Taxes Consolidation Act 1997 section 197

Bonus or interest paid under instalment savings schemes

Section 197 provides an exemption from income tax for bonuses or interest earned on instalment savings schemes operated by An Post.

• Bonuses or interest earned under an An Post instalment savings scheme are exempt from income tax.
• The exemption applies only to the extent that the savings do not exceed the maximum amount permitted under the scheme.
• If the individual holds savings above the permitted limit, only the bonus or interest relating to the amount within the limit is exempt.
• The scheme referred to is an instalment savings scheme established under section 53 of the Finance Act 1970.