my2leftfeet
Registered User
- Messages
- 288
Hi
I've just been made redundant and have a query in relation to the additional €10k increased threshold.
After taking statutory relief and the basic exemption there is still some taxable element left so I may consider availing of above.
I have a PRSA (since March 2013) which my company contribute into but unsure if this is considered an occupational pension.
I previously was a member of the company pension scheme for 8 years and took out a PRB against this also in March 2013.
My understanding is that this basic threshold can be increased by a maximum figure of €10,000 if the following two conditions are satisfied:-
1. The employee has not in the previous ten years claimed relief in excess of the basic tax-free exemption; and
2. The employee is not a member of an occupational pension scheme, or, if a member of a scheme, the employee has irrevocably given up the right to receive a lump sum from such a scheme. If an employee receives or is entitled to receive, a pension lump sum then the additional exemption is reduced by the amount of the pension lump sum receivable. Where the pension lump sum is receivable in the future, its actuarial value is taken into account. In practice, the administrator of the pension scheme provides details of the lump sum payable under the scheme or its actuarial value.
As far as I understand Revenue approval does not have to be sought before including this increase in basic exemption if you satisfy the above 2 conditions.
I satisfy the first condition but unsure on the second.
Second query is if my PRSA is deemed to be an Occupational pension and I go with the extra €10k threshold, I presume the waiver of taking a lump sum at retirement only relates to this pension and not any other pension funds/PRBs I may have had?
Any help would be appreciated.
I've just been made redundant and have a query in relation to the additional €10k increased threshold.
After taking statutory relief and the basic exemption there is still some taxable element left so I may consider availing of above.
I have a PRSA (since March 2013) which my company contribute into but unsure if this is considered an occupational pension.
I previously was a member of the company pension scheme for 8 years and took out a PRB against this also in March 2013.
My understanding is that this basic threshold can be increased by a maximum figure of €10,000 if the following two conditions are satisfied:-
1. The employee has not in the previous ten years claimed relief in excess of the basic tax-free exemption; and
2. The employee is not a member of an occupational pension scheme, or, if a member of a scheme, the employee has irrevocably given up the right to receive a lump sum from such a scheme. If an employee receives or is entitled to receive, a pension lump sum then the additional exemption is reduced by the amount of the pension lump sum receivable. Where the pension lump sum is receivable in the future, its actuarial value is taken into account. In practice, the administrator of the pension scheme provides details of the lump sum payable under the scheme or its actuarial value.
As far as I understand Revenue approval does not have to be sought before including this increase in basic exemption if you satisfy the above 2 conditions.
I satisfy the first condition but unsure on the second.
Second query is if my PRSA is deemed to be an Occupational pension and I go with the extra €10k threshold, I presume the waiver of taking a lump sum at retirement only relates to this pension and not any other pension funds/PRBs I may have had?
Any help would be appreciated.