Finance Act 2025
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Automatic enrolment retirement savings system (amendments consequential on insertion of Chapter 2E in Part 30) | ||
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18. (1) The Principal Act is amended— | ||
(a) in section 118, by the insertion of the following subsection after subsection (5L): | ||
“(5M) Subsection (1) shall not apply to expense incurred by the body corporate in the provision for an employee (within the meaning of Chapter 2E of Part 30) of a contribution (within the said meaning).”, | ||
(b) in Part 7, by the insertion of the following section after section 192P: | ||
“Exemption in respect of State contribution under automatic enrolment retirement savings system | ||
192Q. A State contribution (within the meaning of the Automatic Enrolment Retirement Savings System Act 2024 ) shall be exempt from income tax and shall not be reckoned in computing total income for the purposes of the Income Tax Acts or in computing amounts chargeable to universal social charge in accordance with Part 18D.”, | ||
(c) in section 246(3)— | ||
(i) in paragraph (i), by the substitution of “such subsidiary,” for “such subsidiary, or”, | ||
(ii) in paragraph (j), by the substitution of “such subsidiary,” for “such subsidiary.”, and | ||
(iii) by the insertion of the following paragraphs after paragraph (j): | ||
“(k) interest paid to the Authority (within the meaning of Chapter 2E of Part 30), or | ||
(l) interest paid by the Authority (within the meaning of Chapter 2E of Part 30).”, | ||
(d) in section 256(1), in the definition of “relevant deposit”— | ||
(i) in paragraph (a)— | ||
(I) in subparagraph (v), by the substitution of “The Investor Compensation Company Limited,” for “The Investor Compensation Company Limited, or”, | ||
(II) in subparagraph (vi), by the substitution of “Icarom plc, or” for “Icarom plc,”, and | ||
(III) by the insertion of the following subparagraph after subparagraph (vi): | ||
“(vii) An tÚdarás Náisiúnta um Uathrollú Coigiltis Scoir,”, | ||
(ii) in paragraph (k), by the substitution of “Revenue Commissioners,” for “Revenue Commissioners, or”, | ||
(iii) in paragraph (l), by the substitution of “relevant deposit taker, or” for “relevant deposit taker;”, and | ||
(iv) by the insertion of the following paragraph after paragraph (l): | ||
“(m) which is made by the Authority (within the meaning of Chapter 2E of Part 30) in respect of contributions (within the meaning of the Automatic Enrolment Retirement Savings System Act 2024 ) made to the Authority;”, | ||
(e) in section 531AM, in paragraph (a) of the Table to that section— | ||
(i) in clause (VI), by the deletion of “and”, | ||
(ii) in clause (VII), by the substitution of “(within the meaning of Chapter 2D of Part 30) and,”, for “(within the meaning of Chapter 2D of Part 30).”, and | ||
(iii) by the insertion of the following clause after clause (VII): | ||
“(VIII) emoluments in the nature of a contribution by an employer to the Authority (within the meaning of Chapter 2E of Part 30).”, | ||
(f) in section 608(2), by the substitution of “PEPP assets (within the meaning of Chapter 2D of Part 30) or held by or on behalf of that person as units in an AE provider scheme (within the meaning of Chapter 2E of Part 30)” for “PEPP assets (within the meaning of Chapter 2D of Part 30)”, | ||
(g) in section 706(3), by the insertion of the following paragraph after paragraph (e): | ||
“(f) any contract with an AE provider scheme (within the meaning of Chapter 2E of Part 30);”, | ||
(h) in section 739B(1), by the insertion of the following definitions: | ||
“ ‘AE provider scheme’ has the same meaning as it has in Chapter 2E of Part 30; | ||
‘Authority’ has the same meaning as it has in Chapter 2E of Part 30; | ||
‘participant’ has the same meaning as it has in Chapter 2E of Part 30;”, | ||
(i) in section 739D(6), by the insertion of the following paragraph after paragraph (kc): | ||
“(kd) holds units in an AE provider scheme, registered in the name of the Authority on behalf of a participant and the Authority has made a declaration to that effect to the investment undertaking,”, | ||
(j) in section 787O(1)— | ||
(i) in the definition of “administrator”— | ||
(I) in paragraph (d), by the substitution of “section 787U,” for “section 787U, and”, | ||
(II) in paragraph (e), by the substitution of “Chapter 2D, and” for “Chapter 2D;”, and | ||
(III) by the insertion of the following paragraph after paragraph (e): | ||
“(f) An tÚdarás Náisiúnta um Uathrollú Coigiltis Scoir;”, | ||
(ii) in the definition of “member”, by the substitution of “Chapter 2D, a participant within the meaning of Chapter 2E” for “Chapter 2D”, | ||
(iii) in the definition of “relevant pension arrangement”— | ||
(I) in paragraph (f), by the substitution of “paragraph (e),” for “paragraph (e), or”, | ||
(II) in paragraph (g), by the substitution of “that Chapter, or” for “that Chapter;”, and | ||
(III) by the insertion of the following paragraph after paragraph (g): | ||
“(h) the automatic enrolment retirement savings system established, maintained and controlled by the Authority (within the meaning of Chapter 2E) under the Automatic Enrolment Retirement Savings System Act 2024 ;”, | ||
and | ||
(iv) by the insertion of the following definition: | ||
“ ‘participant’ has the same meaning as it has in Chapter 2E;”, | ||
and | ||
(k) in section 790AA(1)(a), in the definition of “relevant pension arrangement”— | ||
(i) in subparagraph (vii), by the substitution of “that Chapter,” for “that Chapter;”, and | ||
(ii) by the insertion of the following subparagraph after subparagraph (vii): | ||
“(viii) the automatic enrolment retirement savings system established, maintained and controlled by the Authority (within the meaning of Chapter 2E) under the Automatic Enrolment Retirement Savings System Act 2024 ;”. | ||
(2) Section 85 of the Capital Acquisitions Tax Consolidation Act 2003 is amended by the substitution of the following subsection for subsection (1): | ||
“(1) In this section— | ||
‘Act of 1997’ means the Taxes Consolidation Act 1997 ; | ||
‘Act of 2024’ means the Automatic Enrolment Retirement Savings System Act 2024 ; | ||
‘Authority’ has the same meaning as it has in the Act of 2024; | ||
‘balance’ has the same meaning as it has in section 78 of 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; | ||
‘retirement fund’, in relation to an inheritance taken on death of a disponer, means— | ||
(a) a fund that is— | ||
(i) an approved retirement fund or an approved minimum retirement fund, within the meaning of section 784A or 784C of the Act of 1997, | ||
(ii) a Personal Retirement Savings Account, within the meaning of section 787A of the Act of 1997, where assets of the Personal Retirement Savings Account are treated under subsection (4) or (4B), as the case may be, of section 787G of that Act as having been made available to an individual, | ||
(iii) a vested RAC within the meaning of section 787O(1) of the Act of 1997, or | ||
(iv) a PEPP, within the meaning of Chapter 2D of Part 30 of the Act of 1997, where assets of the PEPP are treated under subsection (4) or (6), as the case may be, of section 787AA of that Act as having been made available to an individual, | ||
being wholly comprised of all or any of the following, that is— | ||
(I) property which represents in whole or in part the accrued rights of the disponer, or of a predeceased spouse or civil partner of the disponer, under— | ||
(A) an annuity contract or retirement benefits scheme approved by the Commissioners for the purposes of Chapter 1 or 2 of Part 30 of the Act of 1997, or | ||
(B) a Personal Retirement Savings Account being a PRSA product approved by the Commissioners for the purposes of Chapter 2A of Part 30 of the Act of 1997, | ||
(II) any accumulations of income of such property, | ||
(III) property which represents in whole or in part these accumulations, or | ||
(IV) a PEPP, within the meaning of Chapter 2D of Part 30 of the Act of 1997, registered for the purposes of that Chapter under Article 7 of Regulation (EU) No. 2019/1238 of the European Parliament and Council of 20 June 20191 , | ||
or | ||
(b) the balance in a participant’s account, where the Authority sent a notification to the participant, in accordance with section 82(1)(d) of the Act of 2024, that such balance was eligible for withdrawal.”. | ||
(3) Section 82C(1) of the Stamp Duties Consolidation Act 1999 is amended, in the definition of “pension scheme”— | ||
(a) in paragraph (g), by the substitution of “that Chapter, or” for “that Chapter;”, and | ||
(b) by the insertion of the following paragraph after paragraph (g): | ||
“(h) an AE provider scheme within the meaning of the Automatic Enrolment Retirement Savings System Act 2024 ;”. | ||