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Carry forward for personal pensions was abolished from
6th April 2001. Carry forward for RACs continues unchanged.
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An RAP planholder may make a higher than usual contribution to
make up for 'unused' (within the contribution band) contributions
in previous years, provided they were eligible for a plan in those
previous years.
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Tax relief on such contributions is based on the tax rates in force
during the year in which the premium is actually paid. Consequently,
relief is available in the current year, and has no effect on the
tax situation in any past year.
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Unused relief from the 6 previous years may be used up only after
the maximum contribution for the current year has been paid. The
individual must be eligible for a pension plan in the tax year in
which the contribution is actually paid (or to which it is carried
back as described below).
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The election to carry forward must be submitted by 31st January
following the end of the tax year in which the contribution was
actually paid.
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Employer's contributions cannot be dealt with in this way.