579ETrustees ceasing to be liable to Irish tax.

(1)This section shall apply where the trustees of a settlement, while continuing to be resident and ordinarily resident in the State, become at any time (in this section referred to as “the time concerned”) on or after the 11th day of February, 1999, trustees who fall to be regarded for the purposes of any arrangements—

(a)as resident in a territory outside the State, and

(b)as not liable in the State to tax on gains accruing on disposals of assets (in this section referred to as “relevant assets”) which constitute settled property of the settlement and fall within descriptions specified in the arrangements.

(2)The trustees shall be deemed for all the purposes of the Capital Gains Tax Acts—

(a)to have disposed of their relevant assets immediately before the time concerned, and

(b)immediately to have reacquired them,

at their market value at that time.

(3)Notwithstanding anything in that section—

(a)section 597 shall not apply where—

(i)the new assets are, or an interest in them is, acquired by the trustees of a settlement,

(ii)at the time of the acquisition the trustees are resident and ordinarily resident in the State and fall to be regarded for the purposes of any arrangements as resident in a territory outside the State,

(iii)the assets are of a description specified in those arrangements, and

(iv)the trustees would, were they to dispose of the assets immediately after the acquisition, fall to be regarded for the purposes of the arrangements as not being liable in the State to tax on gains accruing to them on the disposal,

and

(b)where under section 597 a chargeable gain accruing on a disposal of the old assets is treated as not accruing until a time later (being the time that the new assets cease to be used for the purposes of a trade or other purposes as set out in subsection (2) of that section) than the time of the disposal, and but for this paragraph, the latter time would fall after the time concerned, the chargeable gain shall be treated as accruing immediately before the time concerned, if—

(i)the new assets are of a description specified in any arrangements, and

(ii)the trustees would, were they to dispose of the new assets immediately after the time concerned, fall to be regarded for the purposes of those arrangements as not being liable in the State to tax on gains accruing to them on the disposal.