Capital Gains Tax Act, 1975

• Jurisdiction: Ireland
• Citation: IR No. 20/1975

Number 20 of 1975
CAPITAL GAINS TAX ACT, 1975
ARRANGEMENT OF SECTIONS
PART I
Preliminary
Section 1. Short title. 2. Interpretation.
PART II
Taxation of Capital Gains
3. Taxation of capital gains and rate of charge. 4. Persons chargeable. 5. Amount chargeable and time of payment. 6. Capital gains accruing to an individual: alternative charge. 7. Assets. 8. Disposal of assets. 9. Consideration. 10. Time of disposal. 11. Computation of chargeable gains. 12. Losses. 13. Married persons.
PART III
Inheritances and Settled Property
14. Death. 15. Settled property.
PART IV
Exemptions and Reliefs
16. Gains of £500 and under. 17. Chattels sold for £2,000 or less. 18. Wasting chattels. 19. Government and other securities. 20. Life assurance and deferred annuities. 21. Superannuation funds. 22. Charities. 23. Other bodies. 24. Miscellaneous exemptions for certain kinds of property.
PART V
Special Reliefs
25. Private residence. 26. Disposal of business or farm on retirement. 27. Disposal within the family of business or farm. 28. Replacement of business and other assets. 29. Compensation and insurance money. 30. Scheme for retirement of farmers.
PART VI
Unit Trusts
31. Unit trusts. 32. Unit trusts: special arrangements.
PART VII
Anti-avoidance
33. Connected persons. 34. Assets disposed of in a series of transactions. 35. Controlled company transferring assets at undervalue. 36. Non-resident company. 37. Non-resident trust.
PART VIII
Miscellaneous and Supplemental
38. Double taxation relief. 39. Disposals to State, charities and other bodies. 40. Assets of insolvent persons. 41. Liquidation of companies. 42. Funds in court. 43. Unremittable gains. 44. Consideration due after time of disposal. 45. Transfers of value derived from assets. 46. Debts. 47. Options. 48. Location of assets. 49. Valuation. 50. Extension of certain Acts. 51. Supplemental.
SCHEDULE 1
PART I
PART II
SCHEDULE 2
SCHEDULE 3
SCHEDULE 4
Acts Referred to Income Tax Act, 1967 1967, No. 6 Succession Act, 1965 1965, No. 27 Minerals Development Act, 1940 1940, No. 31 Finance Act, 1971 1971, No. 23 Continental Shelf Act, 1968 1968, No. 14 Finance Act, 1973 1973, No. 19 Harbours Act, 1946 1946, No. 9 Finance Act, 1974 1974, No. 27 Finance Act, 1972 1972, No. 19 Oireachtas (Allowances to Members) Act, 1938 1938, No. 34 Ministerial and Parliamentary Offices (Amendment) Act, 1960 1960, No. 12 Vocational Education Act, 1930 1930, No. 29 Agriculture Act, 1931 1931, No. 8 Local Government Act, 1941 1941, No. 3 Local Government Services (Corporate Bodies) Act, 1971 1971, No. 6 Finance Act, 1970 1970, No. 14 Finance (Miscellaneous Provisions) Act, 1956 1956, No. 47 European Communities (Retirement of Farmers) Regulations, 1974 S.I. No. 116 of 1974 Local Government (Planning and Development) Act, 1936) 1963, No. 28 Finance Act, 1974 1974, No. 27 Companies Act, 1963 1889, c. 60 Unit Trusts Act, 1972 1972, No. 17 Finance Act, 1931 1931, No. 31 Deeds of Arrangement Act, 1887 1887, c. 57 Companies Act, 1963 1963, No. 33 Provisional Collection of Taxes Act, 1927 1927, No. 7 Inland Revenue Regulation Act, 1890 1890, c. 21
Number 20 of 1975
CAPITAL GAINS TAX ACT, 1975
AN ACT TO CHARGE AND IMPOSE ON CERTAIN CAPITAL GAINS A DUTY OF INLAND REVENUE TO BE KNOWN AS CAPITAL GAINS TAX, TO AMEND THE LAW RELATING TO INLAND REVENUE AND TO MAKE FURTHER PROVISIONS IN CONNECTION WITH FINANCE. [5th August, 1975]
BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:
PART I Preliminary
	Short title.	1.—This Act may be cited as the Capital Gains Tax Act, 1975.
	Interpretation.	2.—(1) In this Act, unless the context otherwise requires—
	“Appeal Commissioners” has the meaning assigned to it by section 156 of the Income Tax Act, 1967 ;
	“body of persons” has the meaning assigned to it by section 1 of the Income Tax Act, 1967 ;
	“branch or agency” means any factorship, agency, receivership, branch or management, but does not include the brokerage or agency of a broker or agent referred to in section 205 of the Income Tax Act, 1967 ;
	“local authority” has the meaning assigned to it by section 23 (2);
	“allowable loss” has the meaning assigned to it by section 12;
	“capital allowance” means any allowance under the provisions of the Income Tax Acts which relate to allowances in respect of capital expenditure and includes an allowance under section 241 of the Income Tax Act, 1967 ;
	“chargeable gain” has the meaning assigned to it by section 11 (2);
	“charity” has the meaning assigned to it by section 334 (3) of the Income Tax Act, 1967 ;
	“class”, in relation to shares or securities, means a class of shares or securities of any one company;
	“company” means any body corporate;
	“controlled company” has the meaning assigned to it by section 35 and “control” in relation to a company shall be construed accordingly;
	“inspector” means an inspector of taxes appointed under section 161 of the Income Tax Act, 1967 ;
	“land” includes any interest in land;
	“lease”—
	(a) in relation to land, includes an underlease, sublease or any tenancy or licence, and any agreement for a lease, under-lease, sublease or tenancy or licence and, in the case of land outside the State, any interest corresponding to a lease as so defined,
	(b) in relation to any description of property other than land, means any kind of agreement or arrangement under which payments are made for the use of, or otherwise in respect of, property,
	and “lessor”, “lessee” and “rent” shall be construed accordingly;
	“legatee” includes any person taking under a testamentary disposition or an intestacy or partial intestacy or by virtue of the Succession Act, 1965 , or by survivorship, whether he takes beneficially or as trustee, and a person taking under a donatio mortis causa shall be treated as a legatee and his acquisition as made at the time of the donor's death and, for the purposes of this definition and of any reference to a person acquiring an asset “as legatee”, property taken under a testamentary disposition or on an intestacy or partial intestacy or by virtue of the Succession Act, 1965 , includes any asset appropriated by the personal representatives in or towards the satisfaction of a pecuniary legacy or any other interest or share in the property devolving under the disposition or intestacy or by virtue of the Succession Act, 1965 ;
	“minerals” has the meaning assigned to it by section 3 of the Minerals Development Act, 1940 ;
	“mining” means mining operations within the State for the purpose of obtaining, whether by underground or surface working, any minerals;
	“part disposal” has the meaning assigned to it by section 8 (1);
	“personal representatives” has the meaning assigned to it by section 450 (2) (a) of the Income Tax Act, 1967 ;
	“prescribed” means prescribed by the Revenue Commissioners;
	“profession” includes vocation;
	“resident” and “ordinarily resident” have the same meanings as in the Income Tax Acts;
	“settled property” means any property held in trust other than property to which section 8 (3) applies but does not include any property held by a trustee or assignee in bankruptcy or under a deed of arrangement;
	“settlement” and “settlor” have the meanings assigned to them by section 96 (3) (h) of the Income Tax Act, 1967 , and “settled property” shall be construed accordingly;
	“shares” includes stock, and shares or debentures comprised in any letter of allotment or similar instrument shall be treated as issued unless the right to the shares or debentures thereby conferred remains provisional until accepted and there has been no acceptance;
	“trade” has the same meaning as in the Income Tax Acts;
	“trading stock” has the meaning assigned to it by section 62 (2) of the Income Tax Act, 1967 ;
	“unit trust” means any arrangements made for the purpose, or having the effect, of providing facilities for the participation by the holders of units, as beneficiaries under a trust, in profits or income arising from the acquisition, holding, management or disposal of securties or any other property whatsoever;
	“units”, in relation to a unit trust, means any units (described whether as units or otherwise) into which are divided the beneficial interests in the assets subject to the trusts of a unit trust;
	“unit holder”, in relation to a unit trust, means a holder of units of the unit trust;
	“wasting asset” has the meaning assigned to it by paragraph 8 of Schedule 1 and paragraph 1 of Schedule 3;
	“year of assessment”, in relation to capital gains tax, means a year beginning on the 6th day of April and “1974-75” and so on indicate years of assessment as in the Income Tax Acts.
	(2) For the purposes of this Act, any question whether a person is connected with another shall be determined in accordance with section 33.
	(3) References in this Act to a married woman living with her husband shall be construed in accordance with subsections (1) and (2) of section 196 of the Income Tax Act, 1967 .
	(4) Any provision in this Act introducing the assumption that assets are sold...