Pension for self employed partner - I'm PAYE

EmmDee

Registered User
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Hi,

I've looked if this topic has been raised. If I've missed it am happy to be redirected.

I'm PAYE full time employed. I max out pension contribution to limit for my age. My partner is self employed. We are taxed jointly. My salary is above the €115k income threshold for calculating max % contribution. I would have scope to contribute more. Their income is significantly less than that.

I'm thinking of a pension plan for my partner. Obviously a PRSA or personal pension. They have a historic DC pension from an employment many years ago - it won't be large but I assume could be transferred in.

My question is (a) whether contributions to their pension is limited to the % of their income or does a joint assessment have any benefit here and (b) our joint marginal rate is obviously at the higher rate - would all contributions to their personal pension get the higher rate benefit (though to be honest - tax benefit is only one factor here. I'm thinking having a dedicated pension arrangement has it's own justification)

If I use some numbers for illustration - say I'm on €200k and they have €20k income. We are in our early 50's so appropriate limit on tax benefit for contributions would be 30%. So if I max mine I get relief on €34,500. Is there a way to be able to get relief on any more than €6,000 for them?

Appreciate any pointers - thanks
 
(a) whether contributions to their pension is limited to the % of their income or does a joint assessment have any benefit here
It's a percentage of their individual earned income.

(b) our joint marginal rate is obviously at the higher rate - would all contributions to their personal pension get the higher rate benefit
You can only get relief at higher rate if their total income is more than 26,300. That element of band can't be switched between you. This doesn't all have to be earned income however.
 
It's a percentage of their individual earned income.


You can only get relief at higher rate if their total income is more than 26,300. That element of band can't be switched between you. This doesn't all have to be earned income however.

Appreciate that - thank you
 
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