Revenue Note for Guidance
This section provides that the following are not chargeable gains —
In addition to the above, compensation received by turf cutters for ceasing to cut turf is not a chargeable gain.
(1) The following are not chargeable gains and, thus, are exempt from capital gains tax —
(2) Winnings from betting, lotteries, sweepstakes or games with prizes are exempt from capital gains tax as are rights to winnings from those sources (for example, the sale of a bet).
(3) Annuities or lump sum paid to individuals under the terms of a pension scheme or of a contract (other than for a deferred annuity) with an assurance company are exempt from capital gains tax. Any annuity not secured on property which is payable under a covenant is similarly exempt.
(4)(a) Subject to the exclusion below for non-resident settlements, where there is a disposal of an interest created by or arising under a settlement, no chargeable gain accrues if the disposal was made —
(4)(b) The purchaser of an interest (or a person deriving an interest from a purchaser) is chargeable on a gain made —
In the latter case the trustee is also chargeable under section 576(1) except where the absolute entitlement arises from the termination of a life interest due to the death of the person entitled to that interest.
(5) The exemption afforded by subsection (4) does not apply to disposals of interests in settled property if —
(6) A settlement falls within subsection (6) if there has been a time when the trustees of the settlement were either not resident and ordinarily resident in the State or fell to be regarded as resident in a territory outside of the State by virtue of a double taxation relief agreement.
(7) A chargeable gain does not arise in respect of compensation received by turf cutters under the Turf Cutting Compensation Scheme or the Protected Raised Bog Restoration Incentive Scheme administered by the Minister for Culture, Heritage and the Gaeltacht relating to a European Site, a Natural Heritage Area or any other land which, in the opinion of the Minister, is necessary to achieve the restoration of such Site or Area. In addition, a chargeable gain does not arise on a disposal of land to the Minister for Culture, Heritage and the Gaeltacht where that land has been acquired by the Minister for the purposes of granting a right of turbary to an individual who:
Relevant Date: Finance Act 2021