Life insurance inheritance tax calculator with Section 72 (Ireland 2026)
A life insurance payout in Ireland can trigger CAT unless the policy is a Section 72 qualifying policy. This calculator compares the two cases for 2026, showing the CAT impact of each.
A standard life insurance policy paying out to someone other than a spouse or civil partner counts as a taxable inheritance in Ireland. The proceeds are added to whatever else the beneficiary is inheriting, and the combined figure is assessed against the Group A, B, or C threshold.
Section 72 of the Capital Acquisitions Tax Consolidation Act 2003 creates an exception. A Section 72 qualifying policy is a specific kind of life insurance, set up from the outset as a CAT-payment policy, where the proceeds are paid directly to Revenue against the beneficiary's CAT bill and the payout is not itself a taxable benefit.
The rules are specific. The policy must be written in qualifying form at inception (a standard whole-of-life policy does not retrospectively qualify), premiums must be paid by the life insured from their own resources, and the proceeds must be used within a reasonable period to pay CAT arising on the insured's death. Any surplus over the actual CAT bill becomes a taxable benefit.
How this calculator works
The calculator asks for the relationship, the life insurance payout, and whether the policy is a Section 72 qualifying policy. It shows the CAT impact of the payout in both scenarios.
What to do with the number
If the payout is a Section 72 policy, it does not add to the beneficiary's CAT liability. If it is a standard policy, the payout is a Group A, B, or C benefit and the aggregation rules apply. The Complete Bundle verifies whether a given policy meets the Section 72 qualifying criteria based on the policy documentation.
This calculator is a preparation tool using Irish tax rates and rules for 2026. It is not legal or tax advice. For complex estates, consult a solicitor or tax adviser. All values are estimates based on the information you provide.