Revenue Note for Guidance

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Revenue Note for Guidance

790E Taxation of certain investment returns to relevant pension arrangements

This section, which applies for the year 2015 onwards, provides that where ARF assets are used in the manner set out in section 784A(1B)(h) and the amount to be regarded as a distribution from the ARF for the purposes of section 784A is determined in accordance with subsection (1B)(h) of that section, the various provisions of Part 30 of the TCA that provide tax relief on income arising from pension scheme investments and section 608(2) and (3) of the TCA that provide relief on capital gains arising on pension scheme investments, do not apply to a pension investor (as defined in section 784A(1B)(h)), i.e. a pension scheme of a person connected to the ARF investor, where the circumstances described in that provision arise. These are that the pension scheme of the person connected with the ARF investor (e.g. an adult child, spouse etc. of the ARF investor) invests in the same fund, trust or scheme or sub-fund, sub-trust or sub-scheme as the ARF investor (or any other fund, trust or scheme etc.) and there is any arrangement whereby the return on the investment by the pension scheme investor is attributable in some fashion to the investment by the ARF investor.

Where this section applies, the trustees or the administrator of the pension investor, i.e. the connected person’s pension scheme, are chargeable to income tax under Case IV of Schedule D on any income or capital gains arising on their investment.

Relevant Date: Finance Act 2021