Capital Gains Tax (Amendment) Act, 1978
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Amendment of section 90 (distributions made out of capital profits of companies) of Corporation Tax Act, 1976 . |
12.—(1) Section 90 (3) of the Corporation Tax Act, 1976 , is hereby amended by the substitution of “are chargeable gains” for “have been charged to capital gains tax or, after the reduction provided for by section 13 (computation of chargeable gains), to corporation tax” and “have been so charged”, respectively, and the said section 90 (3), as so amended, is set out in the Table to this section. | |
(2) Section 90 (4) of the Corporation Tax Act, 1976 , is hereby amended by the substitution of “are chargeable gains” for “have been charged to capital gains tax or, after the reduction provided for by section 13, to corporation tax” and of “by virtue of section 3 (3) of the Capital Gains Tax Act, 1975 , for the year of assessment in which the chargeable gains accrued” for “under section 3 of the Capital Gains Tax Act, 1975 , for the year of assessment in which the distribution is made” and the said section 90 (4), as so amended, is set out in the Table to this section. | ||
TABLE | ||
(3) Where a distribution (including part of a distribution treated under subsection (1) as a distribution) to which subsection (2) applies is made partly out of capital profits which are chargeable gains and partly out of other capital profits, the distribution shall be treated as if it consisted of two distributions respectively made out of capital profits which are chargeable gains and out of other capital profits. | ||
(4) Where on or after the 6th day of April, 1976, a company makes a distribution out of capital profits which are chargeable gains, the tax charged under subsection (2) shall be reduced by an amount equal to the amount of capital gains tax which would be chargeable by virtue of section 3 (3) of the Capital Gains Tax Act, 1975 , for the year of assessment in which the chargeable gains accrued on an amount equal to the aggregate of the distribution and the tax credit which would apply in respect of the distribution if the person receiving it were an individual resident in the State. |