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Use unused pension Annual Allowance from the previous three tax years.
Pension Carry Forward allows you to contribute more than your Annual Allowance in a single tax year by using unused allowance from the previous three tax years. You must have been a member of a registered pension scheme during the years you carry forward from. For example, if you used only £40,000 of your £60,000 allowance in the last three years, you could potentially contribute up to £120,000 extra in the current year.
This definition is for informational purposes only and does not constitute tax, legal, or financial advice. Rules may change and outcomes depend on your circumstances.
These GOV.UK and HMRC sources provide the official context for this glossary entry. The definition is educational and does not determine your individual tax position.