Dáil Éireann Debate, Thursday - 23 June 2016
114. Deputy Michael McGrath asked the Minister for Finance the yield from exit tax paid on life assurance policies, in each year from 2008 to 2015; if the same rate of exit tax applies to all persons, regardless of whether they are a standard or top rate taxpayer; if this represents fair treatment of lower income households; and if he will make a statement on the matter. [17846/16]
View answerThe yield from exit tax paid on life assurance policies, in each year from 2008 to 2015 is as follows:
|
Year |
Amount €m |
|
2008 |
89.9 |
|
2009 |
50.7 |
|
2010 |
31.2 |
|
2011 |
43.0 |
|
2012 |
43.4 |
|
2013 |
58.7 |
|
2014 |
129.9 |
|
2015 |
247.2 |
The tax applies on the happening of a chargeable event. A chargeable event would include the maturity or surrender of a life policy or the ending of each 8-year period beginning with the inception of the policy.
Generally, and subject to very limited exemption provisions, personal incomes from savings and savings products, other than State savings, by way of DIRT or exit taxes are subject to the same rate of tax which currently stands at 41%, irrespective of the individual's marginal income tax rate. I increased the rate to its current level in Budget 2014 as an incentive to spending in the economy which was vital for the creation of jobs. As is the case for all tax policies, issues relating to DIRT and exit taxes will be kept under review as part of normal Budget preparations.
