No. Since 6 April 2006 tax relief has been given only for the tax year in which a contribution is actually paid: section 188(1) of the Finance Act 2004 gives relief on contributions “paid during a tax year”, and HMRC’s Pensions Tax Manual says unused relief can no longer be carried backwards or forwards. If you want relief against 2026 to 2027 income, the contribution has to count as paid by 5 April 2027 under HMRC’s rules on payment dates.

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Why was carry back abolished?

The personal pension rules in the Income and Corporation Taxes Act 1988 used to allow contributions to be related back to an earlier year. Section 641 (carry back of contributions) was repealed by the Finance Act 2000, which inserted section 641A, an election for contributions to be treated as paid in the previous year. Section 641A was in turn repealed with effect from 6 April 2006 by the Finance Act 2004, when the current regime for registered pension schemes came into force.

The current rule is simple. Section 188(1) gives relief on relievable pension contributions paid during a tax year by a relevant UK individual. PTM044100 says tax relief can only be claimed for the tax year that the contribution is actually made, and that unused tax relief can no longer be carried backwards or forwards to other tax years.

When does HMRC treat a contribution as paid?

PTM041000 sets out the deemed date of payment for each method:

Payment method Date it counts as paid
Cheque The date the cheque is given to, or if posted received by, the scheme administrator
Debit or credit card The date the scheme administrator receives the details
Direct debit The date in the mandate, provided a correctly completed mandate was received and the funds are actually received
Net pay through payroll The date of deduction from pay
Relief at source paid via an employer As for a direct payment, for example the date of the employer’s direct debit or the date its cheque is received
Faster Payment Usually near instant, but not guaranteed; the bank’s terms apply

A posted cheque therefore counts when it arrives, not when it is posted. PTM053200 also notes that where an employer collects contributions for a group personal pension and there is a delay, the date the provider receives the money is the date of payment.

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What if the payment is delayed over 5 April?

PTM041000 lists cases where a contribution must not be treated as made in the earlier tax year:

  • a direct debit that is due on or after 6 April;
  • a direct debit due before 6 April that fails for lack of funds and is processed again on or after 6 April;
  • a cheque presented in the earlier year that is not honoured and only clears when presented again in the new year;
  • a Faster Payment that arrives late because the member expected more of that method than the bank’s terms and the scheme’s terms allowed.

There is one concession. If a direct debit was due on or before 5 April but the date fell on a Saturday, Sunday or bank holiday and it was processed on the next working day, it can be accepted as made in the earlier year, provided a fully completed mandate shows payment was due by 5 April. In 2027, 5 April is a Monday.

Schemes are also allowed to protect themselves. PTM041000 notes that some providers hold payments made near the year end outside the scheme until the new tax year, or refuse them and send them back. PTM044220 adds that the tax rules do not require a scheme to accept a contribution at a particular time. Check your provider’s cut off date well before April.

Is carry forward the same thing?

No. Carry forward lets you use unused annual allowance from the previous three tax years so that a large contribution in the current year does not trigger an annual allowance charge. It does not move tax relief between years. Relief on member contributions is still limited to the higher of £3,600 and your relevant UK earnings for the tax year in which you pay.

Since 2016 to 2017, pension input periods have been aligned with the tax year (PTM051300), so the payment date decides both which year’s relief applies and which year’s annual allowance the contribution counts against.

Can I claim relief late for a contribution I paid?

Yes, but only for the year of payment. If you paid a relief at source contribution in 2022 to 2023 and never claimed higher rate relief, section 43 of the Taxes Management Act 1970 allows a claim up to four years after the end of that tax year. That is a late claim for the correct year, not a carry back. See claiming higher rate pension relief.

Gift Aid is different. GOV.UK confirms you can claim relief in a Self Assessment return on donations made in the current tax year, up to the date you send the return, which effectively brings them back a year (see carrying back Gift Aid). Pension contributions have no equivalent.

Does the same apply to company contributions?

Yes, in a different form. Section 196 of the Finance Act 2004 says employer contributions that are deductible are deductible for the period of account in which they are paid. An accrual at the year end does not give relief in that year. Where contributions paid in one period exceed 210% of those paid in the previous period, section 197 spreads relief on the excess over 110% across later periods; see spreading large pension contributions.

A worked illustration

Illustration only. Sam is self employed in England. His 2026 to 2027 profits are £70,000 and he expects £40,000 for 2027 to 2028, after which he will be a basic rate taxpayer. He wants to pay £8,000 into his personal pension, which the provider grosses up to £10,000.

  • Paid by debit card on 1 April 2027. The provider adds £2,000 of basic rate relief. About £19,730 of Sam’s 2026 to 2027 income is taxed at 40%, so he can claim a further 20% on the full £10,000 on his 2026 to 2027 return: another £2,000. Net cost £6,000.
  • Paid on 6 April 2027. The contribution falls into 2027 to 2028. The provider still adds £2,000, but with £40,000 of income Sam pays no higher rate tax that year, so there is no further relief. Net cost £8,000.

The difference is £2,000, and it cannot be fixed afterwards by electing to carry the payment back.

What mistakes come up most often?

  • Posting a cheque on 4 or 5 April and assuming the posting date counts.
  • Setting up a direct debit with a collection date after 5 April.
  • Relying on a provider to accept a payment on 5 April when its own cut off is earlier.
  • Thinking carry forward of annual allowance lets relief be taken against an earlier year’s income.
  • For companies, accruing a contribution in the accounts and expecting a deduction before it is paid.
  • Forgetting that a transfer between schemes is not a contribution (section 188(5)) and gives no relief in any year.

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Sources

Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 19 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.