PRSA contributions and tax relief

P

poppie

Registered User
Messages
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Hi there.
I started a PRSA pension in May this year. I made a lump sum contribution into this PRSA to kick things off and I also set up monthly direct debits going forward.
I have a rental apartment and so therefore need to do an annual Revenue self assessment Tax Return.
I was under the impression that when I submit my income figures for my 2023 Tax return that I could allocate the lump sump contribution I made to my PRSA to my 2023 tax return and claim the relevant tax relief?

I was also under the impression that my monthly contributions build up and I will include that figure in my 2024 Tax return for tax relief.

My account advised me as the policy was not set up during 2023 I can not allocate any of my PRSA contributions for tax relief in my 2023 tax return.

Is this correct?
Any advice, or references would be much appreciated.
Thank you :)
 
This may help:

www.zurich.ie

Everything you need to know about pension contributions

Whether you are self-employed or already in a company pension scheme or in non-pensionable employment, the need to save for a pension for your retirement is abundantly clear. So, in this article we are just going to focus on the tax saving benefits which are available from the government to...
www.zurich.ie www.zurich.ie
 
Protocol said:
This may help:

www.zurich.ie

Everything you need to know about pension contributions

Whether you are self-employed or already in a company pension scheme or in non-pensionable employment, the need to save for a pension for your retirement is abundantly clear. So, in this article we are just going to focus on the tax saving benefits which are available from the government to...
www.zurich.ie www.zurich.ie
Click to expand...
I don't think that that FAQ answers this specific question:
  • "I started a pension in 2024 - can I claim tax relief on contributions against my 2023 earnings?"
 
This is what Revenue pension manual Chapter 24 states....

No mention about it being necessary to have opened the PRSA in the previous tax year.


If a contribution is paid after the end of the year, but on or before 31 October of the
following year, relief may be claimed for the previous year provided an election to do so is made by the individual on or before 31 October of the following year. Taxpayers who
file and pay online via ROS or myAccount may avail of the extended return filing and
payment date to make an election and pay a contribution. As the payment of a
qualifying contribution is a pre-condition to the availability of relief, an election cannot
be made in advance of such a payment. The date for making an election in respect of
contributions paid in the year of retirement may be extended to 31 December of that
year in certain circumstances (see Appendix III of the Revenue Pensions Manual
 
S class said:
This is what Revenue pension manual Chapter 24 states....

No mention about it being necessary to have opened the PRSA in the previous tax year.


If a contribution is paid after the end of the year, but on or before 31 October of the
following year, relief may be claimed for the previous year provided an election to do so is made by the individual on or before 31 October of the following year. Taxpayers who
file and pay online via ROS or myAccount may avail of the extended return filing and
payment date to make an election and pay a contribution. As the payment of a
qualifying contribution is a pre-condition to the availability of relief, an election cannot
be made in advance of such a payment. The date for making an election in respect of
contributions paid in the year of retirement may be extended to 31 December of that
year in certain circumstances (see Appendix III of the Revenue Pensions Manual
Click to expand...
Thank you, this was my understanding.

So, I'll keep trashing it out with the accountant.

Would it be crazy to ring Revenue on this
 
ClubMan said:
I don't think that that FAQ answers this specific question:
  • "I started a pension in 2024 - can I claim tax relief on contributions against my 2023 earnings?"
Click to expand...
Protocol said:
This may help:

www.zurich.ie

Everything you need to know about pension contributions

Whether you are self-employed or already in a company pension scheme or in non-pensionable employment, the need to save for a pension for your retirement is abundantly clear. So, in this article we are just going to focus on the tax saving benefits which are available from the government to...
www.zurich.ie www.zurich.ie
Click to expand...
Thank you, reading through this it would appear you can "back date" tax relief on pension contributions, as long as you file it with your annual return before the 31st of October.
 
GSheehy said:
Is there any chance were your 2023 accounts filed already?
Click to expand...
No definitely not, the only thing on file for 2023, is preliminary tax paid in 2022.

The more I research the more I feel there must be a misunderstanding.

The question is more, how to delicately point this out now.
 
GSheehy said:
I don't see why you'd have to be delicate.

See attached.

Gerard

www.prsa.ie
Click to expand...
Again, I can't see that this article deals specifically with this question:
  • "I started a pension in 2024 - can I claim tax relief on contributions against my 2023 earnings?"
Maybe this is implicitly allowed but it doesn't seem to be explicitly stated anywhere?
 
The rule says they are allowed to backdate the payment from 2024 to 2023. If there was an exception to the rule it would explicitly say so.

So it behaves as if they had opened the PRSA in 2023.
 
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