Where in a chargeable period an employer makes pension contributions (other than for an excepted purpose; see below) which exceed 210 per cent of the contributions made in the immediately preceding chargeable period, relief for the excess of the current period contributions over 110 per cent of the previous period’s contributions (where that excess amounts to £500,000 or more) is to be spread forward into future chargeable periods (FA 2004, s. 197(1), (2)).

A fraction of the excess is to be treated as being paid in the current and subsequent periods; any remainder of the excess being relieved in the current period (FA 2004, s. 197(4)).

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