The Pensions Authority would like to place cookies on your computer to help us make this website better. If you continue to use the site, your consent to accept cookies is implied. To find out more about the cookies, see our privacy statement.

I accept cookies from this site You must tick the 'I accept cookies from this site' box to accept.

In order to personalise your content you must select all three options


Tax on benefits on death

Benefits emerging from a pension fund on the death of a member are assessable on the recipients for the purposes of Capital Acquisitions Tax (CAT) and/or income tax.

Lumps sums payable are subject to CAT. Under current legislation, spouses including divorced spouses pay no CAT. Payments to children and other beneficiaries are subject to the CAT thresholds which apply to them.

Spouses' and dependants' pensions are payable subject to income tax in the course of payment, and the Universal Social Charge, but not PRSI deductions.

Benefits payable from AMRF/ARFs can be passed to a spouse or civil partner without payment of CAT or income tax.  (A tax rate of 20% applies subsequently on the death of the spouse or civil partner). Otherwise AMRF/ARFs are treated as if they had been drawn down on death and are subject to marginal rate income tax (or 30% if inherited by a child over age 21).