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Chapter 5
Capital Gains Tax
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Amendment of Chapter 6 (transfers of business assets) of Part 19 of Principal Act.
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54.— (1) The Principal Act is amended—
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(a) in section 598—
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(i) by inserting the following after subsection (3):
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“(3A) Where compensation has been received by a person under the scheme for compensation in respect of the decommissioning of fishing vessels implemented by the Minister for Agriculture, Fisheries and Food in accordance with Council Regulation (EC) No. 1198/2006 of 27 July 2006, relief under subsection (2) shall apply as if the period referred to in paragraph (i) of the definition of ‘qualifying assets’ in subsection (1)(a) were 6 years and the age referred to in subsection (2) were 45 years.”, and
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(ii) by inserting the following after subsection (7):
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“(8) This section shall not apply to a disposal of qualifying assets unless it is shown that the disposal is made for bona fide commercial reasons and does not form part of any arrangement or scheme of which the main purpose or one of the main purposes is the avoidance of liability to tax.”,
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and
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(b) by inserting the following after section 598:
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“Relief on dissolution of farming partnerships.
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598A.— (1) In this section—
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‘ farming ’ and ‘ trade ’ have the same meanings as in the Income Tax Acts;
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‘ farming partnership ’ means a partnership comprised of individuals which carries on or has carried on the trade of farming;
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‘ relevant asset ’ means an asset which is jointly owned by the partners in a farming partnership;
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‘ relevant disposal ’ means a disposal which arises on the occasion of the partition of a relevant asset.
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(2) This section applies where a relevant asset has been owned and used for the purposes of farming by the farming partnership for a period of not less than 10 years ending with the relevant disposal.
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(3) Notwithstanding subsection (2), where one of the partners acquired his or her share of a relevant asset by way of inheritance, the period of ownership and use of that asset shall be deemed to have commenced on the date on which the person entered into partnership with the other partner or partners in the farming partnership.
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(4) Where a relevant disposal arises in respect of a relevant asset, a gain shall not be treated as accruing in respect of that disposal and the relevant asset shall be treated for the purposes of the Capital Gains Tax Acts as having been acquired at the same time and for the same consideration as it was originally acquired by the partner who disposed of that asset.
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(5) This section shall not apply if, until the disposal, the asset formed part of the trading stock of the farming trade carried on by the farming partnership or, if the asset is acquired as trading stock, for the purposes of a trade carried on by the partner acquiring the asset.”.
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(2) (a) Paragraph (a)(i) of subsection (1) comes into operation on such day or days as the Minister for Finance may by order or orders appoint and different days may be appointed for different purposes or different provisions.
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(b) Paragraph (a)(ii) of subsection (1) applies to disposals made on or after 31 January 2008.
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(c) Paragraph (b) of subsection (1 applies to disposals made on or after the date of the passing of this Act and will apply until 31 December 2013.
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