Where Taxpayers and Advisers Meet

Annual allowance (£40,000)

Posts: 1
Joined: Sat Oct 07, 2017 5:53 pm

Annual allowance (£40,000)

Postby David2017 » Sat Oct 07, 2017 5:57 pm

I’ve gone over my annual pension allowance simply because of a transfer of one pension into another. However, I have more than enough carry forward allowance available from previous tax years to mean I shouldn’t pay any tax.

My question is simply given this do I need to do anything? Do I need to declare anything on my self assessment even though I shouldn’t be due to pay anything.

Thanks for your help!

Posts: 2284
Joined: Sat Feb 01, 2014 3:26 pm

Re: Annual allowance (£40,000)

Postby bd6759 » Sat Oct 07, 2017 9:08 pm

You only need to declare a tax charge if one arises. You self assess this, and if none applies there are no entries to make.

Posts: 1504
Joined: Wed Aug 06, 2008 3:55 pm

Re: Annual allowance (£40,000)

Postby LozaACCS » Sun Oct 08, 2017 9:11 am

If you have merely transferred funds from one exempt approved scheme to another without taking benefits from either then you will not have triggered a benefit crystallisation event (there are 13 of them), your AA will not have been exceeded and the 3 years carry forward will be irrelevant, if it were it is worth remembering that the carry forward is not scheme specific, it is available if any approved scheme existed in the previous 3 years.
I assume you used an adviser to handle the transfer, they will be able to explain the position to you.

Return to “Savings & Investments, Pensions & Retirement”