Revenue Note for Guidance
This section deals with the treatment of capital gains realised on investments representing funds administered by the Accountant of the Courts of Justice. Any capital gains tax liability on gains so realised is the liability of the person on whose behalf the funds are invested.
(1) The necessary definitions for the section are set out, including in particular the definition of “funds in court” which specifies the funds to which the section applies.
(2) Any liability to tax on capital gains realised on investments representing funds administered by the Accountant is the liability of the beneficiary on whose behalf the funds are invested. The Accountant is to be treated merely as the nominee of the persons entitled to or interested in the funds or, as the case may be, of their trustees. Thus, the accountant does not have to account for tax on gains arising on the disposal of assets representing funds administered by him/her and individual beneficiaries get the direct benefit of any reliefs, such as the exemption for gains of €1,270 and under.
(3) If in the course of administration of the funds under his control the Accountant makes a transfer of investments from one account to another, the transfer is treated as a disposal from one beneficiary to the other for the purposes of capital gains tax despite the fact that the Accountant has not realised the investments
(4) The provisions of the section apply also to funds administered in the Circuit Court. Thus, the Accountant attached to the Circuit Court is not liable to account for capital gains tax on any gains that may arise in the course of the administration of funds under his/her control.
Relevant Date: Finance Act 2021