Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Fri, 22 Mar 2024 17:47:06 GMT by chris ford
I have been a higher rate tax payer for the last four years. This year, I believe I am entitled to make £60k pension contribution and a further £12k for previous 3 years via carry forward. Can I claim higher rate tax relief only for the £60k current year allowance or can I also claim in respect of the previous three years? And if I can claim in respect of the carry forward payments, how do I do this? Via 23/24 self assessment? Or do I have to amend previous year submissions and/or write in to HMRC. (I think I can still amend the submission online for 22/23, but not for 21/22 or 20/21) Thanks for any help on this - I have found it really hard to establish the right approach from the guidance.
Posted Tue, 26 Mar 2024 15:03:25 GMT by HMRC Admin 5

Higher rate tax relief is available on the unused allowance from the last 3 year added to the maximum tax free allowance in the tax year.  
Tax returns can be amended for up to two years after the due date of the tax return, eg. 22/23 tax return due 31/01/23, so can be amended up to 31/01/25.  
For the two previous tax year, an overpayment relief claim (OPR) can be submitted in writing, using the guidance at SACM12150 (SACM12150 - Overpayment relief: Form of claims).  
Please note that an OPR claim for 2019 to 2020 must be in HMRC possession no latge than 5 April 2024.  Any claims for 19/20 received after that date, will be out of date and rejected.

Thank you
Posted Tue, 26 Mar 2024 15:22:17 GMT by chris ford
Thanks that is really helpful Just to be clear, I believed that I was only entitled to make carry forward contributions in respect of the three previous tax years (and so 20/21, 21/22 and 22/23) topping up the current year (23/24). My carry forward amount for each year I have calculated at the minimum of £4000 given my total income. So - with this year's £60k allowance - my maximum contribution including carry forward is £72k. Your response suggests I could make a carry forward contribution in respect of 19/20. Is that right? I thought these had already timed out?
Posted Tue, 26 Mar 2024 16:57:07 GMT by Alan Webb
You do not amend previous years returns for payments made this year that use up unused reliefs brought forward. Brought forward is only available if you were a member of a pension scheme in a year, but did not pay any premiums. Assuming that you did have some fund already set up then you have £60k for 23-24 plus (on your OP) £4k for each year 20-21, 21-22 & 22-23. Assuming you have enough time to set up a payment and get it into the provider before 5/4/24 you would pay £57,600 (net) and claim relief for £72k in your 23-24 tax return

Name removed admin 
Posted Wed, 27 Mar 2024 13:24:20 GMT by Alan Webb
To answer your last point, you cannot carry forward from 19-20 now. For some reason the earlier HMRC reply included reference to Overpayment Relief which is a different thing altogether and based on your OP not relevant to you. Overpayment relief in this case would be a claim where you made returns for earlier years but omitted to include a claim for pension contributions paid in those years. So if you had actually paid £4k grossed up pension contributions in each year 19-20 to 22-23 but not included a claim for those contributions in the tax returns and were due higher rate relief on them for each year you would: - make overpayment relief claims for 19-20 to 21-22 with the deadline to do so for the earliest year being 5/4/24; and - amend your 22-23 return to make the necessary claim. Based on the OP that is not what has happened. - You did not pay any pension contributions in the earlier years and now wish to make a catch up contribution for unused relief from the earlier years. - For that you can only go back to 20-21 and bring forward unused relief to cover a payment in excess of the current year Pension Annual Allowance. - To make use of the unused relief from 20-21 you would need to pay contributions >£64k (gross) before 5/4/24 or the unused relief from 20-21 is lost.
Posted Thu, 28 Mar 2024 15:33:13 GMT by HMRC Admin 25
Hi chris ford,
You are correct in adding 3 years of £4000 to the threshold of £60000.
Your earnings in 23/24 would need to be £60000 or more.
Thank you. 

You must be signed in to post in this forum.