Paul Kehoe (Wexford, Fine Gael)
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Question 304: To ask the Minister for Finance the position regarding income tax when SSIA's mature (details supplied); and if he will make a statement on the matter. [34029/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Pensions Incentive Tax Credits Scheme, introduced in the 2006 Finance Act, provides an incentive for eligible SSIA holders on lower incomes to reinvest all or part of their net SSIA proceeds, after maturity, into an approved pension product. It is primarily a savings scheme and is designed for people who are saving for retirement. The incentive involves a tax credit of €1 for every €3 of SSIA proceeds reinvested, up to a maximum of €2,500 credit (i.e. €7,500 invested). Secondly, there is an additional tax credit involving a percentage of the tax deducted from the SSIA on maturity. Where an SSIA holder avails of the Pensions Incentive Tax Credits Scheme, it is not possible to claim any tax relief for amounts invested up to and including €7,500. Tax relief can be claimed, however, on amounts in excess of €7,500 transferred from a matured SSIA to an approved pension product, subject to the standard limits.

If a person invests SSIA proceeds in a pension product without availing of the Pensions Incentive Tax Credits Scheme, he/she can claim tax relief in respect of that investment subject to the standard limits.