739B Interpretation and application.

(1) ^[31]>In this Chapter and in Schedule 2B^<[31][31]>In this Chapter, in Chapter 1B and in Schedules 2B and 2C^<[31]—

“the Acts” means the Tax Acts and the Capital Gains Tax Acts;

“approved minimum retirement fund” has the meaning assigned to it in section 784C;

“approved retirement fund” has the meaning assigned to it in section 784A;

“chargeable event”, in relation to an investment undertaking in respect of a unit holder, means—

(a) the making of a relevant payment by the investment undertaking,

(b) the making of any other payment by the investment undertaking to a person, by virtue of that person being a unit holder (whether or not in respect of the cancellation, redemption or repurchase of a unit) ^[2]>other than a payment made on the death of a unit holder^<[2],

(c) the transfer by a unit holder, by way of sale or otherwise ^[3]>(other than as a result of the death of the unit holder)^<[3], of entitlement to a unit in the investment undertaking^[10]>, and^<[10]

^[11]>

(cc) the appropriation or cancellation of units of a unit holder by an investment undertaking for the purposes of meeting the amount of appropriate tax payable on any gain arising by virtue of paragraph (c), ^[14]>and^<[14]

^<[11]

^[15]>

(ccc) the ending of a relevant period, ^[21]>where such ending is not otherwise a chargeable event within the meaning of this section,^<[21] and for the purposes of this paragraph “relevant period”, in relation to a unit in an investment undertaking, means a period of 8 years beginning with the acquisition of that unit by a unit holder and each subsequent period of 8 years beginning immediately after the preceding relevant period, and

^<[15]

(d) a chargeable event shall be deemed to happen on 31 December 2000 in respect of all unit holders (if any) at that date in relation to an investment undertaking—

(i) which commenced on or after 1 April 2000, or

(ii) which was on 31 March 2000 a specified collective investment undertaking,

but does not include—

^[4]>

(A) any exchange of units in a sub-fund of an investment undertaking which is an umbrella scheme, for units in another sub-fund of that investment undertaking, and

(B) any transaction in relation to, or in respect of, units which are held in a recognised clearing system;

^<[4]

^[4]>

(I) any exchange by a unit holder, effected by way of a bargain made at arm’s length by an investment undertaking which is an umbrella scheme, of units in a sub-fund of the investment undertaking, for units in another sub-fund of the investment undertaking,

(II) any exchange by a unit holder, effected by way of a bargain made at arm’s length by an investment undertaking, of units in the investment undertaking for other units in the investment undertaking,

^[12]>

(IIa) any transaction in relation to, or in respect of, relevant units (within the meaning of subsection (2A)(a)) in an investment undertaking which transaction arises only by virtue of a change of court funds manager for that undertaking,

^<[12]

(III) any transaction in relation to, or in respect of, units which are held in a recognised clearing system, and

(IV) the transfer by a unit holder of entitlement to a unit where the transfer is—

(A) ^[23]>between a husband and wife^<[23][23]>between a husband and wife or between civil partners^<[23],

(B) between the spouses or former spouses concerned (as the case may be), by virtue or in consequence of an order made under Part III of the Family Law (Divorce) Act, 1996, on or following the granting of a decree of divorce,

^[24]>

(BA) between the civil partners or former civil partners concerned (as the case may be), by virtue of or in consequence of an order made under Part 12 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010, on or following the granting of a decree of dissolution,

^<[24]

^[25]>

(C) between the spouses concerned, by virtue or in consequence of an order made under Part II of the Family Law Act, 1995, on or following the granting of a decree of judicial separation within the meaning of that Act, or

(D) between the spouses or former spouses concerned (as the case may be), by virtue of an order or other determination of like effect, which is analogous to an order referred to in subparagraph (B) or (C), of a court under the law of a territory other than the State made under or in consequence of the dissolution of a marriage or the legal separation of the spouses, being a dissolution or legal separation that is entitled to be recognised as valid in the State,

^<[25]

^[25]>

(C) between the spouses concerned, by virtue or in consequence of an order made under Part II of the Family Law Act 1995, on or following the granting of a decree of judicial separation within the meaning of that Act,

(D) between the spouses or former spouses concerned (as the case may be), by virtue of an order or other determination of like effect, which is analogous to an order referred to in subparagraph (B) or (C), of a court under the law of a territory other than the State made under or in consequence of the dissolution of a marriage or the legal separation of the spouses, being a dissolution or legal separation that is entitled to be recognised as valid in the State, or

(DA) between the civil partners or former civil partners concerned (as the case may be), by virtue of an order or other determination of like effect, which is analogous to an order referred to in subparagraph (BA), of a court under the law of a territory other than the State made under or in consequence of the dissolution of a civil partnership, being a dissolution that is entitled to be recognised as valid in the State,

^<[25]

but on the happening of a chargeable event following such a transfer, the then unit holder shall be treated as having acquired the unit transferred at the same cost as the person who transferred the unit;

^<[4]

“collective investor”, in relation to an authorised investment company (within the meaning of ^[32]>Part XIII of the Companies Act, 1990^<[32][32]>Part 24 of the Companies Act 2014^<[32]), means an investor, being a life assurance company, pension fund or other investor—

(a) who invests in securities or any other property whatever with moneys contributed by 50 or more persons—

(i) none of whom has at any time directly or indirectly contributed more than 5 per cent of such moneys, and

(ii) each of a majority of whom has contributed moneys to the investor with the intention of being entitled, otherwise than on death of any person or by reference to a risk of any kind to any person or property, to receive from the investor—

(I) a payment which, or

(II) payments the aggregate of which,

exceeds those moneys by a part of the profits or income arising to the investor,

and

(b) who invests in the authorised investment company primarily for the benefit of those persons;

^[13]>

“court funds manager” means a person appointed by the Service to set up and administer an investment undertaking with money under the control or subject to the order of any Court;

^<[13]

^[16]>

“credit union” has the meaning assigned to it in section 2 of the Credit Union Act 1997;

^<[16]

“distribution” has the same meaning as in the Corporation Tax Acts;

“intermediary” means a person who—

(a) carries on a business which consists of, or includes, the receipt of payments from an investment undertaking on behalf of other persons, or

(b) holds units in an investment undertaking on behalf of other persons;

“investment undertaking” means—

(a) a unit trust scheme, other than—

(i) a unit trust mentioned in section 731(5)(a), or

(ii) a special investment scheme,

which is or is deemed to be an authorised unit trust scheme (within the meaning of the Unit Trusts Act, 1990) and has not had its authorisation under that Act revoked,

(b) any other undertaking which is an undertaking for collective investment in transferable securities within the meaning of the relevant Regulations, being an undertaking which holds an authorisation, which has not been revoked, issued pursuant to the relevant Regulations, ^[29]>[26]>and^<[26]<[29]

(c) any authorised investment company (within the meaning of ^[33]>Part XIII of the Companies Act, 1990^<[33][33]>Part 24 of the Companies Act 2014^<[33])—

(i) which has not had its authorisation under that Part of that Act revoked, and

(ii) (I) which has been designated in that authorisation as an investment company which may raise capital by promoting the sale of its shares to the public and has not ceased to be so designated, or

(II) each of the shareholders of which is a collective investor,

^[30]>

and

(ca)an authorised ICAV (within the meaning of the Irish Collective Asset-management Vehicles Act 2015);

^<[30]

^[27]>

and

^<[27]

^[28]>

(d) an investment limited partnership (within the meaning of the Investment Limited Partnerships Act, 1994),

^<[28]

which is not an offshore fund (within the meaning of section 743); but includes any company limited by shares or guarantee which—

(A) is wholly owned by such an investment undertaking or its trustees, if any, for the benefit of the holders of units in that undertaking, and

(B) is so owned solely for the purpose of limiting the liability of that undertaking or its trustees, as the case may be, in respect of futures contracts, options contracts or other financial instruments with similar risk characteristics, by enabling it or its trustees, as the case may be, to invest or deal in such investments through the company,

which is not an offshore fund (within the meaning of section 743);

^[17]>

“money market fund” has the same meaning as it has in Regulation (EC) No. 2423/2001 of the European Central Bank of 22 November 2001¹;

^<[17]

“pension scheme” means an exempt approved scheme within the meaning of section 774 or a retirement annuity contract or a trust scheme to which section 784 or 785 applies;

“qualifying fund manager” has the meaning assigned to it in section 784A;

^[22]>

“qualifying management company” has the meaning assigned to it in section 734(1);

^<[22]

^[22]>

“qualifying management company”, in relation to an investment undertaking, means a company which, in the course of a trade of managing investments, manages the whole or any part of the investments and other activities of the business of the undertaking;

^<[22]

^[5]>

“qualifying savings manager” has the meaning assigned to it in section 848B (inserted by the Finance Act, 2001);

^<[5]

^[8]>

“recognised clearing system” means any system for clearing units which is for the time being designated for the purposes of this Chapter by order of the Revenue Commissioners as a recognised clearing system;

^<[8]

“relevant gains”, in relation to an investment undertaking, means gains accruing to the investment undertaking, being gains which would constitute chargeable gains in the hands of a person resident in the State including gains which would so constitute chargeable gains if all assets concerned were chargeable assets and no exemption from capital gains tax applied;

“relevant income”, in relation to an investment undertaking, means any amounts of income, profits or gains which arise to or are receivable by the investment undertaking, being amounts of income, profits or gains—

(a) which are or are to be paid to unit holders as relevant payments,

(b) out of which relevant payments are or are to be made to unit holders, or

(c) which are or are to be accumulated for the benefit of, or invested for the benefit of, unit holders,

and which if they arose to an individual resident in the State would in the hands of the individual constitute income for the purposes of income tax;

“relevant payment” means a payment including a distribution made to a unit holder by an investment undertaking by reason of rights conferred on the unit holder as a result of holding a unit or units in the investment undertaking, where such payments are made annually or at more frequent intervals, other than a payment made in respect of the cancellation, redemption or repurchase of a unit;

“relevant profits”, in relation to an investment undertaking, means the relevant income and relevant gains of the investment undertaking;

^[18]>

“relevant Regulations” means the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 1989 (S.I. No. 78 of 1989);

^<[18]

^[18]>

“relevant Regulations” means the European Communities (Undertaking for Collective Investment in Transferable Securities) Regulations 1989 (S.I. No. 78 of 1989) as amended or extended from time to time and any other regulations that may be construed as one with those Regulations;

^<[18]

“return” means a return under section 739F;

^[19]>

“Service” means the Courts Service;

^<[19]

“specified collective investment undertaking” and “specified company” have, respectively, the meanings assigned to them in section 734(1);

“special investment scheme” has the same meaning as in section 737;

^[6]>

“special savings incentive account” has the meaning assigned to it by section 848B (inserted by the Finance Act, 2001);

^<[6]

“standard rate” has the same meaning as in section 3(1);

“umbrella scheme” means an investment undertaking—

(a) which is divided into a number of sub-funds, and

(b) in which the unit holders are entitled to exchange units in one sub-fund for units in another;

“unit” includes any investment made by a unit holder, such as a subscription for shares or a contribution of capital, in an investment undertaking, being an investment which entitles the investor—

(a) to a share of the investments or relevant profits of, or

(b) to receive a relevant payment from,

the investment undertaking;

“unit holder”, in relation to an investment undertaking, means any person who by reason of the holding of a unit, or under the terms of a unit, in the investment undertaking is entitled to a share of any of the investments or relevant profits of, or to receive a relevant payment from, the investment undertaking.

^[9]>

(1A) The definition of “recognised clearing system” in section 246A(2) applies for the purposes of this section as it applies for the purposes of section 246A.

^<[9]

(2) For the purposes of this Chapter, Schedule 2B and section 904D, references to an investment undertaking (other than in this subsection) shall be construed so as to include a reference to a trustee, management company or other such person who—

(a) is authorised to act on behalf, or for the purposes, of the investment undertaking, and

(b) habitually does so,

to the extent that such construction brings into account for the purposes of this Chapter, Schedule 2B and section 904D any matter relating to the investment undertaking, being a matter which would not otherwise be brought into account for those purposes; but such construction shall not render the trustee, management company or other such person liable in a personal capacity to any tax imposed by this Chapter on an investment undertaking.

^[20]>

(2A) (a) Where money under the control or subject to the order of any Court is applied to acquire units (in this section referred to as “relevant units”) in an investment undertaking, subsections (2) and (3) of section 739E, section 739F and section 904D shall apply as if references in those sections and subsections to the investment undertaking were to read as references to the Service.

(b) The Service shall in respect of each year of assessment, on or before 28 February in the year following the year of assessment, make a return (including where it is the case, a nil return) to the Revenue Commissioners in electronic format approved by them, which in respect of each year of assessment—

(i) specifies the total amount of gains (in this section referred to as the “total gains”) arising to the investment undertaking in respect of relevant units, and

(ii) specifies in respect of each person who is or was beneficially entitled to those units—

(I) where available, the name and address of the person,

(II) the amount of the total gains to which the person has beneficial entitlement, and

(III) such other information as the Revenue Commissioners may require.

^<[20]

^[7]>

(3) This Chapter applies to an investment undertaking and the unit holders in relation to that investment undertaking where the investment undertaking—

(a) is on 31 March 2000 a specified collective investment undertaking, from 1 April 2000, or

(b) first issued units on or after 1 April 2000, from the day of such first issue.

^<[7]

^[7]>

(3) This Chapter applies to an investment undertaking and the unit holders in relation to that investment undertaking where the investment undertaking—

(a) is on 31 March 2000 a specified collective investment undertaking, from 1 April 2000,

(b) first issued units on or after 1 April 2000, from the day of such first issue, or

(c) was a unit trust mentioned in section 731(5)(a), from the day on which the unit trust became an investment undertaking.

^<[7]

(4) Where this Chapter applies to an investment undertaking, sections 734, 738 and 739 shall not apply to that investment undertaking or to unit holders in relation to that investment undertaking.

(5) Schedule 2B has effect for the purposes of supplementing this Chapter.

(6) For the purposes of this Chapter and Schedule 2B, where a holder of units in an investment undertaking is—

(a) an investment undertaking,

(b) a special investment scheme, or

(c) a unit trust to which section 731(5)(a) applies,

the unit holder shall be treated as being entitled to the units so held.