Finance Act 2010

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Exemption of certain investment entities.

144.— (1) The Principal Act is amended by substituting the following for section 75:

“75.— (1) In this section—

‘collective investment scheme’ means a bona fide scheme for the purpose, or having the effect, solely or mainly, of providing facilities for the participation by the public or other investors in profits or income arising from the acquisition, holding, management or disposal of securities or any other property;

‘common contractual fund’ has the meaning assigned to it by section 739I of the Taxes Consolidation Act 1997 ;

‘investment undertaking’ has the meaning assigned to it by section 739B of the Taxes Consolidation Act 1997 ;

‘unit’, in relation to a collective investment scheme, includes shares, members’ interests, limited partnership interests and any other instruments granting an entitlement to the income or investments from the scheme;

‘unit’, in relation to a common contractual fund, has the meaning assigned to it by section 739I of the Taxes Consolidation Act 1997 ;

‘unit’, in relation to an investment undertaking, has the meaning assigned to it by section 739B of the Taxes Consolidation Act 1997 .

(2) Where any unit of a collective investment scheme which is incorporated or otherwise formed under the law of a territory outside the State, a common contractual fund or an investment undertaking is comprised in a gift or an inheritance, then, such unit—

(a) is exempt from tax, and

(b) is not taken into account in computing tax on any gift or inheritance taken by the donee or successor,

if it is shown to the satisfaction of the Commissioners that—

(i) the unit is comprised in the gift or inheritance—

(I) at the date of the gift or the date of the inheritance, and

(II) at the valuation date,

(ii) at the date of the disposition, the disponer is neither domiciled nor ordinarily resident in the State, and

(iii) at the date of the gift or at the date of the inheritance, the donee or successor is neither domiciled nor ordinarily resident in the State.

(3) Where—

(a) any unit of an investment undertaking which is comprised in a gift or an inheritance came into the beneficial ownership of the disponer or became subject to the disposition prior to 15 February 2001, and

(b) the conditions of subparagraphs (i) and (iii) of subsection (2) are complied with,

then, that subsection shall apply to that unit of an investment undertaking comprised in a gift or an inheritance, if at the date of the disposition, the proper law of the disposition was not the law of the State.”.

(2) This section applies to gifts and inheritances taken on or after 4 February 2010.