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Unearned income, pension contribution relief possible?

  • 10-11-2017 3:16pm
    #1
    CGI_3
    Registered Users, Registered Users 2 Posts: 299 ✭✭


    I've searched the web, and can't actually find any mention of this. Wording in ROS has me querying this,

    So,

    Can one avail of income tax relief on unearned income (eg rental income) by making a relevant pension contribution?


Comments

  • #2
    nompere
    Registered Users, Registered Users 2 Posts: 1,678 ✭✭✭nompere


    This is what I find on ROS:

    Other Income (Fees / Commissions)
    Do not include Unearned Income - Rents, Investments Dividends etc.
    Do not include any remuneration from any investment company in respect of a propriety directorship or a propriety employment.

    The misspellings are Revenue's not mine!

    Seems pretty clear to me.

    No relief.


  • #3
    CGI_3
    Registered Users, Registered Users 2 Posts: 299 ✭✭CGI_3


    Yeah I saw those entries too, but you could read that to say "don't put unearned in this particular box", but no where does it say you couldn't enter it in another similar one.

    Anyway, from what I have found since it doesn't look like unearned is allowed, but I don't have the definitive...


  • #4
    Lockedout2
    Registered Users, Registered Users 2 Posts: 402 ✭✭Lockedout2


    CGI_3 wrote: »

    Can one avail of income tax relief on unearned income (eg rental income) by making a relevant pension contribution?

    One can't use unearned income in the calculation of the amount that is pensionable. So if one had €40,000 in selfemployed income and ones max is 25% then the max that will qualify is a contribution of €10,000.


  • #5
    thegolfer
    Registered Users, Registered Users 2 Posts: 346 ✭✭thegolfer


    S.783(3) specifies income against which pension deductions can be taken, called "relevant earnings"

    “relevant earnings” means either —

    • income from employment other than pensionable employment,
    • income from any property attached to or part of the emoluments of any such employment, or
    • income from a trade or profession,

    but does not include income from an employment with an investment company of which the recipient is a proprietary director or proprietary employee.

    The above does not include rental income.

    Sch D trade income refers to cases i and ii.

    Rental income is covered under Sch D Case v, and not considered trade income, but passive unearned income, thus not considered "relevant earnings" for the purposes of the legislation....


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