Finance (Local Property Tax and Other Provisions)(Amendment) Act 2025

• Permanent Page URL

PART 3

Amendment of Taxes Consolidation Act 1997

Amendment of section 817U of Taxes Consolidation Act 1997

13. (1) Section 817U of the Taxes Consolidation Act 1997 is amended—

(a) in subsection (3)—

(i) in paragraph (d), by the deletion of “or”,

(ii) in paragraph (e), by the substitution of “entities, or” for “entities.”, and

(iii) by the insertion of the following paragraph after paragraph (e):

“(f) in relation to each of the two entities (in this paragraph referred to as ‘the first-mentioned entity’), an individual (in this paragraph referred to as ‘the first-mentioned individual’) and, subject to subsection (3A), any other entity or individual connected (within the meaning of section 10) with the first-mentioned individual—

(i) directly or indirectly possess or are beneficially entitled to—

(I) where the first-mentioned entity has share capital, more than 50 per cent of the issued share capital of that entity, or

(II) where the first-mentioned entity does not have share capital, an interest of more than 50 per cent of the ownership rights in that entity,

or

(ii) directly or indirectly hold such rights as would—

(I) where the first-mentioned entity is a company, if the whole of the profits of that entity were distributed, entitle the first mentioned individual, and any other entity or individual connected (within the meaning of section 10) with the first mentioned individual, to receive more than 50 per cent of the profits so distributed, or

(II) where the first-mentioned entity is not a company, entitle the first-mentioned individual, and any other entity or individual connected (within the meaning of section 10) with the first mentioned individual, to a share of more than 50 per cent of the profits of the first-mentioned entity,

or

(iii) directly or indirectly are entitled to exercise more than 50 per cent of the voting power in the first-mentioned entity.”,

and

(b) by the insertion of the following subsection after subsection (3):

“(3A) (a) For the purposes of subsection (3)(f), subsections (5) and (8) of section 10 shall not operate so as to connect an individual (in this paragraph referred to as ‘the first-mentioned individual’) with any other entity or individual by reason only of the first-mentioned individual and such other entity or individual being in partnership where—

(i) the first-mentioned individual’s interest in the ownership rights of that partnership is not greater than 5 per cent, and

(ii) the first-mentioned individual is a limited partner in that partnership,

where the first-mentioned individual, or persons connected with the first-mentioned individual, would not otherwise be connected (within the meaning of section 10) with such other entity or individual.

(b) For the purposes of paragraph (a), a limited partner means—

(i) a person carrying on a business as a limited partner in a limited partnership registered in accordance with the Limited Partnerships Act 1907 ,

(ii) a person carrying on a business as a general partner in a partnership who is not entitled to take part in the management of the business but is entitled to have the person’s liabilities, or those liabilities beyond a certain limit, for debts or obligations incurred for the purposes of the business, discharged or reimbursed by some other person, or

(iii) a person who carries on a business jointly with others under any agreement, arrangement, scheme or understanding which is governed by the law of any territory outside the State and, under the law of that territory, is not entitled to take part in the management of the business and is not liable beyond a certain limit for debts or obligations incurred for the purposes of the business.”.

(2) Subsection (1) shall have effect as respects a relevant payment or a relevant distribution (both within the meaning of section 817U of the Taxes Consolidation Act 1997 ) made on or after 1 January 2026.