Tax Briefing 80 clarifies the VAT treatment of Self-Directed Life Assurance Bonds (SDBs) and outlines the criteria that must be satisfied in order for the management of a SDB to qualify for VAT exemption under the First Schedule to the Value-Added Tax Act 1972.
Revenue has confirmed that VAT exemption applies only to the management of SDBs, which would not be treated as Personal Portfolio Policies for the purposes of Section 730BA TCA 1997. Therefore, in general the following criteria must be satisfied:
- The manager must have full delegated authority, and
- The assets included in the product must be available for investment in by the general public.
The full article from Tax Briefing 80 is available here