Contribution to Executive Pension Plan

[1eyeonthefuture]

Hi
Employee is a Company director with a share allocation (under 10%)currently enroled in a Executive Pension Plan.
If employer agrees to increase monthly contributions or indeed do an annual 20k deposit to the directors pension plan what are the ramifications for the company? Are they able to offset the payment against corporation tax?
Any tax implications for employee?
Thanks

 

[Conan]

That’s fine, so long as the overall funding is within Revenue limits. Company contributions are deductible as a trading expense and not taxable in the hands of the employee/director.

 

[1eyeonthefuture]

Appre

That’s fine, so long as the overall funding is within Revenue limits. Company contributions are deductible as a trading expense and not taxable in the hands of the employee/director.

Many thanks Conan, appreciated.

 

[1eyeonthefuture]

That’s fine, so long as the overall funding is within Revenue limits. Company contributions are deductible as a trading expense and not taxable in the hands of the employee/director.

Hi Conan, does it matter from the companies point of view if they contribute monthly or in one lump sum per annum?

Thanks

 

[Conan]

Not really. But there are some Revenue rules around how the Company can claim Corporation Tax relief if the contributions are lump sums or regular contributions. Generally speaking, regular contributions are easier to handle from a CT relief perspective.

 

[1eyeonthefuture]

Not really. But there are some Revenue rules around how the Company can claim Corporation Tax relief if the contributions are lump sums or regular contributions. Generally speaking, regular contributions are easier to handle from a CT relief perspective.

Appreciated. Thanks