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Relief for Pension Contributions: Application of Earnings Limit - Transitional Arrangements for 2008

Posted by Brian Flynn in Tax on 23 Oct 2009


Revenue have issued further clarification in Tax Briefing 79 on “dual income” situations i.e. situations where an individual has both employment and self-employed income and makes contributions to both an occupational and private scheme.  The guidance confirms that where a personal pension contribution contract was entered into before 7 September (the date of issue of Tax Briefing 74) and contributions have actually been paid by this date in respect of 2008, Revenue will not seek to apply the guidance set out in Tax Briefing 74.  Therefore, relief can be claimed as in prior years taking into account the appropriate age restrictions and earnings limit.  Contributions made after this date will be subject to the guidance provided in Tax Briefing 74. 
According to Tax Briefing 79 where pension contributions are made in 2009 in respect of 2009, whether the contributions are made before or after 7 September, the guidance provided in Tax Briefing 74 will apply.  The ITI has concerns regarding the inequity of this treatment and will continue to make representations to Revenue on this matter. Tax Briefing 79 is available here.

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