The short version: Carrying forward means using something from a previous tax year (like a loss or unused allowance) to reduce your tax bill now or in the future.
Carrying forward pension allowance
There’s a limit to how much you can put into your pension each year and still get tax relief. But if you didn’t use your full allowance in previous years, you might be able to use it now. You can go back up to three years, as long as you were a member of a pension scheme in those years.
There are rules though. You can’t contribute more than you’ve actually earned in a year.
Carrying forward capital losses
If you made a loss on investments but didn’t have any gains to offset it against, you can carry that loss forward. When you eventually make a gain, you can use the old loss to reduce what you owe.
Just remember to report the loss on your tax return at the time. You can’t go back and claim it years later.
Got losses or unused allowances you want to use? Get in touch and we’ll help you plan ahead.
