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Tax Reliefs Application

Dáil Éireann Debate, Thursday - 18 July 2013

Thursday, 18 July 2013

Questions (106, 184, 200)

Ciara Conway

Question:

106. Deputy Ciara Conway asked the Minister for Finance the measures that have been taken on reducing tax relief for pensions worth over €60,000 and the amount that this will realise for the State; and if he will make a statement on the matter. [36075/13]

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Róisín Shortall

Question:

184. Deputy Róisín Shortall asked the Minister for Finance if it is still his intention to limit tax relief on pension contributions to allow for a maximum pension of €60,000, as announced in budget 2013; the preparatory work which has been done to introduce these changes in the October budget; if he will confirm that these changes will apply to both public sector and private sector workers; and if he will outline the projected savings from these measures on a full year basis. [36719/13]

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Joanna Tuffy

Question:

200. Deputy Joanna Tuffy asked the Minister for Finance if he will provide an update on the announcements last December, as part of budget 2013, that pension tax reliefs were to be capped; the way this decision will be implemented; and if he will make a statement on the matter. [36754/13]

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Written answers

I propose to take Questions Nos. 106, 184 and 200 together.

In my 2013 Budget speech, I indicated that the necessary arrangements to give effect to the Programme for Government commitment to effectively cap taxpayers’ subsidies for pension schemes that deliver income of more than €60,000 would be put in place next year.

A cross-Departmental Working Group of officials has been established to examine, among other things, the changes required to the existing arrangements governing the maximum allowable pension fund at retirement (the Standard Fund Threshold) and other potential alternative approaches for achieving the commitment. The Working Group has also sought views from various interested parties as part of the examination of options for delivering on the Budget commitment. This Working Group is also developing estimates of the likely yield from the changes.

A Steering Group of senior officials has also been established to provide direction and guidance to the activities of the Working Group. I expect to receive a report on the results of this work in the context of my preparations for the Budget to which I will have regard in making decisions on the changes necessary to give effect to the Budget 2013 commitment. Budget 2014 will be delivered in October this year and any legislative changes giving effect to Budget announcements in this area will be included in the Finance Bill.

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