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Taxes Consolidation Act, 1997 (Number 39 of 1997)

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705LTransfer of assets.

(1) Where a company becomes a REIT, the assets of the company before it becomes a REIT shall be deemed, for the purposes of the Capital Gains Tax Acts, to have been—

(a) sold by the company immediately before it becomes a REIT, and

(b) reacquired by the company immediately on becoming a REIT,

and such deemed sale and reacquisition shall be treated as being for a consideration equal to the market value of the assets on the date specified by the company, in accordance with section 705E(3)(a), in a notice under that section.

(2) Where a group becomes a group REIT, the assets of each member of the group before it becomes a group REIT shall be deemed for the purposes of the Capital Gains Tax Acts, to have been—

(a) sold by that member of the group immediately before the group becomes a group REIT, and

(b) reacquired by that member of the group immediately on the group becoming a group REIT,

and such deemed sale and reacquisition shall be treated as being for a consideration equal to the market value of the assets on the date specified by the principal company of the group, in accordance with section 705E(3)(a), in a notice under that section.

(3) Where an asset of a REIT or group REIT[2]>, as the case may be,<[2] which is used for the purposes of the property rental business of the REIT or group REIT, as the case may be, ceases to be used for such purposes and begins to be used for the purposes of the residual business of the REIT or group REIT, as the case may be, the asset shall be deemed for the purposes of the Capital Gains Tax Acts, to have been—

(a) sold by the REIT, or the relevant member of the group REIT, as the case may be, for that property rental business, and

(b) acquired by the REIT, or the relevant member of the group REIT, as the case may be, for that residual business,

at the date on which it ceases to be so used.

(4) The deemed sale and acquisition in subsection (3) shall be treated as being for a consideration equal to the market value of the asset at the date referred to in subsection (3). A gain accruing to the property rental business as a result of subsection (3) shall, notwithstanding the provisions of section 705G, be a chargeable gain for the purposes of the Capital Gains Tax Acts.

(5) Where an asset of a REIT or group REIT[3]>, as the case may be,<[3] which is used for the purposes of the residual business, ceases to be used for such purposes and begins to be used for the purposes of the property rental business, the asset shall be deemed for the purposes of the Capital Gains Tax Acts, to have been—

(a) sold by the REIT, or the relevant member or members of the group REIT, as the case may be, for that residual business, and

(b) acquired by the REIT, or the relevant member or members of the group REIT, as the case may be, for that property rental business,

at the date on which it ceases to be so used, for a consideration equal to the market value of the asset on that date.

<[1]

[1]

[+]

Inserted by FA13 s41(c). Deemed to have come into force and takes effect on and from 1 January 2013.

[2]

[-]

Deleted by F(No.2)A13 s36(c)(i). Comes into operation on 1 January 2014.

[3]

[-]

Deleted by F(No.2)A13 s36(c)(ii). Comes into operation on 1 January 2014.