Taking out AVC after claiming med expenses?

[DCSF]

Hi, bit of a mad question...but..
f I claim back my med expenses for 2024 now, via balancing statement online, will that affect my ability to then take out an AVC later in the year?
Thanks

 

[Protocol]

I presume here you arw referring to claiming tax relief for a contribution to an AVC in respect of the 2024 tax year.

Well it will mean making two tax returns.

Obviously it's cleaner to submit just one tax return.

But what you describe is possible yes.

Jan 2025 = claim tax relief on med expenses incurred in 2024
Feb 2025 = Revenue issue a SoL
Later in 2025 = submit a revised tax return
Later in 2025 = Revenue issue a revised SoL

 

[DCSF]

Hi, thanks for reply..I'm actually referring to commencing an AVC (setting one up and paying a large lump sum in in respect of 2024)

 

[S class]

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[CharlieMac]

@DCSF
If you are asking would claiming for medical expenses incurred in 2024 affect your ability to claim tax relief on retrospective AVCs for 2024 then I believe the answer is No. Tax relief on pension contributions is entirely separate I believe.

If the AVC lump sum is big enough then you won't get tax relief on the full amount. Something worth considering isn't that right @Protocol.

 

[ClubMan]

The only possible impact is that a previous successful claim for relief (e.g. on medical expenses) reduces the amount of tax that you actually paid which might impact the amount of tax that you can claim back on the pension contributions. But it's probably a marginal issue in most cases especially if the medical expenses involved weren't huge.

 

[misemoi]

You can only get tax relief on the actual tax paid. You'll either get it back on the medical expenses or the AVC or both if you have enough paid. So go ahead and do your medical expenses claim. I do mine in Jan every year, then when I get my utility bills I go back in and claim remote working relief, then if needed an AVC. No issue getting multiple Statements of Liability issued. And you can go back up to 4 years for any unclaimed medical expenses too.