730E Declarations

Summary

This section sets out the details required to be included in the declarations (referred to in section 730D(2)) which must be made to the assurance company in order for the life policy concerned to be exempt from exit tax on a gain arising on a chargeable event.

Details

Definitions

(1) In this section and section 730F, “policyholder” means —

• where the rights conferred by the policy are vested in a person as beneficial owner, that person;
• where the rights conferred by the policy are held on trusts created by a person, that person;
• where the rights conferred by the policy are held as security for a debt owed by a person, that person.

Non-Residents

(2) The declaration required to be made by a non-resident is a written declaration to the assurance company, in whatever form the Revenue Commissioners may prescribe, made and signed by the policyholder. This may be done at or about the time of the inception of the policy or at the latest must be done immediately before the chargeable event. It must state the name and principal place of residence of the policyholder, must declare that the policyholder is neither resident nor ordinarily resident in the State at the time of making the declaration, must contain an undertaking by the policyholder that he/she will notify the assurance company if he/she becomes resident in the State, and must also contain any other information the Revenue Commissioners may require.

Life Assurance companies etc.

(3) The declaration required to be made by a life assurance company etc. is a written declaration to the assurance company, in whatever form the Revenue Commissioners may prescribe, made and signed by the policyholder. It must contain the policyholder’s name and address and it must declare that the policyholder is either a life assurance company, an investment undertaking, a charity, a Personal Retirement Savings Account (PRSA) provider, a credit union, the Courts Service, the National Asset Management Agency, an exempt approved pension scheme, approved retirement annuity trust scheme, approved retirement fund and approved minimum retirement fund. It must also contain an undertaking that should the policyholder cease to be one of these, they will inform the assurance company accordingly. Finally, the declaration must contain any other information the Revenue Commissioners may require.

Special Savings Incentive Account Managers

(3A) The declaration required to be made by a Special Savings Incentive Account (SSIA) manager is a written declaration to the assurance company made and signed by the qualifying savings manager who manages the SSIA of the individual who is entitled to the benefit of the life policy. It must be made in whatever form the Revenue Commissioners may prescribe and must contain the name, address and PPS Number of the individual who is beneficially entitled to the life policy. It must declare that the life policy is an asset held in an SSIA, is managed by the qualifying savings manager for the individual who is beneficially entitled to it and that, if the life policy ceases to be an asset in an SSIA, the qualifying savings manager will inform the assurance company accordingly. Finally, it must contain any other information the Revenue Commissioners may require.

Multiple owners of rights of a life policy

(4) If the rights conferred by a life policy are vested beneficially in two (or more) persons immediately before a chargeable event occurs, then each person will be treated as a sole policyholder, but the consequences of the chargeable event will only be in proportion to his/her share in the policy.

Retention of declarations

(5) Declarations are required to be retained by the assurance company concerned for a period of 6 years from the time the policy in respect of which the declaration was made ceases.

Relevant Date: Finance Act 2021