Jobs Initiative announced - introduction of the Pension Levy

Last Tuesday (May 10^th) the government introduced the anticipated pensions levy as part of the Jobs Initiative. The government is imposing an annual levy of 0.6% on the value of the assets in private sector pension schemes. Approved Retirement Funds (ARFs) are excluded from this levy but are taxed in a different manner through the imputed distribution. Public Sector pensions are exempt.

The levy, which is to be backdated to January of this year, will be paid each year for four years and is expected to raise €470m a year, a total of €1.9 billion by the end of the 4 year period.

The levy has not been put into legislation as of yet but is expected in the coming days. We will keep you informed on any developments.

Deadline for Personal Fund Threshold applications fast approaching

The deadline for applications for Personal Fund Thresholds (PFT) is now only one month away. June 7^th is the latest date that Revenue will accept applications for a PFT and to date less than 150 enquiries have been made to Revenue. It is estimated that over 6,000 individuals could be affected.

With the deadline fast approaching the key is planning; firstly to obtain the correct Personal Fund Threshold for your clients and secondly, to plan in order to minimise the impact of the threshold.  The traditional advice around pension planning may have to be adjusted based on your clients’ circumstances.

If you have a query regarding PFT you can contact our PFT Helpdesk on (01) 603 5199 or email pft@independent-trustee.com for an initial free assessment on your clients’ potential exposure.