PRSA

[goodwood12003]

i am a paye member of a company contributory pension scheme. can i also have a prsa and avail of tax relief on any contributions to it within my allowable avc's? i would like to diversify into a UK/overseas property fund in a tax efficient manner.

 

[Guest]

Yes - see the Pensions Board PRSA information:

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[RAIPI]

PRSA and AVCs

I'm afraid its not as simple as you might think ...using PRSA as an AVC vehicle is a messy way to do it ..some, including me, feel its not techncially possible even though many are promoting this idea.

You scheme must offer an AVC facility ..I woudl find out about that first, before getting in to trying to pay AVCs to a PRSA. One of the disadvantages of paying AVCs to a PRSA is that you will probably have to pay them gross and claim back the tax relief afterwards. If you pay AVCs to your employer's scheme, you'll get tax relief at source from your employer.

 

[Guest]

Just to clarify - I myself was not promoting this as an advisable strategy or drawing any conclusions about the advisability or not in this case. To do so would require a much more thorough examination of the circumstances and needs of the individual in question. I was simply answering the specific question asked about the logistics of such an approach being possible. As ever it generally makes sense to seek independent, professional advice on such matters regardsless of what I or others here say on the matter.