Prudential Distribution Limited is registered in Scotland. For more information, see our cookie notice. If you continue to use this website, you are agreeing to our use of cookies. The annual allowance is a limit to the total amount of contributions that can be paid to defined contribution pension schemes and the total amount of benefits that you can build up in defined benefit pension scheme each year, for tax relief purposes. Key features of our Annual Allowance calculator Three aspects of Annual Allowance. This website uses cookies. We want to help you save time, by giving you the information you need, so you can focus on your client conversations. Environmental, Social & Governance range of funds, Support on improved online services for Retirement Account, Annual allowance for pension savings article, Carry forward of unused annual allowance for pension savings article, How to use our annual allowance calculator tool, the amount of unused Annual Allowance, including any carry forward, if your client will be subject to the tapered Annual Allowance and have a personal Annual Allowance of less than the current £40,000. PruAdviser Online Services will be unavailable from 6.00pm on Friday 13 November until 8.00am on Tuesday 17 November. This tool shows the potential tax consequences of receiving various amounts of salary, dividends and employer pension contributions. This tool can help you explain to your client why you’re recommending Scottish Widows Retirement Account and you can use it to produce a client suitability letter. Find out how Annual Allowance could impact your clients – whether the standard Annual Allowance or Tapered Annual Allowance applies, as well as the amount of unused allowance and carry forward. Enter your client’s existing and expected pension input amounts and this tool will show: the amount of unused Annual Allowance, including any carry forward If you've have triggered the money purchase annual allowance, you can't carry forward any unused allowances from previous years to boost the amount you can pay into your pension Enter your client’s existing and expected pension input amounts and this tool will show: Learn about Annual Allowance and Pension Tax Relief, and how to use the calculator by watching this webinar. If you are not an adviser please return to our consumer site, Salary, dividend & pension tool (xls 234kb), Carry Forward calculator 2019/2020 (xls 492kb), Carry Forward calculator 2020/2021 (xls 332kb), If you are not a financial adviser or intermediary, please, Takes you to our comparison tool for retirement accounts, Please Enter to access social media links, More information on how to set up an agency, Takes you to our funds tool opens in a new tab. Opens the Scottish Widows Youtube page: link opens in new tab. To retain the full £40,000 annual allowance, you can take a 25% tax-free lump sum and buy for an annuity or start a drawdown plan without taking an income. This site is designed and intended for UK authorised and regulated financial advisers and intermediaries only. How pension carry forward works. For instance, if a £20,000 tapered allowance is applied and a £10,000 pension contribution is made, then £10,000 can be carried forward to future years. Compare and analyse funds and keep track of their performance. Subtract the PIA from the annual allowance the answer is the amount that can be carried forward … If you’re not a UK financial adviser, please visit the customer website: You’ll only pay tax if you go above the annual allowance. But these might change without notice and the tool doesn’t take into account all of the possible circumstances that could impact your clients. This site is intended for UK authorised & regulated financial advisers only. If you use up all of your annual allowance in one year, it’s possible to contribute more to your pension with unused allowances from previous years and still receive tax relief. Your annual allowance is the most you can save in your pension pots in a tax year (6 April to 5 April) before you have to pay tax. To save the results as a pdf you’ll need to print them as a pdf. You can carry forward unused annual allowances from the three previous tax years, starting with the earliest which would be 2017/18. This tool now includes all our Fund Supermarket funds. This interactive tool can help you show your clients the potential benefits of adding additional contributions into their pension. Calculate Carry Forward (.xls) Downloads Excel spreadsheet Carry Forward Calculator - 2020/2021 This tool calculates unused annual allowances, the effect of the tapered annual allowance and the maximum a client can pay into their pension, for the current tax year, without exceeding their annual allowance. This report will help you do this. Opens in a new browser window. Subtract the PIA for the earliest carry forward year (2017/18). Our flexible propositions to support different employers and complement the work of advisers. Registered number SC212640. Authorised and regulated by the Financial Conduct Authority. See how you structure conversations about protection. PruAdviser on-line services will be unavailable from 20:00 on Saturday 28 November until 12:30 on Sunday 29 November for website maintenance. We apologise for any inconvenience caused. Save for retirement and take retirement income from the same flexible plan. Find out how in our Handy Hints and Tips guide (PDF). Pension schemes annual allowance checking tool - introduction From 6 April 2014 the annual allowance for tax relief on pension savings in a registered pension scheme was reduced to £40,000. It is not intended for onward transmission to retail customers & should not be relied upon by any other person. Carrying forward from a year with a tapered annual allowance - The unused annual allowance available to carry forward from a tax year in which the taper applies will be the balance of the tapered amount, even when carrying it forward to a year where the taper doesn't apply. "Prudential" is a trading name of Prudential Distribution Limited. Let Offset make your clients' money work harder for them. This includes contributions made by anyone else into your pension such as your employer. These companies are not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom. This platform gives you access to our Retirement Income Shortfall calculator, our Lifetime Allowance calculator and our Salary and Bonus Sacrifice calculator. Use fund name, code or other filters to find the fund you need. The results of the tool shouldn’t be considered as advice and is to aid you during your advice process. For UK financial advisers only, not approved for use by retail customers. If you are not a financial adviser or intermediary, please visit our personal site. The results are based on our current understanding of legislation and HMRC practice. This tool calculates unused annual allowances, the effect of the tapered annual allowance and the maximum a client can pay into their pension, for the current tax year, without exceeding their annual allowance. Add this tool to your favourites and use it even when you’re not online. Prudential Distribution Limited is part of the same corporate group as the Prudential Assurance Company. Calculate the pension input amounts (PIA) for the three carry forward years. See whether your client will reach their retirement income goals with their present pension plans, pension payments and other assets. Please note this means that on Monday 16 November, you will not be able to access any of the online services normally available. Run scheme-specific individual or multiple outputs that you can use with employers and employees to show the savings provided by our Salary Sacrifice/Exchange option. Visit the Scottish Widows Linkedin page. Helps you to assess the sustainability of different levels of income in retirement. Review funds, fund factsheets and prices. The Prudential Assurance Company and Prudential Distribution Limited are direct/indirect subsidiaries of M&G plc, a company incorporated in the United Kingdom. Watch the latest CII accredited Masterclass from our Financial Planning and TechTalk team.