Revenue Note for Guidance

839 Limits to special investments

Summary

This section is concerned with investment in the following classes of investment products —

Special Savings Accounts	“SSAs”	(section 256)
Special Investment Policies	“SIPs”	(section 723)
Special Investment Schemes	“SISs”	(section 737)
Special Portfolio Investment Accounts	“SPIAs”	(section 838).

The provisions in relation to each class of investment set out a €63,500 limit to the amount that may be invested, whether separately or jointly, in that class of investment. Generally, only one investment of a class is permitted but, in the case of married couples or civil partners, 2 joint investments are permitted neither of which are to exceed €63,500.

This section amends these investment limits in certain circumstances.

Note: For accounting periods ending in 2003 and subsequently, the funds underlying special investment policies were merged with the relevant life company’s ordinary life business fund and the tax treatment of special investment policies equated to that of ordinary life policies. The limits to the various investment products set out in this section, from that time, no longer apply in respect of special investment policies.

Details

(1) There is a general prohibition on an investor having at the same time an investment in more than one of the classes of investment products set out above.

(2) to (4) However, this general prohibition is over ridden by subsection (2) which allows investment in more than one class of investment product provided certain investment limits are adhered to. Furthermore, subsection (4) permits an increased limit where there is an investment only in one product other than an SSA – for joint investors the limit is increased for each of 2 products other than an SSA. The position for individual and permitted joint investment is as follows —

individual investment			joint investment
SSA		Other product	SSA		Other products
€31,750	and	€63,500	€63,500(2)	and	€63,500(1)
€63,500	and	€31,750	€63,500(1)	and	€63,500(2)
€Nil	and	€75,250	€31,750(2)	and	€31,750(2)
€95,250	and	€Nil	€31,750(2)	and	€31,750(2)
			€Nil	and	€95,250(2)
			€95,250(2)	and	€Nil

Note that under section 838(2)(b), where the other product is a SPIA, the investment limit is increased by the amount invested in shares quoted on the Developing Companies Market, subject to a maximum increase of €12,700. This increase applies to SPIAs opened before 6 April 2000.

Where in the provisions relating to these savings products a reference is made to the value of the investment not exceeding €63,500 at a particular time then that reference should be taken as a reference to €31,750 where the investment limit for that product is, under the foregoing also €31,750.

(5) The Revenue Commissioners are empowered to require investors to supply information for the purposes of compliance with this section.

Relevant Date: Finance Act 2021