Taxes Consolidation Act 1997 section 205B

Payments under Mother and Baby Institutions Payment Scheme Act 2023

Section 205B ensures that payments made under the Mother and Baby Institutions Payment Scheme Act 2023 are exempt from income tax, capital gains tax, and capital acquisitions tax, and extends this exemption to income and gains arising from the investment of those payments.

• Payments received by eligible persons under the Mother and Baby Institutions Payment Scheme are fully exempt from income tax, CGT, and CAT, including payments made to personal representatives where the eligible person has died.
• Income arising from the investment of scheme payments — such as dividends, deposit interest, rental income, and other returns — is exempt from income tax, USC, and PRSI, and any DIRT or exit tax deducted can be reclaimed.
• Capital gains from the disposal of assets bought with scheme payments, or from assets acquired through reinvestment of exempt income or disposal proceeds, are exempt from CGT.
• Where an asset is financed partly with a scheme payment and partly from other sources, only the proportion of income or gains attributable to the scheme payment qualifies for exemption, with apportionment made on a just and reasonable basis.