The 0.6% pension levy that was due to expire in 2014 will not be extended. The additional 0.15% levy that was introduced in last year’s Budget will also expire after it is paid in 2015. This will affect members of a retirement benefit pension scheme, a retirement annuity contract, a trust scheme and a Personal Retirement Savings Account (PRSA).
In Deloitte’s view, this represents a positive change that should encourage further pension provision, as pension members now have certainty that the pensions levy will cease after 2015.
As outlined in our pre-Budget submission, we believe the pensions levy is unfair and places an inequitable burden on some sections of pension scheme members who are attempting to prudently save for an income in retirement. While the 0.15% pension levy will still apply in 2015, at least clarity has been provided on the cessation of the levy after 2015.