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Posted Wed, 31 May 2023 15:31:32 GMT by
Hi, I wonder if anyone can help me. My dad sadly passed away last year and as the estate's administrator I need to fill in his final self assessment for the tax year 22-23 as he was self employed. The issue I have is my dad made a lump sum contribution to his personal pension towards the end of April 22 of £50,000 net £62,500 gross with the intention of utilising his annual allowance for the 22-23 tax year and carrying forward some of the unused allowance from the previous tax year. My concern is around the annual allowance charge as he passed away only 6 months into the tax year with profits of around £40,000. My question is whether the annual allowance charge applies and if so will the estate need to pay back some of the tax relief? Thank you.
Posted Thu, 01 Jun 2023 13:59:56 GMT by HMRC Admin 25
Hi Maximilian985,
If he had unused allowances from previous years to cover the excess, then no charge will be due.
Please  see guidance here:
HS345 Pension savings — tax charges (2023)
Thank you. 

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