Chapter 5

Capital Gains Tax

70 .— (1) Section 598 of the Principal Act is amended in subsection (1)—

(a) in paragraph (a)—

(i) before the definition of “chargeable business asset” by inserting the following:

“ ‘certificate’ has the same meaning as it has for the purposes of Regulation 8(8)(c)(ii) of the European Communities (Milk Quota) Regulations 2000 (S.I. No. 94 of 2000) as amended or extended from time to time;”,

(ii) after the definition of “holding company” by inserting the following:

“ ‘milk production partnership’ has the meaning assigned to it by the European Communities (Milk Quota) Regulations 2000 (S.I. No. 94 of 2000) as amended or extended from time to time;

‘payment entitlement’ has the same meaning as it has for the purposes of Council Regulation (EC) No. 1782/2003 of 29 September 2003 ⁷ ;”,

and

(iii) in the definition of “qualifying assets” by inserting the following after subparagraph (ii):

“(iia) payment entitlements, where they are disposed of at the same time and to the same person as land to the extent that the land would support a claim to payment in respect of those payment entitlements,”,

and

(b) in paragraph (d) by inserting the following after subparagraph (iia):

“(iib) the period of use of land by an individual as a partner in a milk production partnership as if it were also a period of use by the spouse of the individual where the spouse—

(I) is a co-owner of the land,

(II) used the land for a period ending on the date the milk production partnership commenced, and

(III) was issued with a certificate by the Minister for Agriculture and Food,”.

(2) Subsection (1) shall be deemed to have applied as on and from 1 January 2005.

71 .— (1) Section 599 of the Principal Act is amended in subsection (1) by substituting the following for paragraph (a):

“(a) In this section ‘child’, in relation to a disposal for which relief is claimed under this section, includes—

(i) a nephew or a niece who has worked substantially on a full-time basis, for the period of 5 years ending with the disposal, in carrying on, or assisting in the carrying on of, the trade, business or profession concerned or the work of, or connected with, the office or employment concerned, and

(ii) an individual (in this paragraph referred to as ‘the first-mentioned individual’) who resided with, was under the care of and was maintained at the expense of the individual making the disposal throughout—

(I) a period of 5 years, or

(II) periods which together comprised at least 5 years,

before the first-mentioned individual attained the age of 18 years but only if such claim is not based on the uncorroborated testimony of one witness.”.

(2) This section applies to disposals made on or after the date of the passing of this Act.

72 .— (1) Section 603A of the Principal Act is amended by substituting the following for subsection (1):

“(1) In this section ‘child of a parent’, in relation to a disposal for which relief is claimed under this section, includes an individual who resided with, was under the care of and was maintained at the expense of the person making the disposal throughout—

(a) a period of 5 years, or

(b) periods which together comprised at least 5 years,

before the first-mentioned individual attained the age of 18 years but only if such claim is not based on the uncorroborated testimony of one witness, and a disposal by a parent to a child of a parent shall be construed accordingly.

(1A) This section applies to the disposal of land which at the date of the disposal has a market value which does not exceed €254,000.”.

(2) This section applies to disposals made on or after the date of the passing of this Act.

73 .— (1) Section 606 of the Principal Act is amended in subsection (1)—

(a) in paragraph (a) by substituting “loaned to the Trust (within the meaning of section 1003A) or to a gallery or museum” for “loaned to a gallery or museum”, and

(b) in paragraph (b) by substituting “not less than 10 years” for “not less than 6 years”.

(2) Paragraph (b) of subsection (1) applies to a loan made on or after 2 February 2006.

74 .— (1) Schedule 15 to the Principal Act is amended in Part 1—

(a) by substituting the following for paragraph 3:

“3. A registered trade union to the extent that the proceeds of the disposal giving rise to the gain have been, or will be, applied solely for the purposes of its registered trade union activities.”,

(b) by substituting the following for paragraphs 37 and 38:

“37. An approved body (within the meaning of section 235(1)) to the extent that the proceeds of the disposal giving rise to the gain have been, or will be, applied to the sole purpose of promoting athletic or amateur games or sports.

38. Any body established by statute for the principal purpose of promoting games or sports and any company wholly owned by such a body, to the extent that the proceeds of the disposal giving rise to the gain have been, or will be, applied for that purpose.”,

and

(c) by inserting the following after paragraph 38:

“39. The Courts Service.

40. The Irish Auditing and Accounting Supervisory Authority.”.

(2) This section applies as respects disposals made on or after 2 February 2006.

75 .— (1) The Principal Act is amended in Chapter 2 of Part 44—

(a) in section 1028 by inserting after subsection (6) the following:

“(6A) Subsection (5) shall not apply where the spouse who acquired the asset could not be taxed in the State for the year of assessment in which the acquisition took place, in respect of a gain on a subsequent disposal in that year by that spouse of the asset, if that spouse had made such a disposal and a gain accrued on the disposal.”,

(b) in section 1030 by inserting after subsection (2) the following:

“(2A) Subsection (2) shall not apply where the spouse who acquired the asset could not be taxed in the State for the year of assessment in which the acquisition took place, in respect of a gain on a subsequent disposal in that year by that spouse of the asset, if that spouse had made such a disposal and a gain accrued on the disposal.”,

and

(c) in subsection 1031 by inserting after subsection (2) the following:

“(2A) Subsection (2) shall not apply where the spouse who acquired the asset could not be taxed in the State for the year of assessment in which the acquisition took place, in respect of a gain on a subsequent disposal in that year by that spouse of the asset, if that spouse had made such a disposal and a gain accrued on the disposal.”.

(2) This section applies as respects the disposal of an asset by a spouse to the other spouse or former spouse concerned (as the case may be) made on or after 7 December 2005.

76 .— Section 588 of the Principal Act is amended by inserting after subsection (6) the following:

“(7) Where in connection with the arrangements there is conferred on a member of an assurance company a right to acquire shares in a successor company, or a right to a distribution of assets (including cash) of the assurance company, the assurance company shall, within 30 days of the arrangements being effected or within such longer period as the Revenue Commissioners may on request allow, make a return to the Revenue Commissioners in such electronic format as they require, which, in respect of each such member, specifies—

(a) the name of the member,

(b) the address of the member,

(c) the number of shares in the successor company which the member has a right to acquire,

(d) the amount of new consideration which the member is required to give to acquire those shares,

(e) the value of any assets of the assurance company to which the member has a right, and

(f) such other information that the Revenue Commissioners advise the assurance company that they require.”.

77 .— Schedule 16 to the Principal Act is amended in paragraph 4, by inserting after subparagraph (6) the following:

“(7) (a) In this section ‘PPS Number’, in relation to an individual, means the individual’s Personal Public Service Number within the meaning of section 262 of the Social Welfare Consolidation Act 2005 .

(b) Where in connection with the conversion there is conferred on a member of the society a right to acquire shares in a successor company, or a right to a distribution of assets (including cash) of the society, the society shall, within 30 days of the registration of the society as a company or within such longer period as the Revenue Commissioners may on request allow, make a return to the Revenue Commissioners, in such electronic format as they require, which, in respect of each such member, specifies—

(i) the name of the member,

(ii) the address of the member,

(iii) subject to clause (e), the information referred to in clause (c),

(iv) the number of shares in the successor company which the member has a right to acquire,

(v) the amount of new consideration which the member is required to give to acquire those shares,

(vi) the value of any assets of the society to which the member has a right, and

(vii) such other information that the Revenue Commissioners advise the society that they require.

(c) A society proposing to convert into a company shall, in such manner as the Revenue Commissioners may specify, request from every member who is an individual that he or she furnish to the society—

(i) his or her PPS Number, or

(ii) where he or she does not have a PPS Number, confirmation to that effect,

on or before a specified date, which date shall be before the society converts into a company.

(d) An individual to whom clause (c) relates shall comply with the request in a manner so as to enable the society to have that information on or before the specified date.

(e) Where in making a return for the purposes of clause (b), the society as a company is unable to provide the information required by clause (b)(iii) in respect of an individual because he or she failed to furnish the information in accordance with clause (c), then the company shall, unless it can otherwise duly provide the information, state that it cannot provide the information so required.”.

⁷OJ No. L270 of 21.10.2003, p.1