CAPITAL GAINS TAX ACT, 1975

• (c) For the purposes of this subsection, a disposal of qualifying assets other than a disposal of the whole of such assets, by a husband to a wife or by a wife to a husband shall, notwithstanding the provisions of section 13 (5), be taken into account at the market value of the assets.

• (5) Subsection (1) shall apply where under paragraph 1 of Schedule 2 an individual is treated as disposing of interests in shares or securities of his family company in consideration of a capital distribution from the company (not being a distribution consisting of chargeable business assets) in the course of dissolving or winding up the company as it applies where he disposes of shares or securities of the company.

• (6)
• (a) In this section and section 27—

“chargeable business asset” means an asset (including goodwill but not including shares or securities or other assets held as investments) which is, or is an interest in, an asset used for the purposes of a trade, farming, profession, office or employment carried on by the individual, or as the case may be by the individual's family company, other that a private residence to which section 25 applies;

“family company” means, in relation to an individual, a company the voting rights in which are—

• (i) as to not less than 25 per cent., exercised by the individual, or

• (ii) as to not less than 75 per cent., exercisable by the individual or a member of his family, and, as to not less than 10 per cent., exercisable by the individual himself;

“family” means, in relation to an individual, the husband or wife of the individual, and a relative of the individual or the individual's husband or wife, and “relative” means brother, sister, ancestor or lineal descendant;

“full time working director” means a director who is required to devote substantially the whole of his time to the service of the company in a managerial or technical capacity;

“qualifying assets”, in relation to a disposal, includes the chargeable business assets of the individual which, apart from tangible movable property, he has owned for a period of not less than ten years ending with the disposal and the shares or securities which he has owned for a period of not less than ten years ending with the disposal being shares or securities of a company which has been a trading or a farming company and his family company during a period of not less than ten years ending with the disposal and of which he has been a full time working director throughout that period:

Provided that there shall be taken into account for the purposes of this definition—

• (i) the period of ownership of a spouse of the individual as if it were a period of ownership of the individual,

• (ii) where the chargeable business assets are new assets, within the meaning of section 28, the period of ownership of the old assets as if it were a period of ownership of the new assets,

• (iii) where the qualifying assets are shares or securities in a family company to which paragraph 6 of Schedule 2 applies, the period immediately before the transfer to the company of chargeable business assets during which those assets were owned by the individual as if it were a period of ownership of the individual of the qualifying assets or a period throughout which he was a full time working director, as may be appropriate, and

• (iv) a period immediately before the death of the spouse of the individual throughout which the deceased spouse was a full time working director as if it were a period throughout which the individual was a full time working director;

“trade”, “farming”, “profession”, “office” and “employment” have the same meanings as in the Income Tax Acts;

“trading company” means a company whose business consists wholly or mainly of the carrying on of a trade or trades.

• (b) In this section, references to the disposal of the whole or part of an individual's qualifying assets include references to the disposal of the whole or part of the assets provided or held for the purposes of an office or employment by the individual exercising that office or employment.

• (7) An individual who has been granted relief under this section shall not be granted relief under section 27.

27 Disposal within the family of business or farm.

27.—(1) (a) Subject to the provisions of this section, where an individual who has attained the age of fifty-five years, disposes of the whole of his qualifying assets to one or more of his children—

• (i) if the amount or value of the consideration for the disposal does not exceed £150,000, relief shall be given in respect of the full amount of capital gains tax chargeable on any gain accruing on the disposal;

• (ii) if the amount or value of the consideration for the disposal exceeds £150,000, the amount of capital gains tax chargeable on the gain accruing on the disposal shall not exceed half the difference between the amount of that consideration and £150,000.

• (b) For the purposes of paragraph (a), the amount of capital gains tax chargeable in respect of the gain shall be the amount of tax which would not have been chargeable but for that gain.

• (c) In paragraph (a) “children”, in relation to a disposal, includes nephews and nieces who have 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 or the work of or connected with the office or employment.

• (2) For the purposes of this section—

• (a) subsections (2) and (3) of section 26 shall apply to a disposal falling within subsection (1) as they apply to a disposal falling within section 26 (1), and

• (b) section 26 (4) shall have effect as if the disposal of qualifying assets in the year of assessment and all years of assessment before such year were disposals of assets owned by the individual at the time of the disposal falling within subsection (1).

• (3) Where assets comprised in a disposal in respect of which relief has been granted under this section are disposed of within ten years of the earlier disposal, section 9 (acquisition and disposal deemed to be at market value) shall not apply to the earlier disposal and, notwithstanding any other provisions in this Act—

• (a) the disposal and acquisition of the assets under that earlier disposal shall be deemed, for the purposes of this Act, to be for such consideration as would have secured that neither a gain nor a loss accrued on that disposal, and

• (b) the acquisition of the assets by the individual making the earlier disposal shall be deemed, for the purposes of this Act, to be the acquisition of the individual making the later disposal:

Provided that nothing in this subsection shall affect the amount of capital gains tax chargeable in respect of the earlier disposal, but, to the extent that tax so chargeable has been paid, relief shall be granted by set-off against the amount of capital gains tax chargeable on the later disposal and not otherwise.

• (4) An individual who has been granted relief under this section shall not be granted relief under section 26.

28 Replacement of business and other assets.

28.—(1) If the consideration which a person carrying on a trade obtains for the disposal of, or of his interest in, assets (in this section referred to as the old assets) used, and used only, for the purposes of the trade throughout the period of ownership is applied by him in acquiring other assets, or an interest in other assets (in this section referred to as the new assets) which on the acquisition are taken into use, and used only, for the purposes of the trade, and the old assets and the new assets are assets of a kind specified in subsection (5), then the person carrying on the trade shall, on making a claim in that behalf, be treated for the purposes of this Act as if the chargeable gain accruing on the old assets did not accrue until he ceases to use the new assets for the purposes of the trade:

Provided that if the consideration for the disposal of the new assets is applied in acquiring other new assets which on the acquisition are taken into use, and used only, for the purposes of the trade and are assets specified in subsection (5), the person carrying on the trade shall be treated as if the chargeable gain accruing on the disposal of the old assets did not accrue until he ceases to use the other new assets aforesaid and any further new assets which are acquired in a similar manner, taken into use, and used only, for the purposes of the trade and are assets specified in subsection (5).

• (2) Subsection (1) shall not apply if part only of the amount or value of the consideration for the disposal of, or of the interest in, the old assets is applied as described in that subsection, but if all of the amount or value of the consideration except for a part which is less than the amount of the gain (whether all chargeable gain or not) accruing on the disposal of, or of the interest in, the old assets is so applied, then, the person carrying on the trade shall, on making a claim in that behalf, be treated, for the purposes of this Act, as if the amount of the gain accruing on the disposal of the old assets were reduced to the amount of consideration not applied in the acquisition of the new assets (and if not all chargeable gain with a proportionate reduction in the amount of the chargeable gain) and the balance of the gain (or chargeable gain) shall be treated as if it did not accrue until he ceases to use the new assets for the purposes of the trade.

• (3) This section shall only apply if the acquisition of, or of the interest in, the new assets takes place, or an unconditional contract for the acquisition is entered into, in the period beginning twelve months before and ending three years after the disposal of, or of the interest in, the old assets, or at such earlier or later time as the Revenue Commissioners may by notice in writing allow:

Provided that, where an unconditional contract for the acquisition is so entered into, this section may be applied on a provisional basis without waiting to ascertain whether the new assets, or the interest in the new assets, is acquired in pursuance of the contract, and, when that fact is ascertained, all necessary adjustments shall be made by making assessments or by repayment or discharge of tax, and shall be so made notwithstanding any limitation in this Act on the time within which assessments may be made.

• (4) This section shall not apply unless the acquisition of, or of the interest in, the new assets, was made for the purpose of their use in the trade, and not wholly or partly for the purpose of realising a gain from the disposal of, or of the interest in, the new assets.

• (5) The following are assets for the purpose of this section—

• (a) plant or machinery;

• (b) except where the trade is a trade of dealing in or developing land, or of providing services for the occupier of land in which the person carrying on the trade has an estate or interest—

• (i) any building or part of a building and any permanent or semi-permanent structure in the nature of a building, occupied (as well as used) only for the purposes of the trade,

• (ii) any land occupied (as well as used) only for the purposes of the trade, provided that where the trade is a trade of dealing in or developing land, but a profit on the sale of any land held for the purposes of the trade would not form part of the trading profits, the trade shall be treated for the purposes of this subsection as if it were not a trade of dealing in or developing land;

• (c) goodwill.

• (6) If, over the period of ownership or any substantial part of the period of ownership, part of a building or structure is, and part is not, used for the purposes of a trade, this section shall apply as if the part so used, with any land occupied for purposes ancillary to the occupation and use of that part of the building or structure, were a separate asset, and subject to any necessary apportionments of consideration for an acquisition or disposal of, or of an interest in, the building or structure and other land.

• (7) If the old assets were not used for the purposes of the trade throughout the period of ownership, this section shall apply as if a part of the asset representing its use for the purposes of the trade having regard to the time and extent to which it was, and was not, used for those purposes, were a separate asset which had been wholly used for the purposes of the trade, and this subsection shall apply in relation to that part subject to any necessary apportionment of consideration for an acquisition or disposal of, or of the interest in, the asset.

• (8)
• (a) This section shall apply in relation to a person who carries on two or more trades which are in different localities, but which are concerned wholly or mainly with goods or services of the same kind, as if, in relation to the assets used for the purposes of the trades, the trades were the same trade.

• (b) This section shall apply in relation to a person who ceases to carry on a trade or trades (the old trade or trades) which he has carried on for a period of ten years or more and commences to carry on another trade or trades (the new trade or trades) within a period of two years from the date on which he ceased to carry on the trade or trades as if, in relation to the old assets used for the purposes of one of the old trades and the new assets used for the purposes of the new trade, the two trades were the same trade.

• (9) This section shall apply with the necessary modifications—

• (a) in relation to the discharge of the functions of a public authority,

• (b) in relation to the occupation of woodlands where the woodlands are managed by the occupier on a commercial basis and with a view to the realisation of profits,

• (c) in relation to a profession, office or employment,

• (d) in relation to such of the activities of a body of persons whose activities are carried on otherwise than for profit and are wholly or mainly directed to the protection or promotion of the interests of its members in the carrying on of their trade or profession as are so directed,

• (e) in relation to the activities of a body of persons being a body not established for profit whose activities are wholly or mainly carried on otherwise than for profit but in the case of assets within subsection (5) (b) only if they are both occupied and used by the body and in the case of other specified assets only if they are used by the body,

• (f) in relation to such of the activities of a body of persons established for the sole purpose of promoting athletic or amateur games or sports as are directed to that purpose, and

• (g) in relation to farming,

as it applies in relation to a trade, and in this section “farming”, “trade”, “profession”, “office” and “employment” have the same meanings as in the Income Tax Acts, but not so as to apply the provisions of the Income Tax Acts as to the circumstances in which, on a change in the persons carrying on a trade, a trade is to be regarded as discontinued, or as set up and commenced and “a trade of dealing in or developing land” shall include a business of dealing in or developing land regarded as a trade under those Acts.

• (10) Without prejudice to the provisions of this Act providing generally for apportionments, where consideration is given for the acquisition or disposal of assets some or part of which are assets in relation to which a claim under subsection (1) or (2) applies, and some or part of which are not, the consideration shall be apportioned in such manner as is just and reasonable.

29 Compensation and insurance money.

29.—(1) If the recipient so claims, receipt of a capital sum within paragraph (i), (ii), (iii) or (iv) of section 8 (2) (a) derived from an asset which is not lost or destroyed shall not be treated as a disposal of the asset if—

• (a) the capital sum is wholly applied in restoring the asset, or

• (b) the capital sum is applied in restoring the asset except for a part of the capital sum which is not reasonably required for the purpose and which is small, as compared with the whole capital sum,

but, if the receipt is not treated as a disposal, all sums which would, if the receipt had been so treated, have been brought into account as consideration for that disposal in the computation of a gain accruing on the disposal shall be deducted from any expenditure allowable under Schedule 1 as a deduction in computing a gain on the subsequent disposal of the asset:

Provided that this subsection shall not apply to cases falling within paragraph (b) of this subsection if immediately before the receipt of the capital sum there is no expenditure attributable to the asset under clauses (a) and (b) of paragraph 3 (1) of Schedule 1 (deduction allowable in computing a gain) or if the consideration for the part disposal so deemed to be effected on receipt of the capital sum exceeds that expenditure.

• (2) If an asset is lost or destroyed and a capital sum received by way of compensation for the loss or destruction, or under a policy of insurance of the risk of the loss or destruction, is, within one year of receipt, or such longer period as the inspector may allow, applied in acquiring an asset in replacement of the asset lost or destroyed, the owner shall if he so claims be treated for the purposes of this Act—

• (a) as if the consideration for the disposal of the old asset were (if otherwise of a greater amount) of such amount as would secure that on the disposal neither a loss nor a gain accrued to him, and

• (b) as if the amount of the consideration for the acquisition of the new asset were reduced by the excess of the amount of the capital sum received by way of compensation or under the policy of insurance, together with any residual or scrap value, over the amount of the consideration which he is treated as receiving under paragraph (a).

• (3) A claim shall not be made under subsection (2) if part only of the capital sum is applied in acquiring the new asset but if all of that capital sum except for a part which is less than the amount of the gain (whether all chargeable gain or not) accruing on the disposal of the old asset is so applied, then the owner shall, if he so claims, be treated for the purposes of this Act—

• (a) as if the amount of the gain so accruing were reduced to the amount of the said part not applied in acquiring the new assets (and, if not all chargeable gain, with a proportionate reduction in the amount of the chargeable gain), and

• (b) as if the amount of the consideration for the acquisition of the new asset were reduced by the amount by which the gain is reduced under paragraph (a).

• (4) Where subsection (2) (a) applies to exclude from charge to capital gains tax a gain which, in consequence of Part II of Schedule 1 (assets held on the 6th day of April, 1974), is not all chargeable gain, the amount of the reduction to be made under subsection (2) (b) shall be the amount of the chargeable gain and not the whole amount of the gain; and in subsection (3) (b) for the reference to the amount by which the gain is reduced under subsection (3) (a) there shall substituted a reference to the amount by which the chargeable gain is proportionately reduced under the said subsection (3) (a).

• (5) This section shall not apply in relation to a wasting asset.

30 Scheme for retirement of farmers.

30.—For the purposes of this Act, an amount by way of capital sum or premium provided under the European Communities (Retirement of Farmers) Regulations, 1974, whether or not an annuity is granted in lieu thereof, shall not be deemed to form part of the consideration for the disposal in relation to which such capital sum or premium is provided.

PART VI Unit Trusts

31 Unit trusts.

31.—(1) Without prejudice to the provisions of section 15 (settled property), chargeable gains accruing to a unit trust in any year of assessment shall be assessed and charged on the trustees of the unit trust.

• (2) The trustees of a unit trust shall for the purposes of this Act be treated as being a single and continuing body of persons (distinct from the persons who may from time to time be the trustees) and that body shall be treated as being resident and ordinarily resident in the State unless the general administration of the unit trust is ordinarily carried on outside the State and the trustees or a majority of them for the time being are not resident or not ordinarily resident in the State.

• (3) Where a person receives or becomes entitled to receive in respect of units in a unit trust any capital distribution from the unit trust, he shall be treated as if he had, in consideration of that capital distribution, disposed of an interest in the units.

• (4) If throughout a year of assessment all the issued units in a unit trust are assets such that any gain accruing if they were disposed of by the unit holder would be wholly exempt from capital gains tax (otherwise than by reason of residence), gains accruing to the unit trust in that year shall not be chargeable gains.

• (5) If throughout a year of assessment all the assets of a unit trust are such that they are not chargeable assets or are assets in respect of which a gain would not be a chargeable gain, the units in the unit trust shall be deemed not to be chargeable assets for the purposes of this Act.

• (6) In this section “capital distribution” means any distribution from a unit trust, including a distribution in the course of terminating the unit trust, in money or money's worth except a distribution which in the hands of the recipient constitutes income for the purposes of income tax and in section 32 “distribution of capital” shall be construed in accordance with this definition.

32 Unit trusts: special arrangements.

32.—(1) This section shall apply to a unit trust—

• (a) which is a registered unit trust scheme within the meaning of section 3 of the Unit Trusts Act, 1972,

• (b) the trustees of which are resident and ordinarily resident in the State,

• (c) the prices of units in which are published regularly by the managers, and

• (d) all the units of which are of equal value and carry the same rights.

• (2) The Revenue Commissioners may enter into arrangements with the trustees of any unit trust to which this section applies in respect of the year 1974-75 and in respect of any later year of assessment if the following conditions are satisfied—

• (a) throughout the relevant year of assessment—

• (i) not less than 80 per cent. of the units were held by persons who acquired them pursuant to an offer made to the general public,

• (ii) the number of unit holders is not less than 50 and no one unit holder was the beneficial owner of more than 5 per cent. of the units in issue at any time and, for the purposes of this subparagraph, a person and any persons with whom he is connected shall be treated as one unit holder,

• (iii) the value of quoted securities held by the trustees on behalf of the unit trust was not less than 80 per cent. by value of the total investments so held by the trustees, and

• (iv) the securities held by the trustees on behalf of the unit trust in any one company did not exceed 15 per cent. by value of the total securities so held by the trustees, and

• (b) the trustees have—

• (i) in respect of each distribution of income or capital of the unit trust to unit holders informed the unit holders of the amount, if any, of the chargeable gains included therein, and

• (ii) given to the Revenue Commissioners such particulars of the chargeable gains distributed to each unit holder as they may require.

• (3) Any arrangement under this section shall secure that the amount of capital gains tax payable by the unit trust shall be that portion of the amount of tax which, but for the arrangement, would be payable under section 31 for the relevant year of assessment as bears the same proportion to the amount of tax so payable under section 31 as the amount of income and chargeable gains of that year not distributed bears to the total amount of income and chargeable gains of that year.

• (4) Any arrangement under this section for any year of assessment shall be made on or before the 5th day of April next following the end of that year and effect shall be given to the arrangement by adjustment of the assessment and if tax has been paid, any amount overpaid shall be repaid.

• (5) The Revenue Commissioners may enter into an arrangement under this section with the trustees of a unit trust for any year of assessment notwithstanding that one or more of the conditions stated in subsections (1) and (2) was or were not complied with.

• (6) In this section—

“securities” include securities falling within section 19 and stocks, shares, bonds and obligations of any government, municipal corporation, company or other body corporate;

“quoted securities” means securities which at any time during the year of assessment or in the period of six years immediately prior to the year of assessment have had quoted market values on a stock exchange in the State or elsewhere.

PART VII Anti-Avoidance

33 Connected persons.

33.—(1) This section shall apply where a person acquires an asset and the person making the disposal is connected with him.

• (2) Without prejudice to the generality of section 9, the person acquiring the asset and the person making the disposal shall be treated as parties to a transaction otherwise than by way of a bargain made at arm's length.

• (3) If on the disposal a loss accrues to the person making the disposal, it shall not be deductible except from a chargeable gain accruing to him on some other disposal of an asset to the person acquiring the asset mentioned in subsection (1), being a disposal made at a time when they are connected persons:

Provided that this subsection shall not apply to a disposal by way of gift in settlement if the gift and the income from it is wholly or primarily applicable for educational, cultural or recreational purposes, and the persons benefiting from the application for those purposes are confined to members of an association of persons for whose benefit the gift was made, not being persons all or most of whom are connected persons.

• (4) Where the asset mentioned in subsection (1) is an option to enter into a sale or other transaction given by the person making the disposal, a loss accruing to the person acquiring the asset shall not be an allowable loss unless it accrues on a disposal of the option at arm's length to a person who is not connected with him.

• (5) In a case where the asset mentioned in subsection (1) is subject to any right or restriction enforceable by the person making the disposal, or by a person connected with him, then (the amount of the consideration for the acquisition being, in accordance with subsection (2), deemed to be equal to the market value of the asset) that market value shall be—

• (a) what its market value would be if not subject to the right or restriction, as reduced by—

• (b) the market value of the right or restriction or the amount by which its extinction would enhance the value of the asset to its owner, whichever is the less:

Provided that if the right or restriction—

• (i) is of such a nature that its enforcement would or might effectively destroy or substantially impair the value of the asset without bringing any countervailing advantage either to the person making the disposal or a person connected with him,

• (ii) is an option or other right to acquire the asset, or

• (iii) in the case of incorporeal property, is a right to extinguish the asset in the hands of the person giving the consideration by forfeiture or merger or otherwise,

that market value of the asset shall be determined, and the amount of the gain accruing on the disposal shall be computed, as if the right or restriction did not exist.

• (6) Subsection (5) shall not apply to a right of forfeiture or other right exercisable on breach of a covenant contained in a lease of land or other property, and shall not apply to any right or restriction under a mortgage or other charge.

• (7) Any question whether a person is connected with another shall be determined in accordance with the following provisions (any provision that one person is connected with another being taken to mean that they are connected with one another)—

• (a) a person is connected with an individual if that person is the individual's husband or wife, or is a relative, or the husband or wife of a relative, of the individual or of the individual's husband or wife;

• (b) a person, in his capacity as trustee of a settlement, is connected with any individual who in relation to the settlement is a settlor, with any person who is connected with such an individual and with a body corporate which is deemed to be connected with that settlement, and a body corporate shall be deemed to be connected with a settlement in any year if at any time in the year it is a controlled company (or only not a controlled company because it is not resident in the State) and the shareholders then include the trustees of or a beneficiary under the settlement;

• (c) except in relation to acquisitions or disposals of partnership assets pursuant to bona fide commercial arrangements, a person is connected with any person with whom he is in partnership, and with the husband or wife or a relative of any individual with whom he is in partnership;

• (d) a company is connected with another company—

• (i) if the same person has control of both, or a person has control of one and persons connected with him, or he and persons connected with him, have control of the other, or

• (ii) if a group of two or more persons has control of each company, and the groups either consist of the same persons or could be regarded as consisting of the same persons by treating (in one or more cases) a member of either group as replaced by one or more persons with whom he is connected;

• (e) a company is connected with another person, if that person has control of it or if that person and persons connected with him together have control of it;

• (f) any two or more persons acting together to secure or exercise control of or to acquire a holding in a company shall be treated in relation to that company as connected with one another and with any person acting on the direction of any of them to secure or exercise control of or to acquire a holding in the company.

• (8) In subsection (7) “relative” means brother, sister, uncle, aunt, niece, nephew, ancestor, lineal descendant, or a person adopted under the Adoption Acts, 1952 to 1974, or under the law of any place outside the State.

34 Assets disposed of in a series of transactions.

34.—If a person is given, or acquires from one or more persons with whom he is connected, by way of two or more transactions, assets of which the aggregate market value, when considered separately in relation to the separate other transactions, is less than the aggregate market value of those assets when considered together, then for the purposes of this Act the market value of the assets where relevant, shall be taken to be the larger market value and that value shall be apportioned rateably to the respective disposals.

35 Controlled company transferring assets at undervalue.

35.—(1) If on or after the 6th day of April, 1974, a company which is a controlled company transfers an asset to any person otherwise than by way of a bargain made at arm's length and for a consideration of an amount or value less than the market value of the asset, an amount equal to the difference shall be apportioned among the issued shares of the company, and the holders of those shares shall be treated in accordance with the following provisions of this section.

• (2) For the purposes of the computation of a chargeable gain accruing on the disposal of any of those shares by the person owning them on the date of transfer, an amount equal to the amount so apportioned to that share shall be excluded from the expenditure allowable as a deduction under paragraph 3 (1) (a) of Schedule 1 from the consideration for the disposal.

• (3) If the person owning any of the said shares at the date of transfer is itself a controlled company, an amount equal to the amount apportioned to the shares so owned under subsection (1) to that controlled company shall be apportioned among the issued shares of that controlled company, and the holders of those shares shall be treated in accordance with subsection (2), and so on through any number of controlled companies.

• (4)
• (a) A controlled company means a company resident in the State—

• (i) in which the number of persons holding shares is not more than 50;

• (ii) which has not issued any of its shares as a result of a public invitation to subscribe for shares; and

• (iii) which is under the control of not more than 5 persons.

• (b) A company shall be deemed to be under the control of any persons where the majority of the voting power or shares is in the hands of those persons or nominees of those persons.

• (c) For the purposes of this subsection, a person and any persons with whom he is connected shall be treated as one person.

• (5) This section shall apply to a company falling within section 36 as it applies to a controlled company.

36 Non-resident company.

36.—(1) This section applies as respects chargeable gains accruing to a company—

• (a) which is not resident in the State, and

• (b) which would be a controlled company if it were resident in the State.

• (2) Subject to this section, every person who, at the time when the chargeable gain accrues to the company—

• (a) is resident or ordinarily resident in the State,

• (b) if an individual is domiciled in the State, and

• (c) holds shares in the company,

shall be treated for the purposes of this Act as if a part of the chargeable gain had accrued to him.

• (3) That part of the chargeable gain shall be equal to the proportion of the assets of the company to which that person would be entitled on a liquidation of the company at the time when the chargeable gain accrues to the company.

• (4) This section shall not apply in relation to—

• (a) any amount in respect of the chargeable gain which is distributed, whether by way of dividend or distribution of capital or on the dissolution of the company, to persons holding shares in the company, or creditors of the company, within two years from the time when the chargeable gain accrued to the company,

• (b) a chargeable gain accruing on the disposal of assets, being tangible property, whether movable or immovable, or a lease of such property, where the property was used, and used only, for the purposes of a trade carried on by the company wholly outside the State,

• (c) a chargeable gain accruing on the disposal of currency or of a debt within section 46 (6) (foreign bank accounts), where the currency or debt is or represents money in use for the purposes of a trade carried on by the company wholly outside the State, or

• (d) a chargeable gain in respect of which the company is chargeable to tax by virtue of subsection (2) or (7) of section 4 (charge to tax on non-residents).

• (5) Subsection (4) (a) shall not prevent the making of an assessment in pursuance of this section, but if, by virtue of subsection (4) (a), this section is excluded, all such adjustments, whether by way of repayment or discharge of tax or otherwise, shall be made as will give effect to the provisions of subsection (4) (a).

• (6) The amount of capital gains tax paid by a person in pursuance of subsection (2) (so far as not reimbursed by the company) shall be allowable as a deduction in the computation, under this Act, of a gain accruing on the disposal by him of the shares by reference to which the tax was paid.

• (7) To the extent that it would reduce or extinguish chargeable gains accruing by virtue of this section to a person in a year of assessment, this section shall apply in relation to a loss accruing to the company on the disposal of an asset in that year of assessment as it would apply if a gain instead of a loss had accrued to the company on the disposal, but shall only so apply in relation to that person; and subject to the foregoing provisions of this subsection, this section shall not apply in relation to a loss accruing to the company.

• (8) If the person owning any of the shares in the company at the time when the chargeable gain accrues to the company is itself a company which is not resident in the State but which would be a controlled company if it were resident in the State, an amount equal to the amount apportioned under subsection (3) out of the chargeable gain to the shares so owned shall be apportioned among the issued shares of the second-mentioned company, and the holders of those shares shall be treated in accordance with subsection (2), and so on through any number of companies.

• (9) If any tax payable by any person by virtue of subsection (2) is paid by the company to which the chargeable gain accrues, or in a case under subsection (8) is paid by any such other company, the amount so paid shall not for the purposes of income tax, or for the purposes of this Act, be regarded as a payment to the person by whom the tax was originally payable.

37 Non-resident trust.

37.—(1) This section applies as respects chargeable gains accruing to the trustees of a settlement if the trustees are not resident and not ordinarily resident in the State, and if the settlor, or one of the settlors, is domiciled and either resident or ordinarily resident in the State, or was domiciled and either resident or ordinarily resident in the State when he made the settlement.

• (2) Any beneficiary under the settlement who is domiciled and either resident or ordinarily resident in the State in any year of assessment shall be treated for the purposes of this Act as if an apportioned part of the amount, if any, on which the trustees would have been chargeable to capital gains tax under section 5 (1), if domiciled and either resident or ordinarily resident in the State in that year of assessment, had been chargeable gains accruing to the beneficiary in that year of assessment; and for the purposes of this section any such amount shall be apportioned in such manner as is just and reasonable between persons having interests in the settled property, whether the interest be a life interest or an interest in reversion, and so that the chargeable gain is apportioned, as near as may be, according to the respective values of those interests, disregarding in the case of a defeasible interest the possibility of defeasance.

• (3) For the purposes of this section—

• (a) if in any of the five years ending with that in which the chargeable gain accrues a person has received a payment or payments out of the income of the settled property made in exercise of a discretion, he shall be regarded, in relation to that chargeable gain, as having an interest in the settled property of a value equal to that of an annuity of a yearly amount equal to one-fifth of the total of the payments so received by him in the said five years, and

• (b) if a person receives at any time after the chargeable gain accrues a capital payment made out of the settled property in exercise of a discretion, being a payment which represents the chargeable gain in whole or in part, then, except so far as any part of the gain has been attributed under this section to some other person who is domiciled and resident or ordinarily resident in the State, that person shall, if domiciled and resident or ordinarily resident in the State, be treated as if the chargeable gain, or as the case may be the part of the chargeable gain represented by the capital payment, had accrued to him at the time when he received the capital payment.

• (4) In the case of a settlement made before the 28th day of February, 1974—

• (a) subsection (2) shall not apply to a beneficiary whose interest is solely in the income of the settled property, and who cannot by means of the exercise of any power of appointment or power of revocation or otherwise, obtain for himself, whether with or without the consent of any other person, any part of the capital represented by the settled property, and

• (b) payment of capital gains tax chargeable on a gain apportioned to a beneficiary in respect of an interest in reversion in any part of the capital represented by the settled property may be postponed until that person becomes absolutely entitled to that part of the settled property, or disposes of the whole or any part of his interest, unless he can, by any means described in paragraph (a), obtain for himself any of it at any earlier time,

and, for the purposes of this subsection, property added to a settlement after the settlement is made shall be regarded as property under a separate settlement made at the time when the property is so added.

• (5) In any case in which the amount of any capital gains tax payable by a beneficiary under a settlement in accordance with the provisions of this section is paid by the trustees of the settlement, such amount shall not for the purposes of income tax or capital gains tax be regarded as a payment to such beneficiary.

• (6) This section shall not apply in relation to a loss accruing to the trustees of the settlement.

PART VIII Miscellaneous and Supplemental

38 Double taxation relief.

38.—(1) For the purposes of giving relief from double taxation in relation to capital gains tax charged under the law of any country outside the State, in section 361 of, and Schedule 10 to, the Income Tax Act, 1967, as they apply for the purposes of income tax, for references to income there shall be substituted references to capital gains, and for references to income tax there shall be substituted references to capital gains tax meaning, as the context may require, tax charged under the law of the State or tax charged under the law of a country outside the State.

• (2) So far as by virtue of this section capital gains tax charged under the law of a country outside the State may be brought into account under the said provisions of the Income Tax Act, 1967, as applied by this section, that tax, whether relief is given by virtue of this section in respect of it or not, shall not be taken into account for the purposes of those provisions as they apply apart from this section.

• (3) Section 361 (7) of the Income Tax Act, 1967 (disclosure of information for purposes of double taxation), shall apply in relation to capital gains tax as it applies in relation to income tax.

39 Disposals to State, charities and other bodies.

39.—(1) Where a disposal of an asset is made otherwise than under a bargain at arm's length—

• (a) to the State,

• (b) to a charity, or

• (c) to any of the bodies falling within section 28 (3) of the Finance Act, 1931 (national institutions and other public bodies),

section 9 (consideration deemed to be equal to market value) shall not apply, but if the disposal is for no consideration or for a consideration not exceeding the sums allowable as a deduction under paragraph 3 of Schedule 1, then—

• (i) the disposal and acquisition shall be treated for the purposes of this Act as being made for such consideration as to secure that neither a gain nor a loss accrues on the disposal, and

• (ii) where, after the disposal, the asset is disposed of by the person who acquired it under the disposal, its acquisition by the person making the earlier disposal shall be treated for the purposes of this Act as the acquisition of the person making the later disposal.

• (2) Where under subsection (3) or (5) of section 15, any assets or parts of any assets forming part of settled property are deemed to be disposed of and re-acquired by the trustee, and—

• (a) where the assets deemed to be disposed of under section 15 (3) are re-acquired on behalf of the State, a charity or a body falling within the said section 28 (3); or

• (b) the assets which or parts of which are deemed to be disposed of and re-acquired under section 15 (5) are held for the purposes of the State, a charity or a body falling within the said section 28 (3);

then, if no consideration is received by any person for or in connection with any transaction by virtue of which the State, the charity or other body becomes so entitled or the assets are so held, the disposal and acquisition of the assets to which the State, the charity or other body becomes so entitled or of the assets which are held as mentioned in paragraph (b) shall be treated for the purposes of this Act as made for such consideration as to secure that neither a gain nor a loss accrues on the disposal.

40 Assets of insolvent persons.

40.—(1) In relation to assets held by a person as trustee or assignee in bankruptcy or under a deed of arrangement, this Act shall apply as if the assets were vested in, and the acts of the trustee or assignee in relation to the assets were the acts of, the bankrupt or debtor (acquisitions from or disposals to him by the bankrupt or debtor being disregarded accordingly), and tax in respect of any chargeable gains which accrue to any such trustee or assignee shall be assessable on and recoverable from him.

• (2) Assets held by a trustee or assignee in bankruptcy or under a deed of arrangement at the death of the bankrupt or debtor shall for the purposes of this Act be regarded as held by a personal representative of the deceased and—

• (a) subsection (1) shall not apply after the death, and

• (b) section 14 (1) (under which assets passing on a death are deemed to be acquired by the persons on whom they devolve) shall apply as if any assets held by a trustee or assignee in bankruptcy or under a deed of arrangement at the death of the bankrupt or debtor were assets of which the deceased was competent to dispose and which then devolved on the trustee or assignee as if he were a personal representative.

• (3) Assets vesting in a trustee in bankruptcy after the death of the bankrupt or debtor shall for the purposes of this Act be regarded as held by a personal representative of the deceased, and subsection (1) shall not apply.

• (4) In this section “deed of arrangement” means a deed of arrangement to which the Deeds of Arrangement Act, 1887, applies.

41 Liquidation of companies.

41.—Where assets of a company are vested in a liquidator under section 230 of the Companies Act, 1963, or otherwise, this Act shall apply as if the assets were vested in, and the acts of the liquidator in relation to the assets were the acts of, the company (acquisitions from or disposals to him by the company being disregarded accordingly).

42 Funds in court.

42.—(1) In this section—

“funds in court” means any monies (and investments representing such monies), annuities, stocks, shares or other securities standing or to be placed to the account of the Accountant in the books of the Bank of Ireland or any company, and includes boxes and other effects;

“the Accountant” means the Accountant attached to the court or a deputy appointed by the Minister for Justice;

“court”, except where the reference is to the Circuit Court, means the High Court.

• (2) For the purposes of section 8 (3), funds in court shall be regarded as held by the Accountant as nominee for the persons entitled to or interested in the funds, or as the case may be for their trustees.

• (3) Where funds in court standing to an account in the books of the Accountant are invested or, after investment, are realised, the method by which the Accountant effects the investment or the realisation of investments shall not affect the question whether there is for the purposes of this Act an acquisition, or as the case may be a disposal, of an asset representing funds in court standing to that account, and, in particular, there shall for those purposes be an acquisition or disposal of assets notwithstanding that the investment of funds in court standing to an account in the books of the Accountant, or the realisation of funds which have been so invested, is effected by setting off, in the Accountant's accounts, investment in one account against realisation of investments in another.

• (4) This section shall apply with any necessary modifications to funds in the Circuit Court as it applies to funds in court.

43 Unremittable gains.

43.—(1) In this section—

“particular gains” means chargeable gains accruing from the disposal of assets situated outside the State, the amount of which is, or is included in, the amount (in this section referred to as the said amount) on which, in accordance with this Act, the tax is computed.

• (2) Subject to subsections (3), (4) and (5), the provisions of this section shall have effect where capital gains tax has been charged by an assessment for the year in which the particular gains accrued and the tax has not been paid.

• (3) In any case in which, on or after the date on which the capital gains tax has become payable, such proof is given to the Revenue Commissioners as renders them satisfied that particular gains cannot, by reason of legislation in the country in which they have accrued or of executive action of the government of that country, be remitted to the State, the Revenue Commissioners may, for the purposes of collection, treat the assessment as if the said amount did not include the particular gains, but such treatment shall terminate on the Revenue Commissioners ceasing to be satisfied as aforesaid.

• (4) The Revenue Commissioners may, for the purposes of this section, call for such information as they consider necessary.

• (5) Any person who is dissatisfied with a decision of the Revenue Commissioners under subsection (3) may, by giving notice in writing to the Revenue Commissioners within twenty-one days after the notification of the decision to him, apply to have the matter referred to the Appeal Commissioners, as if it were an appeal against an assessment, and the provisions of the Income Tax Act, 1967, relating to the rehearing of an appeal and the statement of a case for the opinion of the High Court on a point of law shall apply accordingly with any necessary modifications.

44 Consideration due after time of disposal.

44.—(1) If the consideration, or part of the consideration, taken into account in the computation of a chargeable gain is payable by instalments over a period beginning not earlier than the time when the disposal is made, being a period exceeding eighteen months then, if the person making the disposal satisfies the Revenue Commissioners that he would otherwise suffer undue hardship, the tax on a chargeable gain accruing on a disposal may, at his option, be paid by such instalments as the Revenue Commissioners may allow over a period not exceeding five years and ending not later than the time at which the last of the first-mentioned instalments is payable.

• (2) In the computation of a chargeable gain, consideration for the disposal shall be brought into account without any discount for postponement of the right to receive any part of it and without regard to a risk of any part of the consideration being irrecoverable or to the right to receive any part of the consideration being contingent:

Provided that if any part of the consideration so brought into account is shown to the satisfaction of the inspector to be irrecoverable, such adjustment, whether by way of discharge or repayment of tax or otherwise, shall be made as the case may require.

45 Transfers of value derived from assets.

45.—(1) Without prejudice to the generality of the provisions of this Act as to the transactions which are disposals of assets, any transaction which under this section is to be treated as a disposal of an asset shall be so treated (with a corresponding acquisition of an interest in the asset) notwithstanding that there is no consideration and so far as, on the assumption that the parties to the transaction were at arm's length, the party making the disposal could have obtained consideration, or additional consideration, for the disposal, the transaction shall be treated as not being at arm's length and the consideration so obtainable, added to the consideration actually passing, shall be treated as the market value of what is acquired.

• (2)
• (a) If a person having control of a company exercises his control so that value passes out of shares in the company owned by him or a person with whom he is connected, or out of rights over the company exercisable by him or by a person with whom he is connected, and passes into other shares in or rights over the company, that exercise of his control shall be a disposal of the shares or rights out of which the value passes by the person by whom they were owned or exercisable.

• (b) References in paragraph (a) to a person include references to two or more persons connected with one another.

• (3) If, after a transaction which results in the owner of land or of any other description of property becoming the lessee of the property there is any adjustment of the rights and liabilities under the lease (whether or not involving the grant of a new lease) which is as a whole favourable to the lessor, that shall be a disposal by the lessee of an interest in the property.

• (4) If an asset is subject to any description of right or restriction, the extinction or abrogation, in whole or in part, of the right or restriction by the person entitled to enforce it shall be a disposal by him of the right or restriction.

46 Debts.

46.—(1) Where a person incurs a debt to another (that is, the original creditor), whether in Irish currency or in some other currency, no chargeable gain shall accrue to that creditor or his personal representative or legatee on a disposal of the debt:

Provided that this subsection shall not apply in the case of the debt on a security as defined in paragraph 3 of Schedule 2 (conversion of securities).

• (2) Subject to the provisions of the said paragraph 3 and of paragraph 4 of Schedule 2 (company amalgamations), and subject to the foregoing subsection, the satisfaction of a debt or part of it (including a debt on a security as defined in the said paragraph 3) shall be treated as a disposal of the debt or of that part by the creditor made at the time when the debt or that part is satisfied.

• (3) Where property is acquired by a creditor in satisfaction of his debt or part of it, then subject to the provisions of the said paragraph 3 and 4 the property shall not be treated as disposed of by the debtor or acquired by the creditor for a consideration greater than its market value at the time of the creditor's acquisition of it; but if under subsection (1) (and in a case not falling within either of the said paragraphs 3 or 4 no chargeable gain is to accrue on a disposal of the debt by the creditor (that is, the original creditor), and a chargeable gain accrues to him on a disposal by him of the property, the amount of the chargeable gain shall (where necessary) be reduced so as not to exceed the chargeable gain which would have accrued if he had acquired the property for a consideration equal to the amount of the debt or that part of it.

• (4) A loss accruing on the disposal of a debt acquired by the person making the disposal from the original creditor or his personal representative or legatee at a time when the creditor or his personal representative or legatee is a person connected with the person making the disposal, and so acquired either directly or by one or more purchases through persons all of whom are connected with the person making the disposal, shall not be an allowable loss.

• (5) Where the original creditor is a trustee and the debt, when created, is settled property, subsections (1) and (4) shall apply as if for the references to the original creditor's personal representative or legatee there were substituted references to any person becoming absolutely entitled, as against the trustee, to the debt on its ceasing to be settled property, and to that person's personal representative or legatee.

• (6) This section shall not apply to a debt owed by a bank which is not in Irish currency or in sterling and which is represented by a sum standing to the credit of a person in an account in the bank unless it represents currency acquired by the holder for the personal expenditure outside the State of himself or his family or dependants (including expenditure on the maintenance of any residence outside the State).

47 Options.

47.—(1) Without prejudice to the provisions of section 8, the grant of an option, including—

• (a) the grant of an option in the case where the grantor binds himself to sell an asset he does not own, and because the option is abandoned, never has occasion to own, and

• (b) the grant of an option in a case where the grantor binds himself to buy an asset, which, because the option is abandoned, he does not acquire,

is the disposal of an asset (namely, of the option), but subject to the following provisions of this section as to treating the grant of an option as part of a larger transaction.

• (2) If an option is exercised, the grant of the option and the transaction entered into by the grantor in fulfilment of his obligations under the option shall be treated as a single transaction and accordingly—

• (a) if the option binds the grantor to sell, the consideration for the option is part of the consideration for the sale, and

• (b) if the option binds the grantor to buy, the consideration for the option shall be deducted from the cost of acquisition incurred by the grantor in buying in pursuance of his obligations under the option.

• (3) The exercise or abandonment of an option by the person for the time being entitled to exercise it shall not constitute the disposal of an asset by that person, but if an option is exercised, then the acquisition of the option (whether directly from the grantor or not) and the transaction entered into by the person exercising the option in exercise of his rights under the option shall be treated as a single transaction and accordingly—

• (a) if the option binds the grantor to sell, the cost of acquiring the option shall be part of the cost of acquiring the asset which is sold, and

• (b) if the option binds the grantor to buy, the cost of the option shall be treated as a cost incidental to the disposal of the asset which is bought by the grantor of the option.

• (4) In relation to the disposal by way of transfer of an option binding the grantor to sell or buy shares or securities which have a quoted market value on a stock exchange in the State or elsewhere, the option shall be regarded as a wasting asset the life of which ends when the right to exercise the option ends, or when the option becomes valueless, whichever is the earlier, but without prejudice to the application of the provisions in Schedule 1 relating to wasting assets to other descriptions of options.

• (5) Where an option which is an option to acquire assets exercisable by a person intending to use them, if acquired, for the purposes of a trade carried on by him or which he commences to carry on within two years of his acquisition of the option, is disposed of or abandoned, then—

• (a) if the option is abandoned, the abandonment shall, notwithstanding subsection (3), constitute the disposal of an asset (namely, the option), and

• (b) paragraph 9 of Schedule 1 (restriction of allowable expenditure for wasting asset) shall not apply.

• (6)
• (a) Where an option to subscribe for shares in a company, being an option of a kind which, at the time of disposal or abandonment, is quoted, and, in the same manner as shares, dealt in on a stock exchange in the State or elsewhere, is disposed of or abandoned, then—

• (i) if the option is abandoned, the abandonment shall, notwithstanding subsection (3) constitute the disposal of an asset (namely, of the option), and

• (ii) paragraph 9 of Schedule 1 (restriction of allowable expenditure for wasting asset) and subsection (4) shall not apply.

• (b) Where an option mentioned in paragraph (a) is dealt in within three months after the taking effect, with respect to the company granting the option, of any reorganisation, reduction, conversion or amalgamation to which paragraphs 2, 3, 4 or 5 of Schedule 2 applies (or within such longer period as the Revenue Commissioners may by notice in writing allow), the option shall, for the purposes of the said paragraphs 2, 3, 4 or 5, be regarded as the shares which could be acquired by exercising the option and section 49 (3) shall apply for determining its market value.

• (7) In the case of an option relating to shares or securities, this section shall apply subject to the provisions of paragraph 13 of Schedule 1 and accordingly the option may be regarded in relation to the grantor or in relation to the person entitled to exercise the option, as relating to part of a holding of shares or securities as defined in the said paragraph 13.

• (8) This section shall apply in relation to an option binding the grantor both to sell and to buy as if it were two separate options with half the consideration attributed to each.

• (9) In this section references to an option include references to an option binding the grantor to grant a lease for a premium, or enter into any other transaction which is not a sale, and references to buying and selling in pursuance of an option shall be construed accordingly.

• (10) This section shall apply in relation to a forfeited deposit of purchase money or other consideration money for a prospective purchase or other transaction which is abandoned as it applies in relation to the consideration for an option which binds the grantor to sell and which is not exercised.

48 Location of assets.

48.—The situation of any such assets as are specified in this section shall, except as otherwise provided by section 4, be determined in accordance with the following provisions:

• (a) the situation of rights or interests (otherwise than by way of security) in or over immovable property is that of the immovable property,

• (b) subject to the following provisions of this section, the situation of rights or interests (otherwise than by way of security) in or over tangible movable property is that of the tangible movable property,

• (c) subject to the following provisions of this section, a debt, secured or unsecured, is situated in the State if and only if the creditor is resident in the State,

• (d) shares or securities issued by any municipal or governmental authority, or by any body created by such an authority, are situated in the country of that authority,

• (e) subject to paragraph (d), registered shares or securities are situated where they are registered and, if registered in more than one register, where the principal register is situated,

• (f) a ship or aircraft is situated in the State if and only if the owner is resident in the State, and an interest or right in or over a ship or aircraft is situated in the State if and only if the person entitled to the interest or right is resident in the State,

• (g) the situation of goodwill as a trade, business or professional asset is at the place where the trade, business or profession is carried on,

• (h) patents, trade marks and designs are situated where they are registered, and if registered in more than one register, where each register is situated and copyright, franchises, rights and licences to use any copyright material, patent, trade mark or design are situated in the State if they, or any rights derived from them, are exercisable in the State, and

• (i) a judgment debt is situated where the judgment is recorded.

49 Valuation.

49.—(1) Subject to the following subsections, in this Act “market value”, in relation to any assets, means the price which those assets might reasonably be expected to fetch on a sale in the open market.

• (2) In estimating the market value of any assets no reduction shall be made in the estimate on account of the estimate being made on the assumption that the whole of the assets is to be placed on the market at one and the same time.

• (3) The market value of shares or securities quoted on a stock exchange in the State or in the United Kingdom shall, except where in consequence of special circumstances the prices quoted are by themselves not a proper measure of market value, be as follows—

• (a) in relation to shares or securities listed in the Stock Exchange Official List—Irish—

• (i) the price shown in that list at which bargains in the shares or securities were last recorded (the previous price), or

• (ii) where bargains, other than bargains done at special prices, were recorded in that list for the relevant date, the price at which the bargains were so recorded, or if more than one such price was so recorded, a price halfway between the highest and the lowest of such prices,

taking the amount under subparagraph (i) if less than under subparagraph (ii) or if no such business was recorded on the relevant date, and taking the amount under subparagraph (ii) if less than under subparagraph (i), and

• (b) in relation to shares or securities listed in the Stock Exchange Daily Official List—

• (i) the lower of the two prices shown in the quotations for the shares or securities on the relevant date plus one-quarter of the difference between those two figures, or

• (ii) where bargains, other than bargains done at special prices were recorded in that list for the relevant date, the price at which the bargains were so recorded, or if more than one such price was so recorded, a price halfway between the highest and the lowest of such prices,

taking the amount under subparagraph (i) if less than under subparagraph (ii) or if no such bargains were recorded for the relevant date, and taking the amount under subparagraph (ii) if less than under subparagraph (i):

Provided that—

• (a) where the shares or securities are listed in both of the said Official Lists for the relevant date, the lower of the two amounts as ascertained under paragraph (a) and paragraph (b) shall be taken;

• (b) this subsection shall not apply to shares or securities for which some other stock exchange affords a more active market; and

• (c) if the stock exchange concerned, or one of the stock exchanges concerned, is closed on the relevant date, the market value shall be ascertained by reference to the latest previous date or earliest subsequent date on which it is open, whichever affords the lower market value.

• (4) Where shares and securities are not quoted on a stock exchange at the time at which their market value falls to be determined by virtue of subsection (1), it shall be assumed, for the purposes of such determination, that, in the open market which is postulated for the purposes of the said subsection (1), there is available to any prospective purchaser of the asset in question all the information which a prudent prospective purchaser of the asset might reasonably require if he were proposing to purchase it from a willing vendor by private treaty and at arm's length.

• (5) In this Act “market value”, in relation to any rights of unit holders in any unit trust (including any unit trust legally established outside the State) the buying and selling prices of which are published regularly by the managers of the trust, shall mean an amount equal to the buying price (that is the lower price) so published on the relevant date, or if none were published on that date, on the latest date before.

• (6) If and so far as any appeal against an assessment to capital gains tax or against a decision on a claim under this Act involves the question of the value of any shares or securities in a company resident in the State, other than shares or securities quoted on a stock exchange, that question shall be determined in like manner as an appeal against an assessment made on the company.

• (7) In relation to an asset of a kind the sale of which is subject to restrictions imposed under the Exchange Control Act, 1954, such that part of what is paid by the purchaser is not retainable by the seller, the market value, as arrived at under this section, shall be subject to such adjustment as is appropriate having regard to the difference between the amount payable by a purchaser and the amount receivable by a seller.

50 Extension of certain Acts.

50.—(1) Section 1 of the Provisional Collection of Taxes Act, 1927, is hereby amended by the insertion of “and capital gains tax” before “but no other tax or duty”.

• (2) Section 39 of the Inland Revenue Regulation Act, 1890, is hereby amended by the insertion of “capital gains tax” before “stamp duties”.

51 Supplemental.

51.—(1) Schedule 1 (computation), Schedule 2 (companies and shareholders), Schedule 3 (leases), and Schedule 4 (administration) shall have effect for the purposes of this Act.

• (2) So far as the provisions of this Act as modified by Part II of Schedule 1 require the computation of a gain by reference to events before the 6th day of April, 1974, all those provisions, including Part I of Schedule 1 and Schedules 2 and 3 and the provisions fixing the amount of the consideration deemed to be given on a disposal or an acquisition, shall apply except so far as expressly excluded.

SCHEDULE 1 Computation Rules

PART I

General

Preliminary

1.—(1) No deduction shall be allowable in a computation under this Act more than once from any sum or from more than one sum.