HMRC have created new guidance on how the carry forward for the deemed annual allowance works from 2008/09 onward.

Following the reduction in the pensions annual allowance there are transitional carry forward rules which bring a deemed allowance into account from 2008/09.

For example:

Maya contributes £100,000 to her pension scheme in 2011/12 she has made contributions in the previous three years as follows: 

Year	Contribution £	Deemed annual  allowance	Unused/(excess)	Unused allowance c/fwd
2008/09	40,000	50,000	10,000	10,000
2009/10	60,000	50,000	-	10,000
2010/11	30,000	50,000	20,000	30,000

So in 2011/12, Maya may deduct from her £100,000 contribution the actual allowance available for the year of £50,000 together with her deemed allowances brought forward of £30,000. She will have an excess contributions charge due on the balance of £20,000.

Note that the fact that the contribution exceeded the available deemed allowance in 2009/10 does not affect the carry forward of the deemed allowance.

All change: different rules apply from 2011/12: 

Where a pension contribution exceeds the £50,000 annual allowances the excess will be deducted first from any unused allowance brought forward, any balance will then be subject to the excess contributions charge. 

Year	Contribution £	Annual allowance	Unused/(excess)	C/fwd
2010/11	40,000	50,000	10,000	10,000
2011/12	60,000	50,000	(10,000)	-
2012/13	30,000	50,000	20,000	20,000
2013/14	100,000	50,000	(50,000)	-

Maya would have an excess contributions charge in 2013/14 of £30,000 (£100,000 - £50,000 – 20,000). 

For illustrations of this and the pensions input calculations see Pensions: tax rules and planning

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