Taxes Consolidation Act, 1997 (Number 39 of 1997)
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730CChargeable event.
(1) Subject to the provisions of this section, in this Chapter—
(a) “chargeable event”, in relation to a life policy, means —
(i) the maturity of the life policy, other than in respect of any death or disability giving rise to benefits under the life policy,
(ii) the surrender in whole or in part of the rights conferred by the life policy, other than in respect of any death or disability giving rise to benefits under the life policy,
(iii) the assignment in whole or in part, of those rights, and
(b) in the case of a life policy issued by an assurance company which could have made an election under section 730A(2), but did not so do, a chargeable event shall be deemed to happen on 31 December 2000, where the life policy was commenced before that date.
(2) No account shall be taken for the purposes of subsection (1) of any assignment effected by way of security for a debt, or the discharge of a debt secured by the rights concerned.
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730C Chargeable event.
(1) Subject to the provisions of this section, in this Chapter—
(a) “chargeable event”, in relation to a life policy, means—
(i) the maturity of the life policy (including where payments are made on death or disability, which payments result in the termination of the life policy),
(ii) the surrender in whole or in part of the rights conferred by the life policy (including where payments are made on death or disability, which payments do not result in the termination of the life policy),
(iii) the assignment in whole or in part, of those rights,
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(iv) the ending of a relevant period, where such ending is not otherwise a chargeable event within the meaning of this section, and for the purposes of this subparagraph “relevant period” in relation to a life policy means a period of 7 years beginning with the inception of the policy and each subsequent period of 7 years beginning immediately after the preceding relevant period,
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(iv) the ending of a relevant period, where such ending is not otherwise a chargeable event within the meaning of this section, and for the purposes of this subparagraph “relevant period” in relation to a life policy means a period of 8 years beginning with the inception of the policy and each subsequent period of 8 years beginning immediately after the preceding relevant period; but where—
(I) premiums under the terms of a policy are paid annually or at more frequent intervals, and
(II) the total amount of such premiums does not exceed €3,000 per annum,
then this subparagraph shall apply as if each reference to 8 years were a reference to 12 years,
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(iv) the ending of a relevant period, where such ending is not otherwise a chargeable event within the meaning of this section, and for the purposes of this subparagraph “relevant period”, in relation to a life policy, means a period of 8 years beginning with the inception of the policy and each subsequent period of 8 years beginning immediately after the preceding relevant period,
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and
(b) in the case of a life policy issued by an assurance company which could have made an election under section 730A(2), but did not so do, a chargeable event shall be deemed to happen on 31 December 2000, where the life policy was commenced before that date.
(2) No account shall be taken for the purposes of subsection (1) of an assignment in whole or in part effected—
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(a) by way of security for a debt, or the discharge of a debt secured by the rights concerned, where the debt is a debt due to a financial institution [3]>(within the meaning of section 906A)<[3],
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(a) by way of security for a debt, or the discharge of a debt secured by the rights concerned, where the debt is a debt due to—
(i) a financial institution, or
(ii) a qualifying company within the meaning of section 110, where the debt was originated by a financial institution and the life policy was assigned, in whole or in part, by way of security for that debt, to that financial institution,
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(b) [7]>between a husband and wife<[7][7]>between a husband and wife or between civil partners<[7],
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(c) between the spouses or former spouses concerned (as the case may be), by virtue or in consequence of an order made under Part III of the Family Law (Divorce) Act, 1996, on or following the granting of a decree of divorce,
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(c) (i) between the spouses or former spouses concerned (as the case may be), by virtue of or in consequence of an order made under Part III of the Family Law (Divorce) Act 1996, on or following the granting of a decree of divorce, or
(ii) between the civil partners or former civil partners concerned (as the case may be), by virtue of or in consequence of an order made under Part 12 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010, on or following the granting of a decree of dissolution,
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(d) between the spouses concerned, by virtue or in consequence of an order made under Part II of the Family Law Act, 1995, on or following the granting of a decree of judicial separation within the meaning of that Act, or
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(e) between the spouses or former spouses concerned (as the case may be), by virtue of an order or other determination of like effect, which is analogous to an order referred to in paragraph (c) or (d), of a court under the law of a territory other than the State made under or in consequence of the dissolution of a marriage or the legal separation of the spouses, being a dissolution or legal separation that is entitled to be recognised as valid in the State.
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(e) (i) between the spouses or former spouses concerned (as the case may be), by virtue of an order or other determination of like effect, which is analogous to an order referred to in paragraph (c)(i) or (d), of a court under the law of a territory other than the State made under or in consequence of the dissolution of a marriage or the legal separation of the spouses, being a dissolution or legal separation that is entitled to be recognised as valid in the State, or
(ii) between the civil partners or former civil partners concerned (as the case may be), by virtue of an order or other determination of like effect, which is analogous to an order referred to in paragraph (c)(ii), of a court under the law of a territory other than the State made under or in consequence of the dissolution of a civil partnership, being a dissolution that is entitled to be recognised as valid in the State.
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(3) (a) Where at any time a life policy, or an interest therein, gives rise to benefits in respect of death or disability, the amount or value of such benefits which shall be taken into account for the purposes of determining the amount of a gain under section 730D shall be the excess of the value of the policy or, as the case may be, the interest therein, immediately before that time, over the value of the policy or, as the case may be, the interest therein, immediately after that time.
(b) For the purposes of paragraph (a), the value of a policy or of an interest therein at a time means—
(i) in the case of a policy which has a surrender value, the surrender value of the policy or, as the case may be, of the interest therein, at that time, and
(ii) in the case of a policy which does not have a surrender value, the market value of the rights or other benefits conferred by the policy or, as the case may be, the interest therein, at that time.
(c) In determining the amount or value of benefits payable under a life policy for the purposes of paragraph (a) or (b), no account shall be taken of any amount of appropriate tax which may be required by this Chapter to be deducted from such benefits.
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Inserted by FA05 s42(1)(a). This section comes into operation on such day or days as the Minister for Finance may by order appoint either generally or with reference to any particular provision of this section or class of policy and different days may be so appointed for different provisions of this section or for different classes of policies.
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Substituted by FA06 s48(1)(a). Applies and has effect as respects any chargeable event occurring on or after the passing of this Act. FA06 31 March 2006
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Substituted by FA07 s43(1)(a). Applies and has effect as respects any chargeable event occurring on or after the passing of this Act. FA07 2 April 2007