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.