-- How to carry forward and Intervening tax years --
Protect your money from the recent Budget tax cuts
Protect your money from the recent Budget tax cuts
DWP tackles state pensions for civil partners
DWP tackles state pensions for civil partners
Maximising Pension Contributions with PIPs
Maximising Pension Contributions with PIPs
One year annuity deferral could take 24 years to recover
One year annuity deferral could take 24 years to recover
- Protect your money from the recent Budget tax cuts 2012.03.26 Protect your money from the recent Budget tax cuts
- One year annuity deferral could take 24 years to recover 2012.02.08 One year annuity deferral could take 24 years to recover
- It's time to scrap pensions in favour of savings 2012.02.08 It's time to scrap pensions in favour of savings
Background
Louise Ciccone (50) owns a successful company who have experienced a profitable year, the company is now keen to reduce their tax liabilities.
Prior to the recent clarification on carry forward and intervening tax years Louise had made significant contributions and had no carry forward available. This is because the ‘over’ contributions in 2009/10 and 2010/11 have reduced this to nil. Credencis have contacted Louise to confirm that following clarification on carry forward it is now available to her where it previously was not.
| Contribution history | Carry forward pre update | Carry forward post update | |
| 2008/09 | NIL | NIL | £50,000 |
| 2009/10 | £75,000 | NIL | NIL |
| 2010/11 | £150,000 | NIL | NIL |
Solution
Credencis explain that any over contributions paid into the scheme in tax years prior to 2011/12 no longer reduce carry forward.
We also confirm that Louise is now able to carry forward £50,000 from 2008/09, however must use this before 6 April 2012, after this date it will no longer be available. Credencis recommend the company make a £100,000 contribution to the pension immediately in respect of 2011/12 and 2008/09 tax years.
The accountant is happy that this is consistent with the value that Louise adds to the business and qualifies for corporation tax relief as a legitimate business expense.
For bespoke pension advice contact Credencis.
We are situated near to Derby and Notitngham and visit clients nationwide.
"Live for today, Invest for tomorrow"
Views expressed by our author, are the personal views of the author alone, and are not intended in anyway to be construed as advice.They should only be used as guidance and are not necessarily suited to the personal circumstances of every individual in the UK.If you are interested in seeking advice further then please contact Credencis direct.
