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Where Taxpayers and Advisers Meet

Carrying back charitable donations to previous tax year to increase pension annual allowance

someone
Posts:692
Joined:Mon Feb 13, 2017 10:09 am
Carrying back charitable donations to previous tax year to increase pension annual allowance

Postby someone » Wed Mar 29, 2017 12:47 pm

I am very close to the maximum pension contributions I can make due to the tapering annual allowance. The pension contributions have already been made via salary sacrifice.

I intend to make an extra charitable donation to reduce my income to the point where my annual allowance exactly matches what I've contributed to my pension.

I understand that for each £2 I give to charity I will get £1 of pension annual allowance back.

Can I make the charitable contribution in the 2017/18 tax year but include it in the box on my 2016/17 tax return or does it have to be made in the 2016/17 tax year for this to work? I would not want to carry back all my 2017/18 charitable giving to 2016/17, just some of it.

I went through this with a pension adviser back in January and I expected to have to make a charitable gift of around £2000 (net) but on trying http://taxationweb.azurewebsites.net/Pe ... Calculator that suggests that I might not have exceeded my annual allowance (I have no unused allowance from previous years). I think my calculations are probably the correct ones as the online calculator doesn't quite match my circumstances where I do a salary sacrifice and my employer also does a pension match and I cannot work out exactly how to tweak the numbers to give the right result. I was hoping I could wait until I can put the numbers into the online tax gateway and then make exactly the right size of charitable gift to avoid any annual allowance charge..

someone
Posts:692
Joined:Mon Feb 13, 2017 10:09 am

Re: Carrying back charitable donations to previous tax year to increase pension annual allowance

Postby someone » Fri Mar 31, 2017 9:52 am

This seems to answer my question in the affermative.

https://www.stewardship.org.uk/download ... 20back.pdf


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