How will Pension 60,000 Cap / Super Tax work?

Status
Not open for further replies.

General_D

Registered User
Messages
4
Hi Folks,

I've been reading in the Irish Independant about plans to limit the size of pensions that people can build up for tax relief purposes to €60,000 a year.

There has also been mention of a 70% super tax that applies to workers who have pensions greater than €60000 per annum.

Example: I can't post URLs but if you google Irish Independant and 70% tax band you'll find examples.

My questions are:
i) How will this actually work. I.e. Is it something that could be administrated by payroll or would it controlled by the pension fund provider?

ii) is the 70% super tax a new third tax band for pensioners on a pension of > 60,000? i.e. For some one on Pension of 70000 they would pay PAYE of 70% once they go above this. It seems v high if so as you'll also have USC on top of this.

Really I'm asking where can i find more detail on this change? I've found the finance bills here for example: (can't post linked but on oireachtas website)

Is there anything that better explains this change?

Thanks

Darren
 
Last edited:
Status
Not open for further replies.
Back
Top