Taxes Consolidation Act 1997 section 192

Payments in respect of thalidomide children

Section 192 exempts from income tax and capital gains tax payments made to individuals affected by thalidomide, together with income and gains arising from the investment of those payments.

• Payments made by the Minister for Health and Children or by the Conterganstiftung für behinderte Menschen foundation to individuals disabled as a result of their mother taking thalidomide during pregnancy are exempt from income tax.
• Income arising from investing those payments (including dividends, interest, rental income and distributions from Irish companies) is also exempt from income tax, and none of this exempt income is included in computing total income — though a tax return must still be filed.
• Capital gains arising on the disposal of assets acquired directly or indirectly with the exempt payments or with exempt investment income are not chargeable to capital gains tax.
• Where exempt and non-exempt funds have been mixed, a just and reasonable apportionment must be made to determine how much of any income or gain qualifies for exemption.