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Taxes Consolidation Act, 1997 (Number 39 of 1997)

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845C Treatment of Additional Tier 1 instruments.

(1) In this section—

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Additional Tier 1 instrument” means an instrument which qualifies, or has qualified, as an Additional Tier 1 instrument under Article 52 of the Capital Requirements Regulation;

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Additional Tier 1 instrument” means an instrument—

(a) which qualifies, or has qualified, as an Additional Tier 1 instrument under Article 52 of the Capital Requirements Regulation, or

(b) which is an instrument that has not been issued by an institution within the meaning of Article 4 of the Capital Requirements Regulation but which satisfies conditions that, with any necessary modification of them by virtue of the fact that the instrument has not been issued by a foregoing institution, are equivalent to the conditions specified in Article 52 of the Capital Requirements Regulation;

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Capital Requirements Regulation” means Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 20131 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No. 648/20122;

coupon” means a distribution, within the meaning of Article 4 of the Capital Requirements Regulation, in respect of an Additional Tier 1 instrument.

(2) For the purposes of the Tax Acts, an Additional Tier 1 instrument shall be regarded as a debt instrument.

(3) For the purposes of the Tax Acts, a coupon in respect of an Additional Tier 1 instrument—

(a) shall be regarded as interest, and

(b) shall not be regarded as a distribution or a charge on income.

(4) Section 64 shall apply, with any necessary modifications, to an Additional Tier 1 instrument as it applies to a quoted Eurobond.

(5) This section shall not apply to an Additional Tier 1 instrument that forms part of any arrangement or scheme the main purpose, or one of the main purposes, of which is avoidance of liability to tax.

Footnotes

1OJ No. L176, 27.6.2013, p.1

2OJ No. L201, 27.7.2012, p.1

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Inserted by FA15 s29. Comes into operation on 1 January 2016.

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Substituted by FA19 s22. Comes into operation on 1 January 2020