Exit Tax on old Investment Policy

This is my first time posting. This is a query regarding Exit Tax. I have a very old Bank of Ireland ( then called Lifetime) Life Assurance investment policy taken out in 1991 when I was very young and probably mis sold to me at the time due to my age. I understand the Life Assurance aspect is minimal but the policy is basically what was called a unit linked fund invested in stocks and shares. Although there was very little in it, I encased most of it but there is a balance of €100.

I received a statement recently and noted there was a management fee of ~€25 for the preceding year.

My question is would this particular policy, due to its age, have a reduced Exit Tax.

Therefore perhaps It would be beneficial to invest in it and reap the rewards of a reduced Tax on encashment.

I understand the fund covers all of the taxes such as CGT. Thanks for any info.

My first instinct was to encash the policy entirely.

Pre 01/01/2001 policies (and top-ups to same) are subject to the 'old' regime of taxation (circa 20% annually) and it's already reflected in the value of your plan.

Your 'management fee' is probably policy fees, as opposed to annual management charges of circa 1.5% (?).

You need to nail down what the exact charges are the plan you have before you start adding money to it and then consider of it's worth it for the tax benefit.

Gerard

www.InvestAndSave.ie

It sounds that if you don't in 4 years time you will have little or nothing left