Taxation of a lump sum on divorce

[Dave Vanian]

Where someone is getting a lump sum as part of a divorce settlement, is it taxable? I know that any ongoing maintenance payments are taxable as income.

 

[KSA]

This is not taxable!

 

[Dave Vanian]

Thanks KSA. Can you point me to where I can find further information on this? Can't find specific reference to it on Revenue.ie.

 

[KSA]

Not sure about Revenue website, probably something on it though, but S.1031 TCA'97 deals with the transfer of assets of divorced persons and S.1026 TCA '97 deals with payments

 

[Gervan]

A lump sum on divorce wouldn't be income, would be a gift. Under certain circumstances it would be tax free.
See Capital Acquisitions Tax Consolidated Acts Section 88.
This should get you to the legislation on Revenue's website:
https://www.1822direkt.com/1822central/cms/zinscash.jsp