Financial Resolution No. 8 gives statutory effect to the budget announcement that the rate of tax applying to life assurance policies and investment funds are being increased with effect from 8 April 2009. This amendment applies to the rate of exit taxes and domestic life assurance policies and investment undertakings under the gross roll-up regime introduced in the Finance Act 2000. It also increases the rates of tax that apply to profits and gains on life assurance policies and investment funds in other EU member states, EEA states and OECD countries with which Ireland has double taxation agreements. Under gross roll-up, investments may accumulate without the imposition of tax. However, an exit tax applies where a chargeable event occurs, such as receipt of payments from or the disposal of investments in the life policy or fund, or the ending of each eight year period following the acquisition of the policy or units in the fund.

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