Taxes Consolidation Act, 1997 (Number 39 of 1997)
[1]>
730KDisposal of foreign life policy.
(1) Where on or after 1 January 2001 a person disposes, in whole or in part, of a foreign life policy, and the disposal gives rise to a gain computed in accordance with subsection (2), [21]>and details of the disposal have been correctly included in a return made by the person, then notwithstanding section 594, the amount of the gain shall be treated as an amount of income chargeable to tax under Case IV of Schedule D, and where the person is not a company, the rate of income tax to be charged on that income shall be [9]>the rate determined by the formula<[9]—<[21]
[21]>
[2]>
(S + 3) per cent,
<[2]
[2]>
(a) in the case of a foreign life policy which is a personal portfolio life policy,[19]> at the rate determined by the formula—<[19][19]>at the rate of 60 per cent<[19], and
[19]>
[7]>(S +23) per cent<[7][10]>[7]>(S + 26) per cent<[7]<[10][12]>[10]>(S + 28) per cent<[10]<[12][14]>[12]>(S + 30) per cent<[12]<[14][17]>[14]>(S + 33) per cent<[14]<[17][17]>(S + 36) per cent<[17]
<[19]
[19]>where S is the standard rate per cent for the year of assessment in which the payment is made<[19]
<[2]
[11]>
[2]>
(b) in any other case, at the rate determined by the formula—
[8]>(S +3) per cent<[8][8]>(S + 6) per cent<[8]
where S is the standard rate per cent for the year of assessment in which the payment is made,
<[2]
<[11]
[11]>
(b) in any other case, at the rate of [13]>28 per cent<[13][15]>[13]>30 per cent<[13]<[15][18]>[15]>33 per cent<[15]<[18][20]>[18]>36 per cent<[18]<[20][20]>41 per cent<[20]
<[11]
where S is the standard rate per cent.
<[21]
[21]>
then, notwithstanding section 594, the amount of the gain shall be treated as an amount of income chargeable to tax under Case IV of Schedule D, and where the person is not a company the rate of income tax to be charged on that income shall, notwithstanding section 15, be—
(a) (i) subject to paragraph (b), in the case of a foreign life policy which is a personal portfolio life policy, at the rate of 60 per cent, and
(ii) in any other case, at the rate of 41 per cent,
and
(b) in the case of a foreign life policy which is a personal portfolio life policy and the details of the disposal are not correctly included in a return made by the person, at the rate of 80 per cent.
<[21]
(2) The amount of the gain accruing on a disposal referred to in subsection (1) is the amount of the relevant gain (within the meaning of section 594(2)) which would be computed if the gain accruing on the disposal were computed for the purposes of that section.
[4]>
(3) Notwithstanding sections 538 and 546, where apart from this subsection the effect of any computation under subsection (2) would be to produce a loss, the gain on the disposal referred to in subsection (1) shall be treated as nil and accordingly for the purposes of this Chapter no loss shall be treated as accruing on such disposal.
<[4]
[4]>
(3) (a) Notwithstanding sections 538 and 546, where apart from this subsection the effect of any computation under subsection (2) would be to produce a loss, the gain on the disposal referred to in subsection (1) shall be treated as nil and accordingly for the purposes of this Chapter no loss shall be treated as accruing on such disposal.
<[4]
[5]>
(b) Where in respect of a foreign life policy—
(i) a gain on a disposal is treated as nil in accordance with paragraph (a),
(ii) that disposal is not a deemed disposal, and
(iii) a person was chargeable to tax in respect of an earlier deemed disposal of the policy,
then the provisions of section 865 (apart from subsection (4)) shall apply and the inspector may make such repayment or set-off as is necessary for securing that the aggregate of tax payable in respect of the policy under this section does not exceed the tax that would have been so payable in respect of the policy if subsection (6) had not been enacted.
<[5]
(4) Where, as a result of a disposal by a person, an amount of income is chargeable to tax under Case IV of Schedule D in accordance with subsection (1), that amount shall not be reduced by a claim made by the person—
(a) where the person is not a company, under section 381 or 383, or
(b) where the person is a company, under section 396 or 399.
[16]>
(5) Where an individual is chargeable to tax in accordance with subsection (1) in respect of an amount of income—
(a) the tax thereby payable, in so far as it is paid, shall be treated as an amount of capital gains tax paid for the purposes of [3]>section 63 of the Finance Act, 1985<[3][3]>section 104 of the Capital Acquisitions Tax Consolidation Act 2003<[3], and
(b) that amount of income shall not be included in reckonable income (within the meaning of the Health Contributions Regulations, 1979 (S.I. No. 107 of 1979)) for the purposes of those Regulations.
<[16]
[16]>
(5) Where an individual is chargeable to tax in accordance with subsection (1) in respect of an amount of income the tax thereby payable, in so far as it is paid, shall be treated as an amount of capital gains tax paid for the purposes of section 104 of the Capital Acquisitions Tax Consolidation Act 2003.
<[16]
[6]>
(6) Where a person has a foreign life policy and a relevant event occurs in respect of that policy, then the person shall be deemed for the purposes of this section to have disposed of the whole of the policy immediately before the time of that relevant event and immediately to have reacquired it at its market value at that time.
<[6]
<[1]
[1]
Inserted by FA01 s67. This section shall be deemed to have applied as on and from 1 January 2001.
[2]
Substituted by FA02 s40(2)(b). This section shall apply as respects the receipt by a person of a payment in respect of a foreign life policy or the disposal in whole or in part of a foreign life policy on or after 26 September 2001.
[3]
Substituted by FA05 sched6(1)(k). This section is deemed to have come into force as on and from 21 February 2003.
[4]
Renumbered by FA06 s49(1)(b)(i)(I). This section applies as respects any relevant event occurring on or after the passing of this Act in respect of a foreign life policy taken out on or after 1 January 2001.
[5]
Inserted by FA06 s49(1)(b)(i)(II). This section applies as respects any relevant event occurring on or after the passing of this Act in respect of a foreign life policy taken out on or after 1 January 2001.
[6]
Inserted by FA06 s49(1)(b)(ii). This section applies as respects any relevant event occurring on or after the passing of this Act in respect of a foreign life policy taken out on or after 1 January 2001.
[7]
Substituted by F(No.2)A08 s27(1)(b)(ii)(I). Applies and has effect as respects the disposal in whole or in part of a foreign life policy (within the meaning of Chapter 6 of Part 26) on or after 1 January 2009.
[8]
Substituted by F(No.2)A08 s27(1)(b)(ii)(II). Applies and has effect as respects the disposal in whole or in part of a foreign life policy (within the meaning of Chapter 6 of Part 26) on or after 1 January 2009.
[9]
Deleted by FA09 s10(3)(a). Applies and has effect as respects the disposal in whole or in part of a foreign life policy (within the meaning of Chapter 6 of Part 26) on or after 8 April 2009.
[10]
Substituted by FA09 s10(3)(b). Applies and has effect as respects the disposal in whole or in part of a foreign life policy (within the meaning of Chapter 6 of Part 26) on or after 8 April 2009.
[11]
Substituted by FA09 s10(3)(c). Applies and has effect as respects the disposal in whole or in part of a foreign life policy (within the meaning of Chapter 6 of Part 26) on or after 8 April 2009.
[12]
Substituted by FA11 s31(3)(a). Applies and has effect as respects the disposal in whole or in part of a foreign life policy (within the meaning of Chapter 6 of Part 26) on or after 1 January 2011.
[13]
Substituted by FA11 s31(3)(b). Applies and has effect as respects the disposal in whole or in part of a foreign life policy (within the meaning of Chapter 6 of Part 26) on or after 1 January 2011.
[14]
Substituted by FA12 s28(3)(a). Has effect as respects the disposal in whole or in part of a foreign life policy (within the meaning of Chapter 6 of Part 26 of the Principal Act) on or after 1 January 2012.
[15]
Substituted by FA12 s28(3)(b). Has effect as respects the disposal in whole or in part of a foreign life policy (within the meaning of Chapter 6 of Part 26 of the Principal Act) on or after 1 January 2012.
[17]
Substituted by FA13 s40(3)(a). Applies and has effect as respects the disposal in whole or in part of a foreign life policy (within the meaning of Chapter 6 of Part 26 of the Principal Act) on or after 1 January 2013.
[18]
Substituted by FA13 s40(3)(b). Applies and has effect as respects the disposal in whole or in part of a foreign life policy (within the meaning of Chapter 6 of Part 26 of the Principal Act) on or after 1 January 2013.
[19]
Substituted by F(No.2)A13 s30(3)(a). Applies and has effect as respects the disposal in whole or in part of a foreign life policy (within the meaning of Chapter 6 of Part 26) on or after 1 January 2014.
[20]
Substituted by F(No.2)A13 s30(3)(b). Applies and has effect as respects the disposal in whole or in part of a foreign life policy (within the meaning of Chapter 6 of Part 26) on or after 1 January 2014.