Finance Act 2024
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Automatic enrolment retirement savings system | ||
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14. (1) Part 30 of the Principal Act is amended by the insertion of the following Chapter after Chapter 2D: | ||
“CHAPTER 2E | ||
Automatic Enrolment Retirement Savings System | ||
Interpretation (Chapter 2E) | ||
787AE. In this Chapter— | ||
‘Act of 2024’ means the Automatic Enrolment Retirement Savings System Act 2024 ; | ||
‘AE provider scheme’ has the same meaning as it has in the Act of 2024; | ||
‘Authority’ means An tÚdarás Náisiúnta um Uathrollú Coigiltis Scoir; | ||
‘balance’ has the same meaning as it has in Part 5 of the Act of 2024; | ||
‘contributing participant’ has the same meaning as it has in the Act of 2024; | ||
‘contribution’ has the same meaning as it has in the Act of 2024; | ||
‘emoluments’ has the same meaning as it has in Chapter 4 of Part 42; | ||
‘employee’ has the same meaning as it has in Chapter 4 of Part 42; | ||
‘employer’ has the same meaning as it has in Chapter 4 of Part 42; | ||
‘employer contribution’ has the same meaning as it has in the Act of 2024; | ||
‘investment management provider’ has the same meaning as it has in the Act of 2024; | ||
‘participant’ has the same meaning as it has in the Act of 2024; | ||
‘participant account’, in relation to a participant, means the account maintained for the participant by the Authority under section 76 of the Act of 2024; | ||
‘participant contribution’ has the same meaning as it has in the Act of 2024; | ||
‘personal representative’ has the same meaning as it has in Part 5 of the Act of 2024; | ||
‘redemption date’ shall be construed in accordance with Chapter 2 of Part 5 of the Act of 2024; | ||
‘redemption value’, in relation to units in an AE provider scheme on any date, has the same meaning as it has in Part 5 of the Act of 2024; | ||
‘Revenue officer’ means an officer of the Revenue Commissioners; | ||
‘State contribution’ has the same meaning as it has in the Act of 2024; | ||
‘unit’, in relation to an AE provider scheme, has the same meaning as it has in Part 4 of the Act of 2024. | ||
Allowance to employer | ||
787AF. (1) For the purposes of this section, ‘chargeable period’ means an accounting period of a company or a year of assessment. | ||
(2) Subject to subsection (3), any employer contribution in respect of a contributing participant shall, for the purposes of Case I or II of Schedule D and of sections 83 and 707(4), be allowed to be deducted as an expense, or expense of management, incurred in the chargeable period in which the sum is paid but no other sum shall for those purposes be allowed to be deducted as an expense, or expense of management, in respect of the making, or any provision for the making, of any such contributions. | ||
(3) The amount of an employer’s contribution which may be deducted under subsection (2) shall not exceed the amount contributed by that employer to the Authority in respect of an employee in a trade or undertaking in respect of the profits of which the employer is assessable to income tax or corporation tax, as the case may be. | ||
Repayments to employer | ||
787AG. Where a repayment of employer contributions is made or becomes due to an employer under section 64 of the Act of 2024 as a result of an overpayment of contributions to the Authority, the repayment shall be treated for the purposes of the Tax Acts as a receipt of that trade or undertaking receivable when the repayment is due or on the last day on which the trade or undertaking is carried on by the employer, whichever is the earlier. | ||
Exemption of AE provider schemes | ||
787AH. (1) Exemption from income tax shall, on a claim being made in that behalf, be allowed in respect of income derived from investments or deposits of assets held in an AE provider scheme if it is income from investments or deposits held for the purposes of the scheme. | ||
(2) (a) In this subsection, ‘financial futures’ and ‘traded options’ mean respectively financial futures and traded options for the time being dealt in or quoted on any futures exchange or any stock exchange, whether or not that exchange is situated in the State. | ||
(b) For the purposes of subsection (1), a contract entered into in the course of dealing in financial futures or traded options shall be regarded as an investment. | ||
(3) Exemption from income tax shall, on a claim being made in that behalf, be allowed in respect of underwriting commissions if the underwriting commissions are applied for the purposes of the AE provider scheme and in respect of which the Authority would, but for this subsection, be chargeable to tax under Case IV of Schedule D. | ||
Taxation of payments from automatic enrolment retirement savings system | ||
787AI. (1) Subject to subsections (2), (3) and (4)— | ||
(a) the balance of any funds, after any lump sum withdrawn in accordance with subsection (3), that a participant withdraws from his or her participant account, or that the Authority credits to the participant’s personal representative, shall, notwithstanding anything in section 18 or 19, be treated as a payment to the participant of emoluments to which Schedule E applies and, accordingly, the provisions of Chapter 4 of Part 42 shall apply to any such payment or amount treated as a payment, and | ||
(b) the Authority shall deduct tax from the balance held in that participant’s account at the higher rate for the year of assessment in which the balance is made available unless the Authority has received from the Revenue Commissioners a revenue payroll notification (within the meaning of section 983) for that year in respect of the participant. | ||
(2) The Authority shall be liable to pay to the Collector-General the income tax which the Authority is required to deduct from any balance withdrawn by a participant by virtue of this section and the individual beneficially entitled to the balance withdrawn by that participant from their participating account, including the personal representatives of a deceased individual who was so entitled prior to the individual’s death, shall allow such deduction; but where there are no funds or insufficient funds available out of which the Authority may satisfy the tax required to be deducted, the amount of such tax for which there are insufficient funds available shall be a debt due to the Authority from the individual beneficially entitled to the balance held in the participant account or from the estate of the deceased individual, as the case may be. | ||
(3) Subsection (1) shall not apply to an amount made available, at the time the participant makes an application to withdraw the balance referred to in a notification under section 82(1)(d) of the Act of 2024, by way of a lump sum (in accordance with section 83(1)(a) of the Act of 2024) of an amount not exceeding 25 per cent of the value of the balance paid at that time. | ||
(4) For the purposes of this Chapter, the circumstances in which the Authority shall be treated as making assets held as units in an AE provider scheme available to an individual shall include— | ||
(a) any amount credited to the participant’s account by the Authority, and | ||
(b) any circumstances whereby assets cease to be held by the Authority on behalf of the participant or a personal representative.”. | ||
(2) Subsection (1) shall come into operation on the making of an order to that effect by the Minister for Finance. |