the finance act 2006

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joe-joe

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hi i would like some advice on this act. i live out side ireland so am not sure how it works. i have a very sick brother who has a total income of 15000 euro per anm. he has some investments and 6000 euro was taken as deemed encashment. can any part of this tax be reclaimed. thanks
 
Does this query relate to an Approved Retirement Fund (ARF)?

How much is in the fund at the moment?

How old is your brother?

Did he take an income or a withdrawal from the ARF in the tax year you're talking about? If so, how much did he take?
 
Finance act 2006

Thank you for your reply. No not an arf ,a unit trust type of investment. He is over 80 .
 
PKU thanks can I claim back 3000euro as my brother is a single man. And can earn 18000 euro before he pays tax.
 
joe-joe said:
PKU thanks can I claim back 3000euro as my brother is a single man. And can earn 18000 euro before he pays tax.
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No. I don't think so.
It’s my understanding that the Finance Act 2006 provides for a "deemed encashment” for the purposes of deducting exit tax on the 8th and every subsequent 8th anniversary of the date of commencement of savings and investment policies. So the fund provider will just calculate and deduct whatever exit tax would be payable if the fund were encashed on the 8th anniversary of the fund and on every subsequent 8th anniversary.
You can’t reclaim this tax unless you are a non resident policyholder or meet certain other conditions that are specified in the legislation (e.g. permanently incapacitated; a thalidomide victim who does not pay income tax; a trust for the benefit of a permanently incapacitated person). (Note I’m not a tax expert so you would need to check these out).
When the policy is actually encashed the fund provider will calculate the exit tax taking into account any exist tax already deducted.
 
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