Carry forward allowance

Carry forward allows you to make use of unused annual allowances from the three previous tax years if you have used up your annual allowance for the current tax year. This means you may be able to contribute more than this to your pension pot this tax year (until 5 April 2025) and still benefit from tax relief (subject to having relevant earnings equivalent to the amount you want to contribute).

To be able to use this you need to adhere to certain conditions. You can find out all about these in our guide below.

Bear in mind that contributions paid by an employer or on your behalf by someone else also count towards the maximum that can be contributed to all your pension schemes with tax relief applying. When making contributions to a personal pension such as the Fidelity SIPP, it is the gross contribution that counts for tax relief and carry forward purposes. You can calculate the gross contribution amount you intend to pay by dividing the net contribution amount by 0.80 (100% - 20%).

Note that if you are subject to a tapered annual allowance in any given year, any unused annual allowance must be worked out with reference to your tapered annual allowance amount for each tax year it applies (which may differ between years).

You will also not be able to use carry forward to reduce contributions in excess of the money purchase annual allowance.

Important information - please keep in mind that the value of investments, and the income from them, can go down as well as up so you may get back less than you invest. Eligibility to invest in a SIPP and tax treatment depends on personal circumstances and all tax rules may change in the future. You cannot normally access money in a SIPP until age 55 (57 from 2028). This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.