Revenue Note for Guidance

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Revenue Note for Guidance

192 Payments in respect of thalidomide children

(1) This section applies to any payment by the Minister for Health and Children or by the foundation known as Conterganstiftung für behinderte Menschen to or in respect of any individual handicapped due to infirmity which can be linked with the taking by the individual’s mother during pregnancy of preparations containing thalidomide.

(2) Exemption from income tax is granted in respect of such payments. Income arising from the investment and reinvestment of such payments or of income arising from such payments is also exempt from income tax to the extent that it would otherwise be chargeable to tax under —

  • Schedule C (interest paid out of public revenue),
  • Case III (certain interest paid in the State without deduction of tax) of Schedule D,
  • Case IV (by virtue of section 59 (income taxed at source), section 745 (offshore income gains) and section 747E (disposal of an interest in offshore funds)) of Schedule D,
  • Case V (rents) of Schedule D, or
  • Schedule F (distributions by Irish companies).

Such income is not taken into account in computing the individual’s total income. However, a return of the individual’s total income (including the exempt income) must be made.

(3) Gains accruing on the disposal of assets acquired directly or indirectly with such payments or income derived from such payments are exempt from capital gains tax.

(4) Where it is necessary to decide how much income is exempt income or how much gains are exempt gains, apportionment on a just and reasonable basis is to apply. This may be required where the payments or monies derived therefrom together with other funds available to the individual concerned are used to purchase an asset.

Relevant Date: Finance Act 2021