Ithica Publishing Services
The 3 year carry forward rule means that it is possible if you have not contributed to your pension in the three previous years, that you can roll forward up to £50,000 worth of relief and therefore pay a maximum of £200,000 in any pension input year.
So far so good, what would happen if you paid a whopping big contribution of say £150,000 two years previously?
It was thought that the monies paid over £50,000 would be reduced from the amount of roll up available, but under new interpretation of the rules, the overpayment can be ignored and so long as you made a smaller contribution in the other two years then you can still carry any balance forward.
Do you have any queries about pension contributions or the 3 year carry forward rule? Then contact one of our Financial Planning Consultants, at Pareto Lawrence we offer both Financial and tax planning advice to corporate and private clients.