Revenue Note for Guidance

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Revenue Note for Guidance

784B Conditions relating to an approved retirement fund

Summary

This section sets out the conditions relating to approved retirement funds.

Details

Conditions

(1) The qualifying conditions for an approved retirement fund (ARF) are as follows —

  • the ARF is to be held by a qualifying fund manager in the name of the individual beneficially entitled to the assets;
  • the assets which may be held in an ARF are —
    • assets transferred from a retirement annuity contract following the exercise of an option under section 784(2A),
    • assets transferred from another ARF, or
    • assets derived from such assets, e.g. investment gains, etc of the ARF;
  • the individual beneficially entitled to the assets in an ARF must make a declaration to the qualifying fund manager which —
    • contains the individual’s full name, address and tax reference number;
    • declares that the assets in the fund are those which may properly be held in an ARF and are beneficially owned by the individual;
    • contains any other information the Revenue Commissioners may reasonably request for the purposes.

Certification of assets

(2) & (3) A qualifying fund manager may not accept assets into an ARF unless he or she receives a certificate from an annuity provider or from another qualifying fund manager stating —

  • that the assets are ones to which the individual concerned is beneficially entitled following the exercise of an option under section 784(2A), or that they are being transferred from another ARF,
  • that they do not form part of an Approved Minimum Retirement Fund (AMRF), and
  • the balance on the income and gains account and the residue in relation to the assets, i.e. the value of the assets which represent funds originally transferred from an approved pension fund.

Retention and inspection of declarations and certificates

(4) The provisions of section 263(2) apply to declarations and certificates under the section. This means that qualifying fund managers must retain the declarations and certificates for the longer of a period of 6 years or a period of 3 years after the fund ceases. The inspector is entitled to inspect the declarations and certificates and to take extracts or copies as he/she thinks fit.

(5) The Minister for Finance may, by order, specify requirements regarding the operation of ARFs.

Relevant Date: Finance Act 2019