Taxes Consolidation Act 1997 section 787AD

Allowance to employer

Section 787AD allows an employer to claim a tax deduction for contributions made to an employee's pan-European personal pension product (PEPP), subject to certain limits.

• An employer contribution to an employee's PEPP is deductible as a trading expense or expense of management in the chargeable period in which it is paid.
• From 1 January 2025, the deductible amount is capped at the employer limit for each employee, as defined in section 787V.
• Relief is available only for contributions actually paid — provisions or accruals for future contributions are not deductible.
• The deduction is limited to contributions relating to employees of a trade or business whose profits are chargeable to income tax or corporation tax.