Taxes Consolidation Act, 1997 (Number 39 of 1997)
This section has been repealed.
Repealed by FA25 s15. Comes into operation on 1 January 2026.
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787AI. Taxation of payments from automatic enrolment retirement savings system
(1) Subject to subsections (2), (3) and (4)—
(a) the balance of any funds, after any lump sum withdrawn in accordance with subsection (3), that a participant withdraws from his or her participant account, or that the Authority credits to the participant’s personal representative, shall, notwithstanding anything in section 18 or 19, be treated as a payment to the participant of emoluments to which Schedule E applies and, accordingly, the provisions of Chapter 4 of Part 42 shall apply to any such payment or amount treated as a payment, and
(b) the Authority shall deduct tax from the balance held in that participant’s account at the higher rate for the year of assessment in which the balance is made available unless the Authority has received from the Revenue Commissioners a revenue payroll notification (within the meaning of section 983) for that year in respect of the participant.
(2) The Authority shall be liable to pay to the Collector-General the income tax which the Authority is required to deduct from any balance withdrawn by a participant by virtue of this section and the individual beneficially entitled to the balance withdrawn by that participant from their participating account, including the personal representatives of a deceased individual who was so entitled prior to the individual’s death, shall allow such deduction; but where there are no funds or insufficient funds available out of which the Authority may satisfy the tax required to be deducted, the amount of such tax for which there are insufficient funds available shall be a debt due to the Authority from the individual beneficially entitled to the balance held in the participant account or from the estate of the deceased individual, as the case may be.
(3) Subsection (1) shall not apply to an amount made available, at the time the participant makes an application to withdraw the balance referred to in a notification under section 82(1)(d) of the Act of 2024, by way of a lump sum (in accordance with section 83(1)(a) of the Act of 2024) of an amount not exceeding 25 per cent of the value of the balance paid at that time.
(4) For the purposes of this Chapter, the circumstances in which the Authority shall be treated as making assets held as units in an AE provider scheme available to an individual shall include—
(a) any amount credited to the participant’s account by the Authority, and
(b) any circumstances whereby assets cease to be held by the Authority on behalf of the participant or a personal representative.
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787AI. Taxation of payments from automatic enrolment retirement savings system
(1) Subject to subsections (2) and (3)—
(a) the payment of the balance from a participant account, after any lump sum withdrawn in accordance with subsection (3)(a), shall, notwithstanding anything in section 18 or 19, be treated as a payment to the participant of emoluments to which Schedule E applies and, accordingly, the provisions of Chapter 4 of Part 42 shall apply to any such payment or amount treated as a payment, and
(b) the Authority shall deduct tax from the balance held in that participant’s account at the higher rate for the year of assessment in which the balance is made available unless the Authority has received from the Revenue Commissioners a revenue payroll notification (within the meaning of section 983) for that year in respect of the participant.
(2) The Authority shall be liable to pay to the Collector-General the income tax which the Authority is required to deduct from any balance withdrawn by a participant by virtue of this section and the individual beneficially entitled to the balance withdrawn by that participant from their participating account, including the personal representatives of a deceased individual who was so entitled prior to the individual’s death, shall allow such deduction; but where there are no funds or insufficient funds available out of which the Authority may satisfy the tax required to be deducted, the amount of such tax for which there are insufficient funds available shall be a debt due to the Authority from the individual beneficially entitled to the balance held in the participant account or from the estate of the deceased individual, as the case may be.
(3) Subsection (1) shall not apply where the balance from a participant account is—
(a) an amount made available, at the time the balance of the participant account is first made available to the participant, by way of lump sum (in accordance with section 83(1)(a) of the Act of 2024) not exceeding 25 per cent of the value of the balance at that time, or
(b) an amount made available to the personal representatives of the participant following the death of the participant and before the giving of a notification under section 82(1)(d) of the Act of 2024 by the Authority.
(4) (a) Where the payment of the balance referred to in subsection (1) is made following the death of the participant who was prior to death beneficially entitled to the assets of the participant account, the amount of the funds shall be treated as the income of that participant for the year of assessment in which that participant dies and, subject to paragraph (b), subsection (1) shall apply accordingly.
(b) Subsection (1) shall not apply to a payment made of the balance following the death of the participant, where the giving of a notification under section 82(1)(d) of the Act of 2024 by the Authority is made to—
(i) a spouse or civil partner of the participant, or
(ii) any child of the participant or any child of the spouse or civil partner of the participant.
(c) Where, in a case referred to in paragraph (b), the payment of the balance is made to a person who had attained the age of 21 years at the date of death of the participant beneficially entitled to the assets in the participant account, the Authority shall deduct income tax from the distribution under Case IV of Schedule D at a rate of 30 per cent, and—
(i) the amount so charged to tax—
(I) shall not be reckoned in computing total income for the purposes of the Tax Acts, and
(II) shall be computed without regard to any amount deductible from, or deductible in computing, total income for the purposes of the Tax Acts,
(ii) the charging of the balance in such manner shall be without any relief or reduction specified in the Table to section 458, or any other deduction from that distribution, and
(iii) section 188 shall not apply as regards the amount so charged.
(d) Where the Authority deducts tax in accordance with paragraph (c), subsections (8) to (15) of section 790AA shall, with any necessary modifications, apply as if any reference in those subsections—
(i) to the administrator were a reference to the Authority, and
(ii) to an excess lump sum were a reference to the balance of a kind referred to in paragraph (c).
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