Finance Act, 1995

Amendment of section 18 (taxation of collective investment undertakings) of Finance Act, 1989.

38.Section 18 of the Finance Act, 1989 , is hereby amended in subsection (1)—

(a) by the insertion after the definition of “chargeable gains” of the following definition:

“‘collective investor’ means, in relation to an authorised investment company within the meaning of Part XIII of the Companies Act, 1990 , an investor, being a life assurance company, pension fund or other investor—

(a) who invests in securities or any other property whatsoever with moneys contributed by fifty or more persons—

(i) none of whom has at any time directly or indirectly contributed more than five per cent, of such moneys, and

(ii) each of a majority of whom has contributed moneys to the investor with the intention of being entitled, otherwise than on the death of any person or by reference to a risk of any kind to any person or property, to receive from the investor—

(I) a payment which, or

(II) payments, the aggregate of which

exceeds those moneys by a part of the profits or income arising to the investor,


(b) who invests in the authorised investment company primarily for the benefit of those persons;”,


(b) in the definition of “collective investment undertaking” by the substitution for subparagraph (ii) of paragraph (c) of the following subparagraph:

“(ii) (I) which has been designated in that authorisation as an investment company which may raise capital by promoting the sale of its shares to the public and has not ceased to be so designated, or

(II) (A) which is not a qualified company,

(B) which in addition to being a collective investment undertaking is also a specified collective investment undertaking, and

(C) where all the holders of units who must be resident outside the State, for the company to be a specified collective investment undertaking, are collective investors;”.