Section 772A Approval of retirement benefits products

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Amendments

Section 772A inserted by Finance Act 2007 section 17(a) from 2 April 2007.

(1) In this section―

"promoter" means a person lawfully carrying on the business of granting annuities on human life and, where that person―

(a) is not resident in the State, or

(b) is not trading in the State through a fixed place of business,

that person is an insurance undertaking authorised to transact insurance business in the State under Directive 2002/83/EC of the European Parliament and of the Council of 5 November 2002 (OJ No. L345, 19.12.2002);

"retirement benefits product" means a product for the provision of relevant benefits in respect of which an application for approval has been made by a promoter to the Revenue Commissioners under this section and under which, if and when approved, a single member retirement benefits scheme may be established by way of a contract entered into with the promoter to secure the scheme;

"single member retirement benefits scheme", in relation to a retirement benefits product, means a retirement benefits scheme that relates to a single employee;

"terms and rules", in relation to a retirement benefits product, means the provisions governing a retirement benefits scheme to be established under the product, by whatever name such provisions are called.

How are "generic" pension products approved?

(1) Prior to the enactment of this section, Revenue needed to approve each retirement benefits product on an individual basis. This section allows Revenue to approve standard "generic" pension products (a single member retirement benefits scheme). ...

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(2) Subject to this section, the Revenue Commissioners may, if they think fit, and subject to such conditions, if any, as they think proper to attach to the approval, approve a retirement benefits product for the purposes of this Chapter.

Can Revenue approve a generic retirement benefits product, i.e. the single member scheme?

(2) Revenue may approve a "generic" retirement benefits product. They may attach conditions to their approval.

(3) Subject to subsection (6), a retirement benefits scheme, established under a retirement benefits product for the time being approved by the Revenue Commissioners under subsection (2), shall be taken to be a retirement benefits scheme for the time being approved by the Revenue Commissioners for the purposes of this Chapter, and the provisions of this Chapter shall apply accordingly, except as otherwise provided for by this section.

Is a generic retirement benefits scheme entitled to tax relief?

(3) A Revenue-approved "generic" retirement benefits scheme is to be treated as an approved retirement benefits scheme for tax-relief purposes.

(4) For the purposes of approval under subsection (2), the promoter of a retirement benefits product shall make an application to the Revenue Commissioners in writing and the application shall be in such form and contain such information and particulars as the Revenue Commissioners may from time to time determine.

How can I get approval for a generic retirement benefits scheme?

(4) In order to have a "generic" retirement benefits scheme approved for tax relief purposes, the promoter must:...

to read the full commentary

(5) The Revenue Commissioners shall not approve a retirement benefits product unless the terms and rules provide that―

(a) contributions to be paid in any year, whether by an employee or by, or on behalf of, an employer in respect of that employee, may not, when aggregated, exceed the aggregate amount of annual contributions allowed to be deducted in any year by an individual in accordance with section 774(7)(c), and

(b) the provisions of section 772(3A) apply.

What conditions must apply before Revenue can grant approval?

(5) Revenue must not approve a retirement benefits product unless the scheme's terms and rules ensure that:...

to read the full commentary

(6) Where an alteration has been made to the terms and rules governing a retirement benefits scheme established under a retirement benefits product for the time being approved by the Revenue Commissioners under subsection (2), then no approval taken to be given to the scheme for the time being under subsection (3) before the date of the alteration shall apply after the date of the alteration unless the alteration has been approved by the Revenue Commissioners.

Is a scheme's approval affected where its terms and rules are altered?

(6) If a scheme's terms and rules are altered, then any approval given by Revenue prior to the alteration is ineffective unless Revenue approve the alteration.

(7) Where in the opinion of the Revenue Commissioners the facts concerning any retirement benefits product cease to warrant the continuance of their approval of the product, then they may at any time, by notice in writing to the promoter, withdraw their approval on such grounds, and from such date, as may be specified in the notice.

Can Revenue withdraw a scheme's approval?

(7) Revenue may withdraw a scheme's approval if, in their view, the facts relating to the scheme cease to justify its continued approval. Revenue must notify the scheme's promoter in writing that they have withdrawn their approval from the date speci...

to read the full commentary

(8) Where approval of a product is withdrawn pursuant to subsection (7), there shall be made such assessments or amendment of assessments as may be appropriate for the purpose of withdrawing any relief given under this Chapter consequent on the grant of the approval.

What assessments will Revenue make on withdrawing a scheme's approval?

(8) When Revenue withdraw a scheme's approval because the rules have been altered (without approval), they must make make any assessments necessary to withdraw any tax relief already granted.

(9) Where an alteration has been made to a retirement benefits product, then no approval given as regards the product before the alteration shall apply after the date of the alteration unless the alteration has been approved by the Revenue Commissioners.

What happens where a retirement benefit product is altered?

(9) If a retirement benefit product (as opposed to its terms and rules: see (6)) is altered, then any approval given by Revenue prior to the alteration is ineffective unless Revenue approve the alteration.