Revenue Note for Guidance
PRSA products must be approved by the Revenue for the purposes of the tax relief. This section sets out the approval conditions, including discretion for Revenue where those conditions are not fully met.
(1) Subject to the ARF option (section 787H) and the conditions regarding transferability, the mandatory requirements for approval of a PRSA product are—
(2) The Revenue Commissioners have discretion to approve a PRSA product which otherwise satisfies the above conditions even though the product provides for one or more of the following—
(2A) Revenue approval of a PRSA product will not be prejudiced by any rule in the product that allows a PRSA administrator to make available from the assets of a PRSA, to such extent as may be necessary, an amount for the purposes of discharging any tax charge on a chargeable excess, which arises in connection with a relevant payment made to a PRSA contributor by the PRSA administrator, under the provisions of Chapter 2C (relating to the maximum tax-relieved pension fund).
(2B) The inclusion of a provision for the encashment option (see section 787TA) in a PRSA product will not affect Revenue approval or approval of the product under section 94 of the Pensions Act 1990.
(2C) An approved PRSA product shall not cease to be an approved product where a PRSA administrator pays an amount from the PRSA assets to a PRSA contributor on foot of the contributor availing of the AVC access option in section 782A, notwithstanding that the terms of the PRSA product as approved by Revenue would not allow for such a facility.
(2D) An approved PRSA product which becomes a “vested PRSA” (within the meaning of section 790D(1)) when the contributor attains the age of 75 years without having drawn down benefits, shall not cease to be an approved product where a PRSA administrator–
(3) In the case of an individual who attains age 75 before 25 December 2016, the use of the PRSA assets to discharge chargeable excess tax is to be in priority to any payments to the individual or transfer to the individual or to an ARF. Where the Revenue Commissioners are of the opinion that approval of a product should be withdrawn they are to notify the Pension Authority in writing, specifying the grounds on which they formed the opinion.
(4) Tax assessments may be made or amended as appropriate to take account of the withdrawal of approval of a PRSA product.
Relevant Date: Finance Act 2021