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Pensions Legislation Ireland

The following appeared on the Revenue website last week and relates to various chapter amendments to the pensions manual, which is now available on the Revenue website at: Taxes & Duties, Tax &Duty Manuals – Section 16 FOI Act, Pensions.

Chapters 1 (PDF, 54KB), 3, 22, 23, 24, 25, 27, 28 and 29 of the Pensions Manual have been amended to reflect Finance Act 2014 changes to the Taxes Consolidation Act 1997.

In this regard, the main amendments are to:

  • Chapter 3 (PDF, 124KB), in relation to tax relief for pension contributions made by certain fixed-term employees of National University of Ireland, Galway;
  • Chapters 22 (PDF, 58.4KB), 24 (PDF, 164KB) and 25 (PDF, 290KB), in relation to the treatment of retirement arrangements which are the subject of a pension adjustment order (PAO);
  • Chapter 23 (PDF, 202KB), in relation to the changed arrangements for the withdrawal of funds from Approved Minimum Retirement Funds (AMRFs) and a number of tax avoidance schemes linked to the use of Approved Retirement Funds (ARFs) (and other “post-retirement” funds);
  • Chapters 27 (PDF, 176KB) and 29 (PDF, 92.1KB), in relation to the reduction in the higher rate of income tax from 41% to 40%; and
  • Chapter 28 (PDF, 130KB), in relation to the reduction in the annual rate of imputed distribution applying to ARFs and vested PRSAs from 5% to 4% in certain circumstances.

In addition, changes have been made to:

  • Chapter 7 (PDF, 109KB), to clarify that where benefits are payable under a pension arrangement in respect of which a PAO applies, each individual is to be considered separately to determine if they independently satisfy the trivial “once-off pension” options;
  • Chapter 23 (PDF, 202KB), to insert a new paragraph relating to the non-issue of PAYE exclusion orders to non-residents in respect of withdrawals from ARFs and AMRFs or the taking of a taxable lump sum in lieu of the purchase of an annuity or the transfer of a retirement fund to an ARF/AMRF; and
  • Chapter 24 (PDF, 164KB), in relation to the taxation of withdrawals from a PRSA and the non-issue of PAYE exclusion orders to non-residents in respect of such withdrawals.

(Source: Revenue)

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All the best,
The Team at Jefferson

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