Are you aware that you can make a contribution to a personal pension/stakeholder scheme and have the contribution related back to the previous tax year for tax relief purposes? The rules, which changed in April 2001, are still causing some confusion.

There are two main reasons why you might want to relate back - often called ‘carry back’ - a contribution you are making to a personal pension/stakeholder scheme:

* You missed making a contribution to your personal pension/stakeholder scheme during the last tax year and want to catch up by making one now.

* You can get more tax relief against your income last year than you can this year.
The tax relief on a personal pension payment carried back is given in the form of a separate repayment or credit against your next tax payment.

Don’t lose out

It is important to remember that, if you want to relate back a personal pension payment to 2002/03, you must pay it by 31 January 2004 and make the election to relate back at or before the time the contribution is paid.
Please e-mail at enquiries@fraserspy.co.uk or contact us on 0141 333 0432 if you would like us to calculate how much you can contribute and help you decide whether to relate back the payment.