Making an AVC?

suzie

Registered User
Messages
495
Hi there,

Just putting this query out there before calculating an AVC payment. With the recent changes whereby I now directly contribute to my pension via salary, am I right in assuming the MAX AVC for which tax relief applies would be:

MAX AVC = (age related % of salary - salary contribute)

for a tax year?

Thanks in advance

S.
 
Yes, you're right.

Don't forget that it's all based on gross figures - salary and existing pension contribution. If you have any BIK additions to your salary, these can be counted as salary.
 
Hi there,

Just putting this query out there before calculating an AVC payment. With the recent changes whereby I now directly contribute to my pension via salary.

Just to clarify - what do you mean by 'directly contribute to my pension'? Are you talking about the pension levy or what?
 
Just to clarify - what do you mean by 'directly contribute to my pension'? Are you talking about the pension levy or what?

Yes, I guess thats what I meant. Just did a search there and came across this link [broken link removed]

There it seems to imply the levy will be regarded as pension contributions.

Awaiting a response back from the pension department...

S.
 
Yes, I guess thats what I meant. Just did a search there and came across this link [broken link removed]

There it seems to imply the levy will be regarded as pension contributions.

Awaiting a response back from the pension department...

S.

I didn't think the levy was considered to be a pension contribution. There are a whole pile of anomolies where people will pay the levy but get no pension. There is no link between the levy and the pension.

But I've no particular knowledge of how Revenue view this - maybe some of the local experts can respond?
 
I didn't think the levy was considered to be a pension contribution.
I can't comment on whether it is officially a 'pension contribution' but it does attract tax relief (you may remember the mess when the government miscalculated how much benefit there would be from the pension levy - they announced the gross amount but then had to row back red-faced when the net impact was a lot less due to tax relief - I don't think anyone ever found out whether the intention was for it to be a gross amount not attracting tax relief or whether tax relief was hurriedly shoved into the mix when there was uproar over the levy). So as it attracts tax relief, it should erode the max tax relief available for pension contributions.
 
Update...

Didnt get anything useful from the so called pension department, so eventually contacted the Revenue. They have confirmed (over the phone) the pension levy isn't considered a contribution but rather a tax.

Hope this helps others...And don't hold me responsible if its wrong :)

S.
 
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You are correct Suzie as the pension levy is a levy/tax it is not a pension contribution for the purposes of calculating the max allowable contribution. While the public sector pension levy is allowable for tax relief you may ignore it when looking at your max contribution
 
The AVC companies do not included the pension levy as a pension contribution

Had to ask them directly last year
 
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