Revenue eBrief No. 109/24

A number of updates have been made to the Pensions Manual to reflect amendments made via Finance (No) Act 2023. The main changes are outlined below.

This chapter has been updated to include details of the insertion of section 790F into the TCA, which provides that the exemption from income tax of rental income is subject to registration with the Residential Tenancies Board.

Paragraph 5.4 has been updated to include details of the insertion of section 790F into the TCA, which provides that the exemption from income tax of rental income is subject to registration with the Residential Tenancies Board.
This paragraph is also updated to include cases where assets of an ARF are used as a loan or as security for a loan to a close company where the ARF owner or any person connected with the ARF owner is a participator.

Paragraph 15.3 has been updated to include details of the insertion of section 790F into the TCA, which provides that the exemption from income tax of rental income on residential properties held by Approved Occupational Schemes is subject to registration with the Residential Tenancies Board.

Paragraph 4 has been updated to include details of the insertion of section 790F into the TCA which provides that the exemption from income tax of rental income on residential properties held by Small Self-Administered Schemes is subject to registration with the Residential Tenancies Board.
This paragraph has also been updated under (vi) ‘Transactions deemed to be pensions in payment (section 779A TCA)’ to include cases where assets of an ARF are used as a loan or as security for a loan to a close company where the ARF owner or any person connected with the ARF owner is a participator.

Paragraph 21.1 has been updated to state Revenue will no longer approve any applications for new RACs from 1 January 2024, except where an application has been made to Revenue for approval under this section before this date.
A new paragraph 21.9 has been inserted to include details of the insertion of section 790F into the TCA, which provides that the exemption from income tax of rental income on residential properties held by an RAC is subject to registration with the Residential Tenancies Board.

Paragraph 6 has been updated to highlight that deemed distributions include cases where assets of an ARF are used as a loan or as security for a loan to a close company where the ARF owner or any person connected with the ARF owner is a participator.
This paragraph has also been updated to insert a new subparagraph 6.1, which relates to the exemption on rental income and gains of ARF assets and dependency of on registration with RTB.
Paragraph 13 has been updated under the heading ‘Application of DTAs to non-Irish resident owners of ARFs, vested PRSAs and AMRFs’ to clarify that it is the income which arises from the unit, or from disposal of the units, that constitutes a distribution.

Paragraph 24.5 has been updated to provide new guidance on when benefits can be taken from a PRSA. The upper age limit of 75 was removed by Finance (No 2) Act 2023. There is now no upper restriction on when benefits must be taken, with PRSA holders aged 75 and over having full access to draw down from their funds as they wish. The lower age limit of 60 is still in place.
Paragraph 24.14 has been updated to include guidance that the upper age limit of 75 for drawdowns no longer applies to vested PRSAs.
A new paragraph 24.15 has been inserted to include details of the insertion of s790F into the TCA which provides that the exemption from income tax of rental income on residential properties held by a PRSA is subject to registration with the Residential Tenancies Board.

Paragraph 4 has been updated to clarify that foreign pension lump sums are not considered a Benefit Crystalisation Event (BCE), and also not subject to the Standard Fund Threshold (SFT).

Paragraph 28.2 has been updated to include guidance that the upper age limit of 75 for drawdowns no longer applies to vested PRSAs.

A new paragraph 31.16 has been inserted to include details of the insertion of section 790F into the TCA, which provides that the exemption from income tax of rental income on residential properties held by a PEPP is subject to registration with the Residential Tenancies Board.

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