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Where Taxpayers and Advisers Meet

using previous years pension allowance (carry forward) for last tax year

langtonbrow
Posts:64
Joined:Tue Mar 10, 2009 1:52 pm
using previous years pension allowance (carry forward) for last tax year

Postby langtonbrow » Tue Jun 13, 2023 9:33 pm

Hello,

For 2022-23 I inadvertently put £45000 into my pension pot. However for the previous three years I only put on average £38000 in.

It appears that the current £5000 excess can be overridden by the 3 x £2000 carry forward, avoiding punitive tax.

My question is, how do I achieve this? Is it invoked by a polite letter to HMRC with all the facts, via a section of the Self-Assessment form SA100, or do I need to action it via my pension provider?

thank you.

darthblingbling
Posts:698
Joined:Wed Aug 02, 2017 9:09 pm

Re: using previous years pension allowance (carry forward) for last tax year

Postby darthblingbling » Tue Jun 13, 2023 11:07 pm

Unless you self assessed penalty charge for 2022/23 and now need to amend it, I don't think there is anything to action aside from perhaps adding a white space note to your tax return to disclose what you have done in terms of carry forwards.

I should ask however, are you aware that the annual allowance is tapered for high earners as I assume you're earning a few bob if you're able to put that much away into your pension schemes?

darthblingbling
Posts:698
Joined:Wed Aug 02, 2017 9:09 pm

Re: using previous years pension allowance (carry forward) for last tax year

Postby darthblingbling » Tue Jun 13, 2023 11:10 pm

Also you say average, should flag you need to look at your actual gross contributions for each the last 3 tax years and compare against the annual allowance available for each tax year on a FIFO basis. Assuming it is literally £38000 each tax year and your annual allowance isn't and wasn't tapered you should be ok.


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