What is pension carry forward?
The annual allowance for pension contributions is £40,000. However, carry forward allows you to contribute more if you have any unused allowance in the last three tax years.
To be able to use carry forward, you must have:
- Been a member of a pension scheme in each tax year from which you carry forward, even if you did not make any contributions.
- Used up your full annual allowance in the current tax year.
- Contributed less than £40,000 in one or more of the last three tax years. (This includes personal and employer contributions.)
- Earnings of at least the amount you are contributing in that tax year, if you are making personal contributions.
Please remember that tax rules and allowances can change in the future and the amount of tax relief depends on individual circumstances.