Over the last 12 months, there has been a number of tax & legislative changes:
PENSIONS:
-The maximum tax free lump sum that can be taken at retirement has been reduced to €200,000. The next €375,000 will be taxed at the standard rate income tax. The balance will be subject to marginal rate income tax + USC. This affects all pension and PRSA products. The maximum salary allowable for tax relief has been reduced from €150,000 to €115,000.
ARF/AMRF:
-The guaranteed income for life is now €18,000 (1.5 x Annual State Pension). The minimum AMRF investment has increased from €63,500 to €119,800 (10 x Annual State Pension).
EXIT TAX FOR SAVINGS & INVESTMENT PLANS:
-The rate of exit tax on profit has ben increased from 28% to 30%.
CGT/CAT RATES & Annual Gift Exemption:
Capital Gains Tax is 25%-Annual Exemption Limit for Individuals is €1,270
Capital Acquisitions Tax is 25% outside of thresholds:
-€332,084 if the relationship is one of child, or, minor child of a deceased child.
-€33,208 if relationship is one of brother, sister, child of a brother or sister.
-€16,604 if relationship is other.
-There is an annual Gift Exemption of €3,000.
The information contained herein is based on the understanding of current Revenue practice as at July 2011 and may change in the future.
