A Section 73 Policy Savings Plan is a strategic savings plan designed for individuals who want to pass assets, such as property or cash, to loved ones during their lifetime without leaving them with a heavy tax bill.
Approved under Section 73 of the Capital Acquisitions Tax Consolidation
Act 2003 (CATCA), this policy allows parents, grandparents, or any
individual with a significant estate to save regularly into a tax-efficient
investment plan. This is part of Ireland’s Revenue-approved Section 73
insurance policy framework.
Once the policy has been active for at least eight years, the accumulated
funds can be used to pay the gift tax liability (GTL) that arises when
assets are transferred to a child or beneficiary.
It’s a forward-thinking financial strategy that ensures your generosity
doesn’t come with unintended tax consequences for your family. Many
high-net-worth families use Section 73 investment plans as part of long-
term inheritance tax planning.
Section 73 policies are particularly suited to:
Here’s why a Section 73 savings plan is the smarter, tax-efficient route:
Let’s say you save €100,000 and later gift it to your child. If your child’s tax-free lifetime threshold (€335,000) has already been used, they may face a 33% tax liability. That’s €33,000 lost to tax, leaving them with just €67,000.
Save the same €100,000 using a Section 73 investment policy. If you later gift a property worth €350,000, triggering a gift tax bill of €115,000, the full €100,000 from your policy can be used to cover most of the tax liability. Your child receives the property without the financial burden.
Giving should feel rewarding, not worrisome. A Section 73 Policy allows you to:
It’s more than a savings plan.
It’s a tool to future-proof your family’s financial well-being — one of the most powerful savings plans in Ireland for intergenerational wealth transfer.
Ans: You are under no obligation to use the proceeds of your Aviva Savings Plan policy that has been endorsed under Section 73 of CATCA 2003 for the payment of gift tax. It is simply an option available if all Revenue-qualifying conditions have been complied with.
Ans: You are under no obligation to use the proceeds of your Aviva Savings Plan policy that has been endorsed under Section 73 of CATCA 2003 for the payment of gift tax. It is simply an option available if all Revenue-qualifying conditions have been complied with.
Ans: Yes, the exit tax will apply if there is any investment gain on your
Section 73 policy.
Ans: You must pay premiums into your policy for a minimum of 8 years. If annual premiums cease to be paid in the first 8 years, the policy will cease to be in a form approved by Revenue for Section 73 relief.
Ans: If you wish to use the proceeds of your policy for Section 73 policy inheritance tax relief, you have one year to pay the gift tax liability. The gift should be made as soon as possible after the policy proceeds have been encashed. The proceeds of an Aviva Section 73 Savings Plan policy will not qualify for relief on the payment of inheritance tax.
Ans: No, you must take out a new policy. To qualify for Section 73 policy savings plan relief, the policy must be specifically endorsed under Section 73 of CATCA 2003 from the date of commencement.
Ans: If you die before the minimum 8-year term or before the gift tax liability is paid, then the proceeds of the policy will form part of your estate.
If you care about leaving your hard-earned wealth to your family (rather than to the Internal Revenue Service in the form of a large tax
Navigating the complex world of tax can feel overwhelming, especially when it comes to estate planning. One aspect that has garnered attention in Ireland is
Welcome to our blog post where we delve into the intriguing world of Section 73 Policy in Ireland. If you’ve ever wondered about the ins
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