Personal injury compensation payments

What does the investment exemption cover?

The exemption covers all investment income and gains you make from the investment of your compensation payment. You are exempt from Income Tax (IT) and Capital Gains Tax (CGT).

If you qualify for this exemption, your investment income may also be exempt from:

  • Deposit Interest Retention Tax
  • Dividend Withholding Tax.

You may also be entitled to repayments of the following taxes on your investments:

  • Life Assurance Exit Tax
  • Investment Undertaking Tax.

See the Tax and Duty manual 07-01-02 for further details on how to claim these additional exemptions and reliefs.