The Finance Bill (No.2) 2011 was published 19th May 2011 and provides the legislation for the introduction of the levy on pension schemes announced in the Jobs Initiative. It inserts a new section 125B into the Stamp Duties Consolidation Act 1999 which imposes an annual Stamp Duty of 0.6% on the market value of assets under management in pension schemes approved by the Revenue Commissioners under Irish tax legislation
The Key Points are as follows:
- Levy of 0.6% on the market value of assets under management, to raise €470 million per year.
- The levy will apply to the years 2011 to 2014, a period of four years.
- The First valuation date is 30th June 2011, and payments for 2011 were due by 25th September 2011..
- For 2012, 2013 and 2014 the valuation date will remain as 30th June with payment due on 25th September.
- The Levy applies to company pension schemes, buy out bonds, personal pensions and PRSA's
The Levy will not apply to:
- ARF/AMRF plans
- Vested PRSAs (PRSA’s from which the PRSA holder has already taken a tax free lump sum).
- The assets of an Occupational Pension scheme in respect of employees whose employment is outside the State.
- Where the Trustees of a scheme have passed resolution to wind up the scheme and where the business, in respect of which the scheme was established, is insolvent.
Where the pension assets are held with a life company then that life company is charged with deducting the Pensions Levy.
Where the pension assets are not life assurance contracts then the scheme administrator will pay the Levy to the Revenue Commissioners.