Max AVC contributions at higher rate tax 2023 jointly assessed

[Davie12]

I have payed 25% of my gross salary 100000 through payroll to an occupational pension for 2023. I am 46 year old.

My wife’s gross salary was 51000 and I would like to pay the max contribution for 2023 also to a PRSA. She is 43 so 25%. She paid no regular contributions.

We are jointly assessed as below.

€49,000 @ 20% (with an increase of €31,000 max), balance @ 40% 2023 year.

If I make a contribution of €51000* 0.25 =€12750 I will get a rebate back of 40%? The key being that everything above the €31000 will allow 40% rebate on an AVC contribution. Or is it simply the combined figure of €80000 that we can claim tax relief at the higher rate for AVC. ?

 

[S class]

You will have marginal earnings of 151000 - 80000 = 71000 taxed @ 40%.
The PRSAs and AVCs will reduce your marginal earnings taxed @ 40% to 33250.
You will get 40% tax relief on all your pension contributions.

 

[Davie12]

You will have marginal earnings of 151000 - 80000 = 71000 taxed @ 40%.
The PRSAs and AVCs will reduce your marginal earnings taxed @ 40% to 33250.
You will get 40% tax relief on all your pension contributions.

Thanks S class for your explanation that makes sense.