Question 1

What is pension carry forward?

Accepted Answer

Carry forward lets you use unused annual allowance from the previous three tax years to make larger pension contributions in the current year. You must use your current year's allowance first, then carry forward from the oldest available year.

Question 2

How much unused annual allowance can I carry forward?

Accepted Answer

You can carry forward unused allowance from up to three prior tax years. For example, if you had the standard £60,000 allowance in each of the three prior years and contributed nothing, you could carry forward up to £180,000 — giving you an effective maximum of £240,000 in the current year.

Question 3

Do I need to have been in a pension scheme to use carry forward?

Accepted Answer

Yes. You must have been a member of a UK-registered pension scheme in each of the tax years you want to carry forward from. If you were not a member in a particular year, you cannot carry forward unused allowance from that year.

Question 4

Does carry forward increase the lump sum allowance?

Accepted Answer

No. Carry forward only applies to the annual allowance — the amount you can contribute each year with tax relief. It does not increase the £268,275 lump sum and death benefit allowance (which replaced the old lifetime allowance).

Question 5

What happens if my annual allowance was tapered in a prior year?

Accepted Answer

If your annual allowance was reduced by the taper in a prior year, the carry-forward amount from that year is based on the tapered (reduced) allowance — not the full £60,000. For example, if your allowance was tapered to £30,000 and you contributed £20,000, only £10,000 of unused allowance is available to carry forward from that year.

How much unused allowance can you bring forward?