Tuesday, 25 June 2013

Questions (223)

Pearse Doherty

Question:

223. Deputy Pearse Doherty asked the Minister for Finance if he will provide a break down of the €250 million in carry-over for 2014 due to changes to the tax treatment of pensions; the way these changes would impact on the figure provided for the savings to the Exchequer if pension tax reliefs were standardised; and if he can also explain the changes to the standard fund threshold. [30646/13]

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Written answers (Question to Finance)

The figure of €250 million included in the Budget 2013 arithmetic was, as clearly stated in the Budget 2013 documentation, a provisional figure pending further detailed analysis of the changes necessary to give effect to the Programme for Government commitment to cap taxpayers’ subsidies for pension schemes that deliver pension income of more than €60,000. That analysis is ongoing and involves consideration of changes to the Standard Fund Threshold as well as other potential alternative changes relating to the treatment of supplementary pension arrangements. I made clear in my 2013 Budget speech, however, that tax relief on pension contributions would continue at the marginal rate of tax.