Unused annual allowance for pension contributions

Unused annual allowance for pension contributions

Didn't find your answer?

I have a self employed client that made a one off pension payment into a new SIPP during 14/15.

This pension contribution significantly exceeds the 14/15 limit of £40,000.

I am looking at the availability of unused allowance from the previous 3 years.

BUT, it appears that unused allowance is only available for carry forward where it arises in a year in which the individual is a member of a registered pension scheme.

My client only 'joined' this SIPP in14/15 when he made the one off payment.

He only commenced self employment in 14/15.  Prior to this, he was employed by the NHS, and made contributions into the NHS pension scheme.

M question is - does being a member of the NHS scheme qualify my client as 'being a member of a registered scheme' ?   Therefore, can unused allowance from these years whilst working for the NHS be used (after deducting contributions made during those years) ?

Thanks in anticipation .....

Replies (2)

Please login or register to join the discussion.

By Steve Kesby
18th Jun 2015 14:33

Yes

The law actually says that you can use any unused allowances from the pensions input periods ending in the preceding three tax years.

If you weren't a member of any scheme in those tax years, there won't be any pensions input periods ending in those tax years from which to use unused allowance.

That's the point of needing to have previously been a member of a registered scheme previously.

Being a member of the NHS scheme previously means that there will be such pensions input periods, so you will have unused allowances (to the extent that they were unused). You will need to know the individual's pensions input amounts in the pensions input periods ending in those tax years though, which is not necessarily the same as the contributions made for non-money purchase schemes.

Thanks (1)
avatar
By John Hughes
18th Jun 2015 16:03

Thanks Steve

Thanks (0)