How to calculate pension tax relief with 2 pensions

[arbitron]

Mary has income A of €100,000 plus income B of €100,000 = total gross income of €200,000. So the maximum she can contribute with tax relief is 15% of €115,000, i.e. €12,250. She puts €10,000 i.e. 10% of income A into pension, so she hasn't maximised it for that employment or even for her aggregate income.

It then says:
"In relation to her self-employed income, because Mary has “used up” €100,000 of the aggregate earnings limit of €115,000 in contributing to her occupational pension scheme, her capacity to make tax relievable contributions to a personal pension plan in respect of her self-employed earnings is restricted to a maximum of 15% of €15,000 (i.e. €2,250)."

So I read it that she can top up the remainder of her €15,000 allowance with €2,250 from income B.

All of the revenue doctor examples refer to GMS income, which does seem to be treated differently, but GMS is just for GPs and doesn't apply to hospital doctors.

 

[Steven Barrett]

Is this the ebrief you had in mind Steven?
[broken link removed]

I'm not doubting your advice for a second but it's not immediately obvious to me that this ebrief addresses a situation where somebody is contributing to two occupational schemes.

There was one for hospital consultants as well, which said that if they are to make top-ups to their pension, it has to be an AVC to max out their tax relief under that scheme first and then they could make personal pension top ups. With the limit on earnings at €115,000, this effectively meant it would only be AVC's.

The effect is the same whether it is personal pension plan or an occupational pension plan, as in this case.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)