Written answers
Tuesday, 16 April 2013
Department of Finance
Tax Collection
Timmy Dooley (Clare, Fianna Fail)
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To ask the Minister for Finance if he has given any consideration to allowing consumers in debt to Revenue to transfer funds in PRSA accounts as a means of discharging their liability; and if he will make a statement on the matter. [16201/13]
Michael Noonan (Limerick City, Fine Gael)
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The Deputy’s question represents a variation on requests for a general extension of pre-retirement access to pension savings beyond the provision currently included in Finance Act 2013 which relates solely to Additional Voluntary Contributions (AVCs). In my Budget 2013 speech, I announced that I would make provision in Finance Bill 2013 for persons making AVCs used to supplement their main scheme retirement benefits to withdraw up to 30% of the value of those contributions. Any amounts withdrawn will be subject to tax at the individual’s marginal rate. The option is available for 3 years from the enactment of Finance Act 2013 (i.e. 27 March 2013).
As I have made clear already in response to previous Parliamentary Questions, this is a restricted measure designed to enable rather than incentivise certain individuals to access part of their pension savings beyond their regular or compulsory pension contributions. I do not wish to damage future pension provision and it is important that individuals continue to provide for their retirement. For these reasons, I have no plans to extend the measure beyond AVCs, irrespective of the use to which such funds would be put.
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