Finance Act, 1992

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Option in relation to section 35 (certain unit trusts not to be collective investment undertakings) of Finance Act, 1990.

36.—(1) Where the trustees of a unit trust scheme, within the meaning assigned to it by section 1 (1) of the Unit Trust Act, 1990, which, apart from section 35 of the Finance Act, 1990 , would be a collective investment undertaking for the purposes of section 18 of, and the First Schedule to, the Finance Act, 1989 , have, not later than the 1st day of November, 1992—

(a) paid the capital gains tax, which would have been chargeable on them if—

(i) on the 31st day of March, 1992, they had disposed of all the assets of the unit trust scheme, and

(ii) the resulting chargeable gains were chargeable to tax at one half of the rate at which they would have been chargeable under the Capital Gains Tax Acts apart from this subparagraph,

and

(b) given notice in writing to the Revenue Commissioners that they have paid that tax in accordance with paragraph (a),

then, notwithstanding the said section 35, the unit trust scheme (hereafter in this section referred to as “the relevant unit trust”) shall be deemed to be, and to have been, a collective investment undertaking for the said purposes with effect from the 1st day of April, 1992.

(2) (a) Where units in a relevant unit trust were held by a person on the 31st day of March, 1992, they shall be treated, for the purposes of computing chargeable gains accruing to him on or after the 1st day of April, 1992, as having been acquired by him on the 31st day of March, 1992.

(b) Subsection (5A) (inserted by section 34 of the Finance Act, 1977 ) of section 31 of the Capital Gains Tax Act, 1975 , shall not apply to disposals on or after the 1st day of April, 1992, of units in a relevant unit trust.

(3) Where the consideration received for a disposal, or given for an acquisition, of an asset on the 31st day of March, 1992, is to be determined as a result of the provisions of this section, it shall be deemed to be an amount equal to the market value of the asset on the said day.

(4) For the purposes of this section “market value”, in relation to any asset, has the meaning assigned to it by section 49 of the Capital Gains Tax Act, 1975 .