Taxes Consolidation Act, 1997 (Number 39 of 1997)
538 Disposals where assets lost or destroyed or become of negligible value.
[CGTA75 s12(3), (4) and (5)]
(1) Subject to the Capital Gains Tax Acts and in particular to section 540, the occasion of the entire loss, destruction, dissipation or extinction of an asset shall for the purposes of those Acts constitute a disposal of the asset whether or not any capital sum as compensation or otherwise is received in respect of the destruction, dissipation or extinction of the asset.
(2) Where on a claim by the owner of an asset the inspector is satisfied that the value of an asset has become negligible, the inspector may allow the claim, and thereupon the Capital Gains Tax Acts shall apply as if the claimant had sold and immediately reacquired the asset for a consideration of an amount equal to the value specified in the claim.
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(2A) (a) Where as a result of the dissolution of a body corporate, property of the body corporate becomes property of the State by virtue of Part III of the State Property Act, 1954, and the Minister for Finance, in accordance with that Part of that Act, waives the right of the State to that property in favour of a person who holds or has held shares in the body corporate, then, notwithstanding section 31 and subject to paragraph (c), any allowable loss (in this subsection referred to as a “claimed loss”) accruing to the person by virtue of a claim made under subsection (2) in respect of those shares shall not be allowable as a deduction from chargeable gains in any year of assessment earlier than the year of assessment in which the property is disposed of by the person and any necessary adjustments may be made [3]>by way of assessment or additional assessment<[3][3]>by way of assessment or amended assessment<[3] to give effect to this paragraph.
(b) Paragraph (a) shall apply in relation to a body corporate which has no share capital as if references to shares included references to any interest in the body corporate possessed by members of the body corporate.
(c) For the purposes of paragraph (a)—
(i) where in a year of assessment there is a part disposal (within the meaning of section 534) of property, only so much of the claimed loss shall be allowable as a deduction from chargeable gains in that year of assessment as bears to the amount of the claimed loss the same proportion as the market value, when acquired, of the part of the property which is disposed of bears to the market value of the whole of that property when acquired,
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(ii) the year of assessment in which property is disposed of by a person, where the disposal, being a disposal to the husband or wife of the person, is a disposal to which section 1028(5) applies, shall mean the year of assessment in which the property is subsequently disposed of by the person’s wife or husband, as the case may be, where the subsequent disposal is a disposal to which section 1028(5) does not apply.
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(ii) the year of assessment in which property is disposed of by a person—
(I) where the disposal, being a disposal to the husband or wife of the person, is a disposal to which section 1028(5) applies, or
(II) where the disposal, being a disposal to the civil partner of the person, is a disposal to which section 1031M(5) applies,
shall mean the year of assessment in which the property is subsequently disposed of by the person’s wife, husband or civil partner, as the case may be, where the subsequent disposal is a disposal to which section 1028(5) or 1031M(5), as the case may be, does not apply.
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(3) For the purposes of subsections (1) and (2), a building and any permanent or semi-permanent structure in the nature of a building may be regarded as an asset separate from the land on which it is situated; but, where either of those subsections applies in accordance with this subsection, the person deemed to make the disposal of the building shall be treated as if such person had also sold and immediately reacquired the site of the building or structure (including in the site any land occupied for purposes ancillary to the use of the building or structure) for a consideration equal to its market value at that time.