Chris is due to make a contribution to his Sipp on 30 April 2012 in a pension input period, which ends on 20 April 2013. What is the earliest tax year from which he can carry forward unused annual allowance in respect of this contribution?
Arthur had total pension input in tax years
2009/10 to 2011/12 as follows:
2009/10 – £20,000
2010/11 – £40,000
2011/12 – £30,000
The maximum aggregate contribution he can pay to registered pension schemes with pension input periods ending in 2012/13 without suffering an annual allowance charge in 2012/13 is
Heather had total pension input in tax years
2008/09 to 2011/12 as follows:
The maximum aggregate contribution she can pay to registered pension schemes with pension input periods ending in 2012/13 without suffering an annual allowance charge in 2012/13 is
John has the following pension input amounts
What is the minimum level of contribution that John needs to make to registered schemes with pension input periods ending in 2012/13 to ensure that he does not waste any available carry-forward provision
Which one of the following individuals will not be eligible to take advantage of carry forward?
A) Andrew, aged 72, whose only pension rights is a DB pension in payment
B) Brian, aged 40, who is self-employed and whose only pension rights is as a deferred member of a DB pension scheme
C) Chris, aged 47, who is a member of a personal pension scheme to which he has not contributed since 2004.
D) Dave, aged 38, who has just become UK resident, having been working in Hong Kong as a self-employed consultant for the previous 10 years.
The PIP ends in the 2013/14 tax year. The unused annual allowance can be carried forward from any one of the previous three tax years. Therefore the earliest of these would be 2010/11.
The earliest available carry forward year is 2009/10 with the available carry forward of £25,000. To fully utilise this £25,000 he must first fully utilise the 2012/13 year’s annual allowance of £50,000. So the minimum he needs to pay is £75,000. Note the £30,000 carry forward from 2008/09 has already fallen out of account as this could only be set against tax year 2011/12. .
To be eligible for carry forward, an individual had to have had the ability to make a pension contribution or to be a member of a UK registered pension scheme in the tax year to which
the carry forward of unused allowance is to apply.. Pensioner, active and deferred scheme members are regarded as members for the purposes of the carry forward rules.
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