Q&As

Can an individual who is a member of a UK registered pension scheme but who was not a UK tax resident for a year carry forward their unused annual allowance from that tax year to the next?

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Published on LexisPSL on 30/01/2018

The following Pensions Q&A provides comprehensive and up to date legal information covering:

  • Can an individual who is a member of a UK registered pension scheme but who was not a UK tax resident for a year carry forward their unused annual allowance from that tax year to the next?

Can an individual who is a member of a UK registered pension scheme but who was not a UK tax resident for a year carry forward their unused annual allowance from that tax year to the next?

Since A-day, membership of a UK registered pension scheme is open to anyone regardless of where they are resident or of where their employer (if any) is resident. Part 4 of the Finance Act 2004 (FA 2004) does not therefore restrict the amount that can be contributed by a non-UK resident to a UK registered pension scheme. See PTM114000.

What FA 2004 does, however, is restrict, at FA 2004, s 188, relief on contributions to individuals who are ‘relevant UK individuals’. Broadly speaking, under FA 2004, s 189, an individual will be treated as a ‘relevant UK individual’ if:

  1. the individual has relevant UK earnings chargeable to UK income tax, or

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