CervicalCheck Payments

Investment income and gains

Certain women affected by the failures in the CervicalCheck national screening programme get a tax exemption on investment income and gains which is earned from the investment of their relevant payment.

For further information on relevant payments and the definition of a relevant woman, please see the Tax and Duty Manual Part 07-01-23B, or contact the Sensitive Cases Unit (SCU).

Note

This investment exemption only applies to the affected woman, and not her dependants. The investment exemption applies to a relevant woman who received a relevant payment on, or after, 1 September 2008.

The investment exemption

If a relevant woman invests a relevant payment, she is exempt from Income Tax, Universal Social Charge (USC) and Pay Related Social Insurance (PRSI) on any income earned from:

  • investing in full or part of the payment
  • and, or
  • reinvesting the investment income.

A relevant woman is exempt from Capital Gains Tax (CGT) on gains made on the disposal of assets acquired with:

  • a relevant payment
  • tax exempt investment income earned from a relevant payment
  • the proceeds from selling assets purchased with relevant payments
  • or
  • exempt income derived from relevant payments.

For further information, please contact the SCU.

  • Example 1

    Fiona receives a payment of €20,000 under the CervicalCheck non-disclosure ex-gratia Scheme. She uses all the payment to purchase shares.
    She later sells the shares for €30,000, making a €10,000 gain.

    How Income Tax, CGT and Capital Acquisitions Tax (CAT) apply:

    Initial Payment to Fiona: Fiona is exempt from Income Tax, CGT and CAT on the original payment of €20,000 she receives.

    Gain on sale of shares: Fiona's gain of €10,000 is exempt from CGT.

  • Example 2

    Sarah receives a payment of €80,000 from an out-of-court settlement. She invests this payment in a savings account. Sarah passes away in 2025, and her estate gives €30,000 (the balance of the savings account) to her daughter, Emily.

    How Income Tax, CGT and CAT apply:

    Initial Payment to Sarah: Sarah is exempt from paying Income Tax, CGT and CAT on the out-of-court settlement payment of €80,000.

    Investment of €80,000 by Sarah: Any income or gains arising from the €80,000 investment are exempt from Income Tax and CGT for Sarah. This exemption applies until her death.

    Distribution to Emily: The €30,000 inherited by Emily is subject to CAT. She will be entitled to the Group A threshold (€400,000 in 2025). If Emily has not received any other benefits under this threshold, she will not have a CAT liability.

    Investment by Emily: If Emily invests the €30,000, the exemption does not apply to any income and gains from the investment. Income or gains earned from the investment will be taxable.

Assets financed partly by borrowings

If a relevant woman purchases an asset partially with a relevant payment and partially with a loan, the exemption will cover a proportional amount of:

  • income arising during her ownership of the asset
  • or
  • gain arising on the disposal of the asset.

The proportion allowed will be based on the amount of the relevant payment which was used to purchase the asset compared to the purchase price.

  • Example 3

    Anna was awarded €100,000 in damages by the CervicalCheck Tribunal. She uses it to purchase a rental property. The total cost of the property is €200,000. She pays half (€100,000) using her relevant payment and borrows the other half (€100,000) with a mortgage. Her annual rental profit is €15,000.

    How Income Tax, CGT and CAT apply:
    Initial Payment to Anna: Anna is exempt from paying Income Tax, CGT and CAT on the payment of €100,000 she receives.

    Investment of €100,000 by Anna:
    Income Tax Implications: Only the proportion of rental profit from the investment of the damages award is exempt from Income Tax.
    Total Investment: €200,000 (€100,000 damages award + €100,000 mortgage).
    Percentage funded by damages award: 50%.

    Exempt Rental profit: 50% of €15,000 = €7,500.
    Taxable Rental profit: €7,500.

    Anna sold the property in 2024 for €300,000, making a gain of €100,000.

    CGT Implications: Only the proportion of gain from the investment of the damages award is exempt.

    Percentage funded by damages award: 50%.
    Exempt Gain: 50% of €100,000 = €50,000.
    Taxable Gain subject to CGT: €50,000.

Deposit Interest Retention Tax (DIRT)

A relevant woman can declare to Revenue that she is entitled to a refund on all the DIRT deducted from her investment of a relevant payment. Revenue will tell her financial institution or bank not to deduct DIRT from her investments.

Once the bank or financial institution is made aware, they will not charge DIRT in the future. To claim a refund of DIRT already charged, the relevant woman should complete an Income Tax Return. For further information, please contact the SCU.

  • Example 4

    Jane was awarded €100,000 damages by the CervicalCheck Tribunal. She deposits the full amount in a savings account earning 1% interest per year (€1,000 interest). Her bank deducts DIRT at 33% (€330).

    How Income Tax, CGT and CAT apply:
    Initial Payment to Jane: Jane is exempt from paying Income Tax, CGT and CAT on the payment of €100,000 she receives.
    Investment of €100,000 by Jane: The interest income of €1,000 is exempt from Income Tax.

    DIRT Implications without Exemption: Jane’s bank deducts DIRT at 33% from the interest (€330). Jane can reclaim the DIRT, where appropriate.

Exit Tax

The relevant woman may reclaim Exit Tax deducted if she invests all, or some, of a relevant payment in:

  • a life insurance policy
  • or
  • an investment fund.

Exit Tax can be reclaimed by submitting an annual tax return to Revenue with supporting documentation. For further information, please contact the SCU.

  • Example 5

    Mary receives €50,000 from an out-of-court settlement and invests it in units in an investment fund. After 5 years, the investment grows in value to €60,000.
    Mary disposes of her units. Exit tax of 41% is deducted by the investment fund on the €10,000 gain (€4,100).

    How Income Tax, CGT and CAT apply:
    Initial Payment to Mary: Mary is exempt from Income Tax, CGT and CAT in respect of the payment of €50,000 she receives.

    Exit Tax Implications: Mary can claim a refund of the €4,100 Exit Tax deducted by the investment fund. She submits an annual tax return to Revenue with supporting documentation.

Reinvestment in other assets

A relevant woman is exempt from paying Income Tax and CGT on:

  • income arising from the investment in full or in part of her relevant payment
  • and
  • gains accruing from the investment in full, or in part, of her relevant payment.

If an investment appreciates in value, the woman can reinvest:

  • any funds she receives from the investment of her relevant payment
  • or
  • the gains from the disposal of such investment of her relevant payment.

If she does, the reinvestment of the relevant payment and any gain from that payment will be exempt from Income Tax and CGT.

Next: Time limit for repayment claims

Published: 21 November 2025 Print this page

Back to homepage Back to top