Member

2: Clause 1, page 2, line 14, at end insert— “(6DA) Regulations made under subsection (6A) must make provision enabling an employed earner to carry forward any unused part of the contributions limit from the three immediately preceding tax years for the purposes of determining the contributions limit applicable in a subsequent tax year.(6DB) For the purposes of subsection (6DA)—(a) an amount is “unused” to the extent that the amount foregone in relation to benefits mentioned in subsection (6A) for a tax year is less than the contributions limit for that year,(b) regulations may make provision about the order in which unused amounts are to be treated as used,(c) regulations may make provision about cases in which an employed earner was not within subsection (6A) for the whole or part of a tax year, and(d) regulations may make such consequential, supplementary, incidental or transitional provision as HM Treasury considers appropriate.”Member’s explanatory statement This amendment would require regulations to provide for a three-year carry-forward of unused amounts of the annual contributions limit, aligning the treatment of salary sacrifice pension contributions for National Insurance purposes with the existing three-year carry-forward framework in the pensions annual allowance regime in Great Britain.