Dáil Éireann Debate, Tuesday - 3 December 2013
81. Deputy Lucinda Creighton asked the Minister for Finance if any consideration has been given to developing a tax credit in the future for drawdowns from pensions that have been subjected to a levy since 2011 and beyond; his views on whether such a credit would offset the disincentive to save caused by the taxation of pensions; and if he will make a statement on the matter. [51777/13]
Amharc ar fhreagraI assume that the Deputy is referring to the stamp duty levy that applies to the assets of funded pension schemes and plans approved by the Revenue Commissioners under Irish tax legislation. The chargeable persons for the levy are the trustees or other persons (including insurance companies) with responsibility for the management of the assets of the pension schemes or plans. The payment of the levy is treated as a necessary expense of a pension scheme and the trustees or insurer, as appropriate, are entitled, where they decide to do so, to adjust current or prospective benefits payable under a scheme to take account of the levy. It is up to the trustees to decide whether and how the levy should be passed on and who should be impacted and to what extent, given the particular circumstances of the pension schemes for which they are responsible.
I have no plans to develop a tax credit in the manner suggested in the question. The 0.6% levy which has applied since 2011 will end after 2014. The additional levy of 0.15% which I announced in Budget 2014 will apply for 2014 and 2015. I do not consider that the levy applying on this basis will have any significant long-term disincentive effect on pension saving. As I re-iterated in my Budget 2014 speech, tax relief on contributions to pension savings will continue at the marginal income tax rate.
