Finance Act 2003

Section 69 imposes a capital gains tax charge in respect of a deemed disposal of certain assets owned by an individual on the last day of the last year of assessment for which the individual is taxable in the State, prior to becoming taxable elsewhere. However this capital gains tax charge will only arise:

• If the individual is not taxable in the State for a period of five years or less before again becoming so taxable, and
• To the extent that the individual disposes of those assets during that period.

The assets concerned are a holding in any company (wherever located) with a value of either 5% or more of the value of all that company’s issued share capital or exceeding ₤500,000. Whereas the gain on the deemed disposal arises before the individual ceases to be taxable in the State, the gain is required to be included in the individual’s return and the tax in respect of it accounted for in the year in which the individual is again taxable in the State. Credit will be given in respect of any foreign tax payable on an actual disposal of the assets involved where such tax is payable in a territory with which Ireland has a double taxation treaty.