Using AVC to reduce Rental Tax Liability - Is it Possible?

[moneymakeover]

Grand. This is the confusion..

When you say "this is the confusion"

Are you endorsing what is in quotes?
Or suggesting it's incorrect?
Ie
Your post is confusing

As I said and was agreed

John no rental income can contribute 16.67k can lump sum and will have pension increase by 16.67k
When revenue refund 6.67k the net cost to John is 10k

Tom with 10k profit ie 4k rental income liability can contribute 10k cash. Revenue refund nothing.
His liability is paid
His pension increases by 10k

Why is his pension contribution reduced compared to John?
Because of his rental income liability.
Tom gets 6.67k less pension contribution than John

So hope you're no longer confused

 

[Thirsty]

So some how you propose

"John ... can contribute 16.67k... and will have pension increase by 16.67k"

"Tom .... can contribute 10k... "

And then you suggest that because of rental income Tom has less pension contribution!

Tom has less, because he paid less!!

 

[moneymakeover]

So some how you propose

"John ... can contribute 16.67k... and will have pension increase by 16.67k"

"Tom .... can contribute 10k... "

And then you suggest that because of rental income Tom has less pension contribution!

Tom has less, because he paid less!!

Both pay effectively 10k

 

[Thirsty]

No.

One pays 16.6k and the other pays 10k

 

[Gordon Gekko]

Both pay effectively 10k

You have an extraordinary blind-spot in relation to this.

They don’t “both pay effectively €10k”.

One “pays effectively €10k” and the other “pays effectively €6k”.

And the former ends up with €16.67k in the pension, whilst the latter ends up with €10k in the pension.