Hello, I intend to retire (early) in 2 years time and recently setup an AVC with Cornmarket with a view to maximising my lump sum. I paid an initial amount of 36K. So my first silly question: I presume what I have is called a PRSA? (I need to specify this in ROS).
According to the rules for my age and income I can claim up to 29K tax relief on pension contributions. When I take away my monthly pension contributions, this brings the amount down to 24K.
To claim tax relief on that lump sum from the previous tax year (2023), I need to make a return before 31st Oct. I have a few questions on the information revenue is seeking.
1. Net relevant earnings
Is this the same as my employment gross income?
2. Amount of AVC paid by you in 2023 on which relief has not been granted
This presumably is 0 as I made my AVC payment this year?
3. Amount carried forward from a prior year, from which relief has not been obtained
(I'll come back to this in a moment)
4. Amount paid between 1/1/24 and 31/10/24 for which relief has not already been granted and for which relief is being claimed for 2023.
I initially thought this figure was the lump sum (36K) I paid, however point 3 above seems to suggest I can take the unclaimed part of my payment i.e. (36k-29k) and claim for that next year? If this is the case do I put the figure of 24k here (my max relief available) and then the balance of 5K can be claimed for the 2024 tax year? Or have I got this completely wrong. Thanks!
According to the rules for my age and income I can claim up to 29K tax relief on pension contributions. When I take away my monthly pension contributions, this brings the amount down to 24K.
To claim tax relief on that lump sum from the previous tax year (2023), I need to make a return before 31st Oct. I have a few questions on the information revenue is seeking.
1. Net relevant earnings
Is this the same as my employment gross income?
2. Amount of AVC paid by you in 2023 on which relief has not been granted
This presumably is 0 as I made my AVC payment this year?
3. Amount carried forward from a prior year, from which relief has not been obtained
(I'll come back to this in a moment)
4. Amount paid between 1/1/24 and 31/10/24 for which relief has not already been granted and for which relief is being claimed for 2023.
I initially thought this figure was the lump sum (36K) I paid, however point 3 above seems to suggest I can take the unclaimed part of my payment i.e. (36k-29k) and claim for that next year? If this is the case do I put the figure of 24k here (my max relief available) and then the balance of 5K can be claimed for the 2024 tax year? Or have I got this completely wrong. Thanks!