Link Report

(1) Notwithstanding section 78(2) a pre-entry loss that accrued to a company on a disposal before the company became a member of the relevant group shall only be deductible from a chargeable gain accruing to the company where the gain is one accruing—

(2) Notwithstanding section 78(2) the pre-entry proportion of an allowable loss accruing to a company on the disposal of a pre-entry asset shall only be deductible from a chargeable gain accruing to the company where—

R is the rate of corporation tax for the accounting period concerned and to which section 21 relates, but where part of the accounting period falls in one financial year and the other part falls in the financial year succeeding the first-mentioned financial year, R shall be determined by applying the formula specified in section 78(3)(b), and

F is the amount (in this subsection referred to as “the notional amount”) of capital gains tax which apart from subsection (6) would in accordance with section 78(2) be calculated in relation to the company for the accounting period in respect of all chargeable gains including the referable gains or, if it is less, the amount of corporation tax which apart from subsection (6) would be assessable on the company for the accounting period;

(6) Where section 78(8) or 537(2) applies in respect of the disposal (not being a relevant disposal) of an asset in an accounting period of a company by an accountable person, then, notwithstanding any provision of the Corporation Tax Acts—

(ii) the amount to be taken into account in respect of the relevant gain in computing in accordance with section 78 the company’s chargeable gains, for the accounting period in which the relevant gain arises, shall be that gross amount, and

(i) the definition of “chargeable gains” in section 78(4), and

(2) In the computation of the amount on which under section 31 capital gains tax is to be charged on chargeable gains accruing on relevant disposals, any allowable losses accruing on relevant disposals may be deducted in accordance with that section but, in so far as they are so deducted, they shall not be treated as relevant allowable losses within the meaning of section 78(4) for the purposes of the calculation required to be made under section 78(2), and for the purposes of this subsection any necessary assessments or additional assessments, as may be appropriate, may be made any necessary assessments may, as appropriate, be made or amended.

(2) In the computation of the amount on which under section 31 capital gains tax is to be charged on chargeable gains accruing on relevant disposals, any allowable losses accruing on relevant disposals may be deducted in accordance with that section but, in so far as they are so deducted, they shall not be treated as relevant allowable losses within the meaning of section 78(4) for the purposes of the calculation required to be made under section 78(2), and for the purposes of this subsection any necessary assessments or additional assessments, as may be appropriate, may be made any necessary assessments may, as appropriate, be made or amended.

(4) A tonnage tax election shall not affect the deduction under section 31 as applied by section 78(2) of relevant allowable losses (within the meaning of section 78) that accrued to a company before it became a tonnage tax company.

(4) A tonnage tax election shall not affect the deduction under section 31 as applied by section 78(2) of relevant allowable losses (within the meaning of section 78) that accrued to a company before it became a tonnage tax company.

(c) the amount of capital gains tax computed for the purposes of section 78(2), otherwise than in respect of the special investment fund, is the amount so computed as if, notwithstanding section 28(3), the rate of capital gains tax were—

then, the company shall be entitled as against the person receiving the benefits to retain out of the benefits a part of the benefits not exceeding in amount or value corporation tax at the full rate in respect of the chargeable gain referred to in paragraph (b) computed without regard to any amount retained under this subsection and reduced in accordance with section 78(1).

(b) Where the average of branch liabilities for an accounting period exceeds the mean value for the accounting period of the assets to which this subsection applies, the amount to be included in profits under section 78(1) shall be an amount determined by the formula—

(a) where the total amount of chargeable gains accruing to the company for the accounting period derives from the disposal of qualifying units, the amount which apart from this section would be included in respect of chargeable gains in the company’s total profits for the accounting period under section 78(1) shall be reduced by 50 per cent,

the amount which apart from this section would be included in respect of chargeable gains in the company’s total profits for the accounting period under section 78(1) shall be reduced by such amount as bears to the amount to be so included the same proportion as one-half of the amount referred to in subparagraph (i) bears to the total of the amounts referred to in subparagraphs (i) and (ii).

(c) In computing profits for the purposes of paragraph (b), section 78(2) shall apply as if the rate per cent of capital gains tax specified in section 28(3), were the rate per cent of corporation tax specified in section 21(1)(b) the rate per cent of corporation tax specified in section 21(1).

(ii) the amount to be taken into account in respect of the chargeable gain in computing in accordance with section 78 the company’s chargeable gains for the accounting period in which the company disposes of the units shall be the gross amount of the chargeable gain, and

(3) (a) Notwithstanding section 78, for the purposes of corporation tax, where any gain or loss arises to a company in respect of—

(4) Notwithstanding section 78, so much of the amount of any gain or loss arising to a company which carries on a trade in the State in an accounting period as—

(c) the capital gains tax that would, in accordance with section 78 or otherwise, be charged on that part of the corresponding chargeable profits in the State for the accounting period which would consist of chargeable gains,