Is UK private pension taxable in Ireland (before retirement)

Hi,

I am considering taking a job in Northern Ireland and if I do I would intend to contribute to the pension plan. In all probability, I will be working back in the south in a few years at which time I hope to park the NI pension until close to retirement (~20 years hence).

I am wondering how Irish Revenue would view the UK pension when I return to live in ROI. Does anyone know if Irish Revenue would respect the tax free status of the UK pension or would they ignore the UK pension wrapper and treat it as a normal investment for which taxes would be due.

I am an Irish citizen resident in Ireland.

This may sound like a trivial issue but I would like to contribute as much as possible to the UK pension fund while there so the answer to this will pretty much decide whether to take a job in NI or not.

Many thanks,

3CC

The deferred pension would be subject to UK pension rules and would be free from Irish Tax unless you transfer it to an irish pension on returning to Ireland. Where of course it would then be subject to the pension levy!

Note that a former UK resident may obtain tax relief at source for up to 5 consecutive tax years on contributions of up to €3600pa even if they have no earnings in the UK and pay no tax in the UK.

This works well if you retire and return to Ireland as you can continue to obtain UK tax relief on pension contributions even if you are not paying any UK tax.

Many thanks Marc. That is very helpful.

I have some investments here in Ireland which are not within my pension and are therefore subject to exit tax.

If I do end up working in NI, I am tempted to use the very high pension contribution limits and move everything across to a UK pension with better annual charges, no pension levy and also use the £3600 annual limit for the first 5 years after return also.

I would hope to sit on this then until close to retirement and then look at the most beneficial way to draw everything down.

Many thanks,

3CC