Taxes Consolidation Act 1997 section 712

Distributions received from Irish resident companies

Section 712 removes the normal exemption from tax for distributions received by a life assurance company from Irish companies where those distributions relate to policyholder life business.

• Distributions received by Irish resident companies are normally exempt from corporation tax under section 129, and distributions received by non-residents are effectively exempt under section 153(4)–(5).
• Section 712 disapplies these exemptions for distributions received by an assurance company in connection with that part of its life business charged to corporation tax otherwise than under Case I or Case IV of Schedule D.
• The effect is that dividends and other distributions from Irish companies received for the benefit of policyholders in a life assurance company's life business fund become chargeable to corporation tax.
• Distributions received in respect of general (non-life) insurance business charged under Case I, or general annuity business and pension business charged under Case IV, remain exempt from tax in the normal way.