Finance Act, 1977

Amendment of section 31 (unit trusts) of Capital Gains Tax Act, 1975.

34.—With effect as on and from the 6th day of April, 1976, section 31 of the Capital Gains Tax Act, 1975 , is hereby amended—

(a) by the insertion, after subsection (5), of the following subsection—

“(5A) Gains accruing on the disposal of units in a unit trust shall not be chargeable gains where—

(a) the trustees of the unit trust have at all times (but not taking into account any time prior to the 6th day of April, 1974) been resident and ordinarily resident in the State, and

(b) the unit trust is a scheme which is established for the purpose or has the effect, solely or mainly, of providing facilities for the participation by the public, as beneficiaries, under a trust, in profits or income arising from the acquisition, holding, management or disposal of securities or any other property whatsoever and which is administered by the holder of a licence under the Insurance Act, 1936 , and for participation in which, in respect of units first issued after the 14th day of June, 1973, a policy of assurance upon human life is required to be effected (but so that the units do not become the property of the owner of the policy either as benefits or otherwise).”,


(b) by the deletion in subsection (6) of the words from “and in section 32” to the end of that subsection,

and the said subsection (6), as so amended, is set out in the Table to this section.


(6) In this section “capital distribution” means any distribution from a unit trust, including a distribution in the course of terminating the unit trust, in money or money's worth except a distribution which in the hands of the recipient constitutes income for the purposes of income tax.