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8 2004

Finance Act 2004


Capital Acquisitions Tax

Interpretation (Part 5).

76. —In this Part “Principal Act” means the Capital Acquisitions Tax Consolidation Act 2003 .

Amendment of section 2 (general interpretation) of Principal Act.

77. —Section 2 of the Principal Act is amended, in subsection (5), by deleting “in lawful wedlock”.

Amendment of section 93 (relevant business property) of Principal Act.

78. —(1) Section 93 of the Principal Act is amended by substituting the following for subsection (4):

“(4) Subsection (3) shall not apply to shares in or securities of a company if—

(a) the business of the company consists wholly or mainly in being a holding company of one or more companies whose business does not fall within that subsection, or

(b) the value of those shares or securities, without having regard to the provisions of section 99, is wholly or mainly attributable, directly or indirectly, to businesses that do not fall within that subsection.”.

(2) This section has effect in relation to gifts or inheritances taken on or after the date of the passing of this Act.

Amendment of section 106 (arrangements for relief from double taxation) of Principal Act.

79. —Section 106 of the Principal Act is amended by substituting the following for subsection (1):

“(1) If the Government by order declare that arrangements specified in the order have been made with the government of any territory outside the State in relation to—

(a) affording relief from double taxation in respect of gift tax or inheritance tax payable under the laws of the State and any tax imposed under the laws of that territory which is of a similar character or is chargeable by reference to death or to gifts inter vivos, or

(b) exchanging information for the purposes of the prevention and detection of tax evasion in respect of the taxes specified in paragraph (a),

and that it is expedient that those arrangements should have the force of law, the arrangements shall, notwithstanding anything in any enactment, have the force of law.”.