In the case of a special one-off employer contribution, how much qualifies for corporation tax relief in the accounting period in which the payment is made?

• A. €100,000
• B. Nil
• C. €6,350
• D. €93,650

Answer: (A)

The key idea is the timing of corporation tax relief for employer pension contributions. When an employer makes a special one-off contribution, the relief is available in the accounting period in which the payment is made, and it can be the full amount paid if the contribution qualifies as a deductible pension payment. So, if €100,000 is paid into the pension scheme in that period and meets the scheme’s eligibility and annual allowance rules, the corporation tax relief should cover the entire €100,000 for that period. The other figures would only apply if there were prorating or non-qualifying conditions, which aren’t indicated here.