191 Taxation treatment of Hepatitis C [and HIV] compensation payments

Summary

This section exempts from tax compensation payments made by the Hepatitis C Tribunal, equivalent schemes established in an EEA Member State or similar payments awarded following the institution of civil action for damages in respect of personal injury. Such payments are treated for income tax purposes and capital gains tax purposes in all respects as if they arose out of a civil action for damages for personal injury and the provisions of section 189 dealing with personal injury awards apply accordingly.

Details

Definitions

(1) “the Act” is the Hepatitis C Compensation Tribunal Act, 1997.

“the Tribunal” is the tribunal known as the Hepatitis C Compensation Tribunal established under section 3 of that Act. By virtue of the Hepatitis C Compensation Tribunal (Amendment) Act 2002, sections 2 and 11, and the Hepatitis C Compensation Tribunal (Amendment) Act 2002 (Commencement) Order, 2002, the Tribunal established by the Hepatitis C Compensation Tribunal Act 1997 is, with effect from 9 October 2002, to be known as the Hepatitis C and HIV Compensation Tribunal, and references in the latter Act and any other Act of the Oireachtas and any instrument made under any Act of the Oireachtas to the Hepatitis C Compensation Tribunal are to be construed as references to the Hepatitis C and HIV Compensation Tribunal.

“comparable overseas scheme” means a scheme located in an EEA Member State whose purpose is to compensate individuals infected with Hepatitis C or HIV from the use of blood products.

“eligible person” means a person entitled to receive compensation under the Hepatitis C Compensation Tribunal Act 1997 or under a comparable overseas scheme.

Application

(2) This section applies to compensation payments made by the Tribunal, a comparable overseas scheme or following the institution of a civil action for damages for personal injury, to an eligible person.

Exemption from tax

(3) Income to which this section applies is disregarded for all the purposes of the Income Tax Acts, and any payment made by the Tribunal or comparable overseas scheme to which this section applies is treated in all respects as if it were a payment made following the institution of a civil action for damages in respect of personal injury. In particular, Tribunal awards, comparable overseas scheme awards or similar court awards are brought within section 189 (payments in respect of personal injuries). Accordingly, and subject to the other conditions of that section being satisfied, investment income and capital gains arising from the Tribunal award or comparable overseas scheme award is also exempt from tax.

Relevant Date: Finance Act 2021