45 Exemption of non-interest-bearing securities

Summary

The excess of the amount over the issue price which is received on the redemption of non-interest-bearing securities issued by the Minister for Finance under section 4 of the Central Fund Act, 1965 is exempt from tax, except where the excess is taken into account in computing the profits of a trade. The exemption does not apply to issues after 24 January, 1984 of non-interest-bearing Government securities issued at a discount or Agricultural Commodities Intervention Bills. However, where the owner of such securities is not resident in the State, any profits resulting from the sale, disposal or redemption of such securities are exempt from tax; but this latter exemption does not apply in respect of corporation tax chargeable on the income of an Irish branch or agency of a non-resident company.

Details

(1) A premium payable on the redemption of non-interest-bearing securities issued by the Minister for Finance under section 4 of the Central Fund Act, 1965 is exempt from tax, except where the premium is taken into account in computing the profits of a trade.

(2) & (3) The exemption provided for by subsection (1) does not apply to non-interest-bearing securities issued by the Minister for Finance at a discount (including Exchequer Bills and Exchequer Notes), and Agricultural Commodities Intervention Bills issued by the Minister for Agriculture and Food, after 25 January, 1984, unless a tender for such securities was submitted on or before that date.

(4) Where the owner (that is, the person at any time entitled to the proceeds on redemption of the securities if the issuer were to redeem them at that time) of such securities or Bills is not resident in the State, any profits resulting from the sale, disposal or redemption of such securities or Bills are exempt from tax; but this exemption does not apply in respect of corporation tax chargeable on the income of an Irish branch or agency of a non-resident company.

Up to 3 February 2010, this exemption also applied where the security was held in the beneficial ownership of a person or persons who were not ordinarily resident in the State.

Relevant Date: Finance Act 2019