Finance Act 2013 provides members of occupational pension schemes with a three-year window of opportunity from 27 March 2013 during which they can opt to draw down, on a once off basis, up to 30% of the accumulated value of additional voluntary contributions (AVCs). This provision includes additional voluntary PRSA contributions made to AVC PRSAs. Administrators of AVC funds (including PRSA administrators) are required to provide, within 15 working days of the end of each quarter, commencing with the quarter ending on 30 June 2013, certain statistical information to Revenue in relation to AVC pre-retirement transfers or encashments made during the quarter in question. The information to be provided is as follows:
- The number of transfers made
- The aggregate value of transfers made, and
- The tax deducted from the aggregate value of the transfers made.
As the statistical information is not due until mid July and in respect of the first quarter in which the option is available, it is not possible at this stage to comment on whether the estimated tax yield from the measure in 2013 will be attained.