Hi all.
Can anyone help or advise regarding claiming Pension contributions when you have more than the allowance for the year in question.
If no contributions had been made in the last three years and then £150K was made in the 2011/12 tax year. How would you report this in the tax return.
I.e. You have 2 lots of £50K Allowance B/Fwd . Do you carry back the contributions and adjust the previous tax returns or do you use the whole £150K in the current Tax year against the Income for 2012.
I can't seem to find anything regarding any 'Carry Back' of pension contributions to relieve against the unused pension contributions .
Any help or if anyone can point towards any guidance would be much appreciated.
Thank you.
Replies (6)
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If your was a memeber of the
If your client was a member of the pension scheme in the last 3 years and no contributions were made, the unused allowance will be £150k plus the current year in question, therefore, the total allowance is £200k. He can contributed up to £200k in the current yr.
You can use the £150k in the current yr and there will be an unused allowance of £50k. The PIP is the same as the tax yr for now, except your client elect to use different period for the PIP.
There is no carry back only forward
You claim in the 11/12 tax return, and possibly add a white space note to clarify that no excess charge arises due to unused relief brought forward, but do remember that to carry forward unused from previous years there had to be a policy in place in those years even if no premiums were paid.
If there were no live policies in the last three years and client has started from scratch in 11/12 by paying £150k there will be no unused brought forward and an excess charge
@ACDWebb
I don't dispute what you say, but what a ridiculous condition about a pre-existing pension plan!
Hadn't come across this before.
PIPs
I don't dispute what you say, but what a ridiculous condition about a pre-existing pension plan!
Hadn't come across this before.
The problem is that the annual allowance isn't calculated by reference to tax years, but by reference to pensions input periods ending in tax years. If you didn't have an existing pension arrangement, then none of the previous three tax years will have a pensions input period that ends in it.
...and don't get me started on PIP's
whose stupid idea of a nightmare/minefield was that!?
Pensions
The same people who brought us "Pensions Simplification" and removed pension term assurance 5 minutes after they introduced it.
Simplifcation is not in their DNA and they have been slavering at the bit to re-complicate it ever since. (if it ever was simplified - which I would contest)
I am in the business and doing my own carry forward (or back -depending on which end of the telescope you are looking at). Even I struggled to get my head around PIPs. Why they just could not have left it at fiscal years I have no idea.