Simon Harris (Wicklow, Fine Gael)
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I move amendment No. 18:

In page 29, line 21, to delete "on 1 February of the tax year" and substitute "at the time of the payment or transfer".

Section 17(2)(b) amends the approved minimum retirement fund, AMRF, provisions in the Taxes Consolidation Act 1997. The change allows the beneficial owner of an AMRF to draw down up to 4% of the value of the assets each year. Heretofore, the capital invested in such a fund - a maximum of €63,500 - was, in general, effectively locked-in until the owner reached the age of 75 and only the income, profits or gains arising in the fund could be drawn down. Among other things, the amendment as published in the Bill provides for more certainty on the amount that may be drawn down each year.
Section 17(2)(b) as published has a fixed annual valuation date of 1 February for the purpose of determining the amount of this 4% drawdown. Following feedback from the pensions sector, the Minister is now proposing to allow for the 4% drawdown to be based on the value of the assets in the AMRF at the point of drawdown rather than at a fixed valuation date in a year. That is the change. I commend the amendment to the committee. The Minister for Finance may bring forward further amendments to this provision on Report Stage.