ARF & AMRF – New rules at the Point of Retirement
The Revenue recently confirmed the following change in Revenue practice
“Re previous emails in relation to the application of the new ARF/AMRF rules
introduced by Finance Act 2011 with effect from 6 February 2011, having
considered the matter further in conjunction with Income & Capital Taxes Division,
Revenue will now interpret the provision as meaning that where an individual has,
prior to 6 February 2011, met in full the AMRF or specified income test applying
up to that date, no further amounts need be set aside in the AMRF in respect of
pension benefits maturing on or after that date.”
Well what does this mean in practice?
Well, on the whole this is to be broadly welcomed. Where an individual has, prior to 6th February 2011, met in full the AMRF or specified income test applying up to that date (i.e. €63,500 or €12,700 p.a. respectively), the Revenue confirmation means that no further amounts need be set aside in the AMRF in respect of pension benefits maturing on or after that date.
Contact Your Local Independent Financial Adviser
Lucas Financial Consulting Ltd is based in Carrickmacross Co Monaghan. As we straddle four counties – Louth, Monaghan, Cavan and Meath we are ideally placed to become your new Local Independent Financial Adviser.