Law & Regulation
New Government levy on Life Assurance Premiums
By Brian Purcell, Purcell McQuillan Tax Consultants
Jul 29, 2009 - 11:44:46 AM

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 1^st 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:

Purcell McQuillan Tax Partners Limited

17 Clyde Road

Dublin 4

Tel: +353 1 668 2700

Fax:+353 1 668 2750

Email: brian@pmqtax.com