Claiming higher rate tax relief on pension allowance carry forward

I would like to make a pension contribution of £100,000 in 23/24 and claim back tax relief. Tax year Allowance Contribution Earnings 40% threshold 23/24 60,000 100,000 100,000 50,270 22/23 40,000 0 100,000 50,270 21/22 40,000 40,000 100,000 50,270 20/21 40,000 40,000 100,000 50,000 Using carry forward, I can claim tax relief for the full pension contribution of £100,000 in 23/24. This is full allowance of £60,000 from 23/24 and £40,000 carried forward from the unused allowance in 22/23. I would like to clarify how much higher rate tax relief I can claim back. For 23/24, I'm assuming I can claim higher relief on £49,370 (my earnings above the higher rate threshold) and basic relief on the remaining £10,270. For 23/23, can I claim higher rate tax relief on the full £40,000? Thanks

You've got very confused somewhere along the line. You can never claim tax relief for a different tax year to the tax year the pension contribution relates to. Carry forward simply allows you to make a larger contribution, any tax relief due is still calculated b reference to your tax position in the tax year the contribution is made. If this is a RAS (relief at source) contribution then the pension company will give basic rate tax relief (25% of what you pay which is 20% of the gross contribution) and any additional tax relief will be finalised via your Self Assessment return.

Ok, so using carry forward provides an opportunity for greater tax relief. However, potentially I can end up getting basic rate relief on earnings which I have paid the higher rate tax? Thanks

Hi Hurricane75,

Tax relief would be limited to what your actual income is - Tax on your private pension contributions.
The carry forward amount is to cancel/reduce any pension tax charge that may be due if you contribute more than the anual allowance.

Thank you.

Hi Hurricane75,

The carry forward allowance only applies for pension tax charges to reduce any charge that may be due.
You cannot use previous years allowance to claim tax relief on your actual payment.
Tax relief can only be given up to the value of your income -
Tax on your private pension contributions

Thank you.