Section 73 Terms and Conditions

There are a number of conditions that must be met for your savings policy to qualify for Section 73 relief:

• The policy must be set up under Section 73 of Capital Acquisitions Tax Consolidation Act 2003 specifically for paying CAT.
• The policy term must be longer than eight years.
• Regular premiums must be paid continuously into the policy for at least eight years. These can be monthly, quarterly, half-yearly or annual premiums.
• Only married couples or civil partners can have a joint policy. In all other cases, the policy must be in one name only.
• The policy owner, or owners, must pay the premiums.
• The difference between the highest and lowest annual premium over the period of the policy cannot be more than 100%.
• If premiums stop and are not restarted within one year, Section 73 tax relief cannot be applied for.
• The policy owner has one year from the date they withdraw the money from the policy to pay the gift tax due. After this date the relief will not apply.

It the responsibility of the policyholder to make sure the policy meets the Section 73 conditions and any requirements set out by Revenue throughout the full policy term. If these conditions are not met, the policy proceeds may not qualify for use in paying CAT under Section 73.