In some circumstances it may be possible for a company to create a trading loss by making a pension contribution and to obtain additional tax relief against years prior to the immediately preceding accounting year. Provided the company either paid corporation tax in the previous three accounting periods or will be paying it in subsequent periods, tax relief will be applied to the pension contributions as long as they are made ‘wholly and exclusively’ for the purposes of the trade. Pension contributions need to be paid before the end of the accounting period for this planning to be effective.
If you would like to discuss this matter further please do not hesitate to contact us.
Stiles & Company Financial Services (Petersfield) Limited is a firm of Independent Financial Advisers dedicated to providing a highly professional service to our clients, spread predominately across Hampshire, Sussex & Surrey.