Archived article: This article was correct at the time of publishing. Tax, investments and pension rules can change over time so the information below may not be current.

Carry on saving with pension carry forward

At this time of year you may have recently submitted your self-assessment and have settled a tax bill. But remember that any pension contributions you make between now and 5 April can be used to offset your next tax bill. So, you can pay less tax and continue saving for your retirement.

tall for seminar Andy Cowan
01 February 2018

Up to £450 tax relief on a £1,000 pension contribution

Pension contributions within your annual allowance receive up to 45% tax relief. Whatever you pay into a pension is automatically topped up by 20%. Higher and additional-rate taxpayers can then claim back another 20-25% in next year’s tax return. This means that if you are an additional-rate taxpayer, a contribution of £1,000 could cost you only £550.

Our Best SIPP is a multi-award winning personal pension which is easy for you to pay into and gives you more control over your investments. Get started today by opening an account online or calling us on 020 7189 9999.

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Pay in up to £120,000 extra

You could potentially save an extra £120,000 in your pension this year whilst still enjoying the same great tax benefits:

  • Using pension carry forward allows you to take advantage of any unused allowances from the last three tax years
  • Pension carry forward gives your retirement savings a boost as well as significantly reducing next year’s tax bill
  • If you have an unused allowance from the 2014/15 tax year, you will lose it if you don’t carry it forward by 5 April

Find out more about pension carry forward in our free guide.

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Not sure how much you can afford to contribute?

Obviously, not everyone has a spare £120,000 lying around to pay into their pension! Many people are unsure how much unused allowance they have left or how much they could afford to pay in without it affecting their everyday lifestyle.

A financial planner from our wider Tilney Group can answer all of your questions and help you to make the most of your pension allowances. Book a free initial telephone consultation today and find out what they can do for you.

Book a free consultation

 

For more information on your pension allowances, or to book an initial consultation with a financial planner, simply call us on 020 7189 9999 or email best@bestinvest.co.uk.

Important information 

The value of your investment can go down as well as up, and you can get back less than you originally invested.

SIPPs are not suitable for everyone. They may not be right for you if you don’t want to invest across different asset classes or don’t think you will make use of the investment choices available to you. Please contact us for guidance or advice if you are unsure.

Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.

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