Taxes Consolidation Act 1997 section 787X

Method of granting relief for PEPP contributions

Section 787X sets out how income tax relief is given for contributions to a pan-European pension product (PEPP), including the mechanism for deducting contributions from relevant earnings, the option to elect for backdating, and the carry-forward of unused relief.

• Income tax relief for PEPP contributions is given by deduction from or set-off against the individual's relevant earnings for the year of assessment in which the contribution is paid.
• A contribution made after the end of a year of assessment but on or before the specified return date may be elected to be treated as paid in the earlier year, subject to limits.
• Where full relief cannot be given in a year because of insufficient net relevant earnings, the unrelieved amount is carried forward to the next and succeeding years.
• Relief for a PEPP contribution under this Chapter cannot also be claimed under any other provision of the Income Tax Acts, and relief is clawed back if PEPP approval is withdrawn.