Taxes Consolidation Act, 1997 (Number 39 of 1997)
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248A Restriction of relief in respect of loans applied in acquiring interest in companies and partnerships.
(1) In this section—
“chargeable period” has the same meaning as in section 321(2);
“premises” and “rented residential premises” have the same meanings, respectively, as in section 96.
(2) Where—
(a) a loan, being a loan to which section 247, 248 or 253 applies, is applied on or after the 7th day of May, 1998, to defray money for any of the purposes specified in those sections, and
(b) the money so defrayed is used, in whole or in part, directly or indirectly—
(i) in the purchase, improvement or repair of a premises, or
(ii) in paying off a loan used in the purchase, improvement or repair of a premises,
then, the relief to be given for a chargeable period under those sections in respect of that loan shall, for any chargeable period in which the premises is at any time a rented residential premises, be reduced by the interest attributable to so much of the money used for the purposes specified in subparagraphs (i) and (ii) of paragraph (b).
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(3) This section shall not apply or have effect in relation to interest referred to in subsection (2) which accrues on or after 1 January 2002 and, for the purposes of this subsection, such interest shall be treated as accruing from day to day.
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(4) Notwithstanding subsection (3), subsection (2) shall apply in relation to interest referred to in subsection (2) where the purpose of the loan is the purchase of a residential premises from the [4]>spouse<[4][4]>spouse or civil partner<[4] of the individual to whom relief is given under section 248 or 253.
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(5) The reference to “spouse” in subsection (4) does not include a spouse to a marriage—
(a) in which the spouses are separated under an order of a court of competent jurisdiction or by deed of separation, or
(b) that has been dissolved under either—
(i) section 5 of the Family Law (Divorce) Act 1996, or
(ii) the law of a country or jurisdiction other than the State, being a divorce that is entitled to be recognised as valid in the State.
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(5) The reference to ‘spouse or civil partner’ in subsection (4) does not include—
(a) a spouse to a marriage—
(i) in which the spouses are separated under an order of a court of competent jurisdiction or by deed of separation, or
(ii) that has been dissolved under either—
(I) section 5 of the Family Law (Divorce) Act 1996, or
(II) the law of a country or jurisdiction other than the State, being a divorce that is entitled to be recognised as valid in the State,
or
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(b) a civil partner in a civil partnership that has been dissolved under either—
(i) section 110 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010, or
(ii) the law of a country or jurisdiction other than the State, being a dissolution that is entitled to be recognised as valid in the State.
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(b) a civil partner in a civil partnership—
(i) in which the civil partners are separated by a deed of separation, agreement, arrangement or any other act giving rise to a legally enforceable obligation and made or done in consideration or in consequence of living separately in the circumstances referred to in section 1031A(2), or
(ii) that has been dissolved under section 110 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 or deemed to have been so dissolved under section 5(4) of that Act.
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Inserted by FA03 s16(1)(b). Applies and has effect in relation to interest referred to in sections 97(2G) and 248A(2) which accrues on or after 6 February 2003 and, for the purposes of this subsection, such interest shall be treated as accruing from day to day.