Tax relief on AVC lump-sum payment

C

Cowpat

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Apologies in advance if I'm posting this on the wrong forum.
I've been advised that an annual lump-sum AVC payment is a tax-efficient way for employee pension scheme members (especially those on the higher tax bracket). I've also read that "when making adhoc AVC contributions to an AVC PRSA, the individual may need to make a tax return at the end of each tax year in order to gain the relevant tax rebate due on AVC contributions. This may suit individuals who have other sources of income such as rental income from investment property."
Does this just apply to self-employed individuals - or is it of benefit to employees who are on the high tax-rate bracket and who also make an annual rental return to revenue. Can I use this lump-sum payment to help reduce my tax liability for rental returns.

Thanks in advance.
 
What this means is that if you make a lump sum AVC contribution and you don't get the tax relief through your pay packet (at source from your employer). In this event you need to get tax relief from the tax office in the form a tax refund and you may need to file a tax return for this. Make sure that you are within the age related contributions limits if you are making a large contribution - 15% of salary for under 30 and it goes up - many variations so check the Revenue website.
 
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