Taxes Consolidation Act 1997 section 787C

PRSAs - method of granting relief for PRSA contributions

Section 787C sets out how income tax relief is given in respect of contributions to a personal retirement savings account (PRSA), including carry-forward of unused relief.

• An individual with relevant earnings from a trade, profession, office or employment may claim income tax relief on PRSA contributions by deducting them from net relevant earnings for the year of assessment in which they are paid.
• A contribution paid after the end of a year of assessment but on or before the return filing date for that year may be elected to be treated as paid in the earlier year, provided it does not cause the percentage contribution limit to be exceeded.
• Where full relief cannot be given in a year because of insufficient net relevant earnings, the unrelieved amount carries forward to the next year (and successive years) and is treated as a contribution paid in that year.
• Relief given under this Chapter in respect of a PRSA contribution cannot also be claimed under any other provision of the Income Tax Acts for the same or a later year of assessment.