787J Allowance to employer

Any sum paid by an employer as a contribution to a PRSA is allowable as an expense in computing the profits of the employer’s trade or profession or as an expense of management in the case of assurance companies (taxed on the I – E basis) and investment companies. Relief is only available in respect of sums actually paid and not for provisions for or accruals in respect of such payments. Reliefs also only applies to that part of an employer’s contribution which relates to employees of a business the profits of which are charged to income tax or corporation tax.

Relevant Date: Finance Act 2021