Taxes Consolidation Act 1997 section 848ABA

Withdrawal of tax credits

Section 848ABA provides for a proportionate clawback of SSIA-related pension tax credits where an individual withdraws funds from their pension product within one year of those credits being paid by the Exchequer.

• Where an individual's pension product received tax credits on or after 29 September 2006 and the individual withdraws funds within one year, a proportionate clawback of the tax credits arises, calculated by formula as: requested amount × total tax credits ÷ (pension subscription + total tax credits).
• For withdrawals on or after 10 April 2007, the pension administrator must deduct the clawback (the "retained amount") from the payment to the individual and pay it to Revenue; for withdrawals before that date, the individual is assessed to income tax for 2007 to recover the equivalent amount.
• Where the individual has invested funds other than SSIA monies in the pension product, withdrawals are treated as coming first from the SSIA funds and related tax credits; the clawback applies only up to the aggregate of those amounts, and any excess is a nil retained amount.
• The pension administrator must, on request by Revenue, furnish specified information including the individual's name, address, PPS Number, details of the tax credits claimed and paid, the amount withdrawn, the clawback deducted, the payment date, and any other information Revenue may require.