As you may
be aware, an individual can receive tax relief when filing their 2008 income tax
return for additional pension contributions made up to 31 October 2009.
However, due to recent changes introduced in the Finance Act 2009 we would
advise that you give some consideration to making these contributions by the end
of July 2009.
The Minister for Finance
announced a new 1% levy on life assurance premiums as part of the Finance Act
2009. This is similar to a levy that already applies for example to your home
and motor insurance. Under the 2009 Finance Act, life assurance premiums paid on
or after 1st August 2009 are now subject to a Government levy. This
levy will apply to any pension contribution to products offered through “Life
Assurance Companies”, and includes payments to Retirement Annuity Contracts
(RAC) and Personal Retirement Savings Accounts (PRSA).
The levy should not apply
to any contributions to a Self Administered Pension Scheme.
To comply
with the Finance Act, life assurance companies must collect the levy on behalf
of the Government and pay it directly to them.
If you have any questions
in relation to the above please contact:
Brian
Purcell
Purcell McQuillan Tax Partners
Limited
17
Clyde Road
Dublin 4
Tel: +353 1 668 2700
Fax:+353 1 668 2750
Email: brian@pmqtax.com
