dirt Tax in Budget

[erdrid]

Can someone explain to me in the budget yesterday they say that like the DIRT TAX of 41% similar taxes will apply on exit of life assurance policies.
What does ‘exit’ mean. Does it mean when you die the government will get 41 percent of you life assurance policy?

 

[dublin66]

Life policies are taxed on the basis of the an "exit tax".

My simple understanding is that the value of your fund at the start of the policy is deducted from the value of the fund when it is encashed and 41% of this profit is taxed.

 

[erdrid]

Thank you Dublin66!

 

[Brendan Burgess]

Discussed at length in the Budget forum and the Deposits forum