Finance Act 2003

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Amendment of Part 26 (life assurance companies) of Principal Act.

57.—The Principal Act is amended in Part 26—

(a)  in section 730A(1)—

(i) by inserting the following after the definition of “assurance company”:

“ ‘credit union’ has the meaning assigned to it in section 2 of the Credit Union Act 1997 ;

‘financial institution’ means—

(a) a person who holds a licence under section 9 of the Central Bank Act 1971 ,

(b) a person referred to in section 7 (4) of the Central Bank Act 1971 , or

(c) a credit institution duly authorised by virtue of Directive No. 2000/12/EC of 20 March 2000¹ ;”,

and

(ii) by inserting the following after the definition of “new basis business”:

“ ‘Service’ means the Courts Service;”,

(b)  in section 730B by inserting the following after subsection (3):

“(4) For the purposes of this Chapter—

(a) where a policyholder is a person entrusted to pay all premiums (in this subsection referred to as ‘group premiums’) in respect of a life policy (in this subsection referred to as a ‘group policy’), out of money under the control or subject to the order of any Court, this Chapter shall apply as if the group policy comprised separate life policies (in this subsection referred to as ‘separate life policies’),

(b) each person beneficially entitled to any part of the rights conferred by the group policy shall be treated as being the policyholder of a separate life policy,

(c) the premiums paid in respect of each separate life policy shall be such amount of the said money included in group premiums paid, which is beneficially owned by the policyholder of the separate life policy,

(d) a gain which, but for the provisions of section 730D(2), would have arisen on the happening of a chargeable event in relation to the group policy shall be treated as if it were a gain arising on a chargeable event in relation to any separate policy where, and to the extent that, the gain is beneficially owned by the policyholder of that separate policy,

(e) subsections (2), (3) and (4) of section 730F, sections 730G and 730GA and section 904C apply as if references in those subsections and sections to an assurance company were to read as references to the Service, and

(f) the Service shall in respect of each year of assessment, on or before 28 February in the year following the year of assessment, make a return (including where it is the case, a nil return) to the Revenue Commissioners in electronic format approved by them, which in respect of each year of assessment—

(i) specifies the total amount of gains (in this section referred to as the ‘total gains’) arising in respect of the group policy, and

(ii) specifies in respect of each policyholder of a separate policy—

(I) where available, the name and address of the policyholder,

(II) the amount of the total gains to which the person has beneficial entitlement, and

(III) such other information as the Revenue Commissioners may require.”,

(c)  in section 730C(2)(a) by deleting “(within the meaning of section 906A)”,

(d)  in section 730D—

(i) in subsection (2) by substituting the following for paragraph (b):

“(b) immediately before the chargeable event, the policyholder is—

(i) a company carrying on life business,

(ii) an investment undertaking (within the meaning of section 739B),

(iii) (I)  a person who is entitled to exemption from income tax under Schedule D by virtue of section 207(1)(b), or

(II) a person who is entitled to exemption from corporation tax by virtue of section 207(1)(b) as it applies for the purposes of corporation tax under section 76(6),

(iv) a PRSA provider (which has the same meaning as that assigned to it in Chapter 2A (inserted by the Pensions (Amendment) Act 2002 ) of Part 30),

(v) a credit union, or

(vi) a person entrusted to pay all premiums payable, in respect of the life policy, out of money under the control or subject to the order of any Court,

and the assurance company which commenced the life policy is in possession of a declaration, in relation to the life policy, of a kind referred to in section 730E(3), or”,

(e)  in section 730E(3)—

(i) by substituting the following for paragraphs (e) and (f):

“(e) declares that the policyholder, at the time the declaration is made, is—

(i) a company carrying on life business,

(ii) an investment undertaking (which has the same meaning as that assigned to it in section 739B),

(iii) (I)  a person who is entitled to exemption from income tax under Schedule D by virtue of section 207(1)(b), or

(II) a person who is entitled to exemption from corporation tax by virtue of section 207(1)(b) as it applies for the purposes of corporation tax under section 76(6),

(iv) a PRSA provider (which has the same meaning as that assigned to it in Chapter 2A (inserted by the Pensions (Amendment) Act 2002 ) of Part 30),

(v) a credit union, or

(vi) a person entrusted to pay all premiums payable, in respect of the life policy, out of money under the control or subject to the order of any Court,

(f) contains an undertaking that should the policyholder cease to be a person referred to in subparagraph (i) to (v), or (vi) of paragraph (e), the assurance company will be advised accordingly, and”,

(ii) by inserting the following after subsection (4):

“(5) An insurance company shall keep and retain declarations referred to in this section for a period of 6 years from the time the life policy in respect of which the declaration was made ceases.”,

and

(f)  by substituting the following for section 730GB:

¹ OJ No. L.126, of 26 May 2000, p.1