- X has pension allowance available to carry forward for each of the previous three tax years
- X also has pension allowance available for 21/22
- X has been a higher rate tax payer for the whole period 18/19, 19/20, 20/21, 21/22
- X has sufficient funds to utilise the full allowances for all periods (carried forward & current year) before the end of the tax year 21/22
Question:
- will higher rate tax relief for all contributions be capped at the amount of higher rate taxed income earnt in 21/22, OR
- will higher rate tax relief for all contributions be capped at the sum of higher rate taxed income earnt over the four years 2018-22, OR
- will higher rate tax relief be capped based on the higher rate taxed income earnt in the year each allowance is carried forward from?
Replies (6)
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You could have added "please".
Genuinely would never occur to me to ask a question without being polite. I'm obviously old fashioned.
S228A(2) FA 2004:
"the annual allowance for the current tax year in the case of an individual is to be treated as increased by the amount of the unused annual allowance available for the current tax year".
None of the possible answers are correct. You need to also have regard for:
*RE
*The annual allowance charge (unlikely to apply though after doctors complained), and
*The rules to prevent recycling
As these all form further caps on relief.