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Taxation on Annuites/ARF's

Fiftyplus · 2024-09-12 13:07:32

Hi, My wife now taking her pension (from a Buy-out bond) and post 25% TAX FREE take is splitting the balance equally between an Annuity and an ARF. It appears that the yearly take from these two are subject to tax at source, and it is her responsibility to confirm her tax status Revenue. Is this true? Thanks

12-09-2024 1:07pm

#1

Fiftyplus

Registered Users, Registered Users 2 Posts: 143 ✭✭

Join Date: October 2014

Posts: 95

Hi,
My wife now taking her pension (from a Buy-out bond) and post 25% TAX FREE take is splitting the balance equally between an Annuity and an ARF. It appears that the yearly take from these two are subject to tax at source, and it is her responsibility to confirm her tax status Revenue. Is this true? Thanks

0

Answers

#2 12-09-2024 2:00pm

coylemj

Registered Users, Registered Users 2 Posts: 25,624 ✭✭✭✭

Join Date: October 2006

Posts: 25133

She just needs to give her PPSN number to the supplier or suppliers - the company or companies who are holding her ARF and paying the annuity. They will deduct PAYE, USC and (if applicable) PRSI from any payments.
One thing to watch out for is to make sure that she allocates her standard rate (PAYE) band and the lower USC bands properly. If she is already gettting an occupational pension which uses up the lower rate bands (of USC and PAYE) then it won't matter much but without a cert. from Revenue, the supplier(s) will tax her at the top rates of PAYE and USC.

2