Tax-free cash recycling

amarshall

Am I correct in thinking that there is no interaction between taking TFC / TFC recycling rules and Annual Allowance / Carry Forward?

Putting it another way, we will avoid making significantly increased contributions for the next 2 tax years because TFC has been released and we don't want to fall foul of the recycling rules.

Once we are into the 3rd tax year after the year in which TFC was taken, can we use any unused AA from the preceding 3 tax years?

It goes without saying that no income has or will be taken from the pension.

I can't find anything that says we can't but I wanted to see if anyone had any thoughts.

Thanks!

Andy

les_cameron

If you go looking for things you can't do in the law you'll be there for quite a while.

The law tells you what you can do (and the consequences of doing things you can't)

And what you can do is carry unused annual allowance from the 3 previous tax years as long as you were a member of a registered pension scheme in those 3 years - that's it no ifs buts or maybes.