gnf_ireland
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I would say it depends on other assets the children might inherit. Arent ARF taxed differently when passing to children (they don’t form part of CAT)-they are just a flat rate tax of 30%.
Is there room left in each child’s CAT threshold which would mean tax free to that amount?
If already looking like above then would leaving it there and paying 30% “ARF Tax” v 33% CAT (if ARF withdrawn to max each year to sit in bank account) be better??
Never understood that one either as it’s not mentioned anywhere on other ARF provider websites etc....unless they mean 20% income tax on withdrawals but that’s standard and could be 40% I guess dependant on amount withdrawn.Pension Authority Statement
Benefits payable from AMRF/ARFs can be passed to a spouse or civil partner without payment of CAT or income tax. (A tax rate of 20% applies subsequently on the death of the spouse or civil partner).
Otherwise AMRF/ARFs are treated as if they had been drawn down on death and are subject to income tax @ 30% if inherited by a child over age 21
I have gone a bit more reading on this now I am back in some sort of internet coverage (took me about 6 attempts to send the initial message). I think I have worked out the situation, but the line above on the 20% tax rate confuses me, and struggle to see it listed elsewhere?
Anyone know what this is about ?
Yes this is the part that threw me as well - I just find it strange that the pension authority would have such an error on their website. I might report it and ask for clarification on it ! Thanks againNever understood that one either as it’s not mentioned anywhere on other ARF provider websites etc....unless they mean 20% income tax on withdrawals but that’s standard and could be 40% I guess dependant on amount withdrawn.
Pension Authority Statement
Benefits payable from AMRF/ARFs can be passed to a spouse or civil partner without payment of CAT or income tax. (A tax rate of 20% applies subsequently on the death of the spouse or civil partner).
Otherwise AMRF/ARFs are treated as if they had been drawn down on death and are subject to income tax @ 30% if inherited by a child over age 21
I have gone a bit more reading on this now I am back in some sort of internet coverage (took me about 6 attempts to send the initial message). I think I have worked out the situation, but the line above on the 20% tax rate confuses me, and struggle to see it listed elsewhere?
Anyone know what this is about ?
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