Taxes Consolidation Act, 1997 (Number 39 of 1997)
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504 Assessments for withdrawing relief.
[FA84 s23; FA93 s25(i)(i); FA95 s17(1)(i)]
(1) Where any relief has been given which is subsequently found not to have been due, that relief shall be withdrawn by the making of an assessment to income tax under Case IV of Schedule D for the year of assessment for which the relief was given.
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(2) Where any relief given in respect of shares for which either a married person or his or her spouse has subscribed, and which were issued while the married person was assessed in accordance with section 1017, is to be withdrawn by virtue of a subsequent disposal of those shares by the person who subscribed for them and at the time of the disposal the married person is not so assessable, any assessment for withdrawing that relief shall be made on the person making the disposal and shall be made by reference to the reduction of tax flowing from the amount of the relief regardless of any allocation of that reduction under subsections (2) and (3) of section 1024 or of any allocation of a repayment of income tax under section 1020.
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(2) (a) Where any relief given in respect of shares for which either a married person or his or her spouse has subscribed, and which were issued while the married person was assessed in accordance with section 1017, is to be withdrawn by virtue of a subsequent disposal of those shares by the person who subscribed for them and at the time of the disposal the married person is not so assessable, any assessment for withdrawing that relief shall be made on the person making the disposal and shall be made by reference to the reduction of tax flowing from the amount of the relief regardless of any allocation of that reduction under subsections (2) and (3) of section 1024 or of any allocation of a repayment of income tax under section 1020.
(b) Where any relief given in respect of shares for which either a civil partner or his or her civil partner has subscribed, and which were issued while the civil partner was assessed in accordance with section 1031C, is to be withdrawn by virtue of a subsequent disposal of those shares by the person who subscribed for them and at the time of the disposal the civil partner is not so assessable, any assessment for withdrawing that relief shall be made on the person making the disposal and shall be made by reference to the reduction of tax flowing from the amount of the relief regardless of any allocation of that reduction under subsections (2) and (3) of section 1031I or of any allocation of a repayment of income tax under section 1031E.
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(3) Subject to this section, any assessment for withdrawing relief which is made by reason of an event occurring after the date of the claim may be made within [2]>10 years<[2][2]>4 years<[2] after the end of the year of assessment in which that event occurs.
(4) No assessment for withdrawing relief in respect of shares issued to any person shall be made by reason of any event occurring after his or her death.
(5) Where a person has, by a disposal or disposals to which section 498(1)(b) applies, disposed of all the ordinary shares issued to the person by a company, no assessment for withdrawing relief in respect of any of those shares shall be made by reason of any subsequent event unless it occurs at a time when the person is connected with the company within the meaning of section 493.
(6) Subsection (3) is without prejudice to section 924(2)(c).
(7) In its application to an assessment made by virtue of this section, section 1080 shall apply as if the date on which the income tax charged by the assessment becomes due and payable were—
(a) in the case of relief withdrawn by virtue of section 493, 495, 496, [1]>498<[1][1]>500<[1] or 501(1) in consequence of any event after the grant of the relief, the date of that event;
(b) in the case of relief withdrawn by virtue of section 498(1) in consequence of a disposal after the grant of the relief, the date of the disposal;
(c) in the case of relief withdrawn by virtue of section 499 in consequence of a receipt of value after the grant of the relief, the date of the receipt;
(d) in the case of relief withdrawn by virtue of section 502—
(i) in so far as effect has been given to the relief in accordance with regulations under section 986, the 5th day of April in the year of assessment in which effect was so given, and
(ii) in so far as effect has not been so given, the date on which the relief was granted;
(e) in the case of relief withdrawn by virtue of—
(i) a specified individual failing or ceasing to hold a relevant employment, or
(ii) an individual ceasing to be a specified individual,
the date of the failure or the cessation, as the case may be.
(8) For the purposes of subsection (7), the date on which the relief shall be granted is the date on which a repayment of tax for giving effect to the relief was made or, if there was no such repayment, the date on which the inspector issued a notice to the claimant showing the amount of tax payable after giving effect to the relief.
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504 Capital gains tax.
(1) The sums allowable as deductions from the consideration in the computation for the purposes of capital gains tax of the gain or loss accruing to an individual on the disposal of shares in respect of which any relief has been given and not withdrawn shall be determined without regard to that relief, except that where those sums exceed the consideration they shall be reduced by an amount equal to the lesser of—
(a) the amount of that relief, and
(b) the excess,
but this subsection does not apply to a disposal to which [4]>section 1028(5)<[4][4]>section 1028(5) or 1031M(5)<[4] relates.
(2) In relation to shares in respect of which relief has been given and not withdrawn, any question—
(a) as to which of any such shares issued to a person at different times a disposal relates, or
(b) whether a disposal relates to such shares or to other shares,
shall for the purposes of capital gains tax be determined as for the purposes of section 496.
(3) Where an individual holds ordinary shares in a company and the relief has been given in respect of some of the shares but not others, then, if there is a reorganisation (within the meaning of section 584) affecting those shares, section 584(3) shall apply separately to the shares in respect of which the relief has been given and to the other shares (so that the shares of each kind shall be treated as a separate holding of original shares and identified with a separate new holding).
(4) There shall be made all such adjustments of capital gains tax, whether by means of assessment or by means of discharge or repayment of tax, as may be required in consequence of the relief being given or withdrawn.
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Chapter 5
Start-up relief for entrepreneurs (SURE)
504. Interpretation (Chapter 5)
In this Chapter—
““employment period”” means, as respects a relevant employment, the period beginning on the date on which the shares are issued or, if later, the date on which the employment commences and ending 12 months after that date;
“‘full-time employee’ and ‘‘full-time director’’ in relation to a company, mean an employee or director, as the case may be, who is required to devote substantially the whole of his or her time to the service of the company;
““relevant employment””, in relation to a specified individual, means employment throughout the employment period by the company in which the specified individual makes a relevant investment (being that individual’s first such investment in that company) and where the specified individual is a full-time employee or full-time director of the company;
““relevant investment””, in relation to a specified individual, means the amount or the aggregate of the amounts of the qualifying investments made in a year of assessment by the specified individual for eligible shares in a qualifying company;
““specified individual”” has the meaning assigned to it by section 505;
““specified period”” means, as respects a specified individual, the period beginning on the date on which the shares are issued and ending either one year after that date or, where the company was not at that date carrying on relevant trading activities, one year after the date on which it subsequently began to carry on such activities.
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Substituted by FA03 s17(1)(f). Applies with effect from the day appointed by the Minister for Finance in accordance with different provisions. With effect from 1 January 2005 per SI 508 of 2003.
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Substituted by FA11 s33(1)(a). Has effect in respect of shares issued on or after 25 November 2011. Note: FA 12 s26 (2) amends FA 11 s33 and provides: (b) This section does not have effect in respect of shares issued before 25 November 2011 and, for all the purposes of Part 16 in connection with those shares, the Principal Act has effect as if this section had not been enacted. (c) This section does not have effect in respect of shares issued on or after 25 November 2011 and on or before 31 December 2011 where— (i) the company issuing the shares, or (ii) where the shares are acquired by an investment fund, the fund acquiring the shares, elects by notice in writing to the Revenue Commissioners on or before 31 December 2011 that, for all the purposes of Part 16 in connection with those shares, the Principal Act has effect as if this section had not been enacted.