Revenue Precedents

Revenue accepted that the requirement of S.598 was met in one case where very exceptional circumstances applied. A sole trader was terminally ill. The business required a high level of personal input by him. His wife did not consider that she could manage the business in the period of some months before his death. Had a request made to Revenue without the traders knowledge. The assets had been in the traders' possession for nine years. 4107/97.

In strictness, relief is not due on the transfer of a trade to subsidiary in 10 years prior to disposal as the holding company has not been a holding company throughout the 10 years ending with the disposal. In practice, relief will be allowed where all other requirements of the section are met. G6(N)

A “look through” approach may be taken and the taxpayer will be treated as satisfying both conditions where a holding company is interposed or removed during the 10 years prior to disposal. G6(N)(I)

The shares held by a limited company funded by the International Fund for Ireland with the object of creating employment in a disadvantaged area should be ignored in the determination of whether or not a company is a holding company within the meaning of Section 598(1) Taxes Consolidation Act, 1997. DTX209MISC

Whilst the old lease and the new lease are separate assets, in practice the periods of ownership may be aggregated for the purpose of the 10 year ownership requirement. G6(Q)