Section 730B Taxation of policyholders
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Amendments
Section 730B added by Finance Act 2000 section 53 from 6 April 2000.
(1) In this Chapter "return" means a return under section 730G.
(2) Subject to subsection (3), this Chapter applies for the purpose of imposing certain charges to tax in respect of a policy (in this Chapter referred to as a "life policy") which is―
(a) a policy of assurance on the life of any person, or
(b) a policy in respect of sinking fund or capital redemption business,
where the life policy is new basis business of the assurance company which commenced the life policy.
Amendments
Subs (2) substituted by Finance Act 2001 section 70(1)(a) and (2)(b) as on and from 1 January 2001. The revised text ensures that profits arising to a life assurance company from sinking fund or capital redemption business are chargeable under Case I. Any gains arising to the policyholder are taxed on redemption, i.e., under the exit tax scheme.
(3) This Chapter does not apply to a life policy which relates to pension business, general annuity business or permanent health insurance business, of an assurance company.
(4) For the purposes of this Chapter―
(a) where a policyholder is a person entrusted to pay all premiums (in this subsection referred to as "group premiums") in respect of a life policy (in this subsection referred to as a "group policy"), out of money under the control or subject to the order of any Court, this Chapter shall apply as if the group policy comprised separate life policies (in this subsection referred to as "separate life policies"),
(b) each person beneficially entitled to any part of the rights conferred by the group policy shall be treated as being the policyholder of a separate life policy,
(c) the premiums paid in respect of each separate life policy shall be such amount of the said money included in group premiums paid, which is beneficially owned by the policyholder of the separate life policy,
(d) a gain which, but for the provisions of section 730D(2), would have arisen on the happening of a chargeable event in relation to the group policy shall be treated as if it were a gain arising on a chargeable event in relation to any separate policy where, and to the extent that, the gain is beneficially owned by the policyholder of that separate policy,
(e) subsections (2), (3) and (4) of section 730F, sections 730G and 730GA and section 904C apply as if references in those subsections and sections to an assurance company were to read as references to the Service, and
(f) the Service shall in respect of each year of assessment, on or before 28 February in the year following the year of assessment, make a return (including where it is the case, a nil return) to the Revenue Commissioners in electronic format approved by them, which in respect of each year of assessment―
(i) specifies the total amount of gains (in this section referred to as the "total gains") arising in respect of the group policy, and
(ii) specifies in respect of each policyholder of a separate policy―
(I) where available, the name and address of the policyholder,
(II) the amount of the total gains to which the person has beneficial entitlement, and
(III) such other information as the Revenue Commissioners may require.
Amendments
1 Subs (4) inserted by Finance Act 2003 section 57(b) from 1 January 2003.
