Hello
I've been advised that I can use previous years pension allowance for tax relief on a large pension contribution this year.
This is despite no relevant income in those previous years, only this current tax year.
Is this correct?
Retired except for a 3 month period of self employment in current tax year.
This current year 21/22 relevant income is £70K.
Currently no contributions made to pension for 5 years, though it's been open for 12 years.
Would like to make pension contribution of £70K (or rather I contribute £70K - 20% = £56K which should equal £70K in pension pot). This is the maximum eligible for tax relief in my circumstances?
This is over the £40K allowance eligible for tax relief, so I'd use a previous year's allowance which is unused. That previous year had no relevant income - only bank interest and large capital gains.
It's my understanding bank interest and capital gains are not considered relevant income in relation to pension allowance.
Is the advice I have received correct that this is permitted?
Thanks
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