HMRC Change to Carry Forward Rules

Published on Wednesday, 30 November 2011

On Monday HMRC announced their intention to change the carry forward of unused pension contribution for the transitional period 2008/9 to 2010/11

To date the carry forward of preceding tax year’s allowances is  cumulative.  It now seems that this will be the case from 2011/12 tax year onwards however  for the transitional tax years 2008/9 to 2010/11  where a contribution in a tax year exceeds that tax year’s £50,000 allowance, the surplus contributions do not have to be used to mop up previous years payments.

This could be an important concession depending upon personal circumstances .  If you have had a carry forward calculation completed prior to 28th November 2011 it may be worthwhile to ask for a fresh calculation to be done.

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