Vol. 490 No. 5
180 Mr. J. O'Keeffe asked the Minister for Finance the cost to the Exchequer of the tax allowances for pension investments; and the estimated additional cost if the ceiling were raised to 20 per cent for all investors in these pensions. [10804/98]
I am informed by the Revenue Commissioners that the relevant information available is in respect of tax relief on retirement annuity premiums paid by the self-employed. The cost of the relief is currently estimated at about £53 million in a full year. This is based on a general maximum allowable contribution of 15 per cent of income, with a 20 per cent ceiling available to persons aged 55 years or over. If it is assumed that only those individuals who are currently contributing at or near the 15 per cent limit would avail of the higher ceiling mentioned by the Deputy, the cost to the Exchequer could range from £2.2 million to 4.5 million in a full year, depending upon whether take-up was on the basis of 50 per cent absorption or full absorption.
