Taxes Consolidation Act, 1997 (Number 39 of 1997)
599 Disposals within family of business or farm.
[CGTA75 s27; CGT(A)A78 s8; FA90 s85; FA95 s72; FA96 s132(2) and Sch5 Pt II]
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(1)(a) In this section, “child”, in relation to a disposal, includes a nephew or a niece who has worked substantially on a full-time basis for the period of 5 years ending with the disposal in carrying on, or assisting in the carrying on of, the trade, business or profession concerned or the work of, or connected with, the office or employment concerned.
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(1)(a) In this section “child”, in relation to a disposal for which relief is claimed under this section, includes—
(i) a nephew or a niece who has worked substantially on a full-time basis, for the period of 5 years ending with the disposal, in carrying on, or assisting in the carrying on of, the trade, business or profession concerned or the work of, or connected with, the office or employment concerned, and
(ii) an individual (in this paragraph referred to as “the first-mentioned individual”) who resided with, was under the care of and was maintained at the expense of the individual making the disposal throughout—
(I) a period of 5 years, or
(II) periods which together comprised at least 5 years,
before the first-mentioned individual attained the age of 18 years but only if such claim is not based on the uncorroborated testimony of one witness.
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(1) (a) In this section “child”, in relation to a disposal for which relief is claimed under this section, includes—
(i) a child of a deceased child,
(ii) a nephew or a niece who has worked substantially on a full-time basis, for the period of 5 years ending with the disposal, in carrying on, or assisting in the carrying on of, the trade, business or profession concerned or the work of, or connected with, the office or employment concerned, and
(iii) an individual (in this [7]>paragraph<[7][7]>subparagraph<[7] referred to as “the first-mentioned individual”) who resided with, was under the care of and was maintained at the expense of the individual making the disposal throughout—
(I) a period of 5 years, or
(II) periods which together comprised at least 5 years,
before the first-mentioned individual attained the age of 18 years but only if such claim is not based on the uncorroborated testimony of one witness.
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(b) Subject to this section, where an individual who has attained the age of 55 years disposes of the whole or part of his or her qualifying assets to his or her child, relief shall be given in respect of the capital gains tax chargeable on any gain accruing on the disposal.
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(b) Subject to this section—
(i) where an individual who has attained the age of 55 years but has not attained the age of 66 years disposes of the whole or part of his or her qualifying assets to his or her child, relief shall be given in respect of the capital gains tax chargeable on any gain accruing on the disposal;
(ii) where an individual who has attained the age of 66 years disposes of the whole or part of his or her qualifying assets to his or her child on or before 31 December 2013, relief shall be given in respect of the capital gains tax chargeable on any gain accruing on the disposal;
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(iia) where an individual who has attained the age of 66 years disposes of the whole or part of his or her qualifying assets to his or her child on or after 1 January 2014 and the market value of the qualifying assets is €3,000,000 or less, relief shall be given in respect of the capital gains tax chargeable on any gain accruing on the disposal;
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(iii) where an individual who has attained the age of 66 years disposes of the whole or part of his or her qualifying assets to his or her child on or after 1 January 2014 and the market value of the qualifying assets is greater than €3,000,000, relief shall be given in respect of the capital gains tax chargeable on any gain accruing on the disposal as if the consideration for the disposal had been €3,000,000.
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(c) For the purposes of paragraph (b), the capital gains tax chargeable in respect of the gain shall be the amount of tax which would not have been chargeable but for that gain.
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(c) For the purposes of paragraph (b), the capital gains tax chargeable in respect of the gain shall be the amount of tax which would not have been chargeable but for that gain, but nothing in that paragraph shall affect the computation of gains accruing on the disposal of assets other than qualifying assets by an individual who makes a disposal to which that paragraph applies.
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(d) Where the qualifying asset is land used for the purposes of farming and the consideration for its disposal consists in whole or in part of other such land, a gain shall not be treated as arising on the disposal of that other land by the child concerned but that other land shall be treated for the purposes of the Capital Gains Tax Acts as having been acquired by the individual at the same time and for the same value and used by the individual for the same purposes as it was originally acquired and used by the child concerned.
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(2) Nothing in this section shall affect the computation of gains accruing on the disposal of assets other than qualifying assets by an individual who makes a disposal within subsection (1).
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(2) The consideration on the disposal of qualifying assets by the individual referred to in subparagraph (iii) of subsection (1)(b) on or after 1 January 2014 shall be aggregated for the purposes of that subparagraph.
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(3) Section 598(4) shall apply to a disposal within subsection (1) as it applies to a disposal within section 598(2).
(4)(a) Where assets comprised in a disposal to a child in respect of which relief has been granted under this section are, within 6 years of the disposal by the individual concerned, disposed of by the child, the capital gains tax which if subsection (1) had not applied would have been charged on the individual on his or her disposal of those assets to the child shall be assessed and charged on the child, in addition to any capital gains tax chargeable in respect of the gain accruing to the child on the child’s disposal of those assets.
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(b) An assessment to give effect to this subsection shall not be out of time if made within [1]>10 years<[1][1]>4 years<[1] after the end of the year of assessment in which the assets are disposed of by the child.
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(5) [12]>The consideration<[12][12]>Subject to subsection (7), the consideration<[12] on a disposal within subsection (1) shall not be taken into account for the purposes of aggregation under section 598(3).
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(6) Relief under this section may be claimed, if all other conditions of this section have been met, where a disposal is made to—
(a) a child of the civil partner of the individual,
(b) a child of a deceased child of the civil partner of the individual,
(c) a child of the civil partner of a deceased child of the individual, or
(d) a child of the civil partner of a deceased child of the civil partner of the individual.
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(7) Where there is—
(a) a disposal of shares or securities of a family company by an individual referred to in subparagraph (iia) or (iii) of subsection (1) (b) to his or her child, and
(b) a disposal of shares or securities of the family company by the individual to a company controlled by that child,
the consideration for the disposals referred to in paragraphs (a) and (b) shall be aggregated for the purpose of section 598(3).
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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.
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Substituted by FA06 s71(1). This section applies to disposals made on or after the date of 31 March 2006
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Substituted by FA07 s52(1)(b)(i). Applies as respects disposals made on or after the date of 2 April 2007
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Inserted by FA07 s52(1)(b)(ii). Applies as respects disposals made on or after the date of 2 April 2007
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Substituted by FA12 s60. Deemed to have come into force and takes effect on and from 1 January 2012.
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Substituted by FA13 s47(a). Deemed to have come into force and takes effect on and from 1 January 2013.
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Inserted by FA13 s47(b). Deemed to have come into force and takes effect on and from 1 January 2013.
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Substituted by FA13 s47(c). Deemed to have come into force and takes effect on and from 1 January 2013.
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Substituted by FA13 s47(d). Deemed to have come into force and takes effect on and from 1 January 2013.
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Deleted by FA14 s45(1)(b). Applies to disposals giving rise to a clawback of relief under section 598, 599 or 611 where such disposals are made on or after 23 December 2014.