Taxes Consolidation Act, 1997 (Number 39 of 1997)
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747E Disposal of an interest in offshore funds.
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(1) Where on or after 1 January 2001 a person who has a material interest in an offshore fund, disposes of an interest in the offshore fund and the disposal gives rise to a gain computed in accordance with subsection (2), then, notwithstanding sections 745 and 747, the amount of that gain shall be treated as an amount of income chargeable to tax under Case IV of Schedule D, and where the person is not a company, and the person has correctly included details of the disposal in a return made by the person, the rate of income tax to be charged on that income shall, notwithstanding section 15, be the rate determined by the formula—
(S + 3) per cent,
where S is the standard rate per cent.
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(1) Where on or after 1 January 2001 a person who has a material interest in an offshore fund, disposes of an interest in the offshore fund and the disposal gives rise to a gain computed in accordance with subsection (2) then, notwithstanding sections 745 and 747, where the gain is not taken into account in computing the profits or gains of a trade carried on by a company, the amount of that gain shall—
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(a) be treated as an amount of income chargeable to tax under Case IV of Schedule D, and
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(a) be treated as an amount of income chargeable to tax under Case IV of Schedule D, and the rate of corporation tax to be charged on that income shall, notwithstanding section 21A(3), be the rate of income tax chargeable on income referred to in paragraph (b), and
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(b) where the person is not a company, and the person has correctly included details of the disposal in a return made by the person, the rate of income tax to be charged on that income shall, notwithstanding section 15, be the rate determined by the formula—
(S + 3) per cent,
where S is the standard rate per cent.
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(1) [21]>Where on or after<[21][21]>Subject to subsection (1A), where on or after<[21] 1 January 2001 a person who has a material interest in an offshore fund, disposes of an interest in the offshore fund and the disposal gives rise to a gain computed in accordance with subsection (2) then, notwithstanding sections 745 and 747, where the gain is not taken into account in computing the profits or gains of a trade carried on by a company, the amount of that gain shall be treated as an amount of income chargeable to tax under Case IV of Schedule D, and—
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(a) where the person is a company, the rate of corporation tax to be charged on that income shall, notwithstanding section 21A(3), be the rate of income tax chargeable on income referred to in subparagraph (ii) of paragraph (b), and
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(b) where the person is not a company, and the person has correctly included details of the disposal in a return made by the person, the rate of income tax to be charged on that income shall, notwithstanding section 15, be [12]>the rate determined<[12]—
(i) in the case of an offshore fund which is a personal portfolio investment undertaking, [26]>[13]>at the rate determined<[13] by the formula—<[26][26]>at the rate of 60 per cent<[26], and
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[10]>(S + 23) per cent,<[10][14]>[10]>(S + 26) per cent<[10]<[14][16]>[14]>(S + 28) per cent<[14]<[16][19]>[16]>(S + 30) per cent<[16]<[19][24]>[19]>(S + 33) per cent<[19]<[24][24]>(S + 36) per cent<[24]
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[26]>where S is the standard rate per cent for the year of assessment in which the payment is made<[26]
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(ii) in any other case, by the formula—
[11]>(S + 3) per cent,<[11][11]>(S + 6) per cent<[11]
where S is the standard rate per cent.
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(ii) in any other case, at the rate of [17]>28 per cent<[17][20]>[17]>30 per cent<[17]<[20][25]>[20]>33 per cent<[20]<[25][27]>[25]>36 per cent<[25]<[27][27]>41 per cent<[27].
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(b) where the person is not a company, the rate of income tax to be charged on that income shall, notwithstanding section 15, be—
(i) in the case of an offshore fund which is a personal portfolio investment undertaking—
(I) subject to clause (II), at the rate of 60 per cent, and
(II) where the details of the disposal are not correctly included in a return made by the person, at the rate of 80 per cent,
and
(ii) in any other case, at the rate of 41 per cent.
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(1A) (a) In this subsection—
“umbrella scheme” means an offshore fund—
(i) which is divided into a number of sub-funds, and
(ii) in which each person who has a material interest in a sub-fund is entitled to exchange the whole or part of such interest for an interest in another sub-fund of the offshore fund.
(b) A disposal under subsection (1) does not include any exchange by a person who has a material interest in a sub-fund of an offshore fund which is an umbrella scheme, effected by way of a bargain made at arm’s length by that offshore fund, of the whole or part of such interest for an interest in another sub-fund of that offshore fund.
(c) Any exchange referred to in paragraph (b) shall not be regarded as a disposal by a person of a material interest in an offshore fund which is an umbrella scheme.
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(2) The amount of the gain accruing on a disposal referred to in subsection (1) is the amount which would be the amount of a gain accruing on the disposal for the purposes of the Capital Gains Tax Acts, if it were computed without regard to—
(a) any charge to tax by virtue of this section, and
(b) section 556(2).
(3) [6]>(a) Notwithstanding sections 538 and 546, where apart from this subsection the effect of any computation under subsection (2) would be to produce a loss, the gain on the disposal referred to in subsection (1) shall be treated as nil and [5]>accordingly for the purposes of this Chapter<[5][5]>for the purposes of the Tax Acts and the Capital Gains Tax Acts<[5] no loss shall be treated as accruing on such disposal.<[6]
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(b) Where in respect of a material interest in an offshore fund—
(i) a gain on a disposal is treated as nil in accordance with paragraph (a),
(ii) that disposal is not a deemed disposal, and
(iii) a person was chargeable to tax in respect of an earlier deemed disposal of a material interest in the fund,
then the provisions of section 865 (apart from subsection (4)) shall apply and the inspector may make such repayment or set-off as is necessary for securing that the aggregate of tax payable in respect of the material interest in the fund under this section does not exceed the tax that would have been so payable in respect of the material interest in the fund if subsection (6) had not been enacted.
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(4) Where, as a result of a disposal by a person, an amount of income is chargeable to tax under Case IV of Schedule D, that amount shall not be reduced by a claim made by the person—
(a) where the person is not a company, under section 381 or 383, or
(b) where the person is a company, under [4]>section 396<[4][4]>section 396, 396B<[4] or 399.
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(5) Where an individual is chargeable to tax in accordance with subsection (1) in respect of an amount of income—
(a) the tax thereby payable, in so far as it is paid, shall be treated as an amount of capital gains tax paid, for the purposes of section 104 of the Capital Acquisitions Tax Consolidation Act 2003, and
(b) that amount of income shall not be included in reckonable income (within the meaning of the Health Contributions Regulations, 1979 (S.I. No. 107 of 1979)) for the purposes of those Regulations.
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(5) Where an individual is chargeable to tax in accordance with subsection (1) in respect of an amount of income the tax thereby payable, in so far as it is paid, shall be treated as an amount of capital gains tax paid for the purposes of section 104 of the Capital Acquisitions Tax Consolidation Act 2003.
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(6) Where a person has a material interest in an offshore fund and a relevant event occurs in respect of that fund, then the person shall be deemed for the purposes of this section to have disposed of the whole of the material interest immediately before the time of that relevant event and immediately to have reacquired it at its market value at that time.
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Inserted by FA01 s72(1). This section shall be deemed to have applied as on and from 1 January 2001.
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Substituted by FA02 s46(1)(b). This section shall be deemed to have applied as on and from 1 January 2001.
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Substituted by FA03 s55(1). This section is deemed to have applied as on and from 1 January 2001.
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Substituted by FA05 s43(1). This section applies as respects the disposal of an interest in an offshore fund on or after 3 February 2005.
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Renumbered by FA06 s51(1)(b)(i)(I). This section applies as respects any relevant event occurring on or after the passing of this Act in respect of a material interest in an offshore fund acquired on or after 1 January 2001.
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Inserted by FA06 s51(1)(b)(i)(II). This section applies as respects any relevant event occurring on or after the passing of this Act in respect of a material interest in an offshore fund acquired on or after 1 January 2001.
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Inserted by FA06 s51(1)(b)(ii). This section applies as respects any relevant event occurring on or after the passing of this Act in respect of a material interest in an offshore fund acquired on or after 1 January 2001.
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Substituted by F(No.2)A08 s27(1)(d)(ii)(I). Applies and has effect as respects the disposal in whole or in part by a person of a material interest in an offshore fund (within the meaning of Chapter 4 of Part 27) on or after 1 January 2009.
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Substituted by F(No.2)A08 s27(1)(d)(ii)(II). Applies and has effect as respects the disposal in whole or in part by a person of a material interest in an offshore fund (within the meaning of Chapter 4 of Part 27) on or after 1 January 2009.
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Deleted by FA09 s10(5)(f). Applies and has effect as respects the disposal in whole or in part by a person of a material interest in an offshore fund (within the meaning of Chapter 4 of Part 27) on or after 8 April 2009.
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Inserted by FA09 s10(5)(g)(i). Applies and has effect as respects the disposal in whole or in part by a person of a material interest in an offshore fund (within the meaning of Chapter 4 of Part 27) on or after 8 April 2009.
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Substituted by FA09 s10(5)(g)(ii). Applies and has effect as respects the disposal in whole or in part by a person of a material interest in an offshore fund (within the meaning of Chapter 4 of Part 27) on or after 8 April 2009.
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Substituted by FA09 s10(5)(h). Applies and has effect as respects the disposal in whole or in part by a person of a material interest in an offshore fund (within the meaning of Chapter 4 of Part 27) on or after 8 April 2009.
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Substituted by FA11 s31(5)(f). Applies and has effect as respects the disposal in whole or in part by a person of a material interest in an offshore fund (within the meaning of Chapter 4 of Part 27) on or after 1 January 2011.
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Substituted by FA11 s31(5)(g). Applies and has effect as respects the disposal in whole or in part by a person of a material interest in an offshore fund (within the meaning of Chapter 4 of Part 27) on or after 1 January 2011.
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Deleted by FA12 s28(5)(f). Has effect as respects the disposal in whole or in part by a person of a material interest in an offshore fund (within the meaning of Chapter 4 of Part 27) on or after 1 January 2012.
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Substituted by FA12 s28(5)(g). Has effect as respects the disposal in whole or in part by a person of a material interest in an offshore fund (within the meaning of Chapter 4 of Part 27 of the Principal Act) on or after 1 January 2012.
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Substituted by FA12 s28(5)(h). Has effect as respects the disposal in whole or in part by a person of a material interest in an offshore fund (within the meaning of Chapter 4 of Part 27 of the Principal Act) on or after 1 January 2012.
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Substituted by FA12 s34(a). Deemed to have come into force and takes effect on and from 1 January 2012.
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Inserted by FA12 s34(b). Deemed to have come into force and takes effect on and from 1 January 2012.
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Substituted by FA13 s40(5)(d)(i). Applies and has effect as respects the disposal in whole or in part by a person of a material interest in an offshore fund (within the meaning of Chapter 4 of Part 27 of the Principal Act) on or after 1 January 2013.
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Substituted by FA13 s40(5)(d)(ii). Applies and has effect as respects the disposal in whole or in part by a person of a material interest in an offshore fund (within the meaning of Chapter 4 of Part 27 of the Principal Act) on or after 1 January 2013.
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Substituted by F(No.2)A13 s30(5)(d)(i). Applies and has effect as respects the disposal in whole or in part by a person of a material interest in an offshore fund (within the meaning of Chapter 4 of Part 27) on or after 1 January 2014.
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Substituted by F(No.2)A13 s30(5)(d)(ii). Applies and has effect as respects the disposal in whole or in part by a person of a material interest in an offshore fund (within the meaning of Chapter 4 of Part 27) on or after 1 January 2014.