Taxes Consolidation Act 1997 section 730J

Payment in respect of foreign life policy

Section 730J sets out the income tax treatment of payments received from a foreign life policy where the payment does not arise from a disposal (in whole or in part) of the policy.

• Where an individual receives a payment from a foreign life policy that is not linked to a disposal, the income is subject to income tax on a self-assessment basis at rates that depend on whether the policy is a personal portfolio life policy (PPLP) and whether the income is correctly included in a return.
• For chargeable events arising on or after 1 January 2026, the rates are 38 per cent for a non-PPLP policy (whether or not correctly returned) and 60 per cent for a PPLP (correctly returned), rising to 80 per cent for a PPLP where the income is not correctly included in a return.
• Since 1 January 2015 the distinction between income that is correctly included and income that is not correctly included in a return has been removed for non-PPLP foreign life policies, so a single flat rate applies regardless of compliance.
• Where the policyholder is a company, the income represented by the payment is charged to tax under Case III of Schedule D as untaxed investment income.