Finance Bill
The Finance Bill was published today and contains a number of measures relating to pensions that were not mentioned on Budget Day. These are as follows:
Personal Retirement Savings Accounts
Implementing a recommendation of the report of the Interdepartmental Pensions Reform and Taxation Group, the Finance Bill will provide that employer contributions on behalf of an employee to Personal Retirement Savings Account (PRSA) are no longer considered benefit in kind for the employee. Employer and employee contributions to a PRSA will no longer be treated as if they had been made by the employee. This brings the tax relief available to employees for employer contributions to a PRSA in line with that available for occupational pension schemes.
Pan European Pension Product (PEPP)
Secondly, the Bill introduces a new chapter of the TCA to provide for the tax treatment of contributions and out-payments from a new pension product – the Pan European Pension Product (PEPP). This aligns with the tax treatment of PRSAs.
Tax Free Lump Sum from foreign pensions
Finally the Bill provides for an Irish tax resident to receive a tax free lump sum of up to €200,000 from a foreign pension, in line with that available for Irish pension holders
The full Finance Bill can be read here.