Finance Act, 1990
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Application to unit trusts of paragraph 2 (reorganisation or reduction of share capital) of Schedule 2 to Capital Gains Tax Act, 1975 . |
87.—Schedule 2 to the Capital Gains Tax Act, 1975 , is hereby amended by the insertion after paragraph 2 of the following paragraph: | |
“2A.— (1) In this paragraph, references to a reorganisation of units in a trust scheme include— | ||
(a) any case where persons are, whether for payment or not, allotted units in the scheme in respect of and in proportion to (or as nearly as may be in proportion to) their holdings of units in the scheme or of any class of units in the scheme, and | ||
(b) any case where there are more than one class of units and the rights attached to units of any class are altered. | ||
(2) Paragraph 2 shall apply with any necessary adaptation in relation to a reorganisation or reduction of units in any unit trust scheme registered under the Unit Trusts Act, 1972 , or authorised under the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 1989 ( S.I. No. 78 of 1989 ), as if (except as respects subparagraph (6) of that paragraph)— | ||
(a) that scheme were a company, and | ||
(b) the units in that scheme were shares in the company: | ||
Provided that, where, but for this proviso, this paragraph would apply to any reorganisation or reduction, in a year of assessment, of units in a unit trust scheme so that units which are deemed not to be chargeable assets for that year for the purposes of this Act would be treated as ‘original shares’ or a ‘new holding’ within the meaning of paragraph 2 (1), then paragraph 2 shall not apply to that reorganisation or reduction of units in the unit trust scheme. | ||
(3) The references in subparagraph (2) (including the proviso thereto) to paragraph 2 do not include references to that paragraph as applied by paragraph 3 or 4.”. |