Finance Act 2006

Amendment of Chapter 2 (capital gains tax) of Part 44 of Principal Act.

75.— (1) The Principal Act is amended in Chapter 2 of Part 44—

(a) in section 1028 by inserting after subsection (6) the following:

“(6A) Subsection (5) shall not apply where the spouse who acquired the asset could not be taxed in the State for the year of assessment in which the acquisition took place, in respect of a gain on a subsequent disposal in that year by that spouse of the asset, if that spouse had made such a disposal and a gain accrued on the disposal.”,

(b) in section 1030 by inserting after subsection (2) the following:

“(2A) Subsection (2) shall not apply where the spouse who acquired the asset could not be taxed in the State for the year of assessment in which the acquisition took place, in respect of a gain on a subsequent disposal in that year by that spouse of the asset, if that spouse had made such a disposal and a gain accrued on the disposal.”,

and

(c) in subsection 1031 by inserting after subsection (2) the following:

“(2A) Subsection (2) shall not apply where the spouse who acquired the asset could not be taxed in the State for the year of assessment in which the acquisition took place, in respect of a gain on a subsequent disposal in that year by that spouse of the asset, if that spouse had made such a disposal and a gain accrued on the disposal.”.

(2) This section applies as respects the disposal of an asset by a spouse to the other spouse or former spouse concerned (as the case may be) made on or after 7 December 2005.