Dáil Éireann Debate, Tuesday - 26 May 2026
459. Deputy Ruairí Ó Murchú asked the Tánaiste and Minister for Finance if he is aware that the 1% levy on life assurance investment policies further reduces the value of medical negligence or catastrophic personal injury awards annually (details supplied); and if he will make a statement on the matter. [39661/26]
Amharc ar fhreagra461. Deputy Ruairí Ó Murchú asked the Tánaiste and Minister for Finance if consideration will be given to exempting medical negligence and catastrophic injury awards from the 1% life assurance levy in circumstances where the awards are held solely for the purpose of funding ongoing care and disability supports; and if he will make a statement on the matter. [39663/26]
Amharc ar fhreagraI propose to take Questions Nos. 459 and 461 together.
I am advised by Revenue that section 124B of the Stamp Duties Consolidation Act 1999 provides for a Stamp Duty levy of 1% to be levied in respect of certain life insurance premiums paid to insurers. The levy is payable by the insurers to Revenue on a quarterly basis. It was introduced in 2009.
The levy is applied to the premiums paid under certain classes of life insurance policies to the extent that the risks to which the policies relate are located in the State. These classes are as follows:
• Class I – Life assurance and contracts to pay annuities on human life;
• Class II – Contracts of insurance to provide a sum on marriage or the birth of a child;
• Class III – Class I policies linked to investment funds
• Class IV – Permanent Health Insurance;
• Class V – Tontines, i.e., associations of subscribers which are established to benefit the beneficiaries of a subscriber on the death of that subscriber; and
• Class VI – Capital redemption operations, i.e., in return for a single (or periodic) payment agreed in advance, the policy holder will have a right to a specified sum for a specified period in the future.
Certain premiums are excluded from the levy, namely:
• premiums received in respect of pension business, as defined in section 706 of the Taxes Consolidation Act 1997, and
• premiums received in the course of or by means of reinsurance.
The Deputy should note that the 1% levy on certain life insurance premiums was examined in the Report of the Funds Sector 2030 (Review) which was carried out by my Department.
The Report is available at: www.gov.ie/en/publication/da341-funds-sector-2030-a-framework-for-open-resilient-and-developing-markets/.
The Programme for Government "Securing Ireland's Future" published on 23 January 2025 includes a commitment to progress and publish an implementation plan for consideration of the Funds Review recommendations. Working with my officials, I will consider the next steps in this regard in due course.
