Pay More into Your Pension by Utilising the Brought Forward Relief

Pay More into Your Pension by Utilising the Brought Forward Relief

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 hello@progresswithassureuk.com if you would like assistance to utilise the brought forward relief.

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