A Guide on Setting Up a Self-Directed Pensions
June 7, 2023Residential Property Purchases through Pensions
April 30, 2024
The first draft of Finance Bill 2023 was released on Thursday, 19th October. Below we provide a concise overview of its proposed changes and their implications for ARFs, PRBs, and PRSAs.
Section 784A - Loans to Connected Persons
Currently, Section 784A addresses loans to connected persons, which applies to ARFs, PRBs and PRSAs. The legislation stipulates that the amount regarded as a distribution for tax purposes is equal to the value of the assets of the ARF used to make such a loan or as security. The proposed change expands this to include loans made to close companies where a participator in the close company is connected to the individual beneficially entitled to the ARF assets.
Put simply, loans to a close company, where the client or a connected party is a participator in that company, will now trigger a tax charge.
Section 787K - PRSA Approval
The current legislation under Section 787K outlines conditions that must be met for the Revenue Commissioners to approve a PRSA product. This includes restrictions on annuity surrender, commutation, and assignment. The existing provision prevents annuities or sums payable to the individual from commencing before the age of 60 or after the age of 75.
The proposed change is a subtle yet significant one, as it removes the upper age limit of 75 years. This marks the initial step towards a 'whole of life' PRSA.
Please feel free to reach out to us at Quest Retirement Solutions Ltd should you have any queries. We will be more than happy to provide you with the support and guidance, where possible.
We will keep you updated of any changes.
Please note that the provision of this product or service by Quest Retirement Solutions Ltd does not require licensing, authorisation or registration by the Central Bank and, as a result, it is not covered by the Central Bank’s requirements designed to protect consumers or by a statutory compensation scheme.