Finance Act, 1995

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Amendment of paragraph 11 (disposal of certain assets) of Schedule 4 to Capital Gains Tax Act, 1975.

76.—As respects any payment in money or money's worth, after the passing of this Act, in respect of the disposal of an asset, paragraph 11 (inserted by the Finance Act, 1982 ) of Schedule 4 to the Capital Gains Tax Act, 1975 , is hereby amended—

(a) in subparagraph (1)—

(i) by the deletion from clause (d) of “and”, and

(ii) by the insertion after clause (d) of the following clause:

“(dd) shares, other than shares quoted on a stock exchange, to which paragraph 2 of Schedule 2 applies, whether by virtue of that paragraph or any other provision of Schedule 2, so that, as respects a person disposing of those shares, they are treated as the same shares as shares specified in clause (d), acquired as the shares so specified were acquired; and”;

(b) in subparagraph (6) by the deletion from clause (a) of “ordinarily”;

(c) in subparagraph (7) by the substitution for clauses (a), (b) and (c) of the following clauses:

“(a) Where—

(i) after the passing of the Finance Act, 1995, a person acquires an asset to which this paragraph applies and paragraph 18 does not apply,

(ii) the consideration for acquiring the asset is of such a kind that the deduction mentioned in subparagraph (2) cannot be made thereout, and

(iii) the person disposing of the asset does not, at or before the time at which the acquisition is made, produce to the person acquiring the asset a certificate under subparagraph (6) in relation to the disposal,

the person acquiring the asset shall, within seven days of the time at which the acquisition is made,

(I) notify the Revenue Commissioners of the acquisition in a notice in writing containing particulars of—

(A) the asset acquired,

(B) the consideration for acquiring the asset,

(C) the market value of that consideration, estimated to the best of that person's knowledge and belief, and

(D) the name and address of the person making the disposal,

and

(II) pay to the Collector-General an amount of capital gains tax, equal to 15 per cent. of the market value of the consideration so estimated.

(b) Capital gains tax which, by virtue of subclause (II) of clause (a), is payable by a person acquiring an asset shall—

(i) be payable by that person in addition to any capital gains tax which, by virtue of any other provision of the Capital Gains Tax Acts, is payable by that person,

(ii) be due within seven days of the time at which that person acquires the asset, and

(iii) be payable by that person without the making of an assessment:

Provided that tax which has become due as aforesaid may be assessed on the person acquiring the asset (whether or not it has been paid when the assessment is made) if that tax or any part of it is not paid on or before the due date.

(c) Where any person acquiring an asset, has, in pursuance of subclause (II) of clause (a), paid any amount of tax by reference to the market value of the consideration for acquiring the asset, that person shall be entitled to recover a sum of that amount from the person disposing of the asset as a simple contract debt in any court of competent jurisdiction:

Provided that, where a copy of a certificate under subparagraph (6) is issued to the person acquiring the asset, being a copy of a certificate in relation to the disposal by which the person acquired the asset, that person—

(i) shall not be entitled thereafter to so recover the said sum, and

(ii) shall be repaid the said amount of tax.”;

(d) by the insertion after subparagraph (10) of the following subparagraph:

“(10A) Where there is a disposal of assets by virtue of a capital sum being derived from those assets, the person paying the capital sum shall, notwithstanding that no asset is acquired by that person, be treated for the purposes of this paragraph as acquiring the assets disposed of for a consideration equal to the capital sum, whether that sum is paid in money or money's worth, and the provisions of this paragraph shall, subject to any necessary modifications, apply accordingly.”.