Patrick Nulty (Dublin West, Independent)
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191. To ask the Minister for Finance the amount of money that would be raised in a full year by making inheritances and gifts from spouses subject to capital acquisitions tax with a defined threshold of €1,250,000 for spouses; and if he will make a statement on the matter. [36741/13]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that figures are not captured in such a way as to provide a dedicated basis for compiling an estimate of the gain to the Exchequer from the change mentioned in the question. Accordingly, the specific information requested by the Deputy is not available.

Patrick Nulty (Dublin West, Independent)
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192. To ask the Minister for Finance the amount of money that would be raised in a full year by reducing the tax exemption for lump-sum pension payments to the level of the average industrial wage with the balance taxed at the marginal rate of income tax; and if he will make a statement on the matter. [36742/13]

Patrick Nulty (Dublin West, Independent)
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193. To ask the Minister for Finance the amount of money that would be raised in a full year by reducing the tax exemption for lump-sum pension payments to €80,000 with the balance taxed at the marginal rate of income tax; and if he will make a statement on the matter. [36743/13]

Patrick Nulty (Dublin West, Independent)
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194. To ask the Minister for Finance the amount of money that would be raised in a full year by reducing the tax exemption for lump-sum pension payments to €100,000 with the balance taxed at the marginal rate of income tax; and if he will make a statement on the matter. [36744/13]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 192 to 194, inclusive, together.

The following arrangements currently apply to retirement lump sums paid under pension arrangements approved by the Revenue Commissioners. Lump sum amounts up to €200,000 are paid free of tax. They are also paid free of USC. The portion of a lump sum between €200,001 and €575,000 is taxed on a ring-fenced basis at 20%. This means that no tax credits or other tax reliefs can be set against this portion of the lump sum. No USC is chargeable. Any amount of a lump sum in excess of €575,000 is taxed at the individual’s marginal rate of tax (credits and other tax reliefs are available). In this instance, USC is chargeable on the excess. These amounts are lifetime amounts with prior lump sums aggregating with later lump sums.

Based on certain assumptions the average annual industrial wage is estimated at about €31,500 in 2012. As there is no general requirement for data on retirement lump sums of less than €200,000 to be returned to my Department or to the Revenue Commissioners, I am not in a position to provide definitive figures on the Exchequer impact of reducing the tax-free retirement lump sum amount from €200,000 to €31,500, €80,000 or €100,000. Furthermore, details of the marginal rate of income tax an individual would pay on a taxable lump sum pension payment in the scenario outlined in the Deputy’s question are not available.

Based on broad assumptions and an extrapolation of certain available data in relation to the public service, it is estimated that the additional tax yield from taxing lump sums of €31,500 and over at the higher income tax rate of 41% could be about €100 million in a full year.

Similarly, it is estimated that the additional tax yield from taxing lump sums of €80,000 and over at 41% could be about €20 million in a full year.

Finally, it is estimated that the additional tax yield from taxing lump sums of €100,000 and over at 41% could be about €10 million in a full year.

I have no data on which to provide a similar estimate in relation to the private sector. I should point out, however, that one significant difference between public sector and private sector pension schemes is that private sector schemes invariably allow scheme members the option of commuting part of their pension fund for a tax-free lump sum. The option of receiving benefits in the form of pension only is not available to members of public sector schemes. Depending on the impact of any new tax charge on retirement lump sums, the option to commute part of a pension fund may no longer be exercised by private sector pension scheme members or may be exercised in a manner that reduces the value of the lump sum taken to minimise or avoid any immediate tax charge.

Patrick Nulty (Dublin West, Independent)
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195. To ask the Minister for Finance the amount of money that would be raised in a full year by confining tax relief to the standard rate of 20% in respect of pension contributions to occupational pension schemes, retirement annuity contracts and personal retirement savings accounts and confine tax relief for the public service pension related deduction to the standard rate of 20%; and if he will make a statement on the matter. [36745/13]

Michael Noonan (Limerick City, Fine Gael)
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I assume the Deputy is referring to individual pension contributions, the tax relief on which is allowed at the taxpayer’s marginal tax rate — the standard or higher rate of income tax as appropriate in each case. A breakdown of the cost of tax relief on employee contributions to occupational pension schemes is not available by income tax rate, as tax returns by employers to the Revenue Commissioners of employee contributions to such schemes are aggregated at employer level. An historical breakdown is available by tax rate of the tax relief claimed on contributions to personal pension plans — retirement annuity contracts and personal retirement savings accounts — by the self-employed and others, to the extent that the contributions have been included in the personal tax returns of those taxpayers.

There is, therefore, no statistical basis for providing definitive figures. However, by making certain assumptions about the available information, it is estimated that the full-year yield to the Exchequer from confining tax relief to the standard rate of 20% in respect of pension contributions to occupational pension schemes, retirement annuity contracts and personal retirement savings accounts and confining tax relief for the Public Service pension related deduction to the standard rate of 20% would be approximately €560 million. This estimate includes €90 million in respect of the Public Service pension related deduction. This estimate does not allow for possible behavioural changes that could arise from changes in the rates of relief.

Patrick Nulty (Dublin West, Independent)
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196. To ask the Minister for Finance the amount of money that would be raised in a full year by reducing tax relief to 30% in respect of pension contributions to occupational pension schemes, retirement annuity contracts and personal retirement savings accounts; and if he will make a statement on the matter. [36746/13]

Patrick Nulty (Dublin West, Independent)
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197. To ask the Minister for Finance the amount of money that would be raised in a full year by reducing tax relief to 33% in respect of pension contributions to occupational pension schemes, retirement annuity contracts and personal retirement savings accounts; and if he will make a statement on the matter. [36747/13]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 196 and 197 together.

I assume the Deputy is referring to individual pension contributions, the tax relief on which is allowed at the taxpayer’s marginal tax rate — the standard or higher rate of income tax as appropriate in each case. A breakdown of the cost of tax relief on employee contributions to occupational pension schemes is not available by income tax rate, as tax returns by employers to the Revenue Commissioners of employee contributions to such schemes are aggregated at employer level. An historical breakdown is available by tax rate of the tax relief claimed on contributions to personal pension plans — retirement annuity contracts and personal retirement savings accounts — by the self-employed and others, to the extent that the contributions have been included in the personal tax returns of those taxpayers.

There is, therefore, no statistical basis for providing definitive figures. However, by making certain assumptions about the available information, it is estimated that the full-year yield to the Exchequer from confining tax relief to a rate of 30% in respect of individual contributions to occupational pension schemes, retirement annuity contracts and personal retirement savings accounts would be approximately €245 million.

The estimated full-year yield to the Exchequer from confining tax relief to a rate of 33% for individuals who can obtain relief at the 41% rate in respect of individual contributions to occupational pension schemes, retirement annuity contracts and personal retirement savings accounts would be approximately €180 million.

It is assumed that tax relief at the flat rates of 30% or 33% would not be available to claimants who are currently confined to tax relief at the standard rate of 20%.

These estimates do not allow for possible behavioural changes that could arise from changes in the rates of relief.