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Finance Act 2013

As the Finance Act 2013 was signed into law on 27th March, we have summarised the most relevant points for our clients below.

If you feel that any of these changes might affect you or you want to find out more please contact us on 0404-67123 or info@inverdea.ie

Pensions:

Access to Additional Voluntary Contributions (AVC’s)

  • Pension Investors can now access their Defined Contribution AVC and PRSA AVC funds from 27 March 2013 to 27 March 2016. An investor can access up to 30% of his/her fund, however, all funds withdrawn will be subject to the member’s marginal rate of income tax

AMRF/ARF Specified Income and Amounts

  • The 2013 Finance Act has reversed the limits of €119,800 and €18,000 p.a. introduced in the 2011 Finance Act.
  • For the next 3 years these limits will be reduced to €63,500 and €12,700 p.a.
  • If you have invested funds in an AMRF Since 2011 this may affect you.

Pensions Levy

  • The government have confirmed that the current levy on all pension funds will not be extended beyond its original end date of 2014.

Tax Relief

  • Employee tax relief remains at the marginal rate of tax but subject to an overall pension limit.
  • Employer Corporation rate for 2013 remains at 12.5% and tax relief on Employer Pension contributions remains unchanged.

Life and Taxation

  • Capital Acquisitions Tax (CAT) has increased by 3% from 30% to 33%. This applies to disposal of after 5th December 2012.
  • CAT Thresholds are now as follows:
  • €225,000 – Child, or, minor child of deceased child
  • €30,150 – Brother, Sister, Niece, Nephew, Lineal ancestor or descendent.
  • €15,075 – Other
  • Capital Gains Tax has been increased from 30% to 33%. This applies to the disposal of assets after 5th December 2012.
  • Deposit Interest Retention Tax (DIRT) has been increased by 3% to 33% where paid annually or more frequently and 36% where paid less frequently than annually. These rates apply to payments including deemed payments made on or after 01st January 2013.
  • The Life Assurance Exit Tax has also been increased by 3% to 36%. The increased rates apply to maturities, surrenders and deemed payments falling on or after 01st January 2013.

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