Personal injury compensation payments

How do you qualify for the investment exemption?

To qualify for the exemption, you must have received one of the following compensation payments:

• a qualifying personal injury payment
• a payment from a special trust made for you, if you are permanently incapacitated
• a payment from the Hepatitis C and HIV Compensation Tribunal (or a comparable European Union (EU) or European Economic Area (EEA) scheme).

The exemption applies if the income and gains made from your compensation is more than 50% of your total income and gains for the year. This is known as the ‘50%’ test. If you are married or in a civil partnership, only your own income and gains are considered for the ‘50%’ test.

What is a qualifying personal injury payment?

A qualifying personal injury payment can be from any of the following sources:

• compensation received under Section 38 of the Personal Injuries Assessment Board Act 2003
• a personal injury payment arising from a civil action (an out of court settlement or damages awarded by a Court)
• a payment from the Criminal Injuries Compensation Tribunal.

The injury causing the payment must have caused you to be permanently and totally incapacitated (physically or mentally). You must be unable to maintain yourself.

Pre-existing injuries

If you also have a pre-existing injury, Revenue must receive all of the following information to decide if you can claim relief:

• medical proof of your injuries
• details of your previous ability to maintain yourself in your job
• details of any previous compensation received.

Definition of permanently and totally incapacitated

Totally incapacitated

Totally incapacitated means that you are unable to maintain yourself. There must be no chance that you will recover, or that your condition will improve, to the point you can maintain yourself.

Permanently incapacitated

You may be permanently incapacitated, but not totally incapacitated. You can send us a medical certificate to help us assess your circumstances. It should state the following:

• the cause, nature and extent of the injury
• the nature and extent of the incapacity that the injury caused
• confirm that you are permanently incapacitated, either mentally or physically, so cannot maintain yourself.

Next: What payments do not qualify for investment exemption?