Hi,
Has anyone created a annual allowance tax calculator for UK based on pensions savings? Annual allowance is £40,000. If pension savings is more than this this amount there is annual allowance tax charge. However we could carry over any unused annual allowance in the preceding three years. Below is an example from HMRC.
2010 to 2011: £0 - he wasn't a member of a pension scheme
2011 to 2012: £30,000
2012 to 2013: £0 - although he was a member of a pension scheme
Sam can carry forward £70,000 unused annual allowance to 2013 to 2014 calculated as:
2010 to 2011: £0 - because he wasn't a member of a pension scheme
2011 to 2012: £20,000
2012 to 2013: £50,000
Even though Sam didn't make any pension savings in 2012 to 2013 he did belong to a pension scheme so he can carry forward all of his unused annual allowance.
The annual allowance for 2013 to 2014 (£50,000) plus the carried forward annual allowance (£70,000) is £120,000.
Sam doesn’t have any tax to pay on his pension savings of £80,000 for 2013 to 2014 as it's less than the total annual allowance available of £120,000. He also has £40,000 unused annual allowance (from 2012 to 2013) to carry forward to 2014 to 2015.
Any help would be appreciated.
Has anyone created a annual allowance tax calculator for UK based on pensions savings? Annual allowance is £40,000. If pension savings is more than this this amount there is annual allowance tax charge. However we could carry over any unused annual allowance in the preceding three years. Below is an example from HMRC.
Example
Sam made total pension savings of £80,000 in 2013 to 2014. Sam has been a member of a pension scheme since June 2011. His pension savings for the previous 3 years are as follows:2010 to 2011: £0 - he wasn't a member of a pension scheme
2011 to 2012: £30,000
2012 to 2013: £0 - although he was a member of a pension scheme
Sam can carry forward £70,000 unused annual allowance to 2013 to 2014 calculated as:
2010 to 2011: £0 - because he wasn't a member of a pension scheme
2011 to 2012: £20,000
2012 to 2013: £50,000
Even though Sam didn't make any pension savings in 2012 to 2013 he did belong to a pension scheme so he can carry forward all of his unused annual allowance.
The annual allowance for 2013 to 2014 (£50,000) plus the carried forward annual allowance (£70,000) is £120,000.
Sam doesn’t have any tax to pay on his pension savings of £80,000 for 2013 to 2014 as it's less than the total annual allowance available of £120,000. He also has £40,000 unused annual allowance (from 2012 to 2013) to carry forward to 2014 to 2015.
Any help would be appreciated.
