Notional 1 per cent withdrawal from ARF

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CRESPO

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Hi everyone-I understand that this year,2007, a notional one per cent of the value on any ARF fund will be deemed for tax purposes to have been withdrawn. If I were to draw this down what is the closing date for drawing down-would it be 31/12/07 or could it be backdated from 2008 ?
Thanks in advance .
 
If you dont take any drawdowns or income from your ARF in 2007, then the deemed income will be 1% of the value of your fund as at 31/12/2007 - but only the tax portion will be withdrawn from your fund and forwarded to the Revenue by the QFM.

This will probably be taken from your ARF in January 2008 by the QFM (depends how efficient they are) and then has to be forwarded to Revenue by mid March 2008.

If you want to take an income in 2007 of 1% of the projected value as at 31/12/2007, then I would suggest the latest you do this is by mid November 2007, as the QFM usually closes their payrolls early in December (all ARF income is taked under PAYE system, therefore goes through a payroll system)

If you don't tell your QFM in 2007 that you want to take a drawdown in 2007, then they will apply the notional drawdown. Telling them in 2008 will be too late I'd say.
 
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