Finance Act, 1990

Offshore income gains accruing to persons resident or domiciled abroad.

68.—(1) Section 36 of the Principal Act shall, in relation to its application to offshore income gains, have effect as if—

(a) for any reference to a chargeable gain there were substituted a reference to an offshore income gain,

(b) for the reference in subsection (6) to capital gains tax there were substituted a reference to income tax or corporation tax, and

(c) paragraphs (b) and (c) of subsection (4) and subsection (7) were omitted.

(2) Subject to subsection (3), section 37 of the Principal Act shall, in relation to its application to offshore income gains, have effect as if—

(a) for any reference to a chargeable gain there were substituted a reference to an offshore income gain,

(b) in subsection (2)—

(i) for “this Act” there were substituted “the Tax Acts”, and

(ii) for “capital gains tax under section 5 (1)” there were substituted “income tax by virtue of section 67 of the Finance Act, 1990”,

and

(c) in subsection (5)—

(i) for “any capital gains payable” there were substituted “any income tax or corporation tax payable”, and

(ii) for “for the purposes of income tax” there were substituted “for the purposes of income tax, corporation tax”.

(3) If, in any year of assessment—

(a) under subsection (3) of section 37 of the Principal Act, as it applies apart from subsection (2) of this section, a chargeable gain falls to be attributed to a beneficiary, and

(b) under the said subsection (3), as applied by subsection (2) of this section, an offshore income gain also falls to be attributed to him,

section 37 shall have effect as if it required offshore income gains to be attributed before chargeable gains.

(4) Paragraph 7 of Schedule 4 to the Principal Act shall have effect in relation to offshore income gains as if—

(i) for “chargeable gains” there were substituted “offshore income gains”, and

(ii) for “capital gains tax under the said section 36 or 37” there were substituted “income tax or corporation tax under the said section 36 or 37, as applied by section 68 of the Finance Act, 1990”.

(5) Subject to subsection (6), for the purpose of determining whether an individual ordinarily resident in the State has a liability for income tax in respect of an offshore income gain arising on a disposal to which this Chapter applies where the disposal is made by a person resident or domiciled out of the State—

(a) sections 57 and 58 of the Finance Act, 1974 , shall apply as if the offshore income gain arising to the person resident or domiciled out of the State constituted income becoming payable to him, and

(b) any reference in the said sections 57 and 58 to income of, or payable or arising to, such a person accordingly includes a reference to the offshore income gain arising to him by reason of the disposal to which this Chapter applies.

(6) To the extent that an offshore income gain is treated, by virtue of subsection (1) or (2), as having accrued to any person resident or ordinarily resident in the State, that gain shall not be deemed to be the income of any individual for the purposes of section 57 or 58 of the Finance Act, 1974 , or Chapters I and II of Part XXVIII of the Income Tax Act, 1967 .