Finance Act, 1989
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Amendment of section 42 (treatment of dividends on certain preference shares) of Finance Act, 1984. |
26.— Section 42 of the Finance Act, 1984 , is hereby amended as respects preference shares issued on or after the 6th day of April, 1989, by the substitution for subsection (1) of the following subsection: | |
“(1) In this section— | ||
‘preference shares’ does not include preference shares— | ||
(a) which are quoted on a stock exchange in the State, | ||
(b) which are not so quoted but which carry rights in respect of dividends and capital which are comparable with those general for fixed-dividend shares quoted on a stock exchange in the State, or | ||
(c) which are non-transferable shares issued, by a company in the course of carrying on relevant trading operations within the meaning of section 39A (inserted by the Finance Act, 1981 ) of the Finance Act, 1980 , or section 39B (inserted by the Finance Act, 1987 ) of that Act, to a company— | ||
(i) none of the shares of which is beneficially owned, whether directly or indirectly, by a person resident in the State, and | ||
(ii) which, if this paragraph had not been enacted, would not be chargeable to corporation tax in respect of any profits other than dividends which would be so chargeable by virtue of this section; | ||
‘shares’ includes stock.”. |