State Pension (2015)
State Pension (Contributory)
€
230.30 per week [
€
11,976 p.a.]
Personal + Adult dependant (over 66)
€
436.60 per week [
€
22,703 p.a.]
Personal + Adult dependant (under 66)
€
383.80 per week [
€
19,958 p.a.]
Monthly cost of Annual Single Life Pension equivalent to
€
10,000 in today’s terms.
If You Start
Funding At Age
30
35
40
45
50
55
Retirement Age 60
Pension @ 60
€
€
€
€
€
€
24,273
20,939
18,061
15,580
13,439
11,593
Initial Monthly Premium
Gross Net of 41%
€
516
€
639
€
827
€
1141
€
1789
€
3871
€
304
€ 377
€
488
€
€
1056
€
673
2284
Retirement Age 65
Pension
@ 65
€
28,139
€
24,273
€
20,939
€
18,061
€
15,580
€
13,439
Initial Monthly Premium
Gross
€
367
€
445
€
552
€
713
€
985
€
1543
Net of 41%
€
217
€ 263
€
326
€
€
581
€
421
910
Assuming salary inflation at 3% pa and contributions increase at 3% pa
Figures assume premiums invested in a PRSA with an annual fund management charge of 1% pa and a premium contribution charge of 5%. Investment fund growth is assumed to be 6% pa pre retirement, which is not guaranteed as funds may fall as well as rise. Pension based on annuity rates available for an individual single life pension, guaranteed 5 years, increasing at 2% pa in retirement, assuming 4% pa interest rate.
Compulsory Purchase Gender Neutral* Annuity Rates
(guide November 2014)
Age 60
Age 65
Current
Age
30
35
40
45
Single
Level
3.73%
4.33%
NRA 60
Female
67%
80%
100%
133%
Male
72%
86%
>
Funding Occupational Pensions approvable retirement benefits
108%
144%
Joint Life
@ 3% pa Level
2.29%
2.87%
3.34%
3.84%
NRA 65
Female
49%
58%
69%
86%
Male
54%
63%
76%
95%
> @ 3% pa
1.98%
2.45%
Standard annuities and guaranteed 5 years assumed in all cases.
Joint life rates assume annuity reduces to 2/3 rd and joint life is same age.
Source: Irish Life.
*not applicable to Defined Benefit pension scheme funds
Maximum Ordinary Annual % x remuneration, for maximum
50
55
200%
400%
216%
432%
115%
173%
126%
189%
Based on Revenue Practice guidelines (July 2008) for calculating the maximum ordinary annual contribution (employer + employee) payable in respect of a scheme member under all occupational pension schemes related to the same employment.
Assuming member has no retained benefits or other retirement benefits related to the same employment, and will have completed at least 10 years service by NRA.
ARF Requirements*
Guaranteed income: (in payment for life)
Or
Invest in AMRF or Annuity
*assuming eligibility conditions satisfied
€
€
12,700
63,500
ARF Funds - Tax Treatment on Death*
Funds to
Spouse’s ARF
Child under 21
Child over 21
Other
(Incl. to spouse directly)
Income Tax
No. Subsequent withdrawals subject to PAYE
Inheritance Tax
No. (Spouse exemption)
No Yes. Taxable
Inheritance.
Yes. Subject to 30% income tax.
No. Exempt
Yes. Treated as income of deceased in year of death. By default QFM deducts higher rate income tax at source under PAYE.
(
Yes. Taxable
Inheritance spouse exempt)
*The above applies to gross ARF funds i.e. set up after April 2000.
Pension Fund Taxation
• Pension Fund Levy of 0.15% of the market value of the fund at 30th June
2015 to be paid on all pension schemes (excluding AMRFs/ARFs) in
September 2015.
• Imputed distribution on ARFs is 4%, if aged 61 or over throughout the tax year, increasing to 5%, if aged 70 or over throughout the tax year, of the value of the fund as at 30th November.
• The imputed distribution rises to 6% (if aged 61 or over throughout the tax year) in respect of ARFs with asset values in excess of
€
2 million as at
30th November (or, where an individual owns more than one ARF, where the aggregate value of the assets in those ARFs exceeds
€
2 million).
• Imputed Distribution on a similar basis applies on all vested PRSAs.
• From 2015 onwards AMRF holders (of any age) have the option of withdrawing up to a max of 4% pa of the value of their AMRF at 1st
February in that year (regardless of the level of any accumulated gains); any withdrawal will be subject to PAYE.
• The rate of tax on a chargeable excess is 40%, the marginal tax rate.
Disclaimer: LIA, its editors and publishers accept no responsibility for any of the information contained in this factsheet.
The information in this factsheet was correct at the time of preparation (December 2014). This factsheet is intended for adviser use only.

THE FINANCIAL PROFESSIONAL FACTSHEET JANUARY 2015
8
9
6
7
10
4
5
2
3
Revenue Uplifted Scales for Occupational Pension Schemes
Years of service completed by
NRA
1
“Uplifted
Pension”*
1/10 th x 2/3rds
Years of service completed by NRA
1-8
“Uplifted Lump sum”* remuneration
2/10
3/10
4/10
5/10
6/10
7/10
8/10
9/10
* As a fraction of final th th th th th th th th
x 2/3rds
x 2/3rds
x 2/3rds
x 2/3rds
x 2/3rds
x 2/3rds
x 2/3rds
x 2/3rds
2/3rds
9
10
11
12
13
14
15
16
17
18
19
20
3/80ths for each year of service
30/80ths
36/80ths
42/80ths
48/80ths
54/80ths
63/80ths
72/80ths
81/80ths
90/80ths
99/80ths
108/80ths
120/80ths
Tax relief on Personal Contributions
Age attained
In tax year
Under 30
30 - 39
40 - 49
50 - 54
55 - 59
Personal Pensions/PRSA’s
(Employee & AVC)
15% of NRE (Earnings)
20% of NRE (Earnings)
25% of NRE (Earnings)
30% of NRE (Earnings)*
35% of NRE (Earnings)
60 and over 40% of NRE (Earnings)
Maximum net relevant earnings on which relief allowed in 2015 is
€ 115,000.
This limit will also apply to contributions paid in 2015 which are to be backdated to the 2014 tax year.
Employee contributions to pension arrangements are subject to employee
PRSI and the Universal Social Charge.
* 30% limit applies to certain professional sportspeople, under age 50, in relation to their sports income.
Interest Rates
Bank Deposits
(sample “best” October 2014)*
Demand Deposit
Notice Account (30 Day)
Term (14 month fixed)
State Savings Schemes
Savings Bonds (3 years)
National Solidarity Bond (4 years)
Saving Certificates (5½ years)
1.75% AER (gross)
1.75% AER (gross)
2.00% AER (gross)
0.83% AER (tax free)
0.99% AER (tax free)
1.24% AER (tax free)
*conditions apply
Note that terms on the State Savings Schemes have changed. In particular there is no annual bonus on the National Solidarity Bond, and payments are now tax free.
Compound Interest Effect
After
1 yr
2 yrs
3 yrs
4 yrs
5 yrs
10 yrs
15 yrs
20 yrs
Inflation Effect
After
1 yr
2 yrs
3 yrs
4 yrs
5 yrs
10 yrs
15 yrs
20 yrs
Future Value of
€
1,000
> Inflation at 3% pa > Inflation at 5% pa
€
1,030
€
1,061
€
1,093
€
1,126
€
1,159
€
1,344
€
1,558
€
1,806
€
1,050
€
1,103
€
1,158
€
1,216
€
1,276
€
1,629
€
2,079
€
2,653
Real Value of € 1,000 today
Inflation @ 3% pa
€
971
€
943
€
915
€
888
€
863
€
744
€
642
€
554
Inflation @ 5% pa
€
952
€
907
€
864
€
823
€
784
€
614
€
481
€
377
Retirement Benefits
Lump Sum Income Tax
First
€
200,000
Next
€
300,000
Balance
Exempt
Standard rate income tax
Marginal rate income tax + USC
Tax-free retirement lump sums taken on or after 7 December 2005 will count towards “using up” the tax free amount so that if an individual has already taken tax free retirement lump sums of
€
200,000 or more since 7
December 2005, any further retirement lump sums paid to the individual will be liable to income tax at either standard rate, or at marginal rate where the aggregate retirement lump sums exceed
€
500,000.
Standard Fund Threshold is
€
2m from 1/1/2014.
For Defined Benefit entitlements an age related factor will be used to calculate an individual’s Personal Fund Threshold for all benefits accruing after 1/1/2014(a valuation multiple of 20 is used for all benefits accrued before 1/1/2014.)
Life Expectancies*
Can be used to highlight potential long term income needs for an individual
(single life) or in the case of a couple the joint life last survivor table shows the expected average period until the death of two people (male and female) both the same age now.
Single Life
Current Age
50
55
60
65
70
75
80
Males
Years
38.7
33.7
28.6
23.8
19.0
14.7
10.6
Females
Years
40.7
35.5
30.4
25.3
20.4
15.8
11.6
AVCs - Pre-retirement access to funded Additional
Voluntary Contributions
Individuals allowed a once-off option to withdraw up to 30% of the value of funded Additional Voluntary Contributions made to supplement retirement benefits.
Withdrawals will be liable to tax at an individual’s marginal rate, but not
PRSI or USC.
The option to withdraw is available with effect from 27/3/2013 for 3 years.
Joint Life Last Survivor
Current Ages (Male/Female)
50
55
60
65
Yrs
46.4
40.9
35.4
30.0
70
75
24.6
19.6
80 14.8
*Source: Irish Life Assurance plc. Based on annuitant mortality experience
Disclaimer: LIA, its editors and publishers accept no responsibility for any of the information contained in this factsheet.
The information in this factsheet was correct at the time of preparation (December 2014). This factsheet is intended for adviser use only.

THE FINANCIAL PROFESSIONAL FACTSHEET
JANUARY 2015
Income Tax 2015
Standard Rate
Marginal Rate
Standard Rate Band
Single/Widowed
No dependant children
With dependant children
Married - one income
Married - two incomes
*Increase is lower of
€
24,800 and income of lower earning spouse.
Tax Credits
Single Person
Married
Widowed
(no dependant children)
Additional Credit for one Parent Family
Widowed & Other
PAYE
Blind Allowance
Dependant Relative
Household Water charges credit
Age Allowance -65 & over
Home Carer’s Allowance
Limit for Medical Expenses per adult
Exemption Limits
Aged 65 +
Single/Widowed
€
18,000
20%
40%
€
€
€
€
42,800
+
€
24,800 *
€
€
€
€
€
€
€
€
€
€
€
33,800
37,800
42,800
1,650
3,300
2,190
1,650
1,650
1,650
70
100
245
810
1,000
Married
€
36,000
Universal Social Charge
Income
First
€
12,012
Next
€
5,564
Next
€
52,468
1.5%
3.5%
7%*
Next
€
29,956
Balance (>
€
100,000)
8%
8%
Individuals who have income from self-employment that exceeds
€
100,000 in a tax year are subject to a 3% surcharge. A USC rate of
11% therefore applies to any income in excess of
€
100,000. USC does not apply where total income does not exceed
€
12,012 or income that is already subject to DIRT.
*rate reduced to 3.5% if over 70 and income is below
€
60,000, or if medical card holder at any age.
Income Tax
31/10/2015
Return Filing date and Payment of Balance of Income Tax for 2014.
Preliminary Income Tax due for 2015.
Mid November 2015
Deadline for Online Returns.
15/12/2015
Payment of CGT on disposals made in the period 1st January 2015 to 30th November 2015.
31/1/2016
Payment of CGT on disposals made in December 2015.
Capital Gains Tax 2015
Rate 33%
Annual Exemption for Individuals
€
1,270
Retirement Relief
€
750,000 (limit)
Tax Year expenditure incurred
1988/89
1989/90
1990/91
1991/92
1992/93
1993/94
1994/95
1995/96
1996/97
1997/98
1998/99
1999/00
2000/01
Disposal in year ending
31/12/2003 or later tax years
1.553
1.503
1.442
1.406
1.356
1.331
1.309
1.277
1.251
1.232
1.212
1.193
1.144
2001
2002
1.087
1.049
Indexation only applies for periods of ownership up to 31/12/2002.
Corporation Tax Rates 2015
Trading Income
Non-Trading Income
12.5%
25%
Capital Acquisitions Tax 2015*
Threshold Relationship
€
225,000
€
30,150
Child, or, minor child of a deceased child.
Brother, sister, child of a brother or sister, lineal ancestor or descendant.
€
15,075
Tax Rate
Other
33%
*All benefits received since 5/12/1991 taken into a/c for threshold.
Annual Gift Exemption
€
3,000
Tax on Investment Products 2015
DIRT
Whether payable annually or otherwise 41%*
The following are among those who can claim exemption from/ reclaim DIRT:
First time buyers who purchase their first home between 14/10/2014 and 31/12/2017 can claim a refund of DIRT incurred in the previous
48 months on savings up to 20% of the purchase price.
Those individuals who are over age 65 and below the income exemption limits.
Exit Tax
Collective Investments
Corporate Investors
Personal Portfolio/Wrappers
41%
25%
60%
Disclaimer: LIA, its editors and publishers accept no responsibility for any of the information contained in this factsheet.
The information in this factsheet was correct at the time of preparation (December 2014). This factsheet is intended for adviser use only.

THE FINANCIAL PROFESSIONAL FACTSHEET JANUARY 2015
Estimated Monthly repayment per
€
1,000 borrowed
Interest Rate assumed
4%
5%
6%
Mortgage Term
10 yrs 15 yrs
€
10.11
€
7.38
€
10.58
€
7.88
€
11.06
€
8.40
20 yrs
€
6.04
€
6.57
€
7.12
25 yrs
€
5.26
€
5.82
€
6.40
30 years
€
4.76
€
5.34
€
5.95
Mortgage Interest Relief
Maximum allowance
1st time buyer of principal private residence between
1/1/2004 and
31/12/2008
Single
Married/
Widowed/civil partners
€ 10,000*
€
20,000*
Rate at which relief is granted
Yr 1 & 2 30%
Yr 3 – 5 30%
1st time buyer
With qualifying home loan from 1/1/2009 onwards
€ 10,000*
€
20,000*
25%
22.5%
Other
Qualifying mortgage
€
€
3,000
6,000
15%
15%
Yr 6 & 7 30% 20%
Yr 8+ 30% 15%
*Falls to
€
3,000/
€
6,000 after year seven.
15%
15%
For all mortgages started between 1 January 2004 and 31 December
2012, entitlement to relief expires at the end of 2017.
For mortgages started before 01/01/2004, entitlement to relief expired in 2009.
No relief is allowed for mortgages taken out after 31 December 2012.
BIK – Preferential Loans – Specified rates 2015
Qualifying Home Loan
Other
4%
13.5%
STAMP DUTY RATES
Residential
Commercial
First
€
1m Balance
1% 2%
2% 2%
Capital Gains Tax
For properties bought after 6/12/2011 and up to 31/12/2014, where the property is held for more than seven years, the gains accrued in that seven year period will not attract CGT.
Local Property Tax
Yearly rate is 0.18% of the market value up to
€
1m and 0.25% on excess above
€
1m.
The Non-Principal Private Residence (NPPR) Charge ceased with effect from 1 January 2014. However, unpaid arrears together with any interest and penalties that have accrued will remain a charge on the property to which they relate.
Entitlement to Social Insurance Benefits
Benefit Entitlement
Jobseekers Benefit
Illness Benefit
Invalidity Pension
State Pension (Contributory)
Widow(er)’s Contributory Pension
Class A
Employees
Weekly Benefits 2015
State Pension (Contributory)
Personal Rate
Personal + Adult dependant over 66
Personal + Adult dependant under 66
Widow/Widowers Contributory Pension
(under 66)
Invalidity Pension
Personal Rate
Person + Adult dependant under 66
Illness/Jobseekers Benefit
Personal Rate (over age 25)
Person + Adult dependant
Increases for each Dependant Child
Old Age Retirement, Invalidity Pension
Disability & Unemployment Benefit
Widow/Widower’s Pension
Yes
Yes
Yes
Yes
Yes
Child Benefit (Children’s Allowance) 2015
€
135 per month per child [
€
1,620 pa per child]
Class S
Self Employed
& Company
Directors
No
No
No
Yes
Yes
PRSI Rates and Benefits from January 2015
Employee
A1
*4.0% on all income
S1
4.0% on all income
Employer 10.75%
(incl. 0.7% Training levy)
Nil
* Employees earning less than
€
352 pw are exempt from PRSI.
PRSI is payable on rental income, dividends and interest on deposits and savings (if the total of such income exceeds
€
3,174 pa) (self employed already liable with no threshold).
€
230.30
€
436.60
€
383.80
€
193.50
€
193.50
€
331.60
€
188.00
€
312.80
€
29.80
€
29.80
€
29.80
OCTOBER 2013
Disclaimer: LIA, its editors and publishers accept no responsibility for any of the information contained in this factsheet.
The information in this factsheet was correct at the time of preparation (December 2014). This factsheet is intended for adviser use only.