Sell London property to fund PPR?

[Thirsty]

yes form IT38. It’s a very simple process we do this for all our clients with at least 3 years National insurance contributions

Be warned they are achingly slow to respond - edit UK Pensions I mean - not @Marc !

 

[presidenttttt]

Well done on the professional achievement, an excellent package. Possible to ask what area of financial services in particular? Always interesting.

 

[MMon13]

Well done on the professional achievement, an excellent package. Possible to ask what area of financial services in particular? Always interesting.

Of course. I work in investor relations for a smallish investment firm. My role is a combination of fund raising & client service for to a European client base.

 

[MMon13]

One other thing to consider re pensions, because you are well in excess of the thresholds for tax relief (20% up to salary of €115k) it might be in your interest to renegotiate the terms of your contract with your employer so that the employer contribution is much higher and not subject to the tax relief limit. All while avoiding any risk of it being deemed a salary sacrifice.

@_OkGo_ Could you please elaborate on this? Not sure I fully understand....

I have spoken to my employer re moving my PRSA from Irish life as I don't think I'm getting much choice or value for money with their MAPS range. They're amenable to this, but I may raise the above too as salary has increased to EUR125k.

 

[cremeegg]

Unless the annual bonus is practically guaranteed, I think it would be unwise for the OP to borrow more than €600k (3.5 times joint salaries).

Loath though I am to disagree with Sarenco, I think this point needs a reality check.

This is a couple with an income in excess of €300k pa. The 3.5 times joint salaries is meaningless in that context.

How much does it cost a couple with a small child to live comfortably, without any housing costs remember. (Less than you think, your social life will cost a lost less after Sept. )

Say €100k, so you can afford to spend €200k less tax servicing your mortgage.

Want to be more cautious that this, deduct the bonus, you can still comfortably afford a very significant mortgage.

On a non financial note, buy the house you want, you will spend your life in it, your kids will spend their lives in it.

 

[Sarenco]

Loath though I am to disagree with Sarenco, I think this point needs a reality check.

This is a couple with an income in excess of €300k pa. The 3.5 times joint salaries is meaningless in that context.

I don’t disagree with your general point but I was particularly focusing on the fact that a significant element of the OP’s remuneration is by way of a discretionary bonus (ie. it’s not guaranteed).

The OP acknowledged and addressed that point comprehensively earlier in the thread.

 

[_OkGo_]

@_OkGo_ Could you please elaborate on this? Not sure I fully understand....

I have spoken to my employer re moving my PRSA from Irish life as I don't think I'm getting much choice or value for money with their MAPS range. They're amenable to this, but I may raise the above too as salary has increased to EUR125k.

Apologies, what I originally alluded to was that you are limited to making tax free contributions up to 20% of the €115k limit. However, employer contributions to an occupational pension do not count towards this limit so the next time you discuss salary with your employer, it is in your interest that you get them to increase their contribution to your pension.

Having said that, if your pension is a PRSA, then I believe that the employer contributions do make up part of the 20% limit. My knowledge of pensions is fairly basic (so don't rely on it) but with your income level, you should probably pay for advice to make sure you have an efficient pension arrangement

Tax relief on employer contributions

Employers get tax relief on any contributions they make to a pension arrangement...

www.pensionsauthority.ie