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.
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All the best,
The Team at Jefferson