Written answers

Thursday, 24 November 2016

Department of Finance

Pensions Legislation

Photo of Joe CareyJoe Carey (Clare, Fine Gael)
Link to this: Individually | In context | Oireachtas source

72. To ask the Minister for Finance further to Parliamentary Question No. 125 of 17 November 2016, if he will address a matter (details supplied) regarding pension legislation; and if he will make a statement on the matter. [36708/16]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Deputy is correct in indicating that the Irish tax treatment of exempting from tax the investment income and chargeable gains arising in respect of assets held in an approved retirement fund (ARF) applies regardless of whether the qualifying fund manager is an insurance company or some other type of provider.

However, as indicated in my reply to the Deputy's previous Parliamentary Question on the matter, under the terms of Article 14A of the Ireland/UK treaty, the exemption in respect of income and gains derived by a resident of one Contracting State from immovable property that is situated in the other Contracting State arises where the competent authority of the first State certifies that the income and gains are tax exempt in that State "by reason of provisions in the laws of that State which afford relief from taxation to charities and superannuation schemes as such, or to insurance companies in respect of their pension business".

Therefore, an ARF as such, is not exempt under the terms of the treaty.  However, ARFs that come within the scope of "insurance companies in respect of their pension business" are covered by the exemption.  There is no discrimination on the basis of Irish legislation; all superannuation schemes and all insurance companies in respect of their pension business are covered by the provision; it is a fact that ARFs are not superannuation schemes and not all ARFs fall within the insurance company element.

Finally, UK treatment for tax purposes of the income and gains of an ARF is primarily a matter for the UK.  The issue has been reviewed by HM Revenue and Customs (HMRC) and, in that regard, I am informed by Revenue that the relevant Irish legislation has been considered by them. HMRC have concluded, however, that it would not be appropriate to extend the benefit available under Article 14A to ARFs (other than those forming part of an insurance company's pension business).

Comments

No comments

Log in or join to post a public comment.