Corporation Tax Act, 1976

Computation of chargeable gains.

13.—(1) Subject to the provisions of this section, the amount to be included in respect of chargeable gains in a company's total profits for any accounting period shall be the following amount reduced by 48 per cent. thereof, namely, the total amount of chargeable gains accruing to the company in the accounting period after deducting (a) any allowable losses accruing to the company in the accounting period and (b) any allowable losses previously accruing to the company while it has been within the charge to corporation tax so far as they have not been allowed as a deduction from chargeable gains accruing in any previous accounting period.

(2) Except as otherwise provided by this Act, the chargeable gains and allowable losses shall for purposes of corporation tax be computed in accordance with the principles applying for capital gains tax, all questions as to the amounts which are or are not to be taken into account as chargeable gains or as allowable losses, or in computing gains or losses, or charged to tax as a person's gain, or as to the time when any such amount is to be treated as accruing being determined in accordance with the provisions relating to capital gains tax as if accounting periods were years of assessment.

(3) Subject to subsection (5), where the enactments relating to capital gains tax contain any reference to income tax or to the Income Tax Acts the reference shall, in relation to a company be construed as a reference to corporation tax or to the Corporation Tax Acts; but—

(a) this subsection shall not affect the reference to income tax in paragraph 4 (2) of Schedule 1 to the Capital Gains Tax Act, 1975 (exclusion of expenditure by reference to hypothetical income tax),

(b) nothing in this section shall be taken as applying for corporation tax section 6 of the said Act (capital gains accruing to an individual: alternative charge), and

(c) in so far as the said provisions operate by reference to matters of any specified description, account shall for corporation tax be taken of matters of that description which are confined to companies, but not of any which are confined to individuals.

(4) The Capital Gains Tax Act, 1975 , as extended by this section shall not be affected in its operation by the fact that capital gains tax and corporation tax are distinct taxes but, so far as is consistent with this Act, shall apply in relation to capital gains tax and corporation tax on chargeable gains as if they were one tax, so that, in particular, a matter which in a case involving two individuals is relevant for both of them in relation to capital gains tax shall in a like case involving an individual and a company be relevant for him in relation to that tax and for it in relation to corporation tax.

(5) Where assets of a company are vested in a liquidator, this section and the enactments applied by this section shall apply as if the assets were vested in, and the acts of the liquidator in relation to the assets were the acts of, the company (acquisitions from or disposals to him by the company being disregarded accordingly).