Capital Gains Tax (Amendment) Act, 1978

Amendment of section 127 (company reconstruction or amalgamation: transfer of assets) of Corporation Tax Act, 1976 .

13.Section 127 (1) of the Corporation Tax Act, 1976 , is hereby amended by the substitution of “section 3 of the Capital Gains Tax (Amendment) Act, 1978,” for “Part II of Schedule I to the Capital Gains Tax Act, 1975 , (assets held on the 6th day of April, 1974),” and the said section 127 (1), as so amended, is set out in the Table to this section.


(1) Subject to the provisions of this section, where—

(a) any scheme of reconstruction or amalgamation involves the transfer of the whole or part of a company's business to another company, and

(b) at the time of the transfer both companies are resident in the State, and

(c) the first-mentioned company receives no part of the consideration for the transfer (otherwise than by the other company taking over the whole or part of the liabilities of the business),

then so far as relates to corporation tax on chargeable gains the two companies shall be treated as if any assets included in the transfer were acquired by the one company from the other company for a consideration of such amount as would secure that on the disposal by way of transfer neither a gain nor a loss would accrue to the company making the disposal, and for the purposes of section 3 of the Capital Gains Tax (Amendment) Act, 1978, the acquiring company shall be treated as if the respective acquisitions of the assets by the other company had been the acquiring company's acquisition of them.