848W Transfer of funds on maturity of SSIA

Summary

This section sets out the conditions that are required to be satisfied in order to avail of the incentive in this Part.

Details

The conditions that must be met in order to avail of the incentive are as follows:

• (a) the individual’s gross income for the year of assessment prior to investing SSIA funds in a pension product must not exceed €50,000; (see note (2) below)
• (b) in that year, none of the individual’s income can be liable to tax at the 41 per cent rate – for this purpose a husband and wife are to be treated as if they were separately assessed; (see note (1) below)
• (b)(i) & (ii) within 3 months of the individual’s SSIA maturing, the individual is required to give a pension provider his or her maturity statement (issued by the SSIA manager), make a declaration and invest SSIA funds in a pension product;
• (b)(iii) the individual cannot claim a deduction from his or her income in respect of the first €7,500 of his or her investment in a pension product nor in respect of the Exchequer contribution; and
• (b)(iv) any other commitment of the individual to making pension contributions should be honoured.

Note: (1) In the administration of the incentive, the Revenue Commissioners will waive the prohibition on 41 per cent taxpayers availing of the incentive since such taxpayers would receive a greater benefit from investing directly in a pension product and availing of a normal tax deduction.

(2) If at the time that an investor is availing of the incentive his/her gross income for the year concerned has not been determined, the investor may use the gross income figure of the previous year and be eligible to avail of the incentive if that gross income does not exceed €47,500.

Relevant Date: Finance Act 2021