Finance Act, 1978

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Amendment of section 57 (exemption of certain securities) of Capital Acquisitions Tax Act, 1976.

40.—(1) Section 57 of the Capital Acquisitions Tax Act, 1976 , is hereby amended by the substitution for subsections (2) and (3) of the following subsections:

“(2) Securities, or units (within the meaning of the Unit Trusts Act, 1972 ) of a unit trust scheme, comprised in a gift or an inheritance taken on or after the 14th day of April, 1978, 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, but only if, it is shown to the satisfaction of the Commissioners that—

(a) the securities or units were comprised in the disposition continuously for a period from the date aforesaid to the date of the gift or the date of the inheritance, or continuously for a period of three years immediately before the date of the gift or the date of the inheritance, and any period immediately before the date of the disposition during which the securities or units were continuously in the beneficial ownership of the disponer shall be deemed, for the purposes of this paragraph, to be a period or part of a period immediately before the date of the gift or the date of the inheritance during which they were continuously comprised in the disposition;

(b) the securities or units were comprised in the gift or inheritance—

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

(ii) at the valuation date; and

(c) the donee or successor is at the date of the gift or 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.

(3) Subsection (2) (a) shall not apply in a case where the disponer was neither domiciled nor ordinarily resident in the State at the date of the disposition, or at the date of the gift or the date of the inheritance.”.

(2) This section shall have and be deemed to have had effect only in relation to securities or units comprised in a gift or an inheritance where the date of the gift or the date of the inheritance is on or after the 14th day of April, 1978.