Taxes Consolidation Act 1997 section 787AH

Exemption of AE provider schemes

Section 787AH provides income tax exemptions for investments, deposits and certain underwriting commissions arising within an Automatic Enrolment (AE) provider scheme.

• Income from investments or deposits held for the purposes of an AE provider scheme is exempt from income tax, subject to a claim being made.
• The investment exemption extends to contracts involving financial futures or traded options dealt in on any recognised futures or stock exchange, whether in Ireland or internationally.
• Underwriting commissions applied for the purposes of the scheme are also exempt from income tax, provided they would otherwise be chargeable under Case IV of Schedule D; the exemption does not cover the profits of an organised underwriting trade chargeable under Case I.
• A unit in an AE provider scheme is not treated as an asset of a pension fund for the purposes of Chapter 1A of Part 27 (exit tax on investment undertakings).