PeeBee

Thank you for the reply. I have a few more questions. I will be leaving my employment on 31-12-2024, would this mean that the £60,000 tax free allowance for my AVC contributions would be £45,000 due to me working only 9 months of the 2024-2025 financial year? Also my salary is £71500 per year , however with only working 9 months my salary for the 2024-2025 tax year will be around £53,625, would this mean the maximum amount i could pay into my AVC would £53,625? If i went over this amount would this be OK due to the carry forward from previous years?

I have been offered voluntary severance from my employer, this is capped at £90,000. I'm looking at potentially putting £60,000 of this into my AVC which I've been paying into for 5 years. I'm aware of the £60,000 limit for tax relief per year, however with my current monthly payments into my AVC and pension contributions into my DB pension i will go over this limit. I'm aware that you can use any unused allowance from the previous three years, however I'm not really sure how this works and whether i have to complete any forms etc and do i need to get statements for the current 2024/2025 year and the previous three years showing all of my pension contributions (AVC and DB) ? Just to add my salary puts me into the 40% tax band.