Pat Carey
Question:208 Mr. P. Carey asked the Minister for Finance the reason a person (details supplied) in Dublin 11 is paying tax on her private pension. [18929/01]
Written Answers. - Pension Provisions.
Under tax law pensions are liable to income tax. The taxpayer has an Irish Airlines pension and a social welfare widow's pension. Both pensions are liable to income tax. The tax on both pensions is deducted from the Irish Airlines pension under PAYE. The taxpayer's social welfare pension is paid without tax being deducted. The taxpayer has tax credits of £70 per month. This means that no tax is deducted from the first £350 of her monthly Irish Airlines pension. Tax at the standard rate of 20% is deducted from her Irish Airlines pension in excess of £350 per month.