Use it Don’t Lose it!

It should be remembered that 2013/14 was the last tax year that the Annual Allowance for pension contributions was £50k. Therefore, any unused contributions (i.e. of the £50k Annual Allowance) from that tax year must be used for Carry Forward before the tax year end –  5 April 2017.

Anyone thinking of making a large pension contribution should think about using any amount available from the 2013/14 tax year. This can be achieved by using “Carry Forward”, but if anyone is intending to do this, they must firstly use up their contributions allowance in the current tax year of £10k to £40k depending on their situation. After doing this they can then use any unused allowance in the oldest (2013/14) tax year. As long as they have earnings that support this (personal) contribution – company (employer) contributions are unlimited.

For more information, contact our specialist, Simon Claxton on 0118 923 5090.

 

Author: Simon Claxton | January 30th, 2017

Contact the author

Simon Claxton
Get in touch:   Reading: 0118 916 5480   London: 020 7036 8767   info@macbeths.co.uk