Your Money

I made a gain on the disposal of a property in July of this year, I am wondering when I need to pay the capital gains tax which is due on it.

For capital gains tax purposes, the tax year is divided into a set of two periods, as follows:

* “initial period” — January 1 to November 30, both inclusive.

* “later period” — December 1 to December 31, both inclusive.

The due dates for payment of CGT are now as follows:

* Disposals in the initial period: Tax due by December 15 in the same tax year.

* Disposals in the later period: Tax due by January 31 in the following tax year.

Having calculated the tax due, you should send a cheque for that amount to the Collector General’s office in Limerick. The payment should be accompanied by a CGT payslip, which is a short form providing relevant details in respect of the payment.

As noted above, there are two different disposal periods for CGT. This will determine the date payment is due and also which CGT payslip is required. Payslip A is for disposals in the first nine months of the year (this applies in your case); payslip B is for the remainder of the year.

CGT payslips, which include the full address for the Collector General, can be downloaded from the Revenue website capital gains tax-forms page, or obtained by calling LoCall 1890 306 706.

Interest may be charged on late payments.

I came to Ireland during the year to take up a job offer. I have always contributed to a pension plan in my previous country of residence and wish to continue to do so.

This country is within the EU. I have been advised that I will not receive tax relief on contributions paid into this foreign scheme. I wonder if this is, in fact, correct?

The information you have been given is, in fact, incorrect. Relief, which is known as the migrant member relief (MMR), provides for tax relief on contributions to the existing overseas pension plan concluded prior to your entry into the State.

The migrant member relief (MMR) provides for a statutory scheme of relief for contributions paid by a migrant worker who comes to the State and who wishes to continue to contribute to a pre-existing “overseas pension plan” concluded with a pension provider in another EU member state. To qualify for relief, certain conditions and information requirements must be met. The overseas pension plan must be a “qualifying overseas pension plan,” which requires that the plan:

* Is established in an EU member state,

* Qualifies for tax relief on contributions under the law of that member state,

* Is established in good faith for the sole purpose of providing retirement benefits similar to those tax relieved in Ireland, and

* In relation to which the migrant member provides certain information and supporting evidence.

In addition, the migrant member of the plan must meet certain conditions to be a “relevant migrant member” of a qualifying overseas pension plan. These are:

* He/she is a resident of the state,

* Was a member of the plan prior to moving to Ireland,

* Was a resident of another EU member state at the time he/she first became a member of the plan and was entitled to tax relief on contributions under the law of that member state,

* Was resident outside of the state for a continuous period of three years immediately before becoming a resident of Ireland, and

* Is a national of an EU member state, or, if not, was resident in one immediately before becoming a resident in Ireland.

The migrant member must also instruct the administrator of the plan to provide the Irish Revenue with any information which they may reasonably require. An annual “certificate of contributions” must also be supplied by the plan administrator. Relief can be claimed subject to the same age-related percentage limits that apply to contributions to an Irish plan.

In practice, relief for contributions by migrant workers claiming MMR will be given on completion of a one-page form to be signed by both the individual and the plan administrator.

I have been appointed as a trustee to our company pension scheme.

I understand that I need to do some training for this position. Can you confirm this and maybe give some advice.

The Pensions Act was amended to include a requirement for trustees to undertake training at regular intervals. New trustees are required to undertake training within six months of being appointed, while existing trustees must be trained within two years. All trustees must undertake training every two years thereafter. See the board’s FAQs on trustee training requirements on the Pension Board’s website at www.pensionsboard.ie.

The Pension Board’s site provides an e-learning course for trustees which may be taken once you register with them. Areas to be covered by trustee training:

1. brief background on pension provision

2. role and duties of trustees

3. scheme financing

4. investment matters

5. scheme administration

6. disclosure of information

7. The Pensions Act

8. other main provisions of the acts

9. other legislation affecting trustees

Under The Pensions Act, trustees have the main responsibility for the administration of funded occupational pension schemes and compliance with the requirements that apply to these schemes. The Pension Board must

* provide guidance for trustees on their duties and responsibilities in relation to scheme administration

* issue codes of practice on specific aspects of trustees’ duties.

These responsibilities are a clear recognition of the central role which trustees have in ensuring that occupational pension schemes are properly administered, that scheme members’ pension rights are fully safeguarded, and that they, and their dependants, ultimately receive their pensions.