I am informed by Revenue that, under the Ireland/United Kingdom Double Taxation Convention, and in common with double taxation agreements generally, a taxing right in respect of income and capital gains from immovable property is given to the Contracting State Ireland or the United Kingdom in which the property is situated. However, Article 14A of the Convention modifies this provision for income or gains from UK property paid to insurance companies in respect of their pension business: Such income will be exempt from UK tax if the income is tax-exempt in Ireland, and vice versa.
In that regard, I am advised by Revenue that subsection (5) of section 784A of the Taxes Consolidation Act 1997 specifically extends the scope of references to the pension business of insurance companies to include approved retirement funds (ARF's) provided by such companies. Subsection (2) of section 784A exempts income and chargeable gains arising in respect of assets held in an ARF from income tax and capital gains tax. These exemptions apply regardless of whether the ARF provider is an insurance company.
As regards the second part of the Deputy's question, the appropriate UK treatment under the Ireland/UK Convention of income and gains from UK property of an ARF that is not managed by an insurance company is a matter that is under consideration by her Majesty's Revenue and Customs and the Revenue Commissioners.
