Taxes Consolidation Act 1997 section 787W

Relevant earnings and net relevant earnings

Section 787W defines "relevant earnings" and "net relevant earnings" for the purposes of relief for contributions to a pan-European personal pension product (PEPP).

• Relevant earnings include employment income, income from property attached to an office or employment, and trade or profession income taxable under Schedule D, but exclude remuneration from an investment company where the individual is a proprietary director or proprietary employee.
• Net relevant earnings are the individual's relevant earnings less deductions for payments, losses, and capital allowances relating to sources of relevant earnings, and are the figure by reference to which maximum allowable PEPP contributions are calculated.
• Where a loss or capital allowance relating to a source of relevant earnings is set off against non-relevant-earnings income, the amount set off reduces the individual's net relevant earnings of subsequent years, starting with the immediately following year.
• An individual's net relevant earnings for any year of assessment cannot exceed the earnings limit (currently €115,000 — see section 790A).