Capital Gains Tax Act, 1975

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Persons chargeable.

4.—(1) Subject to any exceptions in this Act, a person shall be chargeable to capital gains tax in respect of chargeable gains accruing to him in a year of assessment for which he is resident or ordinarily resident in the State.

(2) Subject to any such exceptions, a person who is neither resident nor ordinarily resident in the State shall be chargeable to capital gains tax for a year of assessment in respect of chargeable gains accruing to him in that year on the disposal of—

(a) land in the State;

(b) minerals in the State or any rights, interests or other assets in relation to mining or minerals or the searching for minerals;

(c) assets situated in the State which, at or before the time when the chargeable gains accrued, were used in or for the purposes of a trade carried on by him in the State through a branch or agency, or which at or before that time were used or held or acquired for use by or for the purposes of the branch or agency:

Provided that this subsection shall not apply to a person who, by virtue of the provisions of the agreements contained in Schedule 6 to the Income Tax Act, 1967 is exempt from income tax chargeable for the year of assessment.

(3) Subsection (1) shall not apply in respect of gains accruing from the disposal of assets situated outside the State and the United Kingdom (being chargeable gains accruing on or after the 6th day of April, 1974) to an individual who satisfies the Revenue Commissioners that he is not domiciled in the State, but—

(a) the tax shall be charged on the amounts received in the State in respect of those chargeable gains,

(b) any such amounts shall be treated for the purposes of this Act as gains accruing when they are received in the State, and

(c) any losses accruing to the individual on the disposal of assets situated outside the State and the United Kingdom shall not be allowable losses for the purposes of this Act.

(4) For the purposes of subsection (3), there shall be treated as received in the State in respect of any gain all amounts paid, used or enjoyed in or in any manner or form transmitted or brought to the State and section 4 of the Finance Act, 1971 (under which income applied outside the State in payment of debts is, in certain cases, treated as received in the State) shall apply as it would apply for purposes of the said section 4 if the gain were income arising from possessions out of the State.

(5) Where two or more persons carry on a trade or business or profession in partnership—

(a) tax in respect of chargeable gains accruing to them on the disposal of any partnership assets shall be assessed and charged on them separately, and

(b) any partnership dealings in assets shall be treated as dealings by the partners and not by the firm as such.

(6) Any gains accruing on the disposal of exploration or exploitation rights in a designated area shall be treated for the purposes of this Act as gains accruing on the disposal of assets situated in the State.

(7) Any gains accruing to a person who is neither resident nor ordinarily resident in the State on the disposal of such assets as are mentioned in subsection (2) (b) and subsection (6) shall be treated for the purposes of capital gains tax as gains accruing on the disposal of assets used for the purposes of a trade carried on by that person in the State through a branch or agency.

(8) In this section—

(a) references to the disposal of such assets as are mentioned in paragraphs (a) and (b) of subsection (2) and subsection (6) include references to the disposal of shares deriving their value or the greater part of their value directly or indirectly from those assets, other than shares quoted on a stock exchange;

(b) “designated area” has the meaning assigned to it by section 1 of the Continental Shelf Act, 1968 ;

(c) “exploration or exploitation rights” has the meaning assigned to it by section 33 of the Finance Act, 1973 ;

(d) “shares” includes stock and any security; and

(e) “security” includes securities not creating or evidencing a charge on assets, and interest paid by a company on money advanced without the issue of a security for the advance, or other consideration given by a company for the use of money so advanced, shall be treated as if paid or given in respect of a security issued for the advance by the company.