Finance (No. 3) Act 2011
|
Amendments of Taxes Consolidation Act 1997. |
1.— (1) The Taxes Consolidation Act 1997 is amended by inserting the following Parts after Part 44: | |
“PART 44A | ||
Tax Treatment of Civil Partnerships | ||
Chapter 1 | ||
Income Tax | ||
Interpretation (Chapter 1). | ||
1031A.— (1) In this Chapter― | ||
‘inspector’, in relation to a notice, means any inspector who might reasonably be considered by the individual giving notice to be likely to be concerned with the subject matter of the notice or who declares himself or herself ready to accept the notice; | ||
‘nominated civil partner’, in relation to a civil partnership, means the civil partner who is nominated for the purposes of this Chapter in accordance with section 1031D; | ||
‘other civil partner’, in relation to a civil partnership, means the civil partner who is not the nominated civil partner. | ||
(2) A civil partner shall be treated for income tax purposes as living with his or her civil partner unless they are in fact living separately and apart in circumstances where reconciliation is unlikely. | ||
(3) (a) In this Chapter, references to the income of the other civil partner include references to any sum which apart from this Chapter would be included in computing that civil partner’s total income, and this Chapter shall apply in relation to any such sum notwithstanding that an enactment (including, except in so far as the contrary is expressly provided, an enactment passed after 1 January 2011) requires that that sum should not be treated as income of any individual other than that civil partner. | ||
(b) In the Income Tax Acts, a reference to an individual who has duly elected to be assessed to tax in accordance with a particular section includes a reference to an individual who is deemed to have elected to be assessed to tax in accordance with that section, and any reference to an individual who is assessed to tax in accordance with section 1031C for a year of assessment includes a reference to a case where the individual and his or her civil partner are assessed to tax for that year in accordance with section 1031H. | ||
(4) Any notice required to be served under any section in this Chapter may be served by post. | ||
Assessment as single persons. | ||
1031B.— (1) Subject to subsection (2), in any case in which civil partners are treated as living together, income tax shall be assessed, charged and recovered, except as is otherwise provided by the Income Tax Acts, on the income of each civil partner as if they were not in a civil partnership. | ||
(2) Where an election under section 1031D has effect in relation to 2 individuals who are civil partners of each other for a year of assessment, this section shall not apply in relation to those civil partners for that year of assessment. | ||
Assessment of nominated civil partner in respect of income of both civil partners. | ||
1031C.— (1) Where an election under section 1031D to be assessed to tax in accordance with this section has effect for a year of assessment— | ||
(a) the nominated civil partner shall be assessed and charged to income tax, not only in respect of his or her total income (if any) for that year but also in respect of the other civil partner’s total income (if any) for any part of that year of assessment during which they are living together, and for those purposes and for the purposes of the Income Tax Acts, that last-mentioned income shall be deemed to be the income of the nominated civil partner, | ||
(b) the question of whether there is any income of the other civil partner chargeable to tax for any year of assessment and, if so, what is to be taken to be the amount of that income for tax purposes shall not be affected by this section, and | ||
(c) any tax to be assessed in respect of any income which under this section is deemed to be income of the nominated civil partner shall, instead of being assessed on the other civil partner, or on his or her trustees, guardian or committee, or on his or her executors or administrators, be assessable on the nominated civil partner or, in the appropriate cases, on his or her executors or administrators. | ||
(2) Any relief from income tax authorised by any provision of the Income Tax Acts to be granted to the nominated civil partner by reference to the income or profits or gains or losses of the other civil partner or by reference to any payment made by the other civil partner shall be granted to the nominated civil partner for a year of assessment only if the nominated civil partner is assessed to tax for that year in accordance with this section. | ||
Election for assessment under section 1031C. | ||
1031D.— (1) (a) An individual and his or her civil partner who are living together may, at any time during a year of assessment, by notice in writing given to the inspector, jointly― | ||
(i) elect to be assessed to income tax for that year of assessment in accordance with section 1031C, and | ||
(ii) nominate which of them is to be the nominated civil partner for the purposes of this Chapter. | ||
(b) If the notice under paragraph (a) does not nominate one of the civil partners to be the nominated civil partner, the Revenue Commissioners shall deem one of the civil partners to be the nominated civil partner. | ||
(c) Where an election is made under paragraph (a), the income of the nominated civil partner and the income of the other civil partner shall be assessed to tax for that year in accordance with section 1031C. | ||
(2) Where an election is made under subsection (1) for a year of assessment, the election shall have effect for that year and for each subsequent year of assessment. | ||
(3) Notwithstanding subsections (1) and (2), either civil partner may, for a year of assessment, by notice in writing given to the inspector before the end of the year, withdraw the election for that year and, on the giving of that notice, the election shall not have effect for that year or for any subsequent year of assessment. | ||
(4) (a) Where an individual and his or her civil partner are living together and an election under subsection (1) has not been made by them for a year of assessment (or for any prior year of assessment), the civil partners shall be deemed to have duly elected to be assessed to tax in accordance with section 1031C for that year and the Revenue Commissioners shall deem one of the civil partners to be the nominated civil partner, unless before the end of that year either of them gives notice in writing to the inspector that he or she wishes to be assessed to tax for that year as a single person in accordance with section 1031B. | ||
(b) Where a civil partner has duly given notice under paragraph (a), that paragraph shall not apply in relation to the civil partners concerned for the year of assessment for which the notice was given or for any subsequent year of assessment until the year of assessment in which the notice is withdrawn, by the civil partner who gave it, by further notice in writing to the inspector. | ||
Special provisions relating to year of registration of civil partnership. | ||
1031E.— (1) In this section— | ||
‘income tax month’ means a calendar month; | ||
‘year of registration’, in relation to 2 individuals who are civil partners of each other, means— | ||
(a) in the case of civil partners whose civil partnership was registered in the State, the year of assessment in which their civil partnership was registered, and | ||
(b) in the case of civil partners whose legal relationship, entered into in another jurisdiction, is recognised pursuant to an order made under section 5 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 , the year of assessment in which falls the day on which, by virtue of subsection (2) of that section, the civil partners are to be treated as civil partners under the law of the State, | ||
and ‘registered’ in relation to a civil partnership shall be construed accordingly. | ||
(2) Section 1031D shall not apply in relation to civil partners for the year of registration. | ||
(3) Where, on making a claim in that behalf, 2 individuals who are civil partners of each other prove that the amount equal to the aggregate of the income tax paid and payable by each of them on his or her total income for the year of registration is in excess of the income tax which would have been payable by one of the civil partners on his or her total income and the total income of his or her civil partner for the year of registration if— | ||
(a) the civil partner had been charged to income tax as the nominated civil partner for the year of registration in accordance with section 1031C, and | ||
(b) the civil partners had been civil partners of each other throughout the year of registration, | ||
they shall be entitled, subject to subsection (4), to repayment of income tax of an amount determined by the formula— | ||
A x B | ||
12 | ||
where— | ||
A is the amount of the excess, and | ||
B is the number of income tax months in the period between the date on which the civil partnership was registered and the end of the year of registration, part of an income tax month being treated for this purpose as an income tax month in a case where the period consists of part of an income tax month or of one or more income tax months and part of an income tax month. | ||
(4) Any repayment of income tax under subsection (3) shall be allocated to the civil partners concerned in proportion to the amounts of income tax paid and payable by them, having regard to subsection (2), on their respective total incomes for the year of registration. | ||
(5) Any claim for a repayment of income tax under subsection (3) shall be made in writing to the inspector after the end of the year of registration and shall be made by both civil partners concerned jointly. | ||
(6) (a) Subsections (1) and (2) of section 459 and section 460 shall apply to a repayment of income tax under this section as they apply to any allowance, deduction, relief or reduction under the provisions specified in the Table to section 458. | ||
(b) Subsections (3) and (4) of section 459 and paragraph 8 of Schedule 28 shall, with any necessary modifications, apply in relation to a repayment of tax under this section. | ||
Repayment of tax in case of certain civil partners. | ||
1031F.— (1) This section shall apply for a year of assessment in the case of civil partners who are assessed to income tax for the year of assessment in accordance with section 1031C and to whom section 1031H does not apply for that year. | ||
(2) Where for a year of assessment this section applies in the case of civil partners, any repayment of income tax to be made in respect of the aggregate of the net tax deducted or paid under any provision of the Tax Acts in respect of the total income (if any) of the nominated civil partner and of the total income (if any) of the other civil partner shall be allocated to the civil partners concerned in proportion to the net amounts of tax so deducted or paid in respect of their respective total incomes; but this subsection shall not apply where a repayment, which but for this subsection would not be made to the other civil partner, is less than €25. | ||
(3) Notwithstanding subsection (2), where the inspector, having regard to all the circumstances of a case, is satisfied that a repayment or a greater part of a repayment of income tax arises by reason of some allowance or relief which, if sections 1031H and 1031I had applied for the year of assessment, would have been allowed to one civil partner only, the inspector may make the repayment to the nominated civil partner and the other civil partner in such proportions as the inspector considers just and reasonable. | ||
Special provisions relating to tax on individual’s civil partner’s income. | ||
1031G.— (1) Where— | ||
(a) an assessment to income tax (in this section referred to as the ‘original assessment’) has been made for any year of assessment on an individual, or on an individual’s trustee, guardian or committee (in this section referred to as the ‘representative’), or on an individual’s executors or administrators, | ||
(b) the Revenue Commissioners are of the opinion that, if an application for separate assessment under section 1031H had been in force with respect to that year of assessment, an assessment in respect of or of part of the same income would have been made on, or on the representative of, or on the executors or administrators of, an individual who is the civil partner of the individual referred to in paragraph (a) or who was the civil partner of the individual referred to in paragraph (a) (in this subsection and in subsection (2) referred to as the ‘other civil partner’) in that year of assessment, and | ||
(c) the whole or part of the amount payable under the original assessment has remained unpaid at the expiration of 28 days from the time when it became due, | ||
the Revenue Commissioners may give to the other civil partner, or, if the other civil partner is dead, to the other civil partner’s executors or administrators, or, if an assessment referred to in paragraph (b) could in the circumstances referred to in that paragraph have been made on the other civil partner’s representative, to the other civil partner, or to the other civil partner’s executors or administrators, a notice stating— | ||
(i) particulars of the original assessment and of the amount remaining unpaid under that assessment, and | ||
(ii) to the best of their judgement, particulars of the assessment (in this subsection referred to as the ‘last-mentioned assessment’) which would have been so made, | ||
and requiring the other civil partner to whom the notice is given to pay the lesser of— | ||
(i) the amount which would have been payable under the last-mentioned assessment if it conformed with those particulars, and | ||
(ii) the amount remaining unpaid under the original assessment. | ||
(2) The same consequences as respects— | ||
(a) the imposition of a liability to pay, and the recovery of, the tax with or without interest, | ||
(b) priority for the tax in bankruptcy or in the administration of the estate of a deceased individual, | ||
(c) appeals to the Appeal Commissioners, the rehearing of such appeals and the stating of cases for the opinion of the High Court, and | ||
(d) the ultimate incidence of the liability imposed, | ||
shall follow on the giving of a notice under subsection (1) to the other civil partner or to the other civil partner’s representative, or to the other civil partner’s executors or administrators, as would have followed on the making on the other civil partner, or on the other civil partner’s representative, or on the other civil partner’s executors or administrators, as the case may be, of an assessment referred to in subsection (1)(b), being an assessment which— | ||
(i) was made on the day of the giving of the notice, | ||
(ii) charged the same amount of tax as is required to be paid by the notice, | ||
(iii) fell to be made and was made by the authority who made the original assessment, and | ||
(iv) was made by that authority to the best of that authority’s judgment, | ||
and the provisions of the Income Tax Acts relating to the matters specified in paragraphs (a) to (d) shall, with the necessary modifications, apply accordingly. | ||
(3) Where a notice is given under subsection (1), tax up to the amount required to be paid by the notice shall cease to be recoverable under the original assessment and, where the tax charged by the original assessment carried interest under section 1080, such adjustment shall be made of the amount payable under that section in relation to that assessment and such repayment shall be made of any amounts previously paid under that section in relation to that assessment as are necessary to secure that the total sum, if any, paid or payable under that section in relation to that assessment is the same as it would have been if the amount which ceases to be recoverable had never been charged. | ||
(4) Where the amount payable under a notice under subsection (1) is reduced as the result of an appeal or of a case stated for the opinion of the High Court— | ||
(a) the Revenue Commissioners shall, if having regard to that result they are satisfied that the original assessment was excessive, cause such relief to be given by means of repayment or otherwise as appears to them to be just, but | ||
(b) subject to any relief given, a sum equal to the reduction in the amount payable under the notice concerned shall again become recoverable under the original assessment. | ||
(5) The Revenue Commissioners and the inspector or other proper officer shall have the like powers of obtaining information with a view to the giving of, and otherwise in connection with, a notice under subsection (1) as they would have had with a view to the making of, and otherwise in connection with, an assessment referred to in subsection (1)(b) if the necessary conditions had been fulfilled for the making of such an assessment. | ||
(6) Where a civil partner dies (in this subsection and subsections (7) and (8) referred to as the ‘deceased civil partner’) and, at any time before the death, the deceased civil partner and his or her civil partner were living together, then the surviving civil partner or his or her executors or administrators (if he or she is also deceased) may, not later than 2 months from the date of the grant of probate or letters of administration in respect of the deceased civil partner’s estate or, with the consent of the deceased civil partner’s executors or administrators, at any later date, give to the deceased civil partner’s executors or administrators and to the inspector a notice in writing declaring that, to the extent permitted by this section, the surviving civil partner, or his or her executors or administrators, as the case may be, disclaim responsibility for unpaid income tax in respect of all income of the deceased civil partner for any year of assessment or part of a year of assessment, being a year of assessment or a part of a year of assessment for which any income of the deceased civil partner was deemed to be the income of the surviving civil partner and in respect of which the surviving civil partner was assessed to tax under section 1031C. | ||
(7) A notice given to the inspector pursuant to subsection (6) shall be deemed not to be a valid notice unless it specifies the names and addresses of the deceased civil partner’s executors or administrators. | ||
(8) Where a notice under subsection (6) has been given to a deceased civil partner’s executors or administrators and to the inspector— | ||
(a) it shall be the duty of the Revenue Commissioners and the Appeal Commissioners to exercise such powers as they may then or thereafter be entitled to exercise under subsections (1) to (5) in connection with any assessment made on or before the date when the giving of that notice is completed, being an assessment in respect of any of the income to which that notice relates, and | ||
(b) the assessments (if any) to tax which may be made after that date shall, in all respects and in particular as respects the civil partners assessable and the tax payable, be the assessments which would have been made if— | ||
(i) an application for separate assessment under section 1031H had been in force in respect of the year of assessment in question, and | ||
(ii) all assessments previously made had been made accordingly. | ||
(9) The Revenue Commissioners may nominate in writing any of their officers to perform any acts and discharge any functions authorised by this section to be performed or discharged by the Revenue Commissioners. | ||
Application for separate assessments. | ||
1031H.— (1) In this section and in section 1031I, ‘personal reliefs’ means relief under any of the provisions specified in the Table to section 458, apart from relief under sections 461A, 462 and 463. | ||
(2) Where an election by civil partners to be assessed to income tax in accordance with section 1031C has effect for a year of assessment and, for that year of assessment, an application is made for the purpose under this section in such manner and form as may be prescribed by the Revenue Commissioners, by either civil partner, income tax for that year shall be assessed, charged and recovered on the income of each civil partner as if they were not civil partners of each other and the provisions of the Income Tax Acts with respect to the assessment, charge and recovery of tax shall, except where otherwise provided by those Acts, apply as if they were not civil partners of each other except that— | ||
(a) the total deductions from total income and reliefs allowed to the civil partners by means of personal reliefs shall be the same as if the application had not had effect for that year, | ||
(b) the total tax payable by the civil partners for that year shall be the same as the total tax which would have been payable by them if the application had not had effect for that year, and | ||
(c) section 1031I shall apply. | ||
(3) An application under this section for a year of assessment may be made— | ||
(a) before 1 April in the following year— | ||
(i) in the case of individuals whose civil partnership was registered in the State during the course of that year of assessment, and | ||
(ii) in the case of civil partners whose legal relationship, entered into in another jurisdiction, is recognised pursuant to an order made under section 5 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 , if the date on which the civil partners are to be treated as civil partners under the law of the State, by virtue of subsection (2) of that section, falls during the course of that year, | ||
and | ||
(b) in any other case, within 6 months before 1 April in that year. | ||
(4) Where an application is made under subsection (2), that subsection shall apply not only for the year of assessment for which the application was made, but also for each subsequent year of assessment; but, in relation to a subsequent year of assessment, the civil partner who made the application may, by notice in writing given to the inspector before 1 April in that year, withdraw that election and, on the giving of that notice, subsection (2) shall not apply for the year of assessment in relation to which the notice was given or any subsequent year of assessment. | ||
(5) A return of the total incomes of both civil partners may be made for the purposes of this section by either civil partner concerned but, if the Revenue Commissioners are not satisfied with any such return, they may require a return to be made by the civil partner who did not make the return. | ||
(6) The Revenue Commissioners may by notice require returns for the purposes of this section to be made at any time. | ||
Method of apportioning reliefs and charging tax in cases of separate assessments. | ||
1031I.— (1) This section shall apply where pursuant to an application under section 1031H, civil partners are assessed to tax for a year of assessment in accordance with that section. | ||
(2) (a) Subject to subsection (3), the benefit flowing from the personal reliefs for a year of assessment may be given either by means of reduction of the amount of the tax to be paid or by repayment of any excess of tax which has been paid, or by both of those means, as the case requires, and shall be allocated to the civil partners— | ||
(i) in so far as it flows from relief under sections 244 and 372AR, in the proportions in which they incurred the expenditure giving rise to the relief, | ||
(ii) in so far as it flows from relief under sections 461, 464, 465 (other than subsection (3)) and 468, in the proportions of one-half and one-half, | ||
(iii) in so far as it flows from relief in respect of a child under section 465(3) and relief in respect of a dependent relative under section 466, to the civil partner who maintains the child or dependent relative, | ||
(iv) in so far as it flows from relief under section 467, in the proportions in which each civil partner bears the cost of employing the individual in respect of whom the relief is given, | ||
(v) in so far as it flows from relief under section 469, in the proportions in which each civil partner incurred the expenditure giving rise to the relief, | ||
(vi) in so far as it flows from relief under sections 470, 470B and 473, to either civil partner according as he or she made the payment giving rise to the relief, | ||
(vii) in so far as it flows from relief under section 471, in the proportions in which each civil partner incurred the expenditure giving rise to the relief, | ||
(viii) in so far as it flows from relief under sections 472, 472A and 472B, to either civil partner according as the emoluments from which relief under those sections is granted are emoluments of that civil partner, | ||
(ix) in so far as it flows from relief under sections 473A, 476 and 477, in the proportions in which each civil partner incurred the expenditure giving rise to the relief, | ||
(x) in so far as it flows from relief under section 481, in the proportions in which each civil partner made the relevant investment giving rise to the relief, | ||
(xi) in so far as it flows from relief under section 848A(7), to each civil partner according as he or she made the relevant donation giving rise to the relief, | ||
(xii) in so far as it flows from relief under Part 16, in the proportions in which each civil partner subscribed for the eligible shares giving rise to the relief, and | ||
(xiii) in so far as it flows from relief under paragraphs 12 and 20 of Schedule 32, in the proportions in which each civil partner incurred the expenditure giving rise to the relief. | ||
(b) Any reduction of income tax to be made under section 188(5) for a year of assessment shall be allocated to each civil partner in proportion to the amounts of income tax which but for section 188(5) would have been payable by both civil partners for that year. | ||
(c) Subject to subsection (4), Part 1 of the Table to section 15 shall apply to each of the civil partners concerned. | ||
(3) Where the amount of relief allocated to a civil partner under subsection (2)(a) exceeds the income tax chargeable on his or her income for the year of assessment, the balance shall be applied to reduce the income tax chargeable on the income of his or her civil partner for that year, and where the amount of relief allocated to that civil partner under that paragraph exceeds the income tax chargeable on his or her income for the year of assessment, the balance shall be applied to reduce the income tax chargeable on the income of the first-mentioned civil partner for that year. | ||
(4) Where the part of the taxable income of a civil partner chargeable to tax in accordance with subsection (2)(c) at the standard rate is less than that of his or her civil partner and is less than the part of taxable income specified in column (1) of Part 1 of the Table to section 15 (in this subsection referred to as the ‘appropriate part’) in respect of which the first-mentioned civil partner is so chargeable to tax at that rate, the part of taxable income of the civil partner other than the first-mentioned civil partner which by virtue of subsection (2)(c) is to be charged to tax at the standard rate shall be increased, to an amount not exceeding the part of taxable income specified in column (1) of Part 3 of the Table to section 15 in respect of which an individual to whom that Part applies is so chargeable at that rate, by the amount by which the taxable income of the first-mentioned civil partner chargeable to tax at the standard rate is less than the appropriate part. | ||
Maintenance of civil partners living apart. | ||
1031J.— (1) In this section— | ||
‘maintenance arrangement’ means an order of a court under Part 5 or 12 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 giving rise to a legally enforceable obligation; | ||
‘payment’ means a payment or part of a payment, as the case may be. | ||
(2) (a) This section shall apply to payments made directly or indirectly by a civil partner under or pursuant to a maintenance arrangement. | ||
(b) For the purposes of this section and of section 1031K, a payment, whether conditional or not, which is made directly or indirectly by a civil partner or former civil partner under or pursuant to a maintenance arrangement shall be deemed to be made for the benefit of his or her civil partner or former civil partner. | ||
(3) Notwithstanding anything in the Income Tax Acts but subject to section 1031K, as respects any payment to which this section applies made directly or indirectly by one civil partner or former civil partner under or pursuant to a maintenance arrangement for the benefit of his or her civil partner or former civil partner— | ||
(a) the individual making the payment— | ||
(i) shall not be entitled on making the payment to deduct and retain out of the payment any sum representing any amount of income tax on the payment, and | ||
(ii) shall, if he or she makes a claim in that behalf in the manner prescribed by the Income Tax Acts, be entitled, for the purposes of those Acts, to deduct the payment in computing his or her total income for the year of assessment for which the payment is made, | ||
and | ||
(b) the payment shall be deemed for the purposes of the Income Tax Acts to be profits or gains arising to the individual receiving the payment, and income tax shall be charged on that individual under Case IV of Schedule D in respect of those profits or gains. | ||
(4) (a) Subsections (1) and (2) of section 459 and section 460 shall apply to a deduction under subsection (3)(a)(ii) as they apply to any allowance, deduction, relief or reduction under the provisions specified in the Table to section 458. | ||
(b) Subsections (3) and (4) of section 459 and paragraph 8 of Schedule 28 shall, with any necessary modifications, apply in relation to a deduction under subsection (3)(a)(ii) . | ||
Dissolution or annulment of civil partnerships: adaptation of provisions relating to civil partners. | ||
1031K.— (1) Where a payment to which section 1031J applies is made in a year of assessment by a civil partner (whose civil partnership has not been dissolved or annulled) and both civil partners concerned are resident in the State for that year, section 1031D shall apply in relation to those civil partners for that year of assessment as if— | ||
(a) the words ‘who are living together’ in subsection (1)(a) of that section were deleted, and | ||
(b) subsection (4) of that section were deleted. | ||
(2) Where by virtue of subsection (1) both civil partners elect as provided for in section 1031D(1), then, for any year of assessment for which the election has effect— | ||
(a) subject to subsection (1) and paragraphs (b) and (c), the Income Tax Acts shall apply in the case of the civil partners as they apply in the case of civil partners who have elected under section 1031D(1) and whose election has effect for that year of assessment, | ||
(b) the total income or incomes of the civil partners shall be computed for the purposes of the Income Tax Acts as if any payments to which section 1031J applies made in that year of assessment by one civil partner for the benefit of his or her civil partner had not been made, and | ||
(c) income tax shall be assessed, charged and recovered on the total income or incomes of the civil partners as if an application under section 1031H had been made by one of the civil partners and that application had effect for that year of assessment. | ||
(3) Notwithstanding subsection (1), where a payment to which section 1031J applies is made in a year of assessment by a civil partner whose civil partnership has been dissolved, for the benefit of the other civil partner, and— | ||
(a) the dissolution was a dissolution under section 110 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 , or deemed to be such a dissolution under section 5(4) of that Act, | ||
(b) both civil partners are resident in the State for tax purposes for that year of assessment, and | ||
(c) neither civil partner has entered into another civil partnership or a marriage, | ||
then, subsections (1) and (2) shall, with any necessary modifications, apply in relation to the civil partners for that year of assessment as if their civil partnership had not been dissolved. | ||
Chapter 2 | ||
Capital Gains Tax | ||
Interpretation (Chapter 2). | ||
1031L.— (1) In this Chapter― | ||
‘inspector’, in relation to a notice, means any inspector who might reasonably be considered by the individual giving notice to be likely to be concerned with the subject matter of the notice or who declares himself or herself ready to accept the notice; | ||
‘nominated civil partner’, in relation to a civil partnership, means the civil partner who is nominated for the purposes of this Chapter in accordance with section 1031M; | ||
‘other civil partner’, in relation to a civil partnership, means the civil partner who is not the nominated civil partner. | ||
(2) In the Capital Gains Tax Acts, a reference to an individual who has been duly nominated to be the nominated civil partner in accordance with section 1031M includes a reference to an individual who is deemed to be the nominated civil partner in accordance with that section. | ||
(3) Any notice required to be served under any section in this Chapter may be served by post. | ||
Civil partners. | ||
1031M.— (1) (a) An individual and his or her civil partner who are living together, may, for a year of assessment, by notice in writing given to the inspector on or before 1 April in the year following that year of assessment, jointly nominate which of them is to be the nominated civil partner for the purposes of this Chapter. | ||
(b) If the notice under paragraph (a) is not given on or before the date mentioned in that paragraph, the Revenue Commissioners shall deem one of the civil partners to be the nominated civil partner. | ||
(2) Subject to this section, the amount of capital gains tax on chargeable gains accruing to civil partners in a year of assessment or part of a year of assessment during which they are living together shall be assessed and charged on the civil partner who is the nominated civil partner and not otherwise; but this subsection shall not affect the amount of capital gains tax chargeable on the nominated civil partner apart from this subsection or result in the additional amount of capital gains tax charged on the nominated civil partner by virtue of this subsection being different from the amount which would otherwise have remained chargeable on the other civil partner. | ||
(3) (a) Subject to paragraph (b), subsection (2) shall not apply in relation to a civil partner in any year of assessment where, on or before 1 April in the year following that year of assessment, an application is made by either civil partner that subsection (2) shall not apply, and such an application duly made shall have effect not only as respects the year of assessment for which it is made but also for any subsequent year of assessment. | ||
(b) Where the applicant gives, for any subsequent year of assessment, a notice withdrawing an application under paragraph (a), that application shall not have effect with respect to the year for which the notice is given or any subsequent year; but such notice of withdrawal shall not be valid unless it is given before 1 April in the year following the year of assessment for which the notice is given. | ||
(4) In the case of a civil partner who during a year of assessment or part of a year of assessment is a civil partner living with his or her civil partner, any allowable loss which under section 31 would be deductible from the chargeable gains accruing in that year of assessment to one civil partner but for an insufficiency of chargeable gains shall for the purposes of that section be deductible from chargeable gains accruing in that year of assessment to the other civil partner; but this subsection shall not apply in relation to losses accruing in a year of assessment to either civil partner where an application that this subsection shall not apply is made by either of them before 1 April in the year following that year of assessment. | ||
(5) Where, in any year of assessment in which or in part of which a civil partner is living with his or her civil partner, either civil partner disposes of an asset to his or her civil partner, both civil partners shall be treated as if the asset was acquired from the civil partner making the disposal for a consideration of such amount as would secure that on the disposal neither a gain nor a loss would accrue to the civil partner making the disposal; but this subsection shall not apply if until the disposal the asset formed part of trading stock of a trade carried on by the civil partner making the disposal, or if the asset is acquired as trading stock for the purposes of a trade carried on by the civil partner acquiring the asset. | ||
(6) Subsection (5) shall apply notwithstanding section 596 or any other provision of the Capital Gains Tax Acts fixing the amount of the consideration deemed to be given on a disposal or acquisition. | ||
(7) Subsection (5) shall not apply where the civil partner who acquired the asset could not be taxed in the State for the year of assessment in which the acquisition took place, in respect of a gain on a subsequent disposal in that year by that civil partner of the asset, if that civil partner had made such a disposal and a gain accrued on the disposal. | ||
(8) Where subsection (5) is applied in relation to a disposal of an asset by a civil partner to his or her civil partner, then, in relation to a subsequent disposal of the asset (not within that subsection), the civil partner making the disposal shall be treated for the purposes of the Capital Gains Tax Acts as if the acquisition or provision of the asset by his or her civil partner had been his or her own acquisition or provision of the asset. | ||
(9) An application or notice of withdrawal under this section shall be in such form and made in such manner as may be prescribed by the Revenue Commissioners. | ||
Application of section 1031G for purposes of capital gains tax. | ||
1031N.— Section 1031G shall apply with any necessary modifications in relation to capital gains tax as it applies in relation to income tax. | ||
Transfers of assets where civil partnership dissolved. | ||
1031O.— (1) Notwithstanding any other provision of the Capital Gains Tax Acts, where by virtue or in consequence of an order made under Part 12 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 , on or following the granting of a decree of dissolution or a dissolution deemed under section 5(4) of that Act to be a dissolution under section 110 of that Act, either of the civil partners concerned disposes of an asset to his or her civil partner, then, subject to subsection (3), both civil partners shall be treated for the purpose of the Capital Gains Tax Acts as if the asset was acquired from the civil partner making the disposal for a consideration of such amount as would secure that on the disposal neither a gain nor a loss would accrue to the civil partner making the disposal. | ||
(2) Subsection (1) shall not apply where the civil partner who acquired the asset could not be taxed in the State for the year of assessment in which the acquisition took place, in respect of a gain on a subsequent disposal in that year by that civil partner of the asset, if that civil partner had made such a disposal and a gain accrued on the disposal. | ||
(3) Subsection (1) shall not apply if until the disposal the asset formed part of the trading stock of a trade carried on by the civil partner making the disposal or if the asset is acquired as trading stock for the purposes of a trade carried on by the civil partner acquiring the asset. | ||
(4) Where subsection (1) applies in relation to a disposal of an asset by a civil partner to his or her civil partner, then, in relation to a subsequent disposal of the asset (not being a disposal to which subsection (1) applies), the civil partner making the disposal shall be treated for the purposes of the Capital Gains Tax Acts as if the acquisition or provision of the asset by his or her civil partner had been his or her own acquisition or provision of the asset. | ||
PART 44B | ||
Tax Treatment of Cohabitants | ||
Chapter 1 | ||
Income Tax | ||
Interpretation (Chapter 1). | ||
1031P.— In this Part― | ||
‘cohabitant’ has the same meaning as in section 172 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 ; | ||
‘inspector’, in relation to a notice, means any inspector who might reasonably be considered by the individual giving notice to be likely to be concerned with the subject matter of the notice or who declares himself or herself ready to accept the notice; | ||
‘qualified cohabitant’ has the same meaning as in section 172 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 . | ||
Maintenance where relationship between cohabitants ends. | ||
1031Q.— (1) In this section— | ||
‘maintenance arrangement’ means an order of a court under section 175 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 giving rise to a legally enforceable obligation; | ||
‘payment’ means a payment or part of a payment, as the case may be. | ||
(2) (a) This section applies to payments made directly or indirectly by a qualified cohabitant under or pursuant to a maintenance arrangement. | ||
(b) For the purposes of this section a payment, whether conditional or not, which is made directly or indirectly by a qualified cohabitant under or pursuant to a maintenance arrangement shall be deemed to be made for the benefit of the other qualified cohabitant. | ||
(3) Notwithstanding anything in the Income Tax Acts, as respects any payment to which this section applies made directly or indirectly by an individual under or pursuant to a maintenance arrangement for the benefit of a qualified cohabitant— | ||
(a) the individual making the payment— | ||
(i) shall not be entitled on making the payment to deduct and retain out of the payment any sum representing any amount of income tax on the payment, and | ||
(ii) shall, if he or she makes a claim in that behalf in the manner prescribed by the Income Tax Acts, be entitled, for the purposes of those Acts, to deduct the payment in computing his or her total income for the year of assessment in which the payment is made, | ||
and | ||
(b) the payment shall be deemed for the purposes of the Income Tax Acts to be profits or gains arising to the qualified cohabitant, and income tax shall be charged on that qualified cohabitant under Case IV of Schedule D in respect of those profits or gains. | ||
(4) (a) Subsections (1) and (2) of section 459 and section 460 shall apply to a deduction under subsection (3)(a)(ii) as they apply to any allowance, deduction, relief or reduction under the provisions specified in the Table to section 458. | ||
(b) Subsections (3) and (4) of section 459 and paragraph 8 of Schedule 28 shall, with any necessary modifications, apply in relation to a deduction under subsection (3)(a)(ii) . | ||
Chapter 2 | ||
Capital Gains Tax | ||
Transfers of assets where relationship between cohabitants ends. | ||
1031R.— (1) Notwithstanding any other provision of the Capital Gains Tax Acts, where by virtue or in consequence of an order made under section 174 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 , on or following the ending of a relationship between cohabitants, either of the cohabitants concerned disposes of an asset to the other cohabitant, then, subject to subsections (2) and (3), both cohabitants shall be treated for the purposes of the Capital Gains Tax Acts as if the asset was acquired from the cohabitant making the disposal for a consideration of such amount as would secure that on the disposal neither a gain nor a loss would accrue to the cohabitant making the disposal. | ||
(2) Subsection (1) shall not apply where the cohabitant who acquired the asset could not be taxed in the State for the year of assessment in which the acquisition took place, in respect of a gain on a subsequent disposal in that year by that cohabitant of the asset, if that cohabitant had made such a disposal and a gain accrued on the disposal. | ||
(3) Subsection (1) shall not apply if until the disposal the asset formed part of the trading stock of a trade carried on by the cohabitant making the disposal or if the asset is acquired as trading stock for the purposes of a trade carried on by the cohabitant acquiring the asset. | ||
(4) Where subsection (1) applies in relation to a disposal of an asset by a cohabitant to the other cohabitant, then, in relation to a subsequent disposal of the asset (not being a disposal to which subsection (1) applies), the cohabitant making the disposal shall be treated for the purposes of the Capital Gains Tax Acts as if the other cohabitant’s acquisition or provision of the asset had been the acquisition or provision of the asset by the cohabitant who made the disposal.”. | ||
(2) (a) In each provision of the Taxes Consolidation Act 1997 set out in column (2) of Schedule 1 — | ||
(i) if no words are set out in column (3) of that Schedule, the words which are set out opposite the entry in column (4) of that Schedule are to be inserted as indicated in that provision, and | ||
(ii) in any other case, the words in that provision which are set out in column (3) of that Schedule are to be deleted and the words which are set out opposite the entry in column (4) of that Schedule are to be inserted. | ||
(b) Where words are mentioned more than once in a provision of the Taxes Consolidation Act 1997 set out in column (2) of Schedule 1 , then any deletion or insertion, or any case of both deletion and insertion provided for by paragraph (a) in relation to the provision, shall apply as respects those words to each mention of those words in that provision. |