787AF Allowance to employer

Summary

This section provides tax relief for an employer contribution made in respect of an employee to the Automatic Enrolment Retirement Savings System.

Details

Chargeable period

(1) “chargeable period” means an accounting period of a company or a year of assessment.

(2) Any sum paid by an employer as a contribution in accordance with section 59(1)(b) of the Automatic Enrolment Retirement Savings System Act (the Act of 2024) to the National Automatic Enrolment Retirement Savings System Authority (NAERSA) on behalf of an employee 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.

(3) Relief is only available in respect of sums actually paid and not for provisions for or accruals in respect of such payments. Relief 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 2024