Mother and Baby Institutions Payment Scheme Act 2023

• Permanent Page URL

PART 4

Miscellaneous

Amendment of Taxes Consolidation Act 1997

41. The Taxes Consolidation Act 1997 is amended—

(a) by the insertion of the following section after section 205A:

“Payments under Mother and Baby Institutions Payment Scheme Act 2023

205B. (1) In this section—

‘Act of 2023’ means the Mother and Baby Institutions Payment Scheme Act 2023;

‘relevant payment’, in relation to a relevant person, means a payment made to the relevant person under paragraph (a), or in respect of the relevant person under paragraph (c), of section 32 (1) of the Act of 2023;

‘relevant person’ has the same meaning as it has in section 2 of the Act of 2023.

(2) Income that—

(a) consists of a relevant payment, or

(b) arises to a relevant person from the investment in whole or in part of a relevant payment or of the income derived from such a payment, being income consisting of dividends or other income which but for this section would be chargeable to tax under Schedule C or under Case III, IV (by virtue of section 59, 745 or 747E) or V of Schedule D or under Schedule F,

shall be exempt from income tax and shall not be reckoned in computing total income for the purposes of the Income Tax Acts.

(3) Gains that accrue to a relevant person, from the disposal of—

(a) assets acquired with a relevant payment,

(b) assets acquired with income exempted from income tax under subsection (2)(b), or

(c) assets acquired directly or indirectly with the proceeds from the disposal of assets referred to in paragraph (a) or (b),

shall not be chargeable gains for the purposes of the Capital Gains Tax Acts.

(4) For the purposes of computing whether by virtue of this section a gain is, in whole or in part, a chargeable gain, or whether income is, in whole or in part, exempt from income tax, all such apportionments shall be made as are, in the circumstances, just and reasonable.”,

(b) in section 256(1), by the substitution of the following definition for the definition of “relevant amount”:

“‘relevant amount’ means any amount of—

(a) income referred to in section 205A(2) or income that consists of a payment made to a relevant person (within the meaning of section 205B(1)) under section 32 (1)(a) of the Mother and Baby Institutions Payment Scheme Act 2023, and

(b) gains referred to in section 205A(3) or section 205B(3);”,

(c) in section 267(3), by the substitution of “section 192(2), section 205A(2) or section 205B(2)” for “section 192(2) or section 205A(2)”, and

(d) in section 613(1)—

(i) in paragraph (d), by the substitution of “applies;” for “applies.”, and

(ii) by the insertion of the following paragraph after paragraph (d):

“(e) any payment to which section 205B applies.”,

(e) in section 730GA, by the substitution of “192, 205A or 205B” for “192 or 205A”, and

(f) in section 739G(2)(j) by the substitution of “192, 205A or 205B” for “192 or 205A”.