Peadar Tóibín (Meath West, Sinn Fein)
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126. To ask the Minister for Finance the annual revenue that would be generated from 15% capital gains tax on disposal of life assurance policies. [25303/15]

Michael Noonan (Limerick City, Fine Gael)
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Section 593 of the Taxes Consolidation Act 1997 provides for an exemption from capital gains tax (CGT) in cases where the person disposing of a life assurance policy is the original beneficial owner of the policy. This CGT exemption does not extend to a disposal by a person who is not the beneficial owner of the policy and who acquired the rights or interest in the policy for a consideration in money or money's worth. Any chargeable gains arising on such disposals would be liable to CGT at the current rate of 33%.

The Revenue Commissioners do not have the relevant data on disposals of life assurance policies to which the CGT exemption applies which would allow for any reliable estimate of the figure sought by the Deputy.  The Deputy should also note, however, that since 1 January 2001 a policyholder s investment grows tax free throughout the term of the policy and is subject to exit tax on the occurrence of a chargeable event e.g. partial/full surrender or maturity of the policy.  The tax deducted is a final liability to tax for the policyholder.  With effect from 1 January 2014 the rate of exit tax is 41%.  The total life assurance exit tax collected in 2014 was €130 million.