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 and Capital Gains Tax (CGT).

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

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

You may also be entitled to repayments of:

  • Life Assurance Exit Tax
  • and
  • Investment Undertaking Tax on your investments.

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: 25 November 2025 Print this page

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