Carry Back Pension contributions - Utilising unused relief

Carry back allows you to fill up unused relief from the previous tax year.

You can contribute to a personal or stakeholder pension by 31st January in the current tax year, and elect for it to be treated as having been paid in the previous tax year and not in the year it was actually paid.

In order to carry back a pension contribution a completed Inland Revenue form PP43 needs to be enclosed with your pension application.

  • Basic rate taxpayer's - original required.Higher rate taxpayers - copy required, the original should be sent to the Inland Revenue with your self-assessment form.
  • PP120 tax relief claim form - Complete form PP120 when you have already completed and sent in your tax return to the inland revenue.

Carry back rules

The following rules apply in electing to carry back.

  • Contributions cannot be carried back more than one year.
  • Election must be made by 31st January in the current tax year. i.e. carry back not available between 1st Feb to 5th April.
  • The election to carry back must be made before or at the time the contributions is paid.
  • It is not possible to carry back an employer's contribution.
  • Contribution limits are as per the previous tax year.

The Inland Revenue will make no exception to these rules.

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