Dáil Éireann Debate, Thursday - 26 March 2026
206. Deputy Pearse Doherty asked the Tánaiste and Minister for Finance if he will consider the removal of the 1% levy on life assurance investment policies where such policies are used exclusively to hold personal injury, medical negligence, or other compensation awards; and if he will make a statement on the matter. [23182/26]
View answerAt the outset, the Deputy should note that the Life Assurance levy was introduced in 2009 as a revenue-raising measure. It does not apply to other collective investments (i.e. funds) or direct investments in financial instruments.
One of the recommendations of “Funds Sector 2030: A Framework for Open, Resilient & Developing Markets” review is that consideration should be given to the repeal of the 1% Life Assurance Levy.
The 2025 Programme for Government has committed to progress and publish an implementation plan taking into consideration the Funds Review recommendations to unlock retail investment and opportunities to grow this sector in Ireland. This is a complex area of taxation that encompasses a wide breadth of tax legislation on domestic funds, life assurance products and offshore funds. Detailed consideration is therefore being given to the best way to bring about the necessary reforms and to support a greater level of retail investment in capital markets. It is likely given the breadth of the Funds Sector 2030 review that the delivery of any agreed associated tax measures will take place over multiple Finance Bill cycles. This work will also take account of developments at an EU level in respect of the Savings and Investment Union.
Finally, I acknowledge the specificity of the Deputy’s question which requests consideration of the removal of the 1% levy on life assurance investment policies where such policies are used exclusively to hold personal injury, medical negligence, or other compensation awards. I will ask my officials to consider this as part of the broader implementation of the Funds Review.
