739O Tax arising on IREF taxable event

Summary

This section sets out the tax treatment of unit holders in an IREF in respect of an IREF taxable event and provides the rate of withholding tax to be applied.

Details

(1) A holder of excessive rights is a person, or connected persons within the meaning of section 10 who is beneficially entitled, directly or indirectly, to at least 10 per cent of the units in an IREF.

(2)(a) For the purposes of claiming relief under a double taxation agreement, a unit holder who is a holder of excessive rights is treated as receiving income from immovable property and any other unit holder is treated as receiving a dividend.

(b) The taxable amount is chargeable to income tax under Case V of Schedule D and is treated as income arising in the year of assessment in which the IREF taxable event occurs with no loss, deficit expense or allowance may be offset against this income.

(c) The income is chargeable to income tax at a rate of 20 per cent and is not reckoned in computing total income for that year for the purposes of the Income Tax Acts.

(d) The age exemption in section 188 and the reductions specified in Part 2 of the Table to section 458 do not apply.

Relevant Date: Finance Act 2021