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Filing a tax return t transfer pension contributions to 2010 to claim extra relief

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  • 25-09-2011 2:53pm
    #1
    Facelessman
    Closed Accounts Posts: 31 ✭


    I understand from reading some of the personal finance columns in the papers that it is possible to file a return with Revenue and elect to transfer pension contributions paid in 2011 (up to 31/10/11) to the financial year 2010. This will have the effect of providing extra tax relief of PRSI/USC as I understand it.

    Has anyone done this yet? What form needs to be completed? Do you get a cheque from revenue on the extra relief that you are entitled to?

    The revenue website does not seem to discuss this clearly so any advice would be appreciated.


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    #2
    coylemj
    Registered Users Posts: 25,382 ✭✭✭✭coylemj


    Can't say if that provision is still there but it used to apply to an actual contribution made to an AVC in the following year which could be retrospectively applied as if you had made the contributions in the previous year.

    So up to Oct 31st in any particular year, you could send a cheque to the company who ran your company's AVC scheme and ask them to apply the contribution to the previous year. They then sent you a receipt to this effect which allowed you to claim the contribution against the previous year's tax liability.

    You could not elect to notionally have some money already contributed moved from this year to last year, you had to make a separate contribution and get it backdated. The reason for this was typically because any contributions already made through your employer's payroll was already paid free of tax and USC so you couldn't go moving it to last year and then claim the tax relief on the double. If you are self-employed it might be possible to push the payment back into last year if you haven't already received tax relief on the payment.

    See the document called 'Chapter 03' at this website....

    http://www.revenue.ie/en/about/foi/s16/templates/pensions/


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