La Playa Financial Management

La Playa Financial Management

End of tax year spring clean 
Claiming tax relief on pension contributions

It's possible to make additional pension contributions by the end of this tax year, over and above the normal annual allowance. An individual can go back up to 3 previous tax years and “mop-up” any unused contribution allowance that they may not have used. 

The present legislation restricts a client to a maximum pension contribution of 100% of their earned income in any one tax year up to a maximum of £50,000. However if you have not made this level of contributions in previous years, then you can use any unused allowance, known as “carry-forward”. These additional contributions will also benefit from tax relief at your highest marginal rate.

Example: intervening years (2009/10 and 2010/11)
Helen earns £85,000 a year and has already paid £50,000 to her SIPP to use up her annual allowance for the tax year 2011/12. She received a large inheritance and would like to make a further pension contribution to use up unused annual allowance from previous years.

Helen's history of pension funding for the previous three tax years and her carry forward calculation are as follows:

Tax year

Pension input amount

Unused allowance

Cumulative carry forward available













The key point to note is that, although Helen's contributions for 2009/10 were more than £50,000, the £20,000 excess doesn't use up any of her unused allowance from 2008/09.

She decides to pay a further £35,000 to her SIPP, giving her a total pension input amount of £85,000 for tax year 2011/12 (the largest personal contribution she can obtain tax relief on). This will use up the £30,000 unused allowance from 2008/09 plus £5,000 of the unused allowance from 2010/11, leaving £30,000 of unused allowance from 2010/11 available for future years.

If it is not used by April 2012, then any unused allowance for the tax year 2008/9 is lost for good...


“As a client of La Playa Wealth I can vouch for their total dependability and up-to-date knowledge of the daily financial market. I am a pensioner and need plenty of guidance and advice on these matters - all of which I can obtain at the flick of a telephone or internet switch!”


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You can call us to talk more about your business on +44 (0)1223 200650 or +44 (0)20 3865 0149

What's Covered?

Proactive advice
Clarity of vision
Real service

About La Playa Wealth

Specialist & Independent

La Playa’s intelligent approach to financial services is founded on absolute integrity, an in-depth understanding of our clients, a high calibre team of advisers and a commitment to excellence in service.

Investing with Intelligence

  • Proactive advice: tapping into the intellectual capital of an experienced Wealth Manager - your financial ‘life coach’
  • Clarity of vision: with cashflow modelling to show how and when you will reach your objectives
  • Real service: a regular, rigorous review of your plan - not just ‘service by mail’; and quarterly market insights and commentary
  • Real commitment: a long-term, personal relationship with face to face meetings - spending time with you to really understand your priorities

Together with our sister company La Playa Ltd, we offer a joined-up approach, with insurance and other financial services all under one roof. 

Get in touch - our initial consultation is free, and it could be the best move you make this year.

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