Talks aimed at finding a resolution to the gross roll up debate are expected to continue right until the publication of the 2000 Finance Bill on 10 February, according to a Department of Finance spokesperson. The discussions involve the Department itself, the Revenue Commissioners, the investment funds lobby and the insurance industry, as represented by the Irish Insurance Federation (IIF).
Jennifer Hoban, life assurance manager with the IIF, says that until the Finance Bill is published, all is to play for. ‘Until we see the publication of the Finance Bill, we won’t know the full picture. Until then, it’s hard to see what the new regime will look like. We’re trying to come up with something that achieves a good balance, taking into account the expectations of existing policyholders’.
According to Hoban, the consultation process is proving ‘very worthwhile’ from the IIF’s perspective.
It is believed that one possible solution could come from an arrangement where the new gross roll up regime, as announced in the budget, would only apply to new life assurance policies. This would mean that existing policies would continue to be taxed under the current system, where savings are taxed on income and realised gains. |
