780 Charge to income tax on repayment of employee’s contributions

This section imposes a general charge to tax, at the standard rate in force at the time of payment, on the repayment of any contributions to an employee during his/her lifetime under —

• a scheme which is, or at any time was, an exempt approved scheme,
  or
• a statutory scheme.

The tax is to be charged under Case IV of Schedule D on the administrator of the scheme concerned. The administrator of a statutory scheme or, if the rules of the scheme permit, of an exempt approved scheme may deduct the tax charge from the repayment being made to the employee. The charge does not apply in respect of an employee whose employment is carried on outside of the State. Neither does the section apply to the extent that any repayment is transferred by the administrator of the scheme to the administrator of a Personal Retirement Savings Account by way of a contribution to such an account to which the employee is the contributor. The refunded contribution is not to be regarded as income for any other purpose of the Income Tax Acts.

Relevant Date: Finance Act 2021