If you're thinking of making a large personal pension contribution before the end of the year, you can take advantage of the pension carry forward rules in order to benefit from any unused allowances from the previous three tax years.
This is generally the difference between the old £50,000 annual pension allowance and your pension input that year and can be added to your relief for 2015/16.
Note that the annual pension allowance is £40,000 for 2015/16 and 2016/17.
To avoid losing pension relief brought forward from 2012/13 which lapses 5 April 2016, why not consider making an additional pension payment before 5 April 2016? If your pension input was £24,000 in 2012/13 then there is £26,000 unused relief available to add to your 2015/16 allowance. You would need to make gross pension contributions of at least £66,000 (£40,000 plus £26,000) to avoid losing this relief.
If you have income over £150,000 your annual pension allowance will be reduced by £1 for every £2 over £150,000.
For further information on any topics covered in our blogs, or if you would like to speak to us about our pro-active Accountancy & Tax services, contact Brian or Caroline on 0845 303 1144 for a chat or email firstname.lastname@example.org.
Cooper Curtis Accountants have offices in Warwickshire, Birmingham and Manchester.
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Please note, all our content is for general guideline only, every case is different and we would recommend speaking to us before taking any action as a result of the content. The content was correct at the time it was published.