Section 790AA of the Taxes Consolidation Act 1997 provides for the taxation of retirement lump sums, paid under various pension arrangements that are above the specified tax-free limit of €200,000.
The following table sets out the total number of relevant retirement lump sum payments (i.e. greater than €200,000) and the associated tax collected for the years 2014 to 2016. Revenue has advised me that its records are not maintained in a manner that facilitates extracting the individual tax rates or USC amounts involved.
Revenue has also advised me that the portion of a retirement lump sum in excess of €500,000 is regarded as profits or gains arising from an office or employment and is taxed under PAYE along with the taxpayers other PAYE income. Accordingly, it is not separately distinguished from other income from the employment in the relevant year, and therefore it is not possible to provide statistics in relation to this portion of lump sum income.
|
Year
|
Total number of retirement lump sum payments greater than €200,000
|
Total tax paid (millions)
|
|
2014
|
888
|
€12.2
|
|
2015
|
883
|
€14.8
|
|
2016
|
910
|
€13.2
|
