Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

The second part is on the transfer of the PRSA to a family member after death. Prior to this, one was able to transfer it tax free. Now it will be deemed to have the same standing as an approved retirement fund, ARF. My question is on the tax treatment of the passing of ARFs to family members. Somebody with a PRSA of €2 million, that is a pension pot of €2 million, has built up tax credits or reliefs as a result of that which means for every €1 million, 40% was contributed by the State through tax reliefs. That person can pass that to his or her child completely tax free if the child is under the age of 21. If the child is over the age of 21, they pay a tax of 30% which would still be less than capital acquisition taxes. While it is a marked improvement in what we have had up to now, this will still lead to serious tax planning by individuals who can afford to have a PRSA.