579E Trustees ceasing to be liable to Irish tax

Where at any time (“the time concerned”), on or after 11 February, 1999, the trustees of a settlement, while continuing to be resident and ordinarily resident in the State, become trustees who fall to be regarded for the purposes of any double tax relief treaty as resident outside the State and as not liable to Irish tax on gains accruing on the disposal of assets (“relevant assets”) which constitute settled property of the settlement and fall within descriptions specified in the treaty, they are deemed for capital gains tax purposes to have disposed of the relevant assets immediately before the time concerned, and immediately to have reacquired them, at their market value at the time.

Roll-over relief under section 597 will not apply where the disposal of new assets within the meaning of that section would not give rise to a charge to Irish tax because of treaty provisions. Furthermore any chargeable gain deferred under that section will crystallise at the time that the trust falls out of charge to Irish tax because of treaty provisions.

Relevant Date: Finance Act 2021