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Taxes Consolidation Act, 1997 (Number 39 of 1997)


644ARelief from income tax in respect of income from dealing in residential development land.

(1) In this section—

basis period” has the same meaning as in section 127(1);

construction operations”, in relation to residential development land, means operations of any of the descriptions referred to in the definition of “construction operations” in section 530(1) other than such operations as consist of—

(a) the demolition or dismantling of any building or structure on the land,

(b) the construction or demolition of any works forming part of the land, being roadworks, water mains, wells, sewers or installations for the purposes of land drainage, or

(c) any other operations which are preparatory to residential development on the land other than the laying of foundations for such development;

“residential development” includes any development which is ancillary to the development and which is necessary for the proper planning and development of the area in question;

residential development land” means land—

(a) disposed of to—

(i) a housing authority (within the meaning of section 23 of the Housing (Miscellaneous Provisions) Act, 1992),

(ii) the National Building Agency Limited (being the company referred to in section 1 of the National Building Agency Limited Act, 1963), or

(iii) a body standing approved of for the purposes of section 6 of the Housing (Miscellaneous Provisions) Act, 1992,

which land is specified in a certificate in writing given by a housing authority or the National Building Agency Limited, as appropriate, as land being required for the purposes of the Housing Acts, 1966 to 1998,

(b) in respect of which permission for residential development has been granted under [2]>section 26 of the Local Government (Planning and Development) Act, 1963,<[2] [2]> the Local Government (Planning and Development) Acts 1963 to 1999 or the Planning and Development Act 2000,<[2] and such permission has not ceased to exist, or

(c) which is, in accordance with a development objective (as indicated in the development plan of the planning authority concerned), for use solely or primarily for residential purposes.

(2) This section applies to profits or gains being—

(a) profits or gains arising from dealing in or developing residential development land in the course of a business consisting of or including dealing in or developing land which is, or is regarded as, a trade within Schedule D or a part of such a trade, or

(b) any gain of a capital nature arising from the disposing of residential development land which, by virtue of section 643, constitutes profits or gains chargeable to tax under Case IV of Schedule D.

(3) Notwithstanding any other provision of the Tax Acts and subject to subsections (4) and (5)

(a) to the extent to which profits or gains of a basis period for a year of assessment consist of profits or gains to which this section applies, those profits or gains—

(i) shall be chargeable to income tax for that year at the rate of 20 per cent, and

(ii) shall not be reckoned in computing total income for that year for the purposes of the Income Tax Acts,


(b) the provisions of [3]>sections 187 and 188<[3][3]>section 188<[3], and the reductions specified in Part 2 of the Table to section 458 shall not apply as regards income tax so charged.

(4) For the purposes of this section—

(a) where a trade consists partly of dealing in residential development land and partly of other operations or activities, the part of the trade consisting of dealing in residential development land and the part of the trade consisting of other operations or activities shall each be treated as a separate trade, and the total amount receivable from sales made and services rendered in the course of the trade, and of expenses incurred in the trade, shall be apportioned to each such part,

(b) in computing the profits or gains to which this section applies, no account shall be taken, in determining those profits or gains, of that part, if any, of profits or gains which are attributable to construction operations on the land, and

(c) where, in order to give effect to the provisions of this section, an apportionment of profits and gains, amounts receivable or expenses incurred is required to be made, such apportionment shall be made in a manner that is just and reasonable.

(5) This section shall not apply to profits or gains arising to a person in a year of assessment if that person so elects by notice in writing to the inspector on or before the specified return date for the chargeable period (within the meaning of section 950).


(6) This section shall not apply to profits or gains arising to a person in the year of assessment 2009 or in any subsequent year of assessment.





Inserted by FA00 s52(1).


[-] [+]

Substituted by FA04 s83(1)(a).


[-] [+]

Substituted by FA08 s5(f).



Inserted by FA09 s6(a). This section is deemed to have come into force and takes effect as on and from 1 January 2009.