Link Report

(2) Part 2 of the Act of 1997 is amended by substituting the following for subsections (8) and (9) of section 29:

The situation of assets specified in this section shall, except where otherwise provided by section 29, be determined for the purposes of the Capital Gains Tax Acts in accordance with the following provisions:

(4) A loss accruing to a person in a year of assessment for which the person is neither resident nor ordinarily resident in the State shall not be an allowable loss for the purposes of the Capital Gains Tax Acts unless under section 29(3) the person would be chargeable to capital gains tax in respect of a chargeable gain if there had been a gain instead of a loss on that occasion.

(ii) the person is not chargeable to capital gains tax under section 29 or 30 in respect of any gain accruing on the person’s disposal of the asset,

(c) a chargeable gain in respect of which the company is chargeable to capital gains tax by virtue of section 29 or to corporation tax by virtue of section 25(2)(b).

(i) where at the time of the acquisition of the asset by the company the asset consisted of shares deriving their value or the greater part of their value from assets specified in paragraph (a) or (b) of section 29(3), by virtue of the assets ceasing to so derive their value or the greater part of their value, or

(d) to a disposal of shares deriving their value or the greater part of this value directly or indirectly from assets specified in paragraphs (a) and (b) of section 29(3). section 29(3) paragraphs (a) and (b) of subsection (3) of section 29 and subsection (6) of that section ,

(b) For the purposes of subsection (2), paragraph (c) of section 29(3) shall apply as if the reference in that paragraph to a trade were to a business and as if the references to a branch or agency were to a permanent establishment.

(3)(a) In this subsection "relevant assets" has the same meaning as in section 29(1A)(a).

(ii) assets referred to in section 29(3)(d).

(c)Section 29(1A)(c) shall apply in calculating the portion of the value of shares attributable directly or indirectly to relevant assets.

(ii) “the assets to which this subsection applies” are assets the gains from the disposal of which are chargeable to corporation tax by virtue of subsections (3) and (6) of section 29 together with assets the gains from the disposal of which would be so chargeable but for sections 551(, 607) and 613.

(5) Section 29(3) shall not apply to the disposal of an asset which derives its value, or the greater part of its value, directly or indirectly from units in an IREF.

(2) Subject to subsection (3), sections 25(2)(b), 29 and 30 shall apply in relation to income tax or corporation tax in respect of offshore income gains as they apply in relation to capital gains tax or corporation tax in respect of chargeable gains.

(3) In the application of sections 29 and 30 in accordance with subsection (2), section 29(3)(c) shall apply with the deletion of “situated in the State”.

(3) In the application of sections 29 and 30 in accordance with subsection (2), section 29(3)(c) shall apply with the deletion of “situated in the State”.

(4) In the case of individuals resident or ordinarily resident but not domiciled in the State, subsections (4) and (5) of section 29 shall apply in relation to income tax chargeable by virtue of subsection (1) on an offshore income gain as they apply in relation to capital gains tax in respect of gains accruing to such individuals from the disposal of assets situated outside the State.