Foreign pension lump sums guidance update

Revenue has updated the Tax and Duty Manual regarding the taxation of foreign retirement lump sums.  

The updated manual includes: 

• Guidance to the effect that when determining the tax-free amount which is available on a foreign pension lump sum, this should take account of the value of all foreign lump sum payments paid on or after 1 January 2023, whether or not such payments are chargeable to Irish tax under section 200A TCA 1997 (Paragraph 4.1). A new example 8 has also been included. 
• Guidance that the value of a foreign pension arrangement, as defined in section 200A TCA 1997, is not taken into account for Standard Fund Threshold purposes (Paragraph 4.3.1). 
• Guidance on Revenue’s treatment of foreign pension lump sums paid to resident taxpayers before 1 January 2023 (paragraph 12).