Carry back - A term applicable to personal pensions regarding tax rules which allow contributions made in the current tax year to be treated as though they were paid in the preceding tax year. If there were no net relevant earnings in the preceding year, the contribution can be carried back a further year.The advantage of taking up this choice is that tax relief is obtained at the highest rate applicable in that previous year. For example, if an individual"s earnings have fallen such that he/she is no longer a higher rate taxpayer, carry back of contributions will obtain tax relief at the highest rate.
Carry back : a term applicable to personal pensions regarding tax rules which allow contributions made in the current tax year to be treated as though they were paid in the preceding tax year. if there were no net relevant earnings in the preceding year, the contribution can be carried back a further year.the advantage of taking up this choice is that tax relief is obtained at the highest rate applicable in that previous year. for example, if an individual"s earnings have fallen such that he/she is no longer a higher rate taxpayer, carry back of contributions will obtain tax relief at the highest rate.
Carry back