Select view:

Taxes Consolidation Act, 1997 (Number 39 of 1997)

749 Dealers in securities.

[ITA67 s368]

(1) Subject to this section, where the first buyer is engaged in carrying on a trade which consists of or comprises dealings in securities, then, in computing for any of the purposes of the Tax Acts the profits arising from or loss sustained in the trade, the price paid by the first buyer for the securities shall be reduced by the appropriate amount in respect of the interest determined in accordance with Schedule 21.

(2) Where in the opinion of the Revenue Commissioners the first buyer is bona fide carrying on the business of a discount house in the State, or where the first buyer is a member of a stock exchange in the State who is recognised by the committee of that stock exchange as carrying on the business of a dealer, subsection (1) shall not apply in relation to securities bought in the ordinary course of such business.

[1]>

(2A) (a) Subsection (1) shall not apply for a chargeable period if the securities are overseas securities purchased by the first buyer in the ordinary course of the first buyer’s trade as a dealer in securities and the following conditions are satisfied—

(i) that the interest payable in respect of all such overseas securities to which this Chapter applies is brought into account in computing, for the purposes of the Tax Acts, the profits or gains arising from, or losses sustained in, the trade for the chargeable period, and

(ii) where credit against tax would, but for this section, fall to be allowed for the chargeable period in respect of that interest by virtue of Part 14 or 35 or Schedule 24, that the first buyer elects by notice in writing, on or before the specified return date for the chargeable period, that such credit shall not be so allowed.

(b) In this subsection—

foreign local authority” means an authority, corresponding in substance to a local authority for the purposes of the Local Government Act 2001, which is established outside the State and whose functions are carried on primarily outside the State;

foreign local government” means any local or regional government in any jurisdiction outside the State;

foreign public authority” means an authority, corresponding in substance to a public authority for the purposes of the Local Government Act 2001, which is established outside the State and whose functions are carried on primarily outside the State;

overseas securities’ means securities issued—

(i) by a government of a territory outside of the State,

(ii) by a foreign local authority, foreign local government or foreign public authority, or

(iii) by any other body of persons not resident in the State;

specified return date for the chargeable period” has the same meaning as in [2]>section 950<[2][2]>section 959A<[2].

(2B) Where an election is made in accordance with subsection (2A)(a)(ii)

(a) then, notwithstanding Parts 14 and 35 and Schedule 24, credit against tax in respect of the interest shall not be allowed by virtue of either of those Parts or, as the case may be, that Schedule,

(b) that election shall be included in the return, required to be made by the first buyer under [3]>section 951<[3][3]>Chapter 3 of Part 41A<[3], for the chargeable period, and

(c) that election shall have effect only for the chargeable period for which it is made.

(2C) Subsection (1) shall not apply for a chargeable period if the securities are securities, which are not chargeable assets for the purposes of the Capital Gains Tax Acts by virtue of section 607, purchased by the first buyer in the ordinary course of the first buyer’s trade as a dealer in securities and the interest payable in respect of all such securities to which this Chapter applies is brought into account in computing, for the purposes of the Tax Acts, the profits or gains arising from, or losses sustained in, the trade for the chargeable period.

<[1]

(3) Subsection (1) shall not apply if the interest is to any extent required to be taken into account under section 752 as if it were a trading receipt which had not borne tax or would to any extent be so required to be taken into account but for paragraph 2 of Schedule 22.

[1]

[+]

Inserted by FA03 s31(1). Applies as respects securities purchased on or after 1 January 2003.

[2]

[-] [+]

Substituted by FA12 sched4(part2)(g).

[3]

[-] [+]

Substituted by FA12 sched4(part2)(g).