Holly Cairns (Cork South West, Social Democrats)
Link to this: Individually | In context | Oireachtas source

75. To ask the Minister for Finance the status of the no-double-taxation agreement between the UK and the Republic of Ireland regarding pensions after 31 December 2020; and if he will make a statement on the matter. [35753/20]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am advised by Revenue that there will be no change to the status of the Ireland/United Kingdom Double Taxation Convention (DTC) in relation to pensions after 31 December 2020. The Ireland/UK DTC is a bilateral agreement entered into between Ireland and the United Kingdom and is only subject to change or amendment by way of express negotiation between the two jurisdictions. The DTC will not be impacted by the United Kingdom’s exit from the EU at the end of the year and all of its provisions will remain fully in effect.

In the Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Act 2019 (replicated in the General Scheme of the Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Bill 2020) relevant provisions of Part 30, Taxes Consolidation Act (TCA) 1997 have been amended to ensure that pension tax reliefs which applied while the UK was an EU member will continue to apply.

Part 30 of the TCA contains provisions relating to –

- the rules under which occupational pension schemes and other retirement arrangements (including schemes and arrangements in other EU states) may be approved by Revenue for the purposes of those provisions;

- tax relief on contributions to retirement arrangements made by employees, the self-employed and employers;

- the tax treatment of Approved Retirement Funds (ARFs);

- employees or self-employed individuals who come to, or return to, Ireland and who continue to contribute to pre-existing overseas pension plans concluded with a pension provider in another EU state;

- tax exemptions for occupational pension schemes established in Ireland in respect of contributions received by the scheme from undertakings located in other EU states.

The following sections in Part 30 TCA are being amended:

- Section 770 (Interpretation and supplemental (Chapter 1))

- Section 772 (Conditions for approval of schemes and discretionary approval)

- Section 772A (Approval of retirement benefits products)

- Section 784 (Retirement annuities: relief for premiums)

- Section 784A (Approved retirement fund)

- Section 785 (Approval of contracts for dependants or for life assurance)

- Section 787M (Interpretation and general (Chapter 2B))

- Section 790B (Exemption of cross-border scheme).