Finance Act, 1999

Exemption relating to retirement benefits.

206.—The Principal Act is hereby amended by the insertion of the following section after section 59A:

“59B.—(1) The whole or any part of a retirement fund which is comprised in an inheritance which is taken upon the death of a disponer dying on or after the date of the passing of the Finance Act, 1999, shall be exempt from tax in relation to that inheritance and in relation to a charge for tax arising on that death by virtue of section 110 of the Finance Act, 1993 , and the value thereof shall not be taken into account in computing tax, where—

(a) the disposition under which the inheritance is taken is the will or intestacy of the disponer, and

(b) the successor is a child of the disponer and had attained 21 years of age at the date of that disposition.

(2) In this section ‘retirement fund’, in relation to an inheritance taken on the death of a disponer, means an approved retirement fund or an approved minimum retirement fund, within the meaning of section 784A or 784C of the Taxes Consolidation Act, 1997 , being a fund which is wholly comprised of all or any of the following, that is to say—

(a) property which represents in whole or in part the accrued rights of the disponer, or of a predeceased spouse of the disponer, under an annuity contract or retirement benefits scheme approved by the Revenue Commissioners for the purposes of Chapter 1 or Chapter 2 of Part 30 of that Act.

(b) any accumulations of income thereof, or

(c) property which represents in whole or in part those accumulations.”.