Legal & General says advisers should not forget the carry back rule to benefit clients claiming unused tax relief on pensions contributions in the 2002-3 fiscal year.
With the deadline for carry back on contributions paid in the period 6 April 2003 to 31 January 2004 fast approaching, L&G says this rule will be particularly important to those who were higher rate tax payers last fiscal year but lower rate this year, and those using self-assessment. People on lower rates of tax in the current year can carry back contributions to obtain relief at the higher rate applied in the previous year. Self-assessment coupled with carry back means individuals can deduct relief directly off their tax bill, which could be up to 40%, L&G says.IFAonline
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes