Tax relief on pension?

radioactiveman

Hi
Does anyone know : if you are just in the higher tax band by a small amount, do all of your pension contributions get tax relief at 42%, or do you just get 42% relief on the amount you are over the limit (ie. just the part over 32000~) - and 20% relief on the rest?
A friend of mine was thinking about setting up a pension but is wary of paying in contributions if it would be only half as expensive down the line!!:D

Relief is given at the marginal (higher) tax rate.

Colonel Sanders

higher rate is now 41%. You also get PRSI relief afaik (6%)

Idleater

radioactiveman wrote:

or do you just get 42% relief on the amount you are over the limit (ie. just the part over 32000~) - and 20% relief on the rest?

I believe this to be correct.

and it is relief up to a ceiling % of your total annual earnings based on age.

eg up to age 30 something like 15% is applicable for tax relief.

Talk to a pensions broker who will explain the most tax efficient way of making pension contributions.

nereid

nereid wrote:

Talk to a pensions broker who will explain the most tax efficient way of making pension contributions.

OR

If you do not want to pay for advice and wish to take out a pension on an 'Execution Only' basis you could have a look at any of the following

www.quinn-life.ie
www.prsa.ie
www.prsacentre.com
www.labrokers.ie

Declaration of Interest - I have a connection with the second of the above sites.

radioactiveman

Hi thanks, I have a funny feeling that it would be calculated by giving 41% on one section and 20% on the rest of the contribution but I'll check it out...
I actually checked out the difference between going to a provider directly vs. going through labrokers and it was quite surprising (going directly the allocation % was poor). Very easy to get ripped off on pensions in this country if you're not careful...

Idleater

Deleted User wrote:

OR

If you do not want to pay for advice and wish to take out a pension on an 'Execution Only' basis you could have a look at any of the following

I didn't have to pay for any of the advice I asked for. And I spoke to several pension (PRSA) providors before selecting one.

BuffyBot

Deleted User wrote:

OR

If you do not want to pay for advice and wish to take out a pension on an 'Execution Only' basis you could have a look at any of the following

www.quinn-life.ie
www.prsa.ie
www.prsacentre.com
www.labrokers.ie

Declaration of Interest - I have a connection with one of the above sites.

You probably should declare which one, just to be fair.

Also, the note the charter which states

B/I/P Charter wrote:

*Soliciting business.
This is a bannable offence. Trying to solicit business or get free advertising on this board will result in you being banned from this board permanently.

I'm not going to ban this time, but I'm pretty sure you're aware of this rule from previous PM conversations