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Personal injury compensation payments

  1. Overview
  2. How do you qualify for the investment exemption?
  3. What payments do not qualify for investment exemption?
  4. What does the investment exemption cover?
  5. How are social welfare payments treated for investment exemption?
  6. How can you claim the investment exemption?
  7. Other issues with investment exemption

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 and Capital Gains Tax (CGT).

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

  • Deposit Interest Retention Tax (DIRT)
  • Dividend Withholding Tax (DWT).

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.

Next: How are social welfare payments treated for investment exemption?

Published: 05 May 2023 Print this page

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