Taxes Consolidation Act 1997 Schedule 32 paragraph 26

Application of Section 774(6) in Certain Circumstances

Paragraph 26 of Schedule 32 set out transitional rules for the tax deductibility of employer contributions to approved occupational pension schemes for certain chargeable periods around April 1997.

• Employer contributions paid into an approved pension scheme were deductible as an expense for income tax purposes in the year of payment, or for corporation tax purposes in the accounting period of payment.
• The deduction was limited to contributions made in respect of employees in a trade or undertaking the profits of which were assessable to income tax or corporation tax.
• Contributions that were not ordinary annual contributions could, at the direction of the Revenue Commissioners, be treated as an expense of the year or period of payment or spread over a number of years.
• The paragraph applied to company accounting periods ending on or before 21 April 1997 and to years of assessment where the employer's basis period ended after that date.