Finance Bill 2024: What You Need To Know

In our recent article on Budget 2024, we noted that the rumoured change to Employer Contributions to PRSAs had not been mentioned. That has now been dealt with in the Finance Bill.

1. PRSAs
2. Pension Scheme Standard Fund Threshold / Lifetime Limit
3. Auto Enrolment

Changes to Pensions have now been dealt with in the Finance Bill.

PRSAs

• A new limit will apply to Employer contributions to PRSAs. That limit is defined as 100% of employee’s emoluments in the year of assessment.
• Employers will only be entitled to claim tax relief on contributions up to the new employer limit.
• Employees will be liable to BIK on employer contributions above the new employer limit.

Pension Scheme Standard Fund Threshold / Lifetime Limit

The lifetime limit of €2,000,000 on pension fund will increase by €200,000 per annum from 2025 up to 2029

• €2.2m in 2026
• €2.4m in 2027
• €2.6m in 2028
• €2.8m in 2029

From 2030 onwards this limit will be increased in line with the Earnings, Hours and Employment cost survey.

Auto Enrolment

Tax Treatment of the Auto Enrolment (AE) Pension Scheme is now confirmed.

• Employer contributions to this scheme will be exempt from tax.
• Income and Gains (if any) of the AE fund will be exempt from tax.
• Amounts paid from the AE Scheme after the retirement lump sum will be taxed

This is the Bill at the moment, it needs to be approved and enacted. This normally happens at the end of the year.

Please get in touch with any queries.