Pensions carry-back deadline approaches

People may be winding down for Christmas but things are gearing up for the pensions' carry-back deadline.

16:11 23 December 2004

People may be winding down for Christmas but things are gearing up for the pensions' carry-back deadline.

There are now only five weeks remaining until the final day individuals can elect to use their previous tax year's pension contributions allowance.

To help remind consumers of the January 31st deadline, Legal & General has issued its latest pensions profile. This also gives key advice on 'carrying back' pension contributions into personal and stakeholder plans.

Legal & General's head of pensions technical services, Colin Batchelor, said: "January 31st is now almost as important a date in the tax calendar as April 5th is for many people."

He explained: "The rewards of 'carrying back' are twofold. Not only will clients potentially boost their retirement income but they will also receive substantial tax benefits."

This financial year's carry back will be the penultimate opportunity, as from April 2006 the facility will be abolished.