Finance Act, 1989

Amendment of section 33 (connected persons) of Capital Gains Tax Act, 1975.

87.Section 33 of the Capital Gains Tax Act, 1975 , is hereby amended by the insertion after subsection (5) of the following subsection:

“(5A) (a) Where a person disposes of an asset to another person in such circumstances that—

(i) the proviso to subsection (5) would, but for this subsection, apply in determining the market value of the asset, and

(ii) the person is not chargeable to capital gains tax under section 4 in respect of any gain accruing on his disposal of the asset,

then, as respects any subsequent disposal of the asset by the other person, that other person's acquisition of the asset shall, for the purposes of this Act, be deemed to be for an amount equal to the market value of the asset determined as if the said proviso to subsection (5) had not been enacted.

(b) This subsection shall—

(i) apply to disposals made on or after the 25th day of January, 1989, and

(ii) have effect for the purposes of the determination of any deduction to be made from a chargeable gain accruing on or after the 25th day of January, 1989, in respect of an allowable loss, notwithstanding that the loss accrued, or, but for this section, would have accrued, on a disposal made before that day.”.