My calculations are 243k-2k (personal allowance)= 241k taxable income. So if pension tax relief is claimed basic rate will be £158k. My quesions how to use annual pensional allowance of 40k carry forward from last 3 years each? When tax relief is mentioned on pension document is it ok to increase basic tax rate Or need to check some thing else as well? Right i am getting tax credit of 20k in my calculations. This is personal single payment contribution in the year.