Advisers should act now to use ‘carry forward' to protect clients' tax relief on pension contributions ahead of the top tax rate cut, according to Suffolk Life.
The self-invested personal pension (SIPP) provider said the reduction in the top rate of tax will have an effect on relief on pension contributions, especially when using carry forward. It said advisers should act now to ensure clients get the relief they expect. Carry forward allows unused annual allowance from pension input periods ending in the three previous tax years to be carried forward and added to the annual allowance for the current pension input period. Pensions technical manager Claire Trott explained: “A client carrying forward three whole years of annual allowance wou...
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