Bernard Allen
Ceist:176 Mr. Allen asked the Minister for Finance the reason a 2% PRSI levy is being deducted from a UK retirement pension being paid to a person (details supplied) in County Cork. [22150/02]
Written Answers. - Health Contribution.
I assume the Deputy has in mind the 2% health contribution which is collected along with pay related social insurance, PRSI, contributions by the Revenue Commissioners. In the short tax year 2001, that is, the period from 6 April to 31 December 2001, an individual whose income was £10,775 –€13,681 – or less was exempt from the health contribution. The taxpayer's income in the 2001 tax year was above the exemption limit. He was not, therefore, exempt from the 2% health contribution.
Under section 11 of the Health Contributions Act, 1979, as amended, pensions paid by the Department of Social and Family Affairs and corresponding pensions paid by other EU member states are exempt from the health contribution. However, the exemption does not apply to occupational pensions. The taxpayer received a UK occupational pension of £5,573, €7,076.25, in the 2001 tax year. As this pension was not exempt from the health contribution and as his total income was above the exemption limit, he was charged £111.46 –€141.53 – health contribution in respect of his UK occupational pension.