Dáil Éireann Debate, Tuesday - 18 October 2022
273. Deputy Bernard J. Durkan asked the Minister for Finance if he will provide an update in the case of a person (details supplied); the extent to which the perceived benefit is payable, taxable or otherwise; and if he will make a statement on the matter. [51316/22]
Amharc ar fhreagraI am advised by Revenue that the benefits concerned in this case relate to Personal Retirement Savings Accounts (PRSA) funds. In general, where an individual dies before benefits are taken, any PRSA funds will pass to the estate of the deceased with no Income Tax liability arising. Details on the treatment to apply are provided in Revenue’s Tax and Duty Manual on PRSA’s, which is published on Revenue’s website at www.revenue.ie/en/tax-professionals/tdm/pensions/chapter-24.pdf
Revenue have reviewed all of the records in this case. They have confirmed that they have identified an error in the submission made to them by the pension provider. They will contact the pension provider to correct the record immediately, ensuring the correct treatment, as set out in their published guidance, is applied.
Revenue have also confirmed that as the estate was transferred to the spouse in this case that there is no Capital Acquisitions Tax (CAT) liability, as any gifts/inheritances between spouses/civil partners are exempt from CAT. Further information relating to the receipt of gifts and inheritances, including the various tax exemptions, can be found on Revenue’s website at www.revenue.ie/en/gains-gifts-and-inheritance/gift-and-inheritance-tax-cat/index.aspx
