Revenue Note for Guidance
This section permits the Revenue Commissioners to approve under section 784 contracts made by individuals providing an annuity for the widow, widower, surviving civil partner or dependants of the individual whether or not the individual is providing benefits for himself or herself. It also provides for approval of contracts assuring lump sums to the personal representatives of the individual on his/her death before the agreed retirement age.
(1) The Revenue Commissioners may approve a contract made by an individual with an annuity provider for the purposes of the Chapter if —
(1A) Where the annuity provider is not established in the State then it must be an insurance undertaking authorised to transact insurance business in the State under the relevant EU Directive (Directive 2002/83/EC of 5 November 2002) – thus applying the regulatory environment imposed by that Directive on such undertakings.
(2) The conditions for approval of a contract are —
(3) The Revenue Commissioners may approve a contract under the section even though it may not, in one or more respects, satisfy the conditions set out above.
(4) Subsections (2) and (3) of section 784 do not apply to the approval of a contract under this section.
(5) Trust schemes (or part of trust schemes) for groups of individuals under which benefits as set out above are provided may be approved in the same way as annuity contracts. The exemption from income tax which applies to the income from investments or deposits of the fund of a trust scheme approved under section 784 also applies to the income from investments and deposits of a trust scheme approved under this section.
(6) Premiums and contributions paid under contracts and schemes approved under this section qualify for the same treatment as payments to which section 784 applies.
Relevant Date: Finance Act 2021