Section 848Z Tax credits

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Amendments

Section 848Z inserted by Finance Act 2006 section 42.

(1) A tax credit in relation to a pension subscription shall not exceed €2,500.

Is there a limit on the tax credit available to me when I invest my SSIA proceeds into a pension?

(1) Yes - the tax credit for a pension subscription must not exceed €2,500. Revenue add €1 for every €3 invested by you.

(2) An individual, who is entitled to a tax credit in relation to his or her pension subscription, shall be entitled to be credited, in accordance with the provisions of this Part and not under any other provision of the Tax Acts, with a further amount (in this Part referred to as an "additional tax credit").

Is there any further credit?

(2) Revenue will also add an additional tax credit (see (3)).

(3) The amount of the additional tax credit shall be determined by the formula―

A x C
B

where―

A is the maturity tax in relation to the individual's account,

B is the net funds, in relation to the individual's account, and

C is the amount of the pension subscription.

How do I calculate the additional tax credit?

(3) The additional tax credit consists of the SSIA exit tax, which is calculated as...

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