|
BLYTHE
FINANCIAL
|
|
Pensions - Unused Relief
& Carry Back
|
|
| |
Bringing
Forward Unused Relief and Carrying Back contributions are two
different things. |
|
| Bring
Forward Unused Relief |
|
|
| |
Earnings
related limits determine how much you can contribute to your
pension. If you are not a member of an Occupational Scheme and
you don't use your maximum limit, you can carry forward that
Unused Relief for 6 years. |
|
| |
If
you pay a contribution in one tax year and you want the Inland
Revenue to treat it as though you paid it in the previous tax
year, you can elect to Carry that contribution Back. |
|
| |
From
6 April 2001, Bringing Forward Unused Relief is being abolished.
Carrying Back is still allowed but, from 6 April 2001, the deadline
to Carry Back to the previous tax year is the 31 January in
the tax year of the contribution. And elections must be made
at the time of the contribution. |
|
| |
So
if you Carry Back a contribution made after 5 April 2001, but
before 31 January 2002, you effectively Carry Back into the
old legislation and Unused Relief for earlier years is still
available! Therefore the last date to Bring Forward Unused
Relief is 31 January 2002 - expect a lot of publicity towards
the end of 2001! |
|
| |
As
always, when considering Carry Back/Bring Forward, care has
to be taken to ensure efficient use of years in which higher
rate tax is being paid. |
|
| |
Bring
Forward and Carry Back are not available for either Company
Contributions or members of Company Schemes. |
|
| |
Pensions
are complex and these notes are a brief summary only. Before
taking or refraining from any action, please contact us: BlytheTax |
|
|
