Carry Forward is taking a loss or profit from a previous year and adding it to the current tax calculations. It can also apply to pension contributions.
Carry Forward is a term that describes transferring unused allowances from one period to another. Such things as losses, credits, and deductions can be carried forward. This allows these allowances to be used in the future to offset gains, or reduce taxes.
Losses must be the same type of losses as the type of profit that you are claiming against. You can claim these losses when filing your Self Assessment.
It is also possible to carry forward unused allowances for pension contributions from the three previous years and add it to the current annual allowance. This allowance is called the Pension Annual Allowance and restricts people from putting more than £60,000 into your pension per year (although this amount is smaller for lower income individuals)
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