533 Location of assets

Summary

This section sets out the rules for determining the location of certain assets, such as rights attaching to assets, other incorporeal assets, ships and aircraft, the location of which might otherwise be difficult to determine. The section is expressed to be subject to section 29 because under that section gains accruing on assets in the State’s area of the Continental Shelf are deemed to accrue from the disposal of assets situated in the State.

Normally, the question of determining the location of an asset should not give rise to difficulty and, in the case of a person who is resident or ordinarily resident in the State, is largely immaterial. This is because under section 29(2) such a person is liable to capital gains tax on all chargeable gains irrespective of where the assets are situated. Location is of importance, however, in the case of a person who is neither resident nor ordinarily resident in the State. Such a person is chargeable under section 29(3) only in respect of chargeable gains accruing on the disposal of certain specified assets situated in the State. Similarly, in the case of a person who is resident or ordinarily resident in the State but not domiciled in the State, the location of assets is of importance. Under section 29(4) such a person is liable to tax in respect of gains on the disposal of assets situated outside the State only on so much of the gains as are remitted to the State and, in addition, losses on disposals of assets so situated are not allowable losses.

Details

(a) The situation of rights or interests (otherwise than as security) in or over immovable property (that is, land and buildings) is that of the immovable property.

(b) Subject to the following rules, the situation of rights or interests (otherwise than as security) in or over tangible movable property (chattels) is that of the tangible movable property.

(c) Subject to the following rules, a debt, either secured or unsecured, is situated in the State only if the creditor is resident in the State.

(d) Shares or securities issued by any municipal or governmental authority, or by any body created by such an authority, are situated in the country of that authority.

(da) Shares or securities of an Irish-incorporated company are treated as being located in the State. “Shares” includes any instrument or security which derives its value from or is calculated by reference to shares.

(e) Subject to the previous rule, registered shares or securities are situated where they are registered and, if registered in more than one register, where the principal register is situated.

(f) A ship or aircraft is situated in the State only if the owner is resident in the State. An interest or right in or over a ship or aircraft is situated in the State only if the person entitled to the interest or right is resident in the State.

(g) The situation of goodwill as a trade, business or professional asset is the place where the trade, business or profession is carried on.

(h) Patents, trade marks and designs are situated where they are registered and, if registered in more than one register, where each register is situated. Copyright, franchises, rights and licences to use any copyright material, patent, trade mark or design are situated in the State if they, or any rights derived from them, are exercisable in the State.

(i) A judgment debt is situated where the judgment is recorded.

Relevant Date: Finance Act 2021