Finance Bill - Tax legislation finally updated for Companies Act 2014

Oct 23, 2017

A number of provisions in the Stamp Duty Consolidation Act, Taxes Consolidation Act and Capital Acquisitions Taxes Act were updated to reflect the provisions of the Companies Act 2014.   The Companies Act 2014 was signed into law almost three years ago so the updates to tax rules impacted by this Act are long overdue. 

 Section 59 of the Bill amends section 79 SDCA 1999 to take account of a ‘merger by absorption’ introduced in the Companies Act 2014. Section 80 SDCA 1999 deals with the stamp duty exemption for property transfers in a company reconstruction or amalgamation. This section is now updated under section 60 of the Bill to recognise a merger in accordance with the Companies Act 2014.

 Section 73 and Schedule 2 of the Bill provide for a number of amendments to the TCA 1997, CATCA 2003 and SDCA 1999 for the purpose of updating reference to previous Companies Acts in tax legislation to the appropriate references in the Companies Act 2014.

Section 74 of the Bill inserts a new Chapter and Section in Part 21 of TCA 1997 to also deal with merger and division transactions.  The new chapter in TCA 1997 deals with tax payment, filing and reporting obligations and liabilities following a merger or division and a new section 638A TCA 1997 also permits a company involved in a merger or division to take an appeal.   Section 75 amends section 865 TCA1997 to allow tax repayments to a successor company following a merger or division undertaken in accordance with Part 9 of the Companies Act 2014.  These provisions apply with effect from 1 June 2015, being the date of the enactment of Companies Act 2014.