Carry Forward - having a senior moment
Jona
Member
If you were non-UK res in prior 3 tax years but are now UK res again, and you have had a UK pension all of that time.
Can you use carry forward?
Comments
Yes they can.
(i've determined)
What would happen if they might otherwise (if they were in the UK) been subject to annual allowance tapering?
Surely you can't taper someone who's income is/was in another country?
Went through this on Twitter a few weeks ago.
Answer is 100% yes you can. £120k of carry forward and, as Aron eludes to, no possibility of being tapered if there are no UK earnings.
Obviously subject to all the usual rules in the year of the contribution, so will need to consider taper in the current year if making an employer contribution and/or NREs to support the contribution if personal.
Yes - client is question is tapered to £10K this year but as no UK earnings (rent income only) can carry forward the 120K.
What is your twitter handle @benjaminfabi - I'll probably learn a thing or two!!
that is my twitter handle!
If they make a personal contribution of £160k does it bring threshold income below £110k? (ie avoiding the taper)
I would say that is right and the rules will allow that. Its not like someone would be able to take advantage of this very often in any case.
If they have no relevant UK earning cant they only put in £3,600?
If they have the earnings in the year they are carrying forward to (in this instance £250K in 2019/20) then they can carry forward up to 100% of their earning.
EG
40K from 16/17
40K from 17/18
40K from 18/19
10K for 19/20 (tapered AA)
Total £130K - which is less than 100% of their current year earnings so full CFwd available.
Yeah, earnings are actually about 265 and then he's got a london rental and a few other bits so....... need a full breakdown but taper may still kick in to a greater or lesser extent