Taxes Consolidation Act 1997 section 205A

Magdalen laundry payments

Section 205A exempts from income tax and capital gains tax certain payments made to individuals under the Magdalen Restorative Justice Ex-Gratia Scheme, together with any investment income or gains derived from those payments.

• Payments made under the Magdalen Restorative Justice Ex-Gratia Scheme — including ex-gratia lump sums from the Minister for Justice and Equality, amounts equivalent to the State Pension (Contributory) and State Pension (Non-Contributory), and any other payments from the Minister for Employment Affairs and Social Protection — are exempt from income tax.
• Income arising from the investment of exempt payments, such as dividends, interest, rental income and distributions by Irish companies, is also exempt from income tax.
• Capital gains on the disposal of assets acquired directly or indirectly with exempt payments or with exempt investment income are not chargeable to capital gains tax.
• Where exempt and non-exempt funds are mixed, any apportionment needed to determine the exempt portion of income or gains must be made on a just and reasonable basis.