Pension AVC 3 year rule

DRS1

flopsy1973 said:

So it  seems only people with a generous 60k salary can contribute and have a better pension provision yet again ?

But spare a thought for the poor soul on a £600k salary - his (or her) annual allowance will have been reduced to £10k. 

artyboy

DRS1 said:

flopsy1973 said:

So it  seems only people with a generous 60k salary can contribute and have a better pension provision yet again ?

But spare a thought for the poor soul on a £600k salary - his (or her) annual allowance will have been reduced to £10k. 

Although at least they will have less pension to be Rach Raided

(Not to be confused with Rick Rolled)

zagfles

flopsy1973 said:

So it  seems only people with a generous 60k salary can contribute and have a better pension provision yet again ?

No. Someone on £60k+ is still constrained by the tax relief limit, ie 100% of earnings. That applies to everyone. Nobody can carry forwards the tax relief limit however much they earn.

Higher earners have the additional constraint of the annual allowance, low earners don't need to worry about it. The AA is an additional restriction which only applies to high earners. 

The rubbish you may hear like "you can only use carry forwards if you earn over £60k" implying that higher earners have a special perk is completely wrong. Carry forwards is a feature of the AA. The AA is a restriction on high earners. But everyone is subject to the tax relief limit with no carry forwards.