Finance Act, 1999
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Chapter 8 Capital Gains Tax | ||
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Amendment of section 541A (treatment of debts on a change in currency) of Principal Act. |
87.—(1) Section 541A (inserted by the Finance Act, 1998 ) of the Principal Act is hereby amended— | |
(a) in subsection (2) by the substitution of “Subject to subsection (4) and notwithstanding any other provision of the Capital Gains Tax Acts” for “Notwithstanding any other provision of the Capital Gains Tax Acts”, | ||
and | ||
(b) by the insertion after subsection (3) of the following subsection: | ||
“(4) (a) In this subsection— | ||
‘assurance company’ has the meaning assigned to it in section 706; | ||
‘life business fund’ has the meaning assigned to it in section 719; | ||
‘special investment fund’ has the meaning assigned to it in section 723; | ||
‘special investment scheme’ has the meaning assigned to it in section 737; | ||
‘undertaking for collective investment’ has the meaning assigned to it in section 738. | ||
(b) Where the person referred to in subsection (1) is a company and either— | ||
(i) the company is an assurance company and the debt referred to in that subsection is an asset of the company's life business fund, or | ||
(ii) the company is an undertaking for collective investment and the debt referred to in that subsection is an asset of the undertaking, | ||
subsection (1) shall not apply and where the day (in this paragraph referred to as ‘the deemed disposal day’) on which, but for this paragraph, the debt would be deemed to be disposed of and reacquired in accordance with subsection (1), is not the day on which an accounting period of the company ends— | ||
(I) in case of an assurance company, section 719(2) shall apply in respect of the debt as if, for this purpose only, the deemed disposal day was the day on which an accounting period of the company ends and the chargeable gain or allowable loss thereby accruing shall be included in the net amount (within the meaning of section 720) in respect of the accounting period in which the deemed disposal day falls, and | ||
(II) in case of an undertaking for collective investment, section 738(4)(a) shall apply in respect of the debt as if, for this purpose only, the deemed disposal day was the day on which an accounting period of the company ends and the chargeable gain or allowable loss thereby accruing shall be included in the net amount (within the meaning of section 738(4)(b)) in respect of the accounting period in which the deemed disposal day falls. | ||
(c) Where the person referred to in subsection (1) is an undertaking for collective investment and is not a company, subsection (2) shall not apply but the chargeable gain or allowable loss which accrues to the undertaking by virtue of subsection (1) shall be treated as accruing to the undertaking by virtue of paragraph (a) of section 738(4) and the provisions of that section shall apply accordingly. | ||
(d) Subsection (2) shall not apply to a debt which is— | ||
(i) an asset of a special investment fund of an assurance company, or | ||
(ii) an asset which is subject to any trust created pursuant to a special investment scheme.”. | ||
(2) This section shall be deemed to have applied as on and from the 31st day of December, 1998. |