Capital Gains Tax Act, 1975
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Disposals to State, charities and other bodies. |
39.—(1) Where a disposal of an asset is made otherwise than under a bargain at arm's length— | |
(a) to the State, | ||
(b) to a charity, or | ||
(c) to any of the bodies falling within section 28 (3) of the Finance Act, 1931 (national institutions and other public bodies), | ||
section 9 (consideration deemed to be equal to market value) shall not apply, but if the disposal is for no consideration or for a consideration not exceeding the sums allowable as a deduction under paragraph 3 of Schedule 1, then— | ||
(i) the disposal and acquisition shall be treated for the purposes of this Act as being made for such consideration as to secure that neither a gain nor a loss accrues on the disposal, and | ||
(ii) where, after the disposal, the asset is disposed of by the person who acquired it under the disposal, its acquisition by the person making the earlier disposal shall be treated for the purposes of this Act as the acquisition of the person making the later disposal. | ||
(2) Where under subsection (3) or (5) of section 15, any assets or parts of any assets forming part of settled property are deemed to be disposed of and re-acquired by the trustee, and— | ||
(a) where the assets deemed to be disposed of under section 15 (3) are re-acquired on behalf of the State, a charity or a body falling within the said section 28 (3); or | ||
(b) the assets which or parts of which are deemed to be disposed of and re-acquired under section 15 (5) are held for the purposes of the State, a charity or a body falling within the said section 28 (3); | ||
then, if no consideration is received by any person for or in connection with any transaction by virtue of which the State, the charity or other body becomes so entitled or the assets are so held, the disposal and acquisition of the assets to which the State, the charity or other body becomes so entitled or of the assets which are held as mentioned in paragraph (b) shall be treated for the purposes of this Act as made for such consideration as to secure that neither a gain nor a loss accrues on the disposal. |