I am advised by Revenue that section 189 of the Taxes Consolidation Act 1997 exempts permanently incapacitated individuals from income tax, pay related social insurance (PRSI), universal social charge and capital gains tax on the income arising and gains accruing from the investment of certain compensation payments. This may be the tax exemption to which the Deputy refers. This exemption does not extend to any other type of charge or levy.
I am also advised by Revenue that a stamp duty levy of 1% on certain life assurance premiums paid by Irish policyholders is payable by a life assurance company under section 124B Stamp Duties Consolidation Act 1999. While the legislation imposes the levy on the insurance company, the general practice with insurance premiums is for the insurer to pass the charge on to the policy holder/investor. There are no exemptions available in relation to any of the policies (or investment products) covered by the charge. The current stamp duty legislation does not provide for any account to be taken of the exemption given in relation to other types of taxes and charges.
The 1% levy applies to all premiums paid to an insurance company. If a policy holder cancels an existing policy and invests in a new policy with a different insurance company, this second company would also be liable to pay the 1% levy on the amount of the premium paid and would probably pass the charge on to the policy holder. The stamp duty legislation does not provide for any account to be taken of a previous 1% charge paid to a different insurer.
