Carry forward

We illustrate the ‘carry-forward’ rules with worked examples to show their practical application

February 2021

PART OF 35 MINS STRUCTURED CPD

20 MIN READ

Subscribe to our Insights

Risk Disclaimer

This content is directed only to persons having professional experience in matters relating to personal investment (investment professionals) and should not be distributed to anybody else. It has been prepared for general information purposes only. It does not constitute advice (whether investment, legal, regulatory, tax or otherwise) provided by BMO Global Asset Management (EMEA) (BMO). Certain content in this document is based on our own reading of legislation, regulation, or guidance issued by a government or regulatory authority, as at February 2021, which is subject to ongoing change. Tax treatment is based upon individual circumstances. BMO gives no warranty or representation, whether express or implied, that such content is up to date, complete, or accurate.

Investment professionals in receipt of this document should not rely on any of its content. They remain solely responsible for advising their underlying clients in accordance with their own legal and/or regulatory obligations and for taking their own independent advice as they determine is necessary.

To the extent lawful, BMO excludes all responsibility and associated liability for any loss or damage suffered by any recipient of this document who chooses to rely on its content, whether occurring in contract, tort (including negligence), breach of statutory duty, or otherwise, even if foreseeable.

Key takeaways:

  • Learn how to carry forward unused annual allowance
  • Understand the money purchase annual allowance and the concept of carry forward
  • Learn about the tapered annual allowance and how it affects carry forward

As a result of the annual allowance being reduced to £50,000 in 2011/12, the government introduced a measure to protect pension scheme members against one-off spikes in pension accrual. This particularly affects those in defined benefit schemes. From 2011/12 members can ‘carry forward’ their unused annual allowance. How does this work in practice? Download our case studies and examples.

Bank your CPD

Please answer the multiple choice questions below in order to bank your CPD. Multiple attempts are permitted until all questions are correctly answered.


Complete the course to claim your CPD

This article is part of a course. To claim your structured CPD, please complete the other articles in the course.

Risk Disclaimer

This content is directed only to persons having professional experience in matters relating to personal investment (investment professionals) and should not be distributed to anybody else. It has been prepared for general information purposes only. It does not constitute advice (whether investment, legal, regulatory, tax or otherwise) provided by BMO Global Asset Management (EMEA) (BMO). Certain content in this document is based on our own reading of legislation, regulation, or guidance issued by a government or regulatory authority, as at February 2021, which is subject to ongoing change. Tax treatment is based upon individual circumstances. BMO gives no warranty or representation, whether express or implied, that such content is up to date, complete, or accurate.

Investment professionals in receipt of this document should not rely on any of its content. They remain solely responsible for advising their underlying clients in accordance with their own legal and/or regulatory obligations and for taking their own independent advice as they determine is necessary.

To the extent lawful, BMO excludes all responsibility and associated liability for any loss or damage suffered by any recipient of this document who chooses to rely on its content, whether occurring in contract, tort (including negligence), breach of statutory duty, or otherwise, even if foreseeable.

Other articles in this course