When does higher age related pension tax relief percentage kick in?

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ClubMan

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Couldn't find this asked/answered already but apologies if I overlooked it.

When does a higher age related pension tax relief limit kick in?
Is it in/from the start of the year when one turns a particular age or only from one's birthday?

E.g. somebody turns 40 during 2020 - at what point can they get tax relief on up to 25% of earnings contributed to a pension?
For all of 2020 or only after their 40th birthday during 2020?

Thanks
 
Great - thanks a lot.
Couldn't find this clarified on Revenue, Citizens Info etc.
 
Hi Clubman,
I asked this question of the company who manages my pension scheme. Their answer was that it was after your birthday. So for example, if your birthday was on 1st September, you would get 8 months at the lower rate and the remaining 4 months at the higher rate. Seemed to make perfect sense to me and would be the fairest way of dealing with it.
 
paper-folder said:
Hi Clubman,
I asked this question of the company who manages my pension scheme. Their answer was that it was after your birthday. So for example, if your birthday was on 1st September, you would get 8 months at the lower rate and the remaining 4 months at the higher rate. Seemed to make perfect sense to me and would be the fairest way of dealing with it.
Click to expand...
This is incorrect. If you reach 40 before the end of the tax year, you can claim relief on 25% for the entire year.

Your payroll might operate differently, or employer contribution where linked to age might increase from your birthday, but tax relief is available based on the entire calendar year.
 
For clarity, here's the wording in legislation (section 774 of TCA)

"in the case of an individual who at any time during the year of assessment was of the age of 30 years or over but had not attained the age of 40 years, 20 per cent,

(ii)in the case of an individual who at any time during the year of assessment was of the age of 40 years or over but had not attained the age of 50 years, 25 per cent,..."
 
paper-folder said:
Hi Clubman,
I asked this question of the company who manages my pension scheme. Their answer was that it was after your birthday. So for example, if your birthday was on 1st September, you would get 8 months at the lower rate and the remaining 4 months at the higher rate. Seemed to make perfect sense to me and would be the fairest way of dealing with it.
Click to expand...

It’s probably time to move your pension scheme so.

That is completely wrong.
 
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