| |
Chapter 5
Capital Gains Tax
|
|
|
Amendment of Chapter 6 (transfers of business assets) of Part 19 of Principal Act.
|
52.— (1) The Principal Act is amended in Chapter 6 of Part 19—
|
|
| |
(a) in section 598—
|
|
| |
(i) in subsection (1)(a), in the definition of “qualifying assets”—
|
|
| |
(I) in paragraph (iii) by deleting “and” and in paragraph (iv)(II) by deleting “section 652(5)(a);” and substituting “section 652(5)(a), and”, and
|
|
| |
(II) by inserting the following after paragraph (iv):
|
|
| |
“(v) land which has been let by the individual at any time in the period of 15 years ending with the disposal where―
|
|
| |
(I) immediately before the time the land was first let in that period of 15 years, the land was owned by the individual and used for the purposes of farming carried on by the individual for a period of not less than 10 years ending at that time, and
|
|
| |
(II) the disposal is to a child (within the meaning of section 599) of the individual;”,
|
|
| |
and
|
|
| |
(ii) in subsection (2)(a) by substituting “€750,000” for “€500,000” in each place where it occurs,
|
|
| |
and
|
|
| |
(b) in section 599—
|
|
| |
(i) by substituting the following for subsection (1)(a):
|
|
| |
“(1) (a) In this section ‘child’, in relation to a disposal for which relief is claimed under this section, includes—
|
|
| |
(i) a child of a deceased child,
|
|
| |
(ii) a nephew or a niece who has worked substantially on a full-time basis, for the period of 5 years ending with the disposal, in carrying on, or assisting in the carrying on of, the trade, business or profession concerned or the work of, or connected with, the office or employment concerned, and
|
|
| |
(iii) an individual (in this paragraph referred to as ‘the first-mentioned individual’) who resided with, was under the care of and was maintained at the expense of the individual making the disposal throughout—
|
|
| |
(I) a period of 5 years, or
|
|
| |
(II) periods which together comprised at least 5 years,
|
|
| |
before the first-mentioned individual attained the age of 18 years but only if such claim is not based on the uncorroborated testimony of one witness.”,
|
|
| |
and
|
|
| |
(ii) by inserting the following after subsection (1)(c):
|
|
| |
“(d) Where the qualifying asset is land used for the purposes of farming and the consideration for its disposal consists in whole or in part of other such land, a gain shall not be treated as arising on the disposal of that other land by the child concerned but that other land shall be treated for the purposes of the Capital Gains Tax Acts as having been acquired by the individual at the same time and for the same value and used by the individual for the same purposes as it was originally acquired and used by the child concerned.”.
|
|
| |
(2) (a) Subject to paragraph (b), subsection (1) applies as respects disposals made on or after the date of the passing of this Act.
|
|
| |
(b) Paragraph (a)(ii) of subsection (1) applies as respects disposals made on or after 1 January 2007.
|
