600A Replacement of qualifying premises.

(1) In this section—

“qualifying premises”, in relation to a person, means a building or part of a building, or an interest in a building or a part of a building—

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(a) in which there is not less than 3 residential units,

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(a) in which there is one or more residential units,

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(b) in respect of which the person is entitled to a rent or to receipts from any easement, and

(c) in respect of which all the requirements of the Regulations are complied with;

“Regulations” means—

(i) the Housing (Standards for Rented Houses) Regulations, 1993 (S.I. No. 147 of 1993),

(ii) the Housing (Rent Books) Regulations, 1993 (S.I. No. 146 of 1993), and

(iii) the Housing (Registration of Rented Houses) Regulations, 1996, as amended by the Housing (Registration of Rented Houses) (Amendment) Regulations, 2000 (S.I. No. 12 of 2000);

“replacement premises”, in relation to a person, means a building or part of a building, or an interest in a building or a part of a building—

(a) which the person acquires with the consideration obtained by the person from the disposal of a qualifying premises,

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(b) in which the number of residential units is not less than the number of residential units in the qualifying premises,

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(b) in which the number of residential units is—

(i) not less than 3, and

(ii) not less than the number of residential units in the qualifying premises,

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(c) in respect of which the person is entitled to a rent or to receipts from any easement, and

(d) in respect of which all the requirements of the Regulations are complied with;

“residential unit” means a separately contained part of a residential premises used or suitable for use as a dwelling.

(2) (a) Where the consideration which a person obtains ^[4]>for the disposal of^{<[4] [4]>} for the disposal, before 4 December 2002, of^<[4] a qualifying premises, which was a qualifying premises throughout the period of its ownership by the person, is applied by that person in acquiring a replacement premises, then the person shall, subject to paragraph (b), be treated for the purposes of the Capital Gains Tax Acts as if the chargeable gain accruing on the disposal of the qualifying premises did not accrue until—

(i) that person disposes of the replacement premises, or

(ii) the replacement premises ceases to be a replacement premises.

(b) Where the consideration for the disposal of the replacement premises is applied by a person in acquiring a further replacement premises then, the person shall be treated as if the chargeable gain accruing on the disposal of the qualifying premises did not accrue until that person disposes of the further replacement premises or any other further replacement premises which are acquired in a similar manner, or that further replacement premises or any other further replacement premises which are acquired in a similar manner, cease to be a replacement premises.

(3) Subsection (2) shall not apply if part only of the amount or value of the consideration for the disposal of the qualifying premises is applied as described in that subsection; but if all of the amount or value of the consideration except for a part which is less than the amount of the gain (whether all chargeable or not) accruing on the disposal of the qualifying premises is so applied, then, the person shall on making a claim in that behalf be treated for the purposes of the Capital Gains Tax Acts—

(a) as if the amount of the gain accruing on the disposal of the qualifying premises were reduced to the amount of consideration not applied in the acquisition of the replacement premises (and if not all chargeable gain with a proportionate reduction in the amount of the chargeable gain), and

(b) in respect of the balance of the gain or chargeable gain as if it did not accrue until that person disposes of the replacement premises or the replacement premises ceases to be a replacement premises.

(4) A chargeable gain or the balance of a chargeable gain which under subsection (2) or (3), as may be appropriate, is treated as accruing on a date later than the date of the disposal on which it accrued shall not be so treated for the purposes of section 556.

(5) This section shall apply only if the acquisition of the replacement premises takes place, or an unconditional contract for the acquisition is entered into, in the period beginning 12 months before and ending 3 years after the disposal of the qualifying premises, or at such earlier or later time as the Revenue Commissioners may by notice in writing allow; but, where an unconditional contract for the acquisition is so entered into, this section may be applied on a provisional basis without waiting to ascertain whether the replacement premises is acquired in pursuance of the contract, and when that fact is ascertained all necessary adjustments shall be made by making assessments or by repayment or discharge of tax, and shall be so made notwithstanding any limitation in the Capital Gains Tax Acts on the time within which assessments may be made ^[5]>or any limitation in section 865(4) on the time within which a claim for a repayment of tax is required to be made^<[5].

(6) This section shall not apply if the acquisition of the replacement premises was wholly or partly for the purpose of realising a gain from the disposal of the replacement premises.

(7) Where the qualifying premises was not a qualifying premises throughout the period of ownership of a person making a claim under this section, the section shall apply as if a part of the qualifying premises representing the period for which it was a qualifying premises was a separate asset, and this section shall apply in relation to that part subject to any necessary apportionments of consideration for an acquisition or disposal of the interest in the premises.

(8) Without prejudice to the provisions of the Capital Gains Tax Acts providing generally for apportionments, where consideration is given for the acquisition or disposal of assets some or part of which are assets in relation to which a claim under subsection (2) or (3) applies, and some or part of which are not, the consideration shall be apportioned in such manner as is just and reasonable.