Finance Act, 1990
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FOURTH SCHEDULE Reorganisation into Companies of Trustee Savings Banks | ||
Interpretation | ||
1. In this Schedule— | ||
“bank” means either or both a trustee savings bank and a bank within the meaning of section 57 (3) (c) (i) of the Trustee Savings Banks Act, 1989 , as the context requires; | ||
“successor” means the company to which any property, rights, liabilities and obligations are transferred in the course of a transfer; | ||
“transfer” means the transfer by a trustee savings bank of all or part of its property and rights and all of its liabilities or obligations under an order made by the Minister for Finance in accordance with the provisions of section 57 of the Trustee Savings Banks Act, 1989 , authorising the reorganisation of one or more trustee savings banks into a company or the reorganisation of a company referred to in subsection (3) (c) (i) of that section into a company referred to in subsection (3) (c) (ii) of that section. | ||
Capital Allowances | ||
2. (1) The provisions of this paragraph shall have effect for the purposes— | ||
(a) of allowances and charges provided for in Parts XIII, XIV, XV, XVI, XVII and XVIII of the Income Tax Act, 1967 , or any other provision of the Income Tax Acts relating to the making of allowances or charges under or in accordance with those Parts, and | ||
(b) of allowances or charges provided for by section 14 of the Corporation Tax Act, 1976 . | ||
(2) The transfer shall not be treated as giving rise to any such allowance or charge which is provided for under subparagraph (1). | ||
(3) There shall be made to or on the successor in accordance with the said section 14 all such allowances and charges as would, if the bank had continued to carry on the trade, have fallen to be made to or on it, and the amount of any such allowance or charge shall be computed as if the successor had been carrying on the trade since the trustee savings bank began to do so and as if everything done to or by the bank had been done to or by the successor: | ||
Provided that the successor shall not be entitled to any amount which would have fallen to be made to the trustee savings bank by virtue only of subsection (3) of section 241 of the Income Tax Act, 1967 . | ||
Trading Losses | ||
3. Notwithstanding any other provision of the Tax Acts— | ||
(a) a company referred to in subsection (3) (c) (i) of section 57 of the Trustee Savings Banks Act, 1989 , which becomes a company referred to in subsection (3) (c) (ii) of that section shall not be entitled to relief under subsection (1) of section 16 of the Corporation Tax Act, 1976 , in respect of any loss incurred by it in a trade in any accounting period or part of an accounting period in which it was a company referred to in the said subsection (3) (c) (i), and | ||
(b) a company referred to in subsection (3) (c) (ii) of the said section 57 shall not be entitled to relief under section 16 (1) of the Corporation Tax Act, 1976 , in respect of any loss incurred by a company referred to in subsection (3) (c) (i) of that section. | ||
Financial Assets | ||
4. (1) For the purposes of section 62 (which relates to trading stock of discontinued trade) of the Income Tax Act, 1967 , the financial trading stock of the bank concerned shall be valued at an amount equal to or treated, for the purposes of subparagraph (2), as its cost to that bank. | ||
(2) The acquisition, in the course of a transfer, by the successor of any assets, the profits or gains on the disposal of which by the bank would be chargeable to tax under Case I of Schedule D, shall be treated, for the purposes of income tax and corporation tax, as not constituting a disposal of those assets by that bank; but on the disposal of any of those assets by the successor, the profits or gains accruing to the successor shall be calculated (for the purposes of corporation tax) as if those assets had been acquired by the successor at their cost to the bank. | ||
(3) In this paragraph “financial trading stock” means such of the assets of the bank as would constitute trading stock for the purposes of section 62 of the Income Tax Act, 1967 . | ||
Capital Gains | ||
5. (1) The provisions of this paragraph shall have effect for the purposes of the Capital Gains Tax Acts and of the Corporation Tax Act, 1976 , in so far as it relates to chargeable gains. | ||
(2) The disposal of an asset by a bank to a company in the course of a transfer shall be deemed to be for a consideration of such amount as would secure that on the disposal neither a gain nor a loss would accrue to the bank. | ||
(3) Where subparagraph (2) has had effect in relation to the disposal of an asset by the bank, then in relation to a subsequent disposal of the asset, the successor shall be treated as if the acquisition or provision of the asset by— | ||
(a) the trustee savings bank, or | ||
(b) if it was not acquired or provided by the trustee savings bank, the bank within the meaning of section 57 (3) (c) (i) of the Trustee Savings Banks Act, 1989 , | ||
were the successor's acquisition or provision of it. | ||
(4) Any allowable losses accruing at any time to a bank shall, on a transfer and so far as they have not been allowed as a deduction from chargeable gains, be treated as allowable losses which accrued at that time to the successor. | ||
(5) For the purposes of section 28 (as amended by section 9 of the Capital Gains Tax (Amendment) Act, 1978 ) of the Capital Gains Tax Act, 1975 , the bank and the successor shall be treated as if they were the same person. | ||
(6) Where the liability in respect of any debt owed to a bank is transferred in the course of a transfer to a successor, the successor shall be treated as the original creditor for the purposes of section 46 of the Capital Gains Tax Act, 1975 . |