75 Exemption of specified collective investment undertakings

Summary

This section exempts from capital acquisitions tax units of a Common Contractual Fund (CCF), units in an Investment Undertaking which qualify for the collective funds regime introduced by section 58 of the Finance Act 2000 and units in a Collective Investment Scheme, where the disponer and beneficiary are foreign-domiciled and foreign-resident.

If the disponer had purchased units of an Investment Undertaking prior to 15 February 2001, the exemption will apply where the proper law of the disposition was foreign and the donee or successor is neither domiciled nor ordinarily resident in the State.

Details

(1) “collective investment scheme” means a bona fide scheme established solely or mainly to provide facilities for the participation by the public or other investors in profits or income arising from the acquisition, holding, management or disposal of securities or any other property;

“common contractual fund” has the meaning assigned to it by section 739I of the Taxes Consolidation Act 1997;

“investment undertaking” has the meaning assigned to it in section 739B of the Taxes Consolidation Act 1997;

“investment limited partnership” has the meaning assigned to it by section 739J of the Taxes Consolidation Act 1997;

“unit”, in relation to a collective investment scheme, includes shares, members’ interests, limited partnership interests and any other instruments granting an entitlement to the income or investments from the scheme;

“unit”, in relation to a common contractual fund, has the meaning assigned to it by section 739I of the Taxes Consolidation Act 1997;

“unit”, in relation to an investment undertaking, has the meaning assigned to it by section 739B of the Taxes Consolidation Act 1997.

“unit”, in relation to an investment limited partnership, has the meaning assigned to it by section 739J of the Taxes Consolidation Act 1997

(2) Units of a Collective Investment Scheme which is incorporated or otherwise formed under the law of a territory outside the State, an Investment Undertaking or a Common Contractual Fund, which are comprised in a gift or an inheritance, will be exempt from tax where—

• the disponer is neither domiciled nor ordinarily resident in the State at the date of the disposition, and
• the beneficiary is neither domiciled nor ordinarily resident in the State at the time the gift or inheritance is taken.

(3) However, as respects units of an Investment Undertaking purchased prior to 15 February 2001, which are taken by a foreign beneficiary as a gift or inheritance from an Irish disponer, the exemption will apply, provided the proper law of the disposition was foreign (see note on section 74(3) as regards the meaning of the term “proper law”).

Relevant Date: Finance Act 2015