Replacement of harbour authorities by port companies

The Harbours Act, 1996 provided for the establishment by the Minister for the Marine of new port companies. As and from specific vesting dates all the assets and liabilities of the existing harbour authorities are to be transferred to these new port companies which then assume the rights and responsibilities of the harbour authorities which they replace. After the transfer of all rights and property to the port companies, the harbour authorities are dissolved automatically.

This section and Schedule 26 create a tax neutral effect for this transfer by ensuring that no capital gains tax charge, or capital allowances balancing charge or allowance arises on such transfers of assets. Any property or other assets transferred are, for capital gains tax and capital allowances purposes, regarded as having been acquired by the port company at the time and cost at which they were acquired by the harbour authority.

This section and Schedule 26 apply from 1 March, 1997, that is, the date immediately before the establishment of the first of the new port companies.

Relevant Date: Finance Act 2021