I have retired on 31 March 2019. If I make a contribution to my Prsa before 31 October 2020 would I be allowed under revenue rules to qualify for tax relief on this contribution.
To be clear I am asking is tax relief allowable on my earnings from employment after I my employment has ceased..
It was previously my understanding that it was not possible to claim tax relief after ceasing employment, but after reading Pensions Manual - Appendix III
I am confused. Is Appendix III stating that I can claim relief if I make a contribution before 31 October of the year after I have retired and claim relief for my retirement year.
Tax and Duty Manual
Pensions Manual - Appendix III
Tax relief for pension contributions made in the year of
retirement – late elections
Appendix III
This document was last updated June 2019
Income tax relief for pension contributions is provided for in Part 30 Taxes
Consolidation Act 1997 (TCA). In general, relief is given for the year of assessment in
which the contributions are paid, with provisions in place for the carry forward of
unrelieved amounts. In addition, sections 774(8), 776(3), 787(7) and 787C(3) TCA
provide that contributions paid after the end of a year of assessment but on or
before the return filing date for that year (31 October of the year following the year
of assessment) may be treated as paid in the earlier year of assessment, where the
individual so elects on or before that date. The 31 October deadline is extended
where an individual both files and pays online via ROS or myAccount.
The final date for making an election is occasionally overlooked by individuals who
are not chargeable persons within the meaning of Part 41A TCA. Contributions
which are the subject of an election made after this date cannot be relieved in the
earlier year. This does not normally give rise to difficulties as relief can be obtained
in the year of payment and following years if necessary. However, where an
individual is close to retirement she or he may have insufficient income in the year in
which the contributions are paid to absorb the full amount of the contribution. Also,
the carry forward of unrelieved contributions to later years is not an option where
the individual retires in the year in which the contribution is paid as pensions are not
taken into account in computing income for relief purposes.
Revenue will therefore treat elections made under sections 774(8), 776(3), 787(7)
and 787C(3) TCA by individuals who are not chargeable persons within the meaning
of Part 41A TCA as timely if the following conditions are met:
. the election is received on or before 31 December in the year following the
year for which relief is claimed,
. the contributions have been paid by the appropriate return filing date for
the year in question, and
. the claimant is retiring in the year in which the contributions are paid.
The information in this document is provided as a guide only
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To be clear I am asking is tax relief allowable on my earnings from employment after I my employment has ceased..
It was previously my understanding that it was not possible to claim tax relief after ceasing employment, but after reading Pensions Manual - Appendix III
I am confused. Is Appendix III stating that I can claim relief if I make a contribution before 31 October of the year after I have retired and claim relief for my retirement year.
Tax and Duty Manual
Pensions Manual - Appendix III
Tax relief for pension contributions made in the year of
retirement – late elections
Appendix III
This document was last updated June 2019
Income tax relief for pension contributions is provided for in Part 30 Taxes
Consolidation Act 1997 (TCA). In general, relief is given for the year of assessment in
which the contributions are paid, with provisions in place for the carry forward of
unrelieved amounts. In addition, sections 774(8), 776(3), 787(7) and 787C(3) TCA
provide that contributions paid after the end of a year of assessment but on or
before the return filing date for that year (31 October of the year following the year
of assessment) may be treated as paid in the earlier year of assessment, where the
individual so elects on or before that date. The 31 October deadline is extended
where an individual both files and pays online via ROS or myAccount.
The final date for making an election is occasionally overlooked by individuals who
are not chargeable persons within the meaning of Part 41A TCA. Contributions
which are the subject of an election made after this date cannot be relieved in the
earlier year. This does not normally give rise to difficulties as relief can be obtained
in the year of payment and following years if necessary. However, where an
individual is close to retirement she or he may have insufficient income in the year in
which the contributions are paid to absorb the full amount of the contribution. Also,
the carry forward of unrelieved contributions to later years is not an option where
the individual retires in the year in which the contribution is paid as pensions are not
taken into account in computing income for relief purposes.
Revenue will therefore treat elections made under sections 774(8), 776(3), 787(7)
and 787C(3) TCA by individuals who are not chargeable persons within the meaning
of Part 41A TCA as timely if the following conditions are met:
. the election is received on or before 31 December in the year following the
year for which relief is claimed,
. the contributions have been paid by the appropriate return filing date for
the year in question, and
. the claimant is retiring in the year in which the contributions are paid.
The information in this document is provided as a guide only
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