Revenue Note for Guidance

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Revenue Note for Guidance

613A Supplementary provisions

Summary

This section addresses the amount of chargeable gains which can accrue to a person in respect of a disposal of an interest in certain settlements covered by section 613.

Details

(1) Subsection (2) applies where —

  • a trust has migrated offshore such that a chargeable gain accrues to its trustees under section 579B;
  • after the time of migration a person disposes of his or her interest in the settlement and there is no exemption from tax for such disposal; and
  • the interest disposed of was created for the benefit of the person making the disposal or that person otherwise acquired it before the migration.

(2) In such a situation the chargeable gain accruing to the person is calculated as if the person had disposed of and immediately reacquired the interest in the settlement immediately before the time of migration.

(3) Subsection (2) does not apply where the trustees had fallen out of charge to Irish capital gains tax by virtue of a double taxation agreement prior to the person who is disposing of an interest in the settlement acquiring that interest.

(4) & (5) Subsection (6) applies where —

  • section 579B applies as regards the trustees of a settlement which migrates;
  • after the time of migration a person disposes of an interest in the settlement and no capital gains tax exemption applies to that disposal;
  • the interest being disposed of was created or otherwise acquired by the person before the migration; and
  • the trustee fell out of charge to Irish capital gains tax by virtue of a double taxation relief agreement during the relevant period i.e. the period beginning with the creation or acquisition of the interest and ending with the time of migration.

(6) & (7) In such a situation the chargeable gain accruing on the disposal of the interest in the settlement is calculated as if it was disposed of and reacquired at market value immediately before the time that the trustees fell out of charge to Irish capital gains tax or if there is more than one such time, the earliest of those times.

(8) Where subsection (2) has application, subsection (6) does not apply.

Relevant Date: Finance Act 2019