Readers will be aware of our coverage of a measure introduced in Finance Act 2017 to amend section 135 of the Taxes Consolidation Act (TCA) 1997 which deems the proceeds of certain share disposals involving two companies to be subject to income tax rather than capital gains tax rules thus disrupting many MBO arrangements. Revenue issued guidance on the new anti-avoidance measures which have been introduced into section 135 TCA 1997.

The guidance contains examples of where the new measures would apply. We have been communicating members concerns, particularly with regard to MBOs and the need for additional examples in the guidance to Revenue.

The Tax and Duty Manual can be found on the Revenue website.