74 Exemption of certain policies of assurance

Summary

This section exempts certain policies of life assurance from capital acquisitions tax where both the disponer and beneficiary are foreign-domiciled and foreign-resident. If the disponer had purchased the policy prior to 15 February 2001, the exemption will apply where the proper law of the disposition was foreign and the donee or successor is neither domiciled nor ordinarily resident in the State at the date of the gift or inheritance.

Details

(1) “assurance company” has the meaning assigned to it by section 706 of the Taxes Consolidation Act 1997;

“new policy” means (a) a policy of assurance on the life of any person issued, or (b) a contract within the meaning of Article 2(2)(b) of Directive 2002/83/EC of the European Parliament and of the Council of 5 November 2002 entered into, on or after 1 January 2001 by an assurance company in the course of carrying on the business of life assurance.

“old policy” means a contract entered into by an assurance company in the course of carrying on a foreign life assurance business within the meaning of section 451 of the Taxes Consolidation Act 1997 and issued on or after 1 December 1992 and before 1 January 2001.

(2) Any interest in a “new policy” or in an “old policy” comprised in a gift or inheritance will be exempt from tax where—

• the disponer is neither domiciled nor ordinarily resident in the State at the date of the disposition, and
• the beneficiary is neither domiciled nor ordinarily resident in the State at the time the gift or inheritance is taken.

(3) However, as respects policies purchased prior to 15 February 2001, which are taken by a foreign beneficiary as a gift or inheritance from an Irish disponer, the exemption will apply provided the proper law of the disposition was foreign. The “proper law” is the law governing the interpretation, construction or explanation of the words, intentions and presumptions of wills, deeds, contracts and other dispositions.

Relevant Date: Finance Act 2015