# Cashing in AVCs early



## JamesA (2 Jun 2013)

A relative is trying to cash in 30% of his AVCs early (the 30% will amount to approx. €5,000) and is anxious to ensure he pays the right amount of tax on it. 

From searching online, it seems he just needs to ask his local Revenue office to send his tax certificate directly to Irish Life and they will automatically deduct the tax due.  *Does he also need to submit an Income Tax return?*

His household income is all from the Department of Social Protection (approx. €16,000 per year).  The AVC withdrawal will obviously bring it to €21,000 this year.  *Am I correct that this means he is exempt from income tax?*  I understand that the encashment isn't subject to the USC or PRSI and the exemption limit for income tax for a married couple is €36,000.

I would be very grateful for any views.


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## PaddyBloggit (3 Jun 2013)

Irish Life will deduct at the higher rate unless he advises them otherwise.


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## coleman (5 Jun 2013)

Hi JamesA,

I have been trying for months now to get someone at Mercer to help me in cashing in 30% of my AVC's and no one there seems to either a)know what I am talking about or b) tells me that the finance bill hasn't yet been fully passed. Feel like I'm being passed from pillar to post about this.
Has your relation actually been told by Irish Life that he can do this?

Thanks for any feedback,
Coleman


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## Sean Bateman (5 Jun 2013)

I know people that have done this (nurses in the Cornmarket / Irish Life AVC Scheme).

The Finance Bill was enacted ages ago (late March I think).


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## LDFerguson (5 Jun 2013)

Yup - Finance Bill 2013 was enacted on 27th March 2013 and the pension companies are able to do this.


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## coleman (5 Jun 2013)

Ok thanks. I'll give them those details when on the phone to them tomorrow.

Thanks for the help.


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