The conditions
Carry forward is available where the client was a member of a registered pension scheme at some point in the tax year being carried forward from. Membership is enough — no contribution needs to have been made. Tax relief on personal contributions is still capped by relevant UK earnings in the year the contribution is made.
Order of use
- Use the current tax year’s annual allowance first.
- Then use unused allowance from the earliest of the three previous years.
- Work forward through the remaining years in date order.
Where the client was subject to the tapered annual allowance in an earlier year, the unused amount available from that year is measured against the tapered figure, not the standard one.
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