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Are you planning to make gifts of money or other assets to your family in the future? If you receive a gift, you may have to pay tax on it, this tax is known as Capital Acquisitions Tax, gifts and inheritances can be received free from CAT up to a certain amount. The tax-free amount depends on your relationship to the person giving the gift. With a Section 73 Savings Plan, you can save specifically to cover this tax liability. What is A Section 73 Policy? A Section 73 Savings Policy is a savings policy whereby the proceeds of the savings policy can be used by your children to pay their CAT bill. Section 73 extends relief to insurance policies taken out by the insured person expressly for the payment of gift tax on inter vivos* dispositions. The following conditions apply; That is in a form approved by Revenue. In respect of which annual premiums have been paid by the insured person during his or her lifetime. The proceeds of which are payable on the “appointed date”, and Tax and Duty Manual Insurance Policies. That is specifically taken out under section 73 to pay “relevant tax” (i.e. gift tax or inheritance tax due and payable in respect of an inter vivos disposition). The “appointed date” is a date that is more than 8 years after the date on which the policy is affected. This time requirement is shortened to an earlier date on which the proceeds are paid where the insured person, or his or her spouse or civil partner, dies or becomes critically ill. The relief does not apply to tax liabilities arising on appointments of property from an inter vivos discretionary trust set up by the insured person. Any unused proceeds of a Section 73 policy are deemed to be taken as a gift and are subject to CAT. Who takes out a Section 73 Policy? The person giving the gift takes out the policy and are also the owner of the policy. If you wish to endorse your policy under Section 73 of CATCA 2003, the lives assured, and the policyholder must be the same person. Joint applicants must be spouses or civil partners. Section 73 policies may be suitable for parents and relatives such as grandparents and godparents who would like to help pay their loved one’s gift tax liability from the lifetime transfer of an asset. *[inter vivos - between the living]. Reach out today Contact us today alternatively book your consultation https://www.quigley.ie/book-consultation and see how Quigley Financial Brokers can help you choose the best options available or contact richard@quigley.ie for further information.

In September, the then Minister for Finance, Jack Chambers, published the report of the independent examination of the Standard Fund Threshold. The targeted review of the SFT regime was led by an independent expert, Dr. Donal de Buitléir. The Standard Fund Threshold is a limit on the amount of pension benefits an individual can accrue from Irish pension arrangements. The current limit is set at €2 million and has remained static since 2014 and anything over this amount will be liable to chargeable excess tax at 40%. The Government implemented some aspects of the report in this year’s Finance Bill which included; Changes to the Standard Fund Threshold The Finance Bill confirms future increases in the SFT of €200,000 per year beginning in 2026 until 2029. Year SFT 2024 €2,000,000 2025 €2,000,000 2026 €2,200,000 2027 €2,400,000 2028 €2,600,000 2029 €2,800,000 In addition to those increases, the Finance Bill confirms that from 2030 onwards the SFT will be index linked to increases in average earnings as per Central Statistics Office (CSO) data. It is also important to note that for Defined Contribution clients the ability to fund for an extra €150,000 above SFT remain possible as tax paid on pension lump sums up to €500,000 can still be offset against Chargeable Excess Tax bills. See the enhanced effective rates of the SFT for these future years below. Year SFT SFT (effective) 2024 €2,000,000 €2,150,000 2025 €2,000,000 €2,150,000 2026 €2,200,000 €2,350,000 2027 €2,400,000 €2,550,000 2028 €2,600,000 €2,750,000 2029 €2,800,000 €2,950,000 The ringfencing of pension lump sum limits There will be no changes to the taxation of pension lump sums. The lifetime limit for tax free lump sums will remain at €200,000 with the next €300,000 of any pension lump sum taxable at 20%. The threshold for the higher rate of taxation to apply to a pension lump sum will be limited to €500,000 rather than a proportion of the SFT. The above changes will require careful retirement planning, at Quigley Financial Brokers we can provide a range of solutions for employers and their employees. Reach out today Contact us today alternatively book your consultation https://www.quigley.ie/book-consultation and see how Quigley Financial Brokers can help you choose the best options available or contact richard@quigley.ie for further information.

What do we do with our Company's money? Traditionally companies have invested directly in deposit accounts or through direct/share purchases, while this route can seem familiar to many, it can bring unwanted tax complications. Investing with a Life Company can be more efficient An alternative route is to invest surplus capital in a Life Company Investment Bond or Savings Plan, for Close Companies* this can be potentially more efficient for a number of reasons. Company investments exit tax Company investments only have to pay an exit tax of 25%** and are not subject to the potential 33%*** tax paid on any gains made on direct investment in equity or property, there is no further tax liability. Close Company surcharge The Close Company surcharge of 20% for undistributed income does not apply to funds held within a life insurance investment bond or savings plan. Reduce tax and payment administration Reduced tax and payment administration – it is the Life Insurance company that is responsible for the withholding and payment of any tax and not the Close Company itself. Defer payment on tax There is the potential to defer payment of the tax until the 8th anniversary of the policy. While reducing the tax burden, this also has the added advantage of compounding growth overtime compared to where income maybe paid annually on direct investments. *A Close Company is one that is controlled by five or fewer participators or is controlled by any number of participators who are directors. **Source LIA factsheet, September 2024. *** Source LIA factsheet, September 2024. Reach out today Contact us today alternatively book your consultation https://www.quigley.ie/book-consultation and see how Quigley Financial Brokers can help you choose the best options available or contact richard@quigley.ie for further information.

Personal Retirement Savings Accounts - unlike an RAC, anyone can take out a PRSA; you don’t have to have relevant earnings to take out a PRSA. However, income tax relief on personal contributions to a PRSA can only be obtained against; • Income earned from a self-employed trade or profession or from a non-pensionable employment, i.e. relevant earnings referred to above. OR • Income from a pensionable employment, where the contributions to be paid to the PRSA are additional voluntary contributions (AVCs) to top up their employer’s pension scheme benefits. Employers who do not include some or all of their employees in an occupational pension scheme for retirement benefits within six months of joining, must allow those employees to contribute to at least one Standard PRSA nominated by the employer, and allow such employees to contribute to the PRSA by deduction from earnings before applying PAYE, thereby providing immediate relief against income tax. This is usually referred to as the net pay system of providing income tax relief on pension contributions. An employer is not obliged to contribute to an employee’s PRSA but can do so if they wish. Personal Contributions to RACs and PRSAs An individual who pays into an RAC and/or PRSA can deduct the contributions from their relevant earnings for income tax purposes (but not for USC or PRSI), up to a limit each year related to the individual’s age and net relevant earnings (NRE) in that tax year: Age attained during year Income relief limit (as a % of NRE) Less than 30 15% 30 to 39 20% 40 – 49 25% 50 – 54 30% 55 – 59 35% 60 and over 40% There are exceptions to the table above: • Certain professional sportspeople, for example, football and rugby players, are allowed a higher 30% of net relevant earnings limit on RAC/PRSA contributions made under age 50, for earnings derived ‘wholly or mainly’ from their sports occupation. • The maximum net relevant earnings that can be taken into account for the purposes of the tax relief limits on RAC and PRSA contributions is currently € 115,000. Example: Shane is a self-employed doctor. His net relevant earnings for 2023 are € 250,000. Shane is aged 53 in 2023. The maximum total contributions to RACs and PRSAs combined, which Shane can offset against his relevant earnings for income tax purposes in 2023 is: 30% x € 115,000 (the NRE limit) = € 34,500. Reach out today Contact us today alternatively book your consultation https://www.quigley.ie/book-consultation and see how Quigley Financial Brokers can help you choose the best options available or contact richard@quigley.ie for further information.

A retirement annuity contract (RAC) can be taken out by an individual who currently has relevant earnings liable to income tax, i.e. income earned from a self-employed trade or profession or from a non-pensionable employment. A non-pensionable employment is an employment where the individual’s employer has not included that individual in an employer pension scheme for retirement benefits. Examples of individuals who can contribute to an RAC include: • Self-employed professionals, for example, accountants, solicitors, dentists, doctors, etc, as well as partners in partnerships. • Self-employed individuals engaged in a trade, i.e. not trading through a company, for example, plumbers, decorators, builders, etc. • Farmers. • Employees in non-pensionable employment. • Individuals engaged in contract type work on a self-employed basis, i.e. not as an employee Note that: • An individual may have more than one source of earnings and may be able to contribute to an RAC if at least one of the sources of income is relevant earnings. For example, an individual may be employed in the civil service in pensionable employment but have a separate part time farming income (which is relevant earnings) which could be pensioned separately with an RAC, even though they are in pensionable employment in the civil service. • A spouse/civil partner who has their own relevant earnings is eligible to take out an RAC in respect of their income, even if their spouse/civil partner is in pensionable employment and they are assessed to income tax under joint assessment. An individual who doesn’t currently have relevant earnings but in the past had and contributed to an RAC at that time, can contribute to their RAC now even though they do not currently have relevant earnings. Personal Contributions to RACs and PRSAs An individual who pays into an RAC and/or PRSA can deduct the contributions from their relevant earnings for income tax purposes (but not for USC or PRSI), up to a limit each year related to the individual’s age and net relevant earnings (NRE) in that tax year: Age attained during year Income relief limit (as a % of NRE) Less than 30 15% 30 to 39 20% 40 – 49 25% 50 – 54 30% 55 – 59 35% 60 and over 40% There are exceptions to the table above: • Certain professional sportspeople, for example, football and rugby players, are allowed a higher 30% of net relevant earnings limit on RAC/PRSA contributions made under age 50, for earnings derived ‘wholly or mainly’ from their sports occupation. • The maximum net relevant earnings that can be considered for the purposes of the tax relief limits on RAC and PRSA contributions is currently € 115,000. Example: Ciara is a self-employed dentist. Her net relevant earnings for 2023 are €100,000. She is aged 32 in 2023. The maximum total contributions to RACs and PRSAs combined which Ciara can offset against her relevant earnings for income tax purposes in 2023 is: 20% x € 100,000 = € 20,000. Reach out today Contact us today alternatively book your consultation https://www.quigley.ie/book-consultation and see how Quigley Financial Brokers can help you choose the best options available or contact richard@quigley.ie for further information.

An annuity is a single premium insurance policy where, in return for a lump sum payment (called the purchase price), the life company guarantees to pay a specified level of regular income for the lifetime of the individual who takes out the annuity policy. Most annuities have a minimum guarantee period, typically the first five years, which means that if the individual dies within this period, the annuity continues to be paid for the remainder of the guarantee period to his or her estate. So, no matter what happens, an annuity with a guarantee period will be paid for that period at least. Benefits of Annuities The potential benefits of annuities for the individual are: • Certainty of income in retirement. The annuity will provide a predictable level of retirement income for life. • Longevity insurance: the annuity is payable for as long as the individual lives. • Simplicity: once the annuity is purchased and set up, no further investment advice is needed. Risks of Annuities However, purchasing an annuity as compared does carry potential risks for the individual: • Timing risk: the annuity payable for life is fixed on the day it is purchased, which in turn will be heavily influenced by EU Government Bond yields ruling on that day. There is therefore the risk that the individual buys the annuity at a time when bond yields and hence annuity rates are very low. Even if bond and annuity rates rise later, the individual cannot undo the annuity and is stuck with the rate set on the day he or she purchased the annuity. • Mortality risk: the risk of dying before all of the capital sum invested in the annuity has been received in annuity payments, and so lose part of the capital sum invested. • Inflation risk: most individuals who purchase an annuity purchase a fixed or level annuity. Over time the purchasing power of the annuity will decline with inflation. Taxation The income from an annuity purchased with the proceeds of a pension arrangement is liable to income tax and USC (but not PRSI) in the individual’s hands. The life company will operate PAYE on the annuity payment, as if it were the individual’s ‘employer’. Making the Right Choice With so many different plans and options available we all need some guidance making the correct decision. There is plenty of advice available at Quigley Financial Brokers with the help of a Qualified Financial Advisor (QFA), to see which option might be more suitable for you at retirement. There is no right or wrong answer as to which option is better - just which one is better for you. Reach out today Contact us today alternatively book your consultation https://www.quigley.ie/book-consultation and see how Quigley Financial Brokers can help you choose the best options available or contact richard@quigley.ie for further information.

An Approved Retirement Fund (ARF) is a personal investment account into which an individual can, in certain circumstances, transfer part of their maturing retirement fund instead of using those funds to buy an annuity or take as a taxable lump sum. It is, therefore, an alternative option to using such retirement funds to buy an annuity. Benefits of ARFs The potential benefits of ARFs for an individual are: • Preservation of capital on death. The balance in the ARF on death is part of the deceased’s estate and is therefore preserved for next of kin. • Tax free investment returns help the ARF to grow. • Where an ARF holder is married their ARF on death can transfer gross to an ARF held by their surviving spouse, where it can accumulate tax free again until the surviving spouse dies. • ARF inheritances taken by adult (over age 21) children of a deceased ARF holder are exempt from Inheritance Tax and subject only to a fixed income tax charge of 30% (no USC or PRSI). • Income withdrawal flexibility, subject to taking enough each year to avoid the notional withdrawal tax penalty. For example, an ARF holder could opt to take 7% of their ARF value this year and 4% next year. Taxation of Withdrawals Withdrawals made from an ARF during the holder’s lifetime are subject to PAYE as Schedule E income. The QFM is obliged to deduct higher rate income tax from the withdrawal unless the QFM has received a Revenue payroll notification for that year for that individual. Investment Returns ARFs are treated as pension arrangements and so are exempt from Irish taxes on capital gains and investment income. An ARF cannot borrow to invest, as it can only accept into the fund transfers from another ARF or funds transferred on the maturity of a DC pension arrangement under the ARF option. On Death While an ARF does not provide a guaranteed income payable for life in retirement (unless invested in an annuity) one of the main attractions of the ARF option is the ability to leave any balance of the fund on death to next of kin. In this way the remaining capital is preserved for next of kin, and not lost on death as it can be with an annuity. Following the death of an ARF or vested PRSA holder, the fund becomes part of the deceased’s estate and distributed under the terms of their Will or intestacy rules. Such distributions from the ARF are taxed as follows, depending on who inherits the ARF fund from the deceased’s estate. Making the Right Choice With so many different options available we all need some help making the correct decision. There's plenty of guidance available at Quigley Financial Brokers with the help of a qualified financial advisor [QFA] to see which option is the most suitable for you at retirement. There's no right or wrong answer as to which option is better - just which one is better for you. Reach out today Contact us today alternatively book your consultation https://www.quigley.ie/book-consultation and see how Quigley Financial Brokers can help you choose the best available or contact richard@quigley.ie for further information.

Managing your finances effectively, saving money, and achieving financial goals can lead to a happier and more fulfilling life. We will discuss ways in which Quigley Financial Brokers can help improve your financial well-being: Expert Guidance We are professional experts with in-depth knowledge and expertise in various financial matters. We provide personalised advice and guidance on the following; Insurances - start income protection, life insurance, specified illness cover, mortgage protection, partnership business insurance/succession planning, review existing policies to source better rates and terms. Pensions - mature, start, top-up, review existing pensions to source better rates and terms, cashback pension offer. Investments - start a savings plan, invest a lump sum, review existing savings and investments to source better rates and terms. Mortgages - first and second time buyer, re-mortgaging, consolidating loans, equity release, home improvements, cashback mortgage, review current mortgage to source better rates and terms. Tailored Financial Solutions Everyone's financial situation is unique and by working closely with you, we can assess your current financial state, analyse your goals, attitude to risk, and can design a comprehensive plan tailored to your needs. Saving You Time and Effort Managing your finances can be overwhelming, especially when faced with numerous investment options or difficult decisions to protect and grow your wealth. We can help save you valuable time and effort by researching and analysing these matters on your behalf. Maximising Your Returns One of the primary goals of any financial plan is to maximise returns on investments and pensions. We possess the knowledge and skills to identify the best investment opportunities to help grow your wealth. We can guide you through the process, ensuring your investment decisions align with your financial goals and risk tolerance. We can significantly enhance the return potential on your investments by minimising potential pitfalls or losses. Long-Term Financial Security Sorting out your finances with the help of Quigley Financial Brokers can pave the way for long-term financial security. By establishing a solid financial plan, you can create a roadmap for achieving your goals: buying a home, funding education, protecting your income, preparing for retirement, or maturing pensions. We can provide ongoing support, monitor your progress, and adjust the plan as your circumstances change, ensuring you are always on track to meet your objectives. Reach out today Contact us today alternatively book your consultation https://www.quigley.ie/book-consultation and see how Quigley Financial Brokers can help you choose the best options available or contact richard@quigley.ie for further information.

An accident or serious illness, stress or burnout, there are many reasons for not being able to work for a while. According to the 2022 census nearly 190,000 Irish residents were unable to work due to permanent sickness or disability [1] and unfortunately, many people who fall ill can no longer pay their regular household costs and experience financial difficulties. What is income protection? We understand that income protection is not something people want to think about. It is only natural to want to shy away from thinking of scenarios in which you get sick or disabled. What you might not realise is that you are more likely to need to claim off an income protection policy than any other term policy. It is there not only to protect the important things, but to make sure you can continue to enjoy the lifestyle you are used to. Many of us are aware of the risk to our salary through redundancy. But most people who lose their job through redundancy reset and find something new, so perhaps their finances are only thrown off kilter for a short-period. But what happens in scenarios where you get sick or disabled? This can have far more wide-reaching consequences; an illness might not be short-term and could have the effect of putting your entire financial future in jeopardy. That is why we believe that income protection is so important. It is an insurance policy for your finances, and it protects your financial future should you be unable to work due to illness or disability. It is there not only to protect the important things, but also to make sure that you can continue to enjoy the lifestyle you are used to today and one to look forward to in the future. Why income protection is important for the self- employed Close to 332,000 Irish workers are self-employed [2]. This group is extremely diverse and can be found in every corner of the economy. Self-employed workers work in construction, in healthcare, practice law, run pubs, and local shops. The number has been growing steadily and has become a significant force in the Irish economy. Lifelong employees are no longer the norm. Whereas many highly skilled workers used to have the security of a permanent contract, fixed-term contracts are on the rise as new generations of workers enter the workforce. Research by McKinsey shows that 72% of millennials would like to eventually become self-employed [3] and now that Zoomers (also known as Generation Z) are entering the workforce the landscape is due to change again. Zoomers are digital natives that learnt to work from home at an early age given the experience that Covid had on them while they were still in school. Supporting you and your family Finally, income protection supports you, so you can keep supporting yourself and your family. No two people are the same, nor are their protection needs. Contact richard@quigley.ie today to avail of a quotation to protect your income. Sources: 1 Central Statistics Office, Survey on Income and Living Conditions (SILC) 2022 2 Central Statistics Office, 2023 3 McKinsey Global Institute, “Independent work: Choice, Necessity, and the Gig Economy”, 2016 Reach out today Contact us today alternatively book your consultation https://www.quigley.ie/book-consultation and see how Quigley Financial Brokers can help you choose the best options available or contact richard@quigley.ie for further information.

Over the last few years, there has been a lot of interest in gifting cash to children and availing of the annual Small Gifts Exemption. In particular, grandparents want to pass some of their accumulated wealth to grandchildren and would like to do so in a tax efficient manner. It is interesting to note that this grouping accounted for €236,650,000 of the €522,000,000 Capital Acquisitions Tax take for 2018*. Gift tax comes under the Capital Acquisitions Tax ‘umbrella’ and is payable on certain gifts made during the lifetime of the donor. The person making the gift is called the donor or disponer and the person receiving the gift is called the donee. A gift is taken when a donee becomes beneficially entitled in possession to some property or asset. The tax, if any, is payable by the person receiving the gift. However, the thresholds for Capital Acquisitions Tax apply so if the value of the gift comes under the threshold amount, no tax is payable until such time as the value of all accumulated gifts exceed the relevant threshold. These thresholds can be reached either by a single gift or by a series of gifts and inheritances over a period of years. Only prior gifts and inheritances to which the same group threshold applies are aggregated (added together) for the purposes of calculating tax. However, there are several exemptions available for Gift Tax, one of which is the Small Gifts Exemption (SGE), amounting to the first €3,000 of all gifts taken by a donee from one disponer in any calendar year. ** Source: Revenue.ie *Irish Statute book Reach out today Contact us today alternatively book your consultation https://www.quigley.ie/book-consultation and see how Quigley Financial Brokers can help you choose the best options available or contact richard@quigley.ie for further information.

Personal pensions can provide a fantastic opportunity for individuals to help achieve their retirement goals. They offer very favourable tax reliefs and control over how clients invest their funds by offering a wide range of investment options to suit all risk appetites. They can also provide a possible solution in supporting clients’ inheritance tax planning for themselves and their families. WIDE RANGE OF INVESTMENT OPTIONS Pensions allow for a wide range of investment options to suit the risk appetite of every client. This includes investments in equities, bonds, property and other secure options. GENEROUS TAX RELIEF CONTRIBUTION LIMITS Personal pensions can provide a fantastic opportunity for individuals to help achieve their retirement goals. They offer very favourable tax reliefs and control over how clients invest their funds by offering a wide range of investment options to suit all risk appetites. They can also provide a possible solution in supporting clients’ inheritance tax planning for themselves and their families. TAX FREE GROWTH ON FUND Under current legislation the State does not apply tax on the growth of the fund. RETIREMENT LUMP SUM Retirement lump sum of 25% of the fund value. Tax free up to a limit of €200,000. INHERITANCE PLANNING Personal pensions can allow clients to protect their families both pre- and post-retirement. Ability to pass on assets to ones estate from an Approved Retirement Fund (“ARF”). CHOICE OF INCOME OPTIONS IN RETIREMENT Clients can exercise control over how they invest and access the balance of their fund. Flexible drawdown of income available through ARF products. Guaranteed income options available through Annuity products. Income drawdown in retirement is subject to tax. This information is based on Quigley Financial Brokers understanding of legislation and Revenue practice as at September 2021 and may change in the future. While great care has been taken to ensure the accuracy of the information, Quigley Financial Brokers cannot accept responsibility for its interpretation nor does it provide tax advice. Reach out today Contact us today alternatively book your consultation https://www.quigley.ie/book-consultation and see how Quigley Financial Brokers can help you choose the best options available or contact richard@quigley.ie for further information.

The lifetime transfer of an asset can give rise to a gift tax liability for the beneficiary of the gift. To fund for this gift tax liability, you can endorse a savings policy under Section 73 of the Capital Acquisitions Tax Consolidation Act (CATCA) 2003. The benefit of using a savings policy to fund for a future gift tax liability is that if the qualifying conditions, as prescribed by the Irish Revenue Commissioners (“Revenue”), are met, the proceeds of the policy (to the extent used to pay the gift tax liability of the beneficiary) are exempt from Capital Acquisitions Tax (‘CAT’) and will not increase the gift tax liability of the beneficiary. Some of the Revenue qualifying conditions of section 73 CATCA 2003 are: The policy must be in a form approved by Revenue. The savings policy is approved by Revenue for the purposes of section 73 CATCA 2003. The life insured and policyholder must be the same person. Jointly owned policies will only qualify for endorsement under section 73 CATCA 2003 where the joint owners are a married couple or registered civil partners. The premiums must be paid by the policyholder. The policy must specify that it has been effected under section 73 CATCA 2003 from the outset. You cannot add the endorsement to existing savings policies. Premiums must be paid annually (including a derivative of an annual premium such as monthly premiums) for a minimum of 8 years. On encashment, if all Revenue qualifying conditions have been adhered to, the policy proceeds will allow you to pay the gift tax liability of a beneficiary on a lifetime gift made within one year of the policy being encashed, without it giving rise to another taxable gift. The policyholder is under no obligation to use the proceeds of their savings policy that has been endorsed under section 73 CATCA 2003 for the payment of gift tax, making this a flexible financial planning option for you. Any proceeds of a section 73 policy which are gifted but not used to pay gift tax will be treated as an additional gift and will be subject to CAT. It is the responsibility of the policyholder to ensure the Revenue qualifying conditions are met to avail of the relief under Section 73 of CATCA 2003. Remember that tax laws can change over time, so it is important to check revenue.ie for the latest information. The information provided is accurate at the time this article was created in November 2023. You should seek professional tax and legal advice to satisfy yourself of your own tax position. The information given is a guideline only. Reach out today Contact us today alternatively book your consultation https://www.quigley.ie/book-consultation and see how Quigley Financial Brokers can help you choose the best options available or contact richard@quigley.ie for further information.