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Deduction for stock exchange listing expenditure
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42. (1) The Principal Act is amended by the insertion of the following section after section 81C:
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“81D. (1) In this section—
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‘Directive’ means Directive 2014/65/EU of the European Parliament and of the Council of 15 May 20143
on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU;
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‘EEA Agreement’ means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by all subsequent amendments to that Agreement;
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‘EEA state’ means a state which is a contracting party to the EEA Agreement;
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‘investment company’ has the meaning assigned to it by section 83(1);
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‘listing expenditure’ means expenditure incurred by a company wholly and exclusively for the purpose of admitting to trading the shares of the company on a regulated market or a multilateral trading facility;
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‘multilateral trading facility’ has the same meaning as it has in Article 4(1), point (22), of the Directive;
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‘reference date’ means—
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(a) the date on which a company commenced the carrying on of a trade or profession, or
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(b) where a company is an investment company, the date on which the company became an investment company;
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‘regulated market’ has the same meaning as it has in Article 4(1), point (21), of the Directive;
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‘relevant period’, in relation to an accounting period of a company, means the period—
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(a) beginning on the later of—
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(i) the date which is 3 years before the date on which the accounting period begins, or
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(ii) the reference date,
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and
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(b) ending on the date on which the accounting period ends.
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(2) Where—
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(a) the shares of a company are admitted to trading on a regulated market or a multilateral trading facility, as the case may be, in an EEA state during an accounting period,
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(b) the company incurs listing expenditure in relation to the admission to trading referred to in paragraph (a) in the relevant period, and
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(c) no allowance, deduction or relief is available under any provision of the Tax Acts, apart from this section, in respect of the listing expenditure referred to in paragraph (b) in any accounting period,
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then, for the accounting period during which the shares of the company are admitted to trading as referred to in paragraph (a), such listing expenditure shall be allowed—
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(i) to be deducted in computing the amount of the profits or gains to be charged to tax under Case I or II of Schedule D, or
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(ii) where the company is an investment company, to be added to the expenses of management of the investment company for the purposes of subsections (2) and (3) of section 83.
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(3) The total amount of listing expenditure allowed to be deducted, or added to expenses of management, as the case may be, under subsection (2) shall not exceed €1,000,000.
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(4) This section shall not apply to a company where the shares of the company were previously admitted to trading on a regulated market or a multilateral trading facility in an EEA state, or listed on any stock exchange, in any accounting period.
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(5) This section shall apply to a company whose shares are admitted to trading on a regulated market or a multilateral trading facility in an EEA state on or before 31 December 2029.”.
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(2) (a) Subsection (1) shall apply to companies whose shares are admitted to trading on a regulated market or a multilateral trading facility in an EEA state on or after 1 January 2025.
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(b) In this subsection, “regulated market”, “multilateral trading facility” and “EEA state”, have the meaning given to them, respectively, by section 81D (inserted by subsection (1)) of the Principal Act.
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3 OJ No. L173, 12.6.2014, p.349 |
