John Lyons
Question:59. Deputy John Lyons asked the Minister for Finance if the appropriate tax has been paid in a case (details supplied); and if he will make a statement on the matter. [7338/15]
View answerWednesday, 18 February 2015
Questions (59)
Written answers
I am advised by the Revenue Commissioners that Life Assurance Exit Tax is levied on the increase in value of certain products sold by Life Assurance companies. The rate is currently 41%. A policy or any part of a policy that is solely in respect of life assurance would not attract exit tax. Where a policy contains an investment element, that part of the policy, which relates to investment, would be subject to such tax.
Based on the information provided to the Revenue Commissioners by the person concerned and by the Life Assurance Company, there was an investment element to the relevant policy. Consequently the amount paid on the death of the person's wife would have consisted of both investment and life elements. The investment element generated a gain of €1,264.37 which was taxed at 41% giving an exit tax charge of €518.39.