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Taxes Consolidation Act, 1997 (Number 39 of 1997)

542 Time of disposal and acquisition.

[CGTA75 s10(1) and (3)]

(1)(a) Subject to paragraph (b) and subsection (2), for the purposes of the Capital Gains Tax Acts, where an asset is disposed of and acquired under a contract, the time at which the disposal and acquisition is made shall be the time at which the contract is made (and not, if different, the time at which the asset is conveyed or transferred).

(b) Where the contract is conditional (and in particular where it is conditional on the exercise of an option), the time at which the disposal and acquisition is made shall be the time at which the condition is satisfied.

(c) For the purposes of the Capital Gains Tax Acts, where an interest in land is acquired, otherwise than under a contract, by an authority possessing compulsory purchase powers, the time at which the disposal and acquisition is made shall be the time at which the compensation for the acquisition is agreed or otherwise determined (variations on appeal being disregarded for this purpose) or, if earlier, the time at which the authority enters on the land in pursuance of its powers.

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(d) Notwithstanding paragraph (c)), for the purposes of the Capital Gains Tax Acts where a person who is engaged in farming (within the meaning of section 654) disposes of an interest in land to an authority possessing compulsory purchase powers, for the purposes mentioned in section 652(5)(a), and immediately before the disposal the land was used for the purposes of farming, the chargeable gain (if any) on the disposal shall be deemed to accrue in the year of assessment in which the person receives the consideration for the disposal.

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(d) Notwithstanding paragraph (c), for the purposes of the Capital Gains Tax Acts, where a person makes a disposal of land to an authority possessing compulsory purchase powers, and the disposal would not have been made but for the exercise of those powers or the giving by the authority of formal notice of its intention to exercise those powers, then the chargeable gain (if any) on the disposal shall be deemed to accrue—

(i) on the day on which the payment of the compensation amount is received by the person making the disposal, or

(ii) at a time immediately before the person’s death if the consideration has not been received at the date of his or her death.

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(1A) Notwithstanding subsection (1)(c), the time of the disposal of land which has been compulsorily acquired shall be the time at which the compensation amount in respect of that compulsory acquisition is received, where that amount is received on or after 1 January 2016.

(1B) Notwithstanding subsection (1)(d), the time of the deemed accrual of a chargeable gain in respect of a disposal of land which has been compulsorily acquired shall be the time at which the compensation amount in respect of that compulsory acquisition is received, where that amount is received on or after 1 January 2016.

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(2) For the purposes of subparagraphs (i) to (iv) of section 535(2)(a), the time of disposal shall be the time at which any capital sum is received.

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Inserted by FA02 s62.

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Substituted by FA10 s56(1). This section applies to disposals made on or after 4 February 2010.

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Inserted by FA15 s38. Comes into operation on 1 January 2016.