Taxes Consolidation Act, 1997 (Number 39 of 1997)
583 Capital distributions by companies.
[CGTA75 s51(1) and Sch2 par1]
(1) In this section, “capital distribution” means any distribution from a company (including a distribution in the course of dissolving or winding up the company) in money or money’s worth except a distribution which in the hands of the recipient constitutes income for the purposes of income tax.
(2) Where a person receives or becomes entitled to receive in respect of shares in a company any capital distribution from the company (other than a new holding within the meaning of section 584), such person shall be treated for the purposes of the Capital Gains Tax Acts as if such person had in consideration of that capital distribution disposed of an interest in the shares.