What is the brought forwards relief?
HMRC have updated their guidance for carrying forward your unused pension saving allowance. For most UK tax payers, the maximum tax-free amount that can be put into a pension per tax year is £40,000.
The tax-free amount can be increased by utilising unused relief from previous 3 years, please note you had to have been a member of a pension scheme for that year. The earliest year that the brought forward relief can be utilised is 2015/2016.
How do I utilise the brought forward relief?
For example, you would pay in your tax-free amount for 2018/2019 and the tax-free amount you didn’t utilise and put into your pension in 2015/2016. Please note this is an example and there may be a variant between the amount you can utilise due to a change a in pension rules in 2015/2016.
If you would like assistance calculating unused relief from the past 3 years please contact us on 01295 477 250 alternatively you can email email@example.com if you would like assistance to utilise the brought forward relief.