Taxes Consolidation Act 1997 section 730GA

Repayment of appropriate tax

Section 730GA provides that where an assurance company makes a payment to a policyholder who would be entitled to an income tax exemption under certain specified reliefs, the payment is treated as a net amount from which exit tax has already been deducted.

• Applies where a payment by an assurance company to a policyholder would be exempt from income tax under sections 189, 189A, 192, 205A, 205B or 205C
• The payment is deemed to be a net amount from whose gross equivalent a sum equal to the appropriate tax (within the meaning of section 730F) has been deducted
• The gross income is treated as chargeable to tax under Case III of Schedule D but is then exempt under the relevant relief section
• The effect is that exit tax does not need to be deducted from the payment, as it is treated as having already been deducted