Capital Acquisitions Tax Act, 1976

Exemption of certain securities.

57.—(1) In this section—

“security” means any security, stock, share, debenture, debenture stock, certificate of charge or other form of security issued, whether before or after the passing of this Act, and which by virtue of any enactment or by virtue of the exercise of any power conferred by any enactment is exempt from taxation when in the beneficial ownership of a person neither domiciled nor ordinarily resident in the State;

“unit trust scheme” means a unit trust scheme registered in the register established by the Unit Trusts Act, 1972 , whose deed expressing the trusts of the scheme restricts the property subject to those trusts to securities.

(2) Any security, or units (within the meaning of the Unit Trusts Act, 1972 ) of a unit trust scheme, comprised in a gift or an inheritance shall be exempt from tax (and shall not be taken into account in computing tax on any gift or inheritance taken by the donee or successor from the same disponer) if and only if—

(a) the security or units was or were comprised in the gift or inheritance—

(i) at the date of the gift or at the date of the inheritance; and

(ii) at the valuation date; and

(b) the donee or successor is at the date of the gift or at the date of the inheritance neither domiciled nor ordinarily resident in the State and the provisions of section 19 (6) shall apply, for the purposes of this subsection, as they apply in relation to agricultural property:

Provided that if a security or units or any part thereof comprised—

(a) in a gift; or

(b) in a gift which becomes an inheritance by reason that it was taken under a disposition where the date of the disposition was within two years prior to the death of the disponer,

is within one year after the valuation date sold or exchanged, or is converted (otherwise than into another security or other units respectively, which, during that period of one year, are not sold or exchanged), the donee or successor shall be deemed to have taken from the disponer a gift or an inheritance, as the case may be, consisting of a sum equal to the market value at the valuation date of the security or units or of the part thereof that has been sold, exchanged or converted.

(3) For the purposes of sections 6 (1) (c) and 12 (1) (b), the sum referred to in the proviso to subsection (2) shall be deemed to be situate in the State at the date of the gift or at the date of the inheritance, as the case may be, if the security or units (or the part thereof) so sold, exchanged or converted had at that date been situate in the State and not otherwise.