Finance (No. 2) Act, 1998
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Rate of capital gains tax on certain disposals of development land. |
3.—The Taxes Consolidation Act, 1997 , is hereby amended by the substitution for section 649A (inserted by section 65 of the Finance Act, 1998 ) of the following section: | |
“Relevant disposals: rate of charge. | ||
649A.—(1) Notwithstanding subsection (3) of section 28, and subject to subsection (2), the rate of capital gains tax in respect of a chargeable gain accruing to a person on a relevant disposal shall be— | ||
(a) subject to paragraph (b), in the case of a disposal on or after the 3rd day of December, 1997, 40 per cent, and | ||
(b) in the case of a disposal, on or after the 6th day of April, 2002, of land which, in accordance with a development objective (as indicated in the development plan of the planning authority concerned), is for use solely or primarily for residential purposes, 60 per cent. | ||
(2) (a) Subsection (1) shall not apply to a relevant disposal to which this subsection applies and accordingly, the rate of capital gains tax in respect of a chargeable gain on such a relevant disposal shall be the rate specified in subsection (3) of section 28. | ||
(b) This subsection shall apply to a relevant disposal— | ||
(i) to which section 650 refers, or | ||
(ii) being a disposal, at any time in the period beginning on the 23rd day of April, 1998, and ending on the 5th day of April, 2002, of land— | ||
(I) to a housing authority (within the meaning of section 23 of the Housing (Miscellaneous Provisions) Act, 1992 ), which land is specified in a certificate in writing given by the housing authority as land being required by the housing authority for the purposes of the Housing Acts, 1966 to 1997, or | ||
(II) in respect of the whole of which, at the time at which the disposal is made, permission for residential development has been granted under section 26 of the Local Government (Planning and Development) Act, 1963 , and such permission has not ceased to exist, other than a disposal— | ||
(A) by any person (‘the disponer’) to a person who is connected with the disponer, or | ||
(B) of land under a relevant contract in relation to the disposal. | ||
(3) In this section— | ||
‘development plan’ has the meaning assigned to it by the Local Government (Planning and Development) Act, 1963 ; | ||
‘planning authority’ has the meaning assigned to it by section 2 (2) of the Local Government (Planning and Development) Act, 1963 ; | ||
‘relevant contract’, in relation to a disposal of land, means a contract or other arrangement under which the land is disposed of which is conditional on permission for development, other than permission for residential development, being granted under section 26 of the Local Government (Planning and Development) Act, 1963 , in respect of the land; | ||
‘residential development’ includes any development which is ancillary to the development and which is necessary for the proper planning and development of the area in question.”. |