Budget 2017
Budget 2017 contained no changes relating to private pensions.
It has been announced that the State Pension and all other social welfare pensions are to increase by €5 per week from 1 March 2017.
Other items of interest
- The DIRT rate is to be reduced from 41% to 39% in 2017 (and it is planned to reduce it to 33% by 2020). There was no reference to a reduction in the exit tax applied to life assurance policies. The publication of the Finance Bill should provide further clarity on this matter.
- The tax free thresholds for Capital Acquisitions Tax have been increased. In particular the Class A Threshold (applying to children inheriting from parents) has been increased from €280,000 to €310,000. Class B and C have been increased marginally.
- There has been a reduction of 0.5% in the three lower USC rates.
We will of course review the Finance Bill when it is published to see if it contains any unannounced changes in the pension area.
