Finance Act 2024
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Pensions (standard fund threshold) | ||
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13. The Principal Act is amended— | ||
(a) in section 787O(1)— | ||
(i) by the insertion of the following definition: | ||
“ ‘quarterly estimate for average weekly earnings’ means the quarterly estimate for average weekly earnings contained in the Earnings, Hours and Employment Costs Survey published by the Central Statistics Office, from information obtained pursuant to the Job Vacancy Survey and the Labour Costs Survey conducted by that Office pursuant to orders made under section 25 of the Statistics Act 1993 , or any equivalent survey conducted and published from time to time by that Office pursuant to orders so made;”, | ||
and | ||
(ii) by the substitution of the following definition for the definition of “standard fund threshold”: | ||
“ ‘standard fund threshold’, in relation to an individual for a year of assessment, means— | ||
(a) for each of the years of assessment 2014 to 2025, €2,000,000, | ||
(b) for the year of assessment 2026, €2,200,000, | ||
(c) for the year of assessment 2027, €2,400,000, | ||
(d) for the year of assessment 2028, €2,600,000, | ||
(e) for the year of assessment 2029, €2,800,000, | ||
(f) for the year of assessment 2030, the higher of €2,800,000 or an amount determined by the formula— | ||
€2,800,000 × (A/B) | ||
where— | ||
A is the quarterly estimate for average weekly earnings for the third quarter of 2029, | ||
and | ||
B is the quarterly estimate for average weekly earnings for the first quarter of 2025, | ||
and | ||
(g) for the year of assessment 2031 and each subsequent year of assessment (each of which said year of assessment is referred to in this paragraph as the ‘relevant year’) the higher of the standard fund threshold for the year of assessment immediately preceding the relevant year or an amount determined by the formula— | ||
S × (A/B) | ||
where— | ||
S is the standard fund threshold for the year of assessment immediately preceding the relevant year, | ||
A is the quarterly estimate for average weekly earnings for the third quarter of the year immediately preceding the relevant year, and | ||
B is the quarterly estimate for average weekly earnings for the third quarter of the year immediately preceding the year preceding the relevant year;”, | ||
(b) in section 790AA(1)(a), by the substitution of the following definition for the definition of “standard chargeable amount”: | ||
“ ‘standard chargeable amount’ means €500,000 less the tax free amount;”, | ||
and | ||
(c) in Schedule 23B— | ||
(i) in paragraph 2, by the insertion of the following subparagraph after subparagraph (ba): | ||
“(baa) the individual transfers assets from the PRSA into a vested PRSA within the meaning of section 790D(1),”, | ||
and | ||
(ii) in paragraph 3, by the insertion of the following subparagraph after subparagraph (da): | ||
“(daa) where the benefit crystallisation event is an event of a kind referred to in paragraph 2(baa), the aggregate of the amount of so much of the cash sums and the market value of the assets transferred to the vested PRSA within the meaning of section 790D(1),”. |