the larger of your earned income or £3600.

If all earned income for the year (before tax) has already been paid into the SIPP then no further tax relief is available 

I read somewhere that there is a three year rule where you can make up pension payments from previous years, does that not apply to her then?

Were her total earnings less than £60k ?

Yes, around £37k

In that case, my (inexpert) understanding is that as she hasn't used all her pension tax allowance for this year, she can't carry forward anything from previous years. Pension tax relief for a year is limited to £60k or earnings, whichever is the lower. 

I guess a high PIA for the NHS pension might take her over the annual allowance.

But that won't help really as she has already contributed the maximum for tax relief purposes.

rothers

Got you, thanks for your help both.

Linton

rothers said:

Morning all,

My wife pays into an NHS pension and also has a SIPP, this year we have paid her total wage into her pensions however she has not contributed into her SIPP last year. Is it possible for her to still do so and receive the tax relief contribution from the government?

Many Thanks

You can only contribute to a pension in the current tax year.  All gross contributions must be covered by earnings from employment in the current tax year.  

There is a separate limit of £60K/year including employers contributions or equivalent for DB pensions which can be rolled over from the 3 previous years subject to more detailed conditions.