Speaking at the second stage of the Finance Bill 2000, the Minister for Finance confirmed that the possible conversion of existing life business to gross roll-up had been abandoned following industry representations.
The new gross roll-up arrangements will come into effect from 1 April 2000 for new domestic funds and from 1 January 2001 for new domestic life assurance business.
The Minister said the current taxation arrangements of taxation in the fund on an annual basis will continue for existing business 'at the request of the industry'.
Existing business will eventually run-off leaving in time only the new system applying to life assurance and collective funds, he added.
The new system means that Ireland is 'breaking from the traditional UK method of taxing these funds and moving to the system prevalent in the other member States', McCreevy said. |
