Finance Act 2003

• Permanent Page URL

Amendment of section 749 (dealers in securities) of Principal Act.

31.—(1) Section 749 of the Principal Act is amended by inserting the following after subsection (2):

“(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 section 950.

(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 section 951, 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.”.

(2) Subsection (1) applies as respects securities purchased on or after 1 January 2003.