Taxes Consolidation Act 1997 section 723

Special investment policies

Section 723 provided for special investment policies, which were life assurance investment products linked to Irish equities, subject to a 20 per cent tax charge on income and gains accruing to the related investment fund.

• A special investment fund had to be kept separate from the assurance company's other funds, relate solely to special investment business, and meet minimum Irish equity investment thresholds — rising to 55 per cent in qualifying shares and 10 per cent in specified qualifying shares from 1 February 1996.
• A special investment policy could only be issued to an individual aged 18 or over, with total premiums capped at €63,500, and the policyholder had to be the beneficial owner and payee of all amounts under the policy other than mortality cover.
• The policyholder was required to make a written declaration on a prescribed form certifying that the policy conditions were met, undertaking to notify the assurance company if they ceased to be met, and providing their name and address.
• No new special investment policies could be issued after 31 December 2000, the fund and policy conditions applied only to accounting periods ending on or before 31 December 2002, and for subsequent periods the special investment fund was required to be merged with the ordinary life fund.