AVC Lump Sum

J

jpmackey

Registered User
Messages
39
Hi folks,

If paying a lump sum AVC contribution before end Oct and claiming tax relief for the year 2023, do Revenue grant the relief in the form of tax credits or rebate?

The instructions I have appear to make it out like it is credits by default and you have to create a separate “My Enquiries” request to get it as a rebate instead. Is this outdated?

Thanks
 
In my experience in past years they rebalance your previous year's tax and issue any refund due by EFT to your bank account registered on myAccount.
 
jpmackey said:
The instructions I have appear to make it out like it is credits by default and you have to create a separate “My Enquiries” request to get it as a rebate instead. Is this outdated?
Click to expand...
They increase your credits if you are making an AVC for the current tax year 2024.

For the previous tax year 2023, they issue a refund by bank transfer.
 
presumably if your refund is larger than tax credits then you should be refunded?
 
They can still increase your tax credits. They don't issue a refund for the current year because you don't know your total income for 2024 until the year is over. Tax credits balance out the amount over the year as your income is earned.
 
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