What is carry forward?

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Since 6 April 2011, it has been possible to carry forward unused annual allowance from the previous three tax years. This can only be done if an individual uses up the full annual allowance in the tax year they want to use carry forward in.

Any carry forward amount can be added to the current year’s annual allowance to give an individual a higher amount of available annual allowance.

Anyone who has triggered the money purchase annual allowance can't use carry forward to increase the amount they can contribute to money purchase arrangements.