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Pensions Contributions

Private Pensions

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A sole director has multiple sources of income ie rental income,salary and dividends. I understand that his salary is only eligible for tax relief. Question is what about if he contributes more than his salary and want to carry forward last three years annual contributions?

His salary is £8.6k , so he can contribute upto 100% of this amount. Can he  contribute upto total £25.8k (£8.6 x 3 years) to get tax relief using carry forward rule. Will he still get tax relief for full amount on £25.8k or only on £8.6k?

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By David Ex
07th Jun 2022 19:21

It’s relief that’s carried forward (in appropriate circumstances) not contributions.

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Replying to David Ex:
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By Adzuk
07th Jun 2022 20:11

Thanks does that means he is ok to contribute more than £8.6k mentioned above , and carry forward from past three years ? Obviously if he meets criteria?

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By Paul Crowley
07th Jun 2022 20:04

Who is paying the pension?
Company or director?

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By Adzuk
07th Jun 2022 20:11

Director ( personal )

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By Paul Crowley
07th Jun 2022 20:40

Maybe consider the alternative?

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By Adzuk
07th Jun 2022 21:01

Sorry you mean contributions through company ?

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By Paul Crowley
07th Jun 2022 21:06

Yes, to a company scheme
The pension advisor should then be able to help keeping the contributions appropriate

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By Adzuk
07th Jun 2022 21:10

Thank you

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By Paul Crowley
08th Jun 2022 02:45
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By Adzuk
08th Jun 2022 09:17

You are very helpful sir. Thank you

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By Hometing
08th Jun 2022 08:46

C/F is for unused annual allowances.

Unused relevant maximum cannot be c/f, so alas no additional tax relief

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By Adzuk
08th Jun 2022 09:17

Thanks

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