Finance Act 2016

Finance Act 2016 Skip to content Disclaimer Feedback Helpdesk Gaeilge Léim go dtí an t-ábhar Séanadh Aiseolas Deasc chabhrach English Gaeilge English Produced by the Office of the Attorney General Táirgthe ag Oifig an Ard-Aighne Home Legislation Acts of the Oireachtas Statutory Instruments Pre-1922 Legislation Constitution External Resources Bills (Houses of the Oireachtas) Iris Oifigiúil / Official Gazette Revised Acts (LRC) Classified List of Legislation (LRC) Translations (acts.ie) Translations (Houses of the Oireachtas) Government Publications for Sale EU Law (EUR-Lex) FAQ Disclaimer Feedback Helpdesk Search Baile Reachtaíocht Achtanna an Oireachtais Ionstraimí Reachtúla Reachtaíocht Réamh-1922 Bunreacht Acmhainní Seachtracha Billí (Tithe an Oireachtais) Iris Oifigiúil Achtanna Athbhreithnithe (CAD) (An Coimisiún um Athchóiriú an Dlí) Liosta Rangaithe Reachtaíochta Aistriúcháin (achtanna.ie) Aistriúcháin (Tithe an Oireachtais) Foilseacháin Rialtais ar Díol Dlí AE (EUR-Lex) CCanna (Ceisteanna Coitianta) Séanadh Aiseolas Deasc chabhrach Cuardach TitleTeideal Year(s) or rangeBliain nó blianta nó raon TypeCineál All Legislation Acts Statutory Instruments Advanced SearchCuardach Casta HomeBaile ActsAchtanna 2016 Finance Act 2016 Finance Act 2016 Permanent Page URL View by SectionAmharc de réir Ailt View Full ActAmharc ar an Acht Iomlán Bill History Stair Bille Commencement, Amendments, SIs made under the Act Tosach Feidhme, Leasuithe, IRí arna ndéanamh faoin Acht Open PDFOscail PDF Print Full ActPriontáil an tAcht Iomlán Number 18 of 2016 FINANCE ACT 2016 CONTENTS

PART 1

Universal Social Charge, Income Tax, Corporation Tax and Capital Gains Tax

Chapter 1

Interpretation Section

Section 1

Chapter 2

Universal Social Charge

Section 2

Chapter 3

Income Tax

Section 3

Section 4

Section 5

Section 6

Section 7

Section 8

Section 9

Section 10

Section 11

Section 12

Section 13

Section 14

Chapter 4

Income Tax, Corporation Tax and Capital Gains Tax

Section 15

Section 16

Section 17

Section 18

Section 19

Section 20

Section 21

Section 22

Section 23

Chapter 5

Corporation Tax

Section 24

Section 25

Chapter 6

Capital Gains Tax

Section 26

Section 27

Section 28

Section 29

Section 30

PART 2

Excise

Section 31

Section 32

Section 33

Section 34

Section 35

Section 36

Section 37

Section 38

Section 39

Section 40

Section 41

Section 42

Section 43

Section 44

PART 3

Value-Added Tax

Section 45

Section 46

Section 47

PART 4

Stamp Duties

Section 48

Section 49

Section 50

PART 5

Capital Acquisitions Tax

Section 51

Section 52

Section 53

PART 6

Miscellaneous

Section 54

Section 55

Section 56

Section 57

Section 58

Section 59

PART 1

Universal Social Charge, Income Tax, Corporation Tax and Capital Gains Tax

Chapter 1

Interpretation Interpretation (Part 1) 1. In this Part “Principal Act” means the Taxes Consolidation Act 1997 .

Chapter 2

Universal Social Charge Amendment of section 531AN of Principal Act (rate of charge) 2. (1) Section 531AN of the Principal Act is amended— (a) in subsection (3) — (i) by substituting “€18,772” for “€18,668”, and (ii) by substituting “2.5 per cent” for “3 per cent”, (b) in subsection (3A)(a) by substituting “2.5 per cent” for “3 per cent”, (c) in subsection (5) by substituting “increased by the greater of” for “increased by”, (d) in subsection (6) by substituting “increased by the greater of” for “increased by”, and (e) by substituting the following Table for the Table to that section: “TABLE

PART 1

Part of aggregate income Rate of universal social charge

(1)

PART 2

Part of aggregate income Rate of universal social charge

(1)

Chapter 3

Income Tax Exemption in respect of certain expense payments for resident relevant directors 3. The Principal Act is amended by inserting the following section after section 195C: “Exemption in respect of certain expense payments for resident relevant directors 195D. (1) In this section— ‘civil servant’ has the meaning assigned to it by the Civil Service Regulation Act 1956 ; ‘company’ has the same meaning as it has in section 4; ‘director’ has the same meaning as it has in section 770; ‘relevant director’, in relation to a company, means a person holding office as a non-executive director of that company (a) who is resident in the State, and (b) whose annualised amount of the emoluments from the office for the year of assessment 2017 and for each subsequent year in which the person is a relevant director of the company, other than payments to which this section applies, does not exceed €5,000; ‘relevant meeting’ means a meeting in the State attended by a relevant director in his or her capacity as a director for the purposes of the conduct of the affairs of the company; ‘travel’ means travel by car, motorcycle, taxi, bus, rail or aircraft.

Amendment of section 472AB of Principal Act (earned income tax credit) 4. (1) Section 472AB of the Principal Act is amended in subsection (2) — (a) in paragraph (a), by substituting “€950” for “€550”, and (b) in paragraph (b), by substituting “€950” for “€550”.

Amendment of section 466A of Principal Act (home carer tax credit) 5. (1) Section 466A of the Principal Act is amended in subsection (2) by substituting “€1,100” for “€1,000”.

Fisher tax credit 6. (1) The Principal Act is amended by inserting the following after section 472B: “Fisher tax credit 472BA. (1) In this section— ‘aquaculture animal’ means an aquatic animal at all its life stages, including eggs, sperm and gametes, reared in a farm or mollusc farming area, including an aquatic animal from the wild intended for a farm or mollusc farming area; ‘day at sea’ means a cumulative period of 8 hours within any 24 hour period during which the fisher undertakes fishing voyages; ‘fisher’ means any person engaging in fishing on board a fishing vessel; ‘fishing vessel’ means a vessel which is— (a) registered on the European Community Fishing Fleet Register in accordance with Commission Regulation (EC) No. 26/2004 of 30 December 20031 , and (b) is used solely for the purposes of sea-fishing, but does not include a vessel that is engaged in fishing or dredging solely for scientific, research or training purposes; ‘fishing voyage’ means a fishing trip commencing with a departure from a port for the purpose of fishing, and ending with the first return to a port thereafter upon the conclusion of the trip, but a return due to distress only shall not be deemed to be a return if it is followed by a resumption of the trip; ‘sea-fish’ means fish of any kind found in the sea, whether fresh or in other condition, including crustaceans and molluscs, but does not include salmon, fresh water eels or aquaculture animals; ‘sea-fishing’ means fishing for or taking sea-fish.

Amendment of section 480A of Principal Act (relief on retirement for certain income of certain sportspersons) 7. (1) Section 480A of the Principal Act is amended in subsection (9) by substituting “(within the meaning of section 787 or 787B)” for “(within the meaning of section 787)”.

Amendment of section 477B of Principal Act (home renovation incentive) 8. Section 477B of the Principal Act is amended— (a) in subsection (1) — (i) by inserting the following definition: “‘housing authority’ has the same meaning as it has in the Housing (Miscellaneous Provisions) Act 1992 ;”, and (ii) in the definition of “qualifying residence”— (I) in paragraph (c), by substituting “by the individual,” for “by the individual, or”, (II) in paragraph (d), by substituting “of the qualifying work, or” for “of the qualifying work;”, and (III) by inserting the following after paragraph (d): “(e) which is owned by a housing authority and for which the housing authority is charging rent pursuant to section 58 of the Housing Act 1966 for the tenancy or occupation thereof by the individual and where the housing authority has given its prior written consent to the individual to qualifying work being carried out on the residential premises.”, (b) in subsection (2) — (i) in paragraph (a) — (I) in subparagraph (i) — (A) by substituting “2018” for “2016”, and (B) by substituting “in subsection (1) refers,” for “in subsection (1) refers, and”, (II) in subparagraph (ii) — (A) by substituting “2018” for “2016”, and (B) by substituting “in subsection (1) refers, and” for “in subsection (1) refers.”, and (III) by inserting the following after subparagraph (ii): “(iii) during the period from 1 January 2017 to 31 December 2018 in the case of a qualifying residence to which paragraph (e) of the definition of ‘qualifying residence’ in subsection (1) refers.”, and (ii) in paragraph (d) — (I) by substituting “2018” for “2016” in each place where it occurs, and (II) by substituting “2019” for “2017” in each place where it occurs, (c) in subsection (6)(b)(vi)(I), by substituting “(a), (b) or (e)” for “(a) or (b)”, (d) in subsection (8), by inserting the following after paragraph (b): “(c) Subparagraph (i) of paragraph (a) shall not apply in the case of a residential premises referred to in paragraph (e) of the definition of ‘qualifying residence’ in subsection (1).”, and (e) in subsection (12), by substituting “(a), (b) or (e) ” for “(a) or (b)”.

Help to Buy 9. (1) The Principal Act is amended by inserting the following section after section 477B: “Help to Buy 477C. (1) In this section— ‘appropriate payment’ shall be construed in accordance with subsection (4); ‘appropriate tax’ has the meaning assigned to it by section 256; ‘approved valuation’, in relation to a self-build qualifying residence, means the valuation of the residence that, at the time the qualifying loan is entered into, is approved by the qualifying lender as being the valuation of the residence; ‘first-time purchaser’ means an individual who, at the time of a claim under subsection (3) has not, either individually or jointly with any other person, previously purchased or previously built, directly or indirectly, on his or her own behalf a dwelling; ‘income tax payable’ has the meaning assigned to it by section 3; ‘loan’ means any loan or advance, or any other arrangement whatever, by virtue of which interest is paid or payable; ‘loan-to-value ratio’ means the amount of the qualifying loan as a proportion of the purchase value of the qualifying residence or the self-build qualifying residence; ‘PPS number’, in relation to an individual, means the individual’s personal public service number within the meaning of section 262 of the Social Welfare Consolidation Act 2005 ; ‘purchase value’ means— (a) in the case of a qualifying residence, the price paid for the qualifying residence, being a price that is not less than its market value, or (b) in the case of a self-build qualifying residence, the approved valuation; ‘qualifying contractor’ has the meaning assigned to it by subsection (2); ‘qualifying lender’ has the meaning assigned to it by section 244A(3); ‘qualifying loan’, means a loan, which— (a) is used by the first-time purchaser wholly and exclusively for the purpose of defraying money employed in— (i) the purchase of a qualifying residence, or (ii) the provision of a self-build qualifying residence (including, in a case where such acquisition is required for its construction, the acquisition of land on which the residence is constructed), (b) is entered into solely between a first-time purchaser and a qualifying lender (but this does not exclude a loan to which a guarantor is a party), and (c) is secured by the mortgage of a freehold or leasehold estate or interest in, or a charge on, a qualifying residence or a self-build qualifying residence; ‘qualifying period’ means the period commencing on 19 July 2016 and ending on 31 December 2019; ‘qualifying residence’ means—

(a) a new building which was not, at any time, used, or suitable for use, as a dwelling, or (b) a building which was not, at any time, in whole or in part, used, or suitable for use, as a dwelling and which has been converted for use as a dwelling, and— (i) which is occupied as the sole or main residence of a first-time purchaser, (ii) in respect of which the construction work is subject to the rate of tax specified in section 46

(d) (i) Where, arising from a claim under this section, an appropriate payment claimed by an individual is made to a qualifying contractor under subsection (16)(a)(ii), and— (I) the qualifying residence is not subsequently purchased by the individual within 2 years from the date of the making of the appropriate payment by the Revenue Commissioners, or (II) if within that 2 year period, there are, in the opinion of the Revenue Commissioners, reasonable grounds to believe that the purchase of the qualifying residence by the individual will not be completed within that period, the qualifying contractor shall pay to the Revenue Commissioners an amount equal to the amount of the appropriate payment. (ii) Payment to the Revenue Commissioners under subparagraph (i) shall be made within 3 months from the end of the 2 year period referred to in clause (I) of that subparagraph or, as appropriate, within 3 months from the Revenue Commissioners issuing notice to the qualifying contractor to the effect that they had formed an opinion in accordance with clause (II) of that subparagraph. (e) For the purposes of paragraph (d), an individual referred to in that paragraph may notify the Revenue Commissioners where he or she has reasonable grounds to believe that the purchase of the qualifying residence by the individual will not be completed within the 2 year period referred to in that paragraph. (f) Where the Revenue Commissioners are satisfied that a qualifying residence or self-build qualifying residence— (i) is substantially complete at the end of the 2 year period referred to in paragraph (b), (c) or (d), and (ii) is likely to be completed thereafter within a period of time that, in the opinion of the Revenue Commissioners, is a reasonable one (and such opinion shall be communicated to the person concerned), the aforementioned 2 year period shall, for the purposes of those paragraphs, stand extended by the period referred to in subparagraph (ii).

Amendment of section 825C of Principal Act (special assignee relief programme) 10. Section 825C of the Principal Act is amended— (a) in subsection (2A) by substituting “2015 to 2020,” for “2015, 2016 or 2017,”, and (b) in subsection (4)(b) by substituting “any of the tax years 2015 to 2020” for “2015, 2016 or 2017”.

Amendment of section 823A of Principal Act (deduction for income earned in certain foreign states) 11. (1) Section 823A of the Principal Act is amended— (a) in subsection (1) by substituting the following for the definition of “relevant state”: “ ‘relevant state’ means, as regards the years of assessment 2012 to 2020, the Federative Republic of Brazil, the Russian Federation, the Republic of India, the People’s Republic of China or the Republic of South Africa, and includes— (a) as regards the years of assessment 2013 to 2020, the Arab Republic of Egypt, the People’s Democratic Republic of Algeria, the Republic of Senegal, the United Republic of Tanzania, the Republic of Kenya, the Federal Republic of Nigeria, the Republic of Ghana and the Democratic Republic of the Congo, (b) as regards the years of assessment 2015 to 2020, Japan, the Republic of Singapore, the Republic of Korea, the Kingdom of Saudi Arabia, the United Arab Emirates, the State of Qatar, the Kingdom of Bahrain, the Republic of Indonesia, the Socialist Republic of Vietnam, the Kingdom of Thailand, the Republic of Chile, the Sultanate of Oman, the State of Kuwait, the United Mexican States and Malaysia, and (c) as regards the years of assessment 2017 to 2020, the Republic of Colombia and the Islamic Republic of Pakistan;”, (b) in subsection (3) by substituting “30 days” for “40 days”, and (c) in subsection (6) by substituting “2015 to 2020” for “2015, 2016 and 2017”.

Amendment of section 472AA of Principal Act (relief for long-term unemployed starting a business) 12. Section 472AA of the Principal Act is amended in subsection (1) by substituting “31 December 2018” for “31 December 2016” in the definition of “new business”.

Amendment of section 216A of Principal Act (rent-a-room relief) 13. As respects the year of assessment 2017 and subsequent years of assessment, section 216A of the Principal Act is amended, in subsection (5), by substituting “€14,000” for “€12,000”.

Retirement benefits 14. (1) Part 30 of the Principal Act is amended— (a) in section 784— (i) by inserting the following after subsection (2E): “(2F) Notwithstanding any other provision of this Chapter, a retirement annuity contract shall not cease to be an annuity contract for the time being approved by the Revenue Commissioners where, notwithstanding anything contained in the contract as approved— (a) the person with whom the contract is made— (i) on or before 31 March 2017— (I) commences payment of an annuity to the individual, (II) pays a lump sum of a kind referred to in subsection (2)(b) to the individual, or (III) transfers the value of the individual’s accrued rights under the contract in accordance with subsection (2A), or (ii) in priority to any payment or transfer referred to in subparagraph (i), makes available from the cash and other assets representing the value of the individual’s accrued rights under the contract, to such extent as may be necessary, an amount for the purposes of discharging a tax liability in relation to the individual under the provisions of Chapter 2C of this Part in respect of the contract, (b) insofar as subparagraph (i) of paragraph (a) is concerned, the annuity contract is deemed to be a vested RAC in accordance with section 787O(6), and (c) insofar as subparagraph (ii) of paragraph (a) is concerned, the annuity contract is a vested RAC within the meaning of section 787O(1).”, and (ii) by inserting the following after subsection (7): “(8) Where an annuity contract is a vested RAC within the meaning of section 787O(1), the provisions of section 784A(4) shall apply to the cash and other assets representing the individual’s accrued rights under the contract at the time of death of the individual as if that cash and those other assets were assets of an approved retirement fund.”, (b) in section 787G— (i) by inserting the following after subsection (4A): “(4B) For the purposes of subsection (6), the administrator of a vested PRSA of a kind referred to in paragraph (c) of the definition of ‘vested PRSA’ in section 790D(1) shall be treated as making the assets of the PRSA available to the PRSA contributor on the date the contributor attains the age of 75 years or, where the contributor attained the age of 75 years prior to the date of passing of the Finance Act 2016, on the date of passing of that Act.”, and (ii) in subsection (6), by substituting “where assets of a PRSA are treated under subsection (4) or subsection (4B)” for “where assets of a PRSA are treated under subsection (4) ”,

(c) in section 787K, by inserting the following after subsection (2C): “(2D) A PRSA product (within the meaning of Part X of the Pensions Act 1990 ) approved under section 94 of that Act, shall not cease to be an approved product where, notwithstanding anything contained in the terms of the product as approved— (a) the PRSA administrator— (i) on or before 31 March 2017— (I) commences payment of an annuity to the PRSA contributor, (II) pays a lump sum to the PRSA contributor, in accordance with section 787G(3)(a), (III) makes assets of the PRSA available to the PRSA contributor, or (IV) transfers assets of the PRSA to an approved retirement fund in accordance with section 787H(1), or (ii) in priority to any payment, making of assets available or transfer referred to in subparagraph (i), makes available from the PRSA assets, to such extent as may be necessary, an amount for the purposes of discharging a tax liability in relation to the PRSA contributor under the provisions of Chapter 2C of this Part in respect of the PRSA, (b) insofar as subparagraph (i) of paragraph (a) is concerned, the PRSA is deemed to be a vested PRSA in accordance with section 790D(1A), and (c) insofar as subparagraph (ii) of paragraph (a) is concerned, the PRSA is a vested PRSA within the meaning of paragraph (c) of the definition of ‘vested PRSA’ in section 790D(1).”, (d) in section 787O— (i) in subsection (1) — (I) in the definition of “uncrystallised pension rights”, by substituting “on that date;” for “on that date.”, and (II) by inserting the following definition: “ ‘vested RAC’ means a relevant pension arrangement of a kind referred to in paragraph (b) of the definition of that term in this subsection in respect of which— (a) payment of the annuity to the individual entitled to the annuity under the contract has not commenced, or (b) a transfer has not been made under section 784(2A), on or before the date on which the individual attains the age of 75 years.”, and (ii) by inserting the following after subsection (5): “(6) Where an individual of a kind referred to in the definition of ‘vested RAC’ attains the age of 75 years prior to the date of passing of the Finance Act 2016, the relevant pension arrangement is deemed to become a vested RAC on the date of passing of that Act.”, (e) in section 787R— (i) in subsection (5), by substituting the following for paragraph (b): “(b) where the benefit crystallisation event is an event of a kind described at subparagraph (b), (ba) or (c) of paragraph 2 of Schedule 23B, refuse to transfer an amount to the individual, or to any of the funds referred to in the said subparagraph (b), refuse to make assets of the PRSA referred to in the said subparagraph (ba) available to the PRSA contributor or, as the case may be, refuse to make a payment or transfer referred to in the said subparagraph (c),”,

(ii) by inserting the following after subsection (5): “(5A) (a) In this subsection— ‘relevant administrator’ means— (i) in the case of a vested PRSA of a kind referred to in paragraph (c) of the definition of ‘vested PRSA’ in section 790D(1), the administrator of that vested PRSA, and (ii) in the case of a vested RAC within the meaning of section 787O(1), the person with whom the individual (referred to in the definition of ‘vested RAC’ in that section) made the annuity contract; ‘relevant person’ means— (i) in the case of a vested PRSA of a kind referred to in paragraph (c) of the definition of ‘vested PRSA’ in section 790D(1), a PRSA contributor of a kind referred to in that paragraph, and (ii) in the case of a vested RAC within the meaning of section 787O(1), an individual of a kind referred to in the definition of ‘vested RAC’ in that section; ‘date of the benefit crystallisation event’ means, as the case may be, the date the relevant person attains the age of 75 years or, where the relevant person attains that age prior to the date of passing of the Finance Act 2016, the date of passing of that Act. (b) Notwithstanding subsection (4), where a benefit crystallisation event of a kind referred to in subparagraph (bb) or (bc), as the case may be, of paragraph 2 of Schedule 23B occurs in relation to a relevant person, the relevant person shall, within the period of 30 days from the date of the benefit crystallisation event, provide a declaration containing the details referred to in subsection (4) to the relevant administrator. (c) Where a relevant person fails to comply with paragraph (b), section 787Q shall apply to the benefit crystallisation event referred to in that paragraph as if the condition referred to in subsection (2)(b) of that section is met.”, and (iii) in subsection (6), by substituting “subsections (4), (5) and (5A)” for “subsections (4) and (5) ”, (f) in section 787S, by substituting the following for subsection (5): “(5) Where any item— (a) has been incorrectly included in a return as a chargeable excess, or (b) has been included in a return as a chargeable excess in accordance with the application of paragraph (c) of subsection (5A) of section 787R in circumstances where, if a declaration referred to in paragraph (b) of that subsection had been provided to the relevant administrator (within the meaning of that subsection), no chargeable excess or a lesser chargeable excess would have arisen in respect of the benefit crystallisation event concerned, then, on a case being made, an officer of the Revenue Commissioners may make such assessments, adjustments or set-offs as may in his or her judgement be required for securing that the resulting liabilities to tax, including interest on unpaid tax, whether of the administrator of a relevant pension arrangement or the individual or, where the provisions of section 787R(2A) apply, whether of the subsequent administrator, fund administrator, relevant member or non-member, as the case may be, are, so far as possible, the same as they would have been if the item had not been so included.”,

and (g) in section 790D— (i) in subsection (1), by substituting the following for the definition of “vested PRSA”: “ ‘vested PRSA’ means— (a) a PRSA in respect of which assets of the PRSA have been made available to, or paid to, the PRSA contributor or to any other person, by the PRSA administrator on or after 7 November 2002, other than assets of a kind referred to in paragraphs (b), (c) and (d) of section 787G(3), and for the purposes of this definition the provisions of subsections (4) and (4A) of section 787G shall apply, (b) in the case of a PRSA that is a PRSA to which an individual is or was the contributor of additional voluntary PRSA contributions, such a PRSA where benefits become payable to the individual under the main scheme on or after 7 November 2002, or (c) a PRSA in respect of which the PRSA contributor has attained the age of 75 years where, up to and including the date on which the contributor attained that age, no assets of the PRSA have been made available to, or paid to, the PRSA contributor or to any other person, other than a transfer of part of the assets to another PRSA to which the contributor to the first mentioned PRSA is the contributor;”, and (ii) by inserting the following after subsection (1): “(1A) Where a PRSA contributor of a kind referred to in paragraph (c) of the definition of ‘vested PRSA’ attains the age of 75 years in the circumstances referred to in that paragraph prior to the date of passing of the Finance Act 2016, the PRSA is deemed to become a vested PRSA on the date of passing of that Act.”.

Chapter 4

Income Tax, Corporation Tax and Capital Gains Tax Living City Initiative 15. The Principal Act is amended— (a) in section 372AAA, in the definition of “relevant house”, by deleting “for use as a dwelling”, (b) in section 372AAB— (i) in subsection (1) — (I) in the definition of “letter of certification”, by deleting paragraph (b), (II) in the definition of “relevant local authority”, by substituting “situated.” for “situated;”, and (III) by deleting the definition of “total floor area”, and (ii) in subsection (9), by substituting “€5,000.” for “10 per cent of the market value of the building, structure or house immediately before that expenditure was incurred.”, (c) in section 372AAC— (i) in subsection (1), by substituting the following for the definition of “qualifying expenditure”: “ ‘qualifying expenditure’, in relation to capital expenditure incurred in the qualifying period on the conversion or the refurbishment of a qualifying premises and subject to subsection (1A), means, notwithstanding section 279, the lesser of— (a) the aggregate of all such capital expenditure, and (b) (i) where the person who incurred the capital expenditure is a company carrying on a trade from the qualifying premises, €1,600,000, (ii) where the person who incurred the capital expenditure is a company who is letting the qualifying premises, €800,000, or (iii) where the person who incurred the capital expenditure is an individual, €400,000, and for the purposes of giving relief under this section, any reference to expenditure being incurred shall include a reference to expenditure deemed under any provision of Part 9 to be incurred;”, (ii) in subsection (1A), by inserting the following after “does not exceed €200,000,”: “or where a company or companies are in receipt of rental income from letting the qualifying premises the qualifying expenditure incurred by each person for the purposes of this section, shall, if necessary and notwithstanding section 279, be reduced, such that the amount determined by the formula— (A x 50 per cent) + (B x 25 per cent) does not exceed €200,000,”, (iii) in subsection (6), by substituting “€5,000.” for “10 per cent of the market value of the building, structure or house immediately before that expenditure was incurred.”, (iv) by substituting the following for subsection (8): “(8) Notwithstanding any other provision of this section, this section shall not apply in respect of qualifying expenditure incurred on a qualifying premises where— (a) a property developer, or a person who is connected (within the meaning of section 10) with the property developer is entitled to the relevant interest, within the meaning of section 269, in relation to that expenditure, and

(b) either of the persons referred to in paragraph (a) incurred the qualifying expenditure on that qualifying premises, or such expenditure was incurred by any other person connected (within the meaning of section 10) with the property developer.”, (v) by inserting the following after subsection (8): “(8A) Where any part of qualifying expenditure has been or is to be met, directly or indirectly, by grant assistance or any other assistance which is granted by or through the State, any board established by statute, any public or local authority or any other agency of the State, then that qualifying expenditure shall be reduced by an amount equal to 3 times the sum received or receivable.”, and (vi) by inserting the following after subsection (9): “(10) A person shall not be entitled to allowances under this section while that person is regarded as an undertaking in difficulty for the purposes of the Commission Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty2 .”, (d) by inserting the following after section 372AAC: “Residential accommodation: capital allowances to lessors in respect of eligible expenditure incurred on the conversion and refurbishment of relevant houses 372AAD. (1) In this section— ‘conversion’ in relation to a building, structure or house, has the meaning given to it in section 372AAB; ‘eligible expenditure’, in relation to capital expenditure incurred in the relevant qualifying period on the conversion or the refurbishment of a special qualifying premises, and subject to subsection (2), means, notwithstanding section 279, the lesser of— (a) the aggregate of all such capital expenditure, and (b) (i) where the person who incurred the capital expenditure is a company, €800,000, or (ii) where the person who incurred the capital expenditure is an individual, €400,000, and, for the purposes of giving relief under this section, any reference to expenditure being incurred shall include a reference to expenditure deemed under any provision of Part 9 to be incurred; ‘house’ has the meaning given to it in section 372AAB; ‘letter of certification’ has the meaning given to it in section 372AAB; ‘property developer’ has the meaning given to it in section 372AAC; ‘relevant qualifying period’ means the period commencing on the date of coming into operation of this section and ending on 4 May 2020; ‘special qualifying premises’ means a relevant house— (a) the site of which is wholly within a special regeneration area, (b) which is used solely as a dwelling,

(c) in respect of which a letter of certification has issued, and (d) is let on bona fide commercial terms for such consideration as might be expected to be paid in a letting of the relevant house negotiated on an arm’s length basis.

Section 372AAB (residential accommodation: allowance to owner-occupiers in respect of qualifying expenditure incurred on the conversion and refurbishment of Georgian houses) The amount the individual deducts from his or her total income for a year of assessment under section 372AAB(2) in respect of qualifying expenditure incurred on the conversion or refurbishment of a qualifying premises.

38C.

Section 372AAD (residential accommodation: capital allowances to lessors in respect of eligible expenditure incurred on the conversion and refurbishment of relevant houses) An amount equal to— (a) the aggregate amount of allowances (including balancing allowances) made to the individual under Chapter 1 of Part 9 as that Chapter is applied by section 372AAD, including any such allowance or part of any allowances made to the individual for a previous tax year and carried forward from that previous tax year in accordance with Part 9, or (b) where full effect has not been given in respect of that aggregate for that tax year, the part of that aggregate to which full effect has been given for that tax year in accordance with section 278 and section 304 or 305, as the case may be, or any of those sections as applied or modified by any other provision of the Tax Acts. ”.

Amendment of section 97 of Principal Act (computational rules and allowable deductions) 16. (1) Section 97 of the Principal Act is amended by substituting the following for subsection (2J): “(2J) (a) Notwithstanding subsection (2), but subject to the other provisions of this section (including paragraphs (b) and (c) of this subsection), the deduction authorised by subsection (2)(e) shall not exceed— (i) 75 per cent of the deduction that would, but for this subsection, be authorised by subsection (2)(e) in respect of interest accrued on or after 7 April 2009 up to and including 31 December 2016, (ii) 80 per cent of the deduction that would, but for this subsection, be authorised by subsection (2)(e) in respect of interest accrued on or after 1 January 2017 up to and including 31 December 2017, (iii) 85 per cent of the deduction that would, but for this subsection, be authorised by subsection (2)(e) in respect of interest accrued on or after 1 January 2018 up to and including 31 December 2018, (iv) 90 per cent of the deduction that would, but for this subsection, be authorised by subsection (2)(e) in respect of interest accrued on or after 1 January 2019 up to and including 31 December 2019, and (v) 95 per cent of the deduction that would, but for this subsection, be authorised by subsection (2)(e) in respect of interest accrued on or after 1 January 2020 up to and including 31 December 2020, on borrowed money employed in the purchase, improvement or repair of a premises which, at the time the interest accrues, is a residential premises. (b) For the purposes of paragraph (a) — (i) borrowed money employed on the construction of a residential premises on land in which the person chargeable has an estate or interest shall, together with any borrowed money which that person employed in the acquisition of such land, be deemed to be borrowed money employed in the purchase of a residential premises, (ii) where a premises consists in part of residential premises and in part of premises which are not residential premises, paragraph (a) shall apply to the interest accrued on the part of the borrowed money employed in the purchase, improvement or repair of the premises that is attributable, on a just and reasonable basis, to residential premises, and (iii) the interest on borrowed money referred to in paragraph (a) shall be treated as accruing from day to day. (c) This subsection shall not apply in respect of interest accrued on or after 1 January 2021.”.

Amendment of section 285A of Principal Act (acceleration of wear and tear allowances for certain energy-efficient equipment) 17. Section 285A of the Principal Act is amended— (a) in subsection (2), by substituting “person” for “company” in both places where it occurs, (b) by substituting the following for subsection (5): “Subsection (2) shall not apply where the energy-efficient equipment is leased, let or hired to any person.”, and (c) in subsection (8), by substituting “person” for “company”.

Amendment of section 657 of Principal Act (averaging of farm profits) 18.

Amendment of section 288 of Principal Act (balancing allowances and balancing charges) 19. (1) Section 288(6A) of the Principal Act is amended in paragraph (a)(i) by substituting “the Minister for Agriculture, Food and the Marine in accordance with Council Regulation (EU) No. 508/2014 of the European Parliament and of the Council of 15 May 20143 ” for “the Minister for Agriculture, Fisheries and Food in accordance with Council Regulation (EC) No. 1198/2006 of 27 July 2006”.

Employment and investment incentive and seed capital scheme 20. (1) The Principal Act is amended— (a) in section 502(7)(d)(i), by substituting “31st day of December” for “5th day of April”, (b) in section 507— (i) in subsection (1), by substituting for “the annual reports required in accordance with Article 11 of Commission Regulation (EU) No. 651/2014 of 17 June 2014” the following: “(a) the annual reports required in accordance with Article 11 of Commission Regulation (EU) No. 651/2014 of 17 June 20144 , and (b) publishing the following information in relation to all qualifying companies: (i) the name of the company; (ii) the address of the company; (iii) the Companies Registration Office number of the company; (iv) the amount of finance raised; (v) the date of share issue and type of relief.”, (ii) in subsection (2), by substituting “Notwithstanding section 851A” for “Notwithstanding any obligation as to secrecy imposed on them by the Tax Acts or the Official Secrets Act 1963 ”, and (iii) in subsection (4), by substituting “section 851A” for “statute or otherwise”, and (c) in Schedule 25B, by deleting Reference Number 47A and the matter set out opposite that reference number.

Amendment of Part 8 of Principal Act (annual payments, charges and interest) 21. (1) Part 8 of the Principal Act is amended— (a) in section 256(1) by substituting the following for the definition of “appropriate tax”: “‘appropriate tax’, in relation to a payment of relevant interest, means— (a) as respects the year of assessment 2017, a sum representing income tax on the amount of the payment at the rate of 39 per cent, (b) as respects the year of assessment 2018, a sum representing income tax on the amount of the payment at the rate of 37 per cent, (c) as respects the year of assessment 2019, a sum representing income tax on the amount of the payment at the rate of 35 per cent, and (d) as respects the year of assessment 2020 and each subsequent year of assessment, a sum representing income tax on the amount of the payment at the rate of 33 per cent;”, and (b) in section 267M by substituting the following for subsection (2): “(2) (a) Notwithstanding section 15 and subject to paragraph (aa), where the taxable income of an individual includes— (i) specified interest, the part of taxable income, equal to that specified interest, shall be chargeable to tax at the rate specified in the definition of ‘appropriate tax’ in section 256(1), or (ii) foreign deposit interest, so much of the part of taxable income, equal to that foreign deposit interest, as would otherwise be chargeable to tax at the standard rate, shall instead be chargeable to tax at the rate specified in the definition of ‘appropriate tax’ in section 256(1). (aa) Notwithstanding paragraph (a), where any liability of the individual for a year of assessment in respect of the specified interest or foreign deposit interest, as the case may be, has not been discharged on or before the specified return date for the chargeable period (within the meaning of section 959A) for that year, then the part of taxable income, equal to that specified interest or that foreign deposit interest, shall be chargeable to tax at the rate of tax described in the Table to section 15 as the higher rate.”.

Amendment of section 110 of Principal Act (securitisation) 22. Section 110 of the Principal Act is amended— (a) in subsection (1) in the definition of “qualifying company” by— (i) substituting the following for paragraph (f): “(f) which has notified in writing the authorised officer in a form prescribed by the Revenue Commissioners that it is or intends to be a company to which paragraphs (a) to (e) apply and has supplied such other particulars relating to the company as may be specified on the prescribed form including details concerning the— (i) type of transaction, (ii) assets acquired, (iii) originator, (iv) intra-group transactions, and (v) connected parties, not later than 8 weeks from— (I) 1 January 2017 where the day referred to in paragraph (e) predates 1 January 2017 and the company has not yet made the notification in writing to the authorised officer in the form prescribed by the Revenue Commissioners as required to be made by the specified return date (within the meaning of section 959A) for the first accounting period in relation to which it is such a company, or (II) the day referred to in paragraph (e), and where information required is not available at the time the written notification is provided to the authorised officer, that information should be provided without undue delay upon becoming available,”, and (ii) substituting “(4A), (5) and (5A)” for “(4A) and (5)”, (b) in subsection (4) by substituting “(4A), (5) and (5A)” for “(4A) and (5)”, and (c) by inserting the following after subsection (5): “(5A) (a) In this subsection— ‘arrangement’ includes any agreement, understanding, scheme, transaction or series of transactions; ‘CLO transaction’ means a securitisation transaction entered into by a qualifying company which is carried out in conformity with— (a) a prospectus, within the meaning of Directive 2003/71/EC of the European Parliament and of the Council of 4 November 20035 , (b) listing particulars, where any securities issued by the qualifying company are listed on an exchange, other than the main exchange, of the State or a relevant Member State, or (c) where the securities issued by the qualifying company will not be listed on an exchange in the State or a relevant Member State, legally binding documents, that— (i) may provide for a warehousing period, which for the purposes of this subsection means a period not exceeding 3 years during which time the qualifying company is preparing to issue securities, and (ii) provide for investment eligibility criteria that govern the type and quality of assets to be acquired,

and where, based on the documents referred to in paragraphs (a) to (c) and the activities of the qualifying company, it would not be reasonable to consider that the main purpose, or one of the main purposes, of the qualifying company was to acquire specified mortgages; ‘CMBS/RMBS transaction’ means a securitisation transaction entered into by the qualifying company where— (a) the originator (within the meaning of paragraph (a) of the definition of ‘originator’ in Article 4 of the CRR) retains a net economic interest in the credit risk of the securitisation position in accordance with Article 405 of the CRR, or (b) an originator (within the meaning of paragraph (b) of the definition of ‘originator’ in Article 4 of the CRR) retains a net economic interest in the credit risk of the securitisation position in accordance with Article 405 of the CRR and is a financial institution (within the meaning of the CRR) or credit institution (within the meaning of the CRR) regulated by a competent authority in a relevant Member State or the State or is authorised by a third country authority, recognised by the European Commission as having supervisory and regulatory arrangements at least equivalent to those applied in a relevant Member State or the State, to carry out similar activities; ‘CRR’ means Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 20136 ; ‘EEA state’ means a state, not being a Member State or the State, which is a contracting party to the Agreement on the European Economic Area signed at Oporto on 2 May 1992 as adjusted by the Protocol signed at Brussels on 17 March 1993; ‘loan origination business’ means the making of an advance, other than a specified security to a borrower that has a specified property business— (a) in respect of which the qualifying company is the original creditor, or (b) that is acquired by the qualifying company on or about the date on which it was advanced, provided that such advance is not made as a result of a novation or refinancing of a specified mortgage, other than for bona fide commercial reasons and did not form part of an arrangement the main purpose, or one of the main purposes, of which was to avoid the application of this subsection; ‘relevant Member State’ means a Member State, other than the State, or not being such a Member State, an EEA state; ‘securitisation’ means a securitisation within the meaning of the CRR; ‘specified mortgage’ means— (a) a loan which is secured on, and which derives its value from, or the greater part of its value from, directly or indirectly, land in the State,

(b) a specified agreement which derives all of its value, or the greater part of its value, directly or indirectly, from land in the State or a loan to which paragraph (a) applies, other than a loan or a specified agreement which derives its value or the greater part of its value from a CLO transaction, a CMBS/RMBS transaction, a loan origination business or a sub-participation transaction, (c) the portion of a specified security treated as attributable to the specified property business in accordance with paragraph (c)(ii), or (d) units in an IREF (within the meaning of Chapter 1B of Part 27); ‘specified property business’, in relation to a qualifying company, means the whole, or part, of the business of the qualifying company that involves the holding, managing or both the holding and managing of specified mortgages, and shall not include— (a) a CLO transaction, (b) a CMBS/RMBS transaction, (c) a loan origination business, (d) a sub-participation transaction, or (e) activities which are preparatory to the transactions or business mentioned in paragraphs (a) to (d), where the qualifying company, in respect of paragraphs (a) or (b), apart from activities incidental or preparatory to that transaction or business, carries on no other activities; ‘specified security’ means a security where subsection (4) would, or would but for this subsection, apply to any interest or other distribution payable thereon; ‘sub-participation transaction’ means a transaction which involves the acquisition of an economic interest in a loan by the qualifying company in the ordinary course of a bona fide syndication of such loan to one or more lenders where the originator of the loan— (a) is a financial institution (within the meaning of CRR) or credit institution (within the meaning of CRR)— (i) regulated by a competent authority in a relevant Member State or the State, or (ii) authorised by a third country authority, recognised by the European Commission as having supervisory and regulatory arrangements at least equivalent to those applied in a relevant Member State or the State, to carry out similar activities, (b) remains a lender of record, and (c) retains a material net economic interest in the credit risk of the loan of not less than 5 per cent. (b) (i) In calculating the portion of the value of a loan or specified agreement attributable directly or indirectly to land in the State for the purposes of paragraph (a), account shall not be taken of any arrangement that— (I) involves a transfer of assets, other than a specified mortgage, from a person connected with the qualifying company, and

(II) the main purpose, or one of the main purposes, of which is the avoidance of tax. (ii) In calculating the portion of the value of each loan or specified agreement attributable directly or indirectly to land in the State for the purposes of paragraph (a), regard shall be had to the gross value of the assets from which the specified mortgage derives its value of which the land in the State is part. (c) (i) Notwithstanding the generality of section 70(1), the profits arising to a qualifying company from its specified property business shall be treated for the purposes of the Tax Acts, other than any provision relating to the commencement or cessation of a trade, as a separate business which is distinct from any other business or part of a business carried on by the qualifying company. (ii) For the purposes of treating the specified property business of a qualifying company as a separate business, in accordance with subparagraph (i), any necessary apportionment shall be made so that expenses laid out or expended in earning the profits of that separate business shall be attributed to the separate business on a just and reasonable basis and the amount of the expenses so apportioned shall be an amount which would be attributed to a distinct and separate company, engaged in the same activities, if it were independent of, and dealing at arm’s length with, the qualifying company. (d) Subject to subsections (4A) and (5), subsection (4) shall only apply to the calculation of the profits of a specified property business of a qualifying company in respect of so much of any interest or other distribution payable in respect of a specified security— (i) as is paid by a qualifying company to— (I) a person— (A) being an individual who is resident in the State and within the charge to income tax, or (B) in any other case, who is or will be within the charge to corporation tax, in the State in respect of that interest or other distribution, (II) a fund approved under section 774, 784(4) or 785(5), a PRSA within the meaning of section 787A, a person exempt from income tax under section 790B or a fund authorised by a Member State or an EEA state and subject to supervisory and regulatory arrangements at least equivalent to the supervisory and regulatory arrangements applied to those funds in the State, (III) a person (referred to in this clause as the ‘non-resident person’) who— (A) being an individual is a national of a relevant Member State, or (B) being a company, is formed under the laws of, and is registered in, a relevant Member State,

where under the laws of any relevant Member State the interest or other distribution is subject, without any reduction computed by reference to the amount of such interest or other distribution, in respect of any interest or other distribution which is to any extent dependent on the interest or other distribution payable on the specified security, or in respect of any imputed, deemed or notional expenses calculated by reference to an amount of debt, equity or hybrid financing, including instruments which are neither debt nor equity financing to a tax which generally applies to income or profits (other than gains), received in that state, by persons, from sources outside that state where it would be reasonable to consider that— (AA) the holding of the specified security by the non-resident person does not form part of any arrangement or scheme the main purpose, or one of the main purposes, of which is the avoidance of a liability to tax, and (AB) where the non-resident person is a company, genuine economic activities, relevant to the holding of the specified security, are carried on by the non-resident person in any relevant Member State, (IV) an IREF (within the meaning of Chapter 1B of Part 27), or (V) an investment undertaking, other than an investment undertaking which would be a personal portfolio IREF (within the meaning of section 739M) if all references in that section to IREFs were references to investment undertakings, and references to IREF assets and IREF business were references to the assets and activities of that investment undertaking, (ii) as on the creation of the specified security, would represent no more than a reasonable commercial return which is not dependent on the results of the qualifying company for the use of that principal, or (iii) from which tax has been properly deducted at the standard rate in force at the time of the payment in accordance with section 246(2) and such tax which has been properly deducted is not refundable. (e) (i) Subject to subparagraph (ii), this subsection shall apply to accounting periods commencing on or after 6 September 2016. (ii) Where the accounting period of a company begins before 6 September 2016 and ends after that date, for the purposes of this subsection, that accounting period shall be divided into 2 parts, one beginning on the date on which the accounting period begins and ending on 5 September 2016 and the other beginning on 6 September 2016 and ending on the date on which the accounting period ends.”.

Amendment of Part 27 of Principal Act (unit trusts and offshore funds) 23. Part 27 of the Principal Act is amended— (a) in section 739B(1) by substituting “In this Chapter, in Chapter 1B and in Schedules 2B and 2C” for “In this Chapter and in Schedule 2B”, (b) by inserting after Chapter 1A the following: “Chapter 1B Irish real estate funds Interpretation 739K. (1) In this Chapter— ‘accounting period’ means the period for which an investment undertaking or sub-fund, as the case may be, makes up its accounts and subsections (2) and (3) of section 27 shall have application for the purposes of determining the accounting period of an investment undertaking or sub-fund; ‘accrued IREF profits’ means the IREF profits, including any retained IREF profits, that have arisen and accrued to a unit since that unit was acquired by the person who, on the happening of an IREF taxable event, is the unit holder; ‘arrangement’ includes any agreement, understanding, scheme, course of action, course of conduct, transaction or series of transactions; ‘connected’ has the meaning assigned to it in section 10; ‘EEA state’ means a state, not being a Member State or the State, which is a contracting party to the Agreement on the European Economic Area signed at Oporto on 2 May 1992 as adjusted by the Protocol signed at Brussels on 17 March 1993; ‘income statement’ means the profit and loss account, income statement or equivalent prepared in respect of an investment undertaking or sub-fund, as the case may be, in accordance with international accounting standards or alternatively in accordance with the generally accepted accounting practice specified in the investment undertaking’s prospectus; ‘IREF’ means an investment undertaking or, where that investment undertaking is an umbrella scheme, a sub-fund of an investment undertaking— (a) in which 25 per cent or more of the value of the assets at the end of the immediately preceding accounting period is derived directly or indirectly from IREF assets, or (b) where paragraph (a) does not apply, it would be reasonable to consider that the main purpose, or one of the main purposes, of the investment undertaking or the sub-fund, as the case may be, was to acquire IREF assets or to carry on an IREF business, other than an investment undertaking within the meaning of paragraph (b) of the definition of ‘investment undertaking’ in section 739B, and where this Chapter applies to a sub-fund of an umbrella scheme, for the purposes of the calculation, assessment and collection of any tax due under this Chapter, each sub-fund of such umbrella scheme shall be treated as a separate legal person;

‘IREF assets’ means one or more of the following held by an IREF: (a) relevant assets (within the meaning of section 29(1A)); (b) shares in a REIT (within the meaning of Part 25A); (c) shares deriving their value or the greater part of their value directly or indirectly from the assets referred to in paragraph (a) or (b), other than shares quoted on a stock exchange except as provided for in paragraph (b) of this definition; (d) specified mortgages, other than those which— (i) are issued by a qualifying company as part of a CLO transaction, a CMBS/RMBS transaction or a loan origination business (each within the meaning of section 110), or (ii) form part of a loan origination business of the IREF, and any necessary amendments to the definition of ‘loan origination’ shall be made so that it applies to a business carried on by an IREF rather than a qualifying company; (e) units in an IREF; ‘IREF business’ means activities involving IREF assets, the profits or gains of which, apart from section 739C, would be chargeable to income tax, corporation tax or capital gains tax, including, but without limitation to the generality of the preceding words, activities which would be regarded as— (a) dealing in or developing land, or (b) a property rental business; ‘IREF excluded profits’ means— (a) in relation to a unit holder in respect of which an IREF is not a personal portfolio IREF having regard to the IREF assets concerned (other than those referred to in paragraphs (b) to (e) of the definition of ‘IREF assets’)— (i) any profits or gains as shown in the income statement of the IREF in relation to the disposal of those assets where— (I) such asset was held by the IREF, or an investment undertaking of which the IREF is a sub-fund, for a period of at least 5 years from the date on which it was acquired, and (II) the disposal of such asset would be a disposal of a chargeable asset for the purposes of capital gains tax or corporation tax on chargeable gains and would otherwise form part of relevant profits of the IREF which are not chargeable to tax under section 739C, and (ii) any unrealised profits or gains as shown in the income statement of the IREF in relation to those assets where the disposal of such asset would be a disposal of a chargeable asset for the purposes of capital gains tax or corporation tax on chargeable gains and would otherwise form part of relevant profits of the IREF which are not chargeable to tax under section 739C, and where such asset was acquired through a transaction in respect of which relief was availed of under section 615 or 617, excluded profits shall be calculated with reference to the market value of the asset on its acquisition,

(b) in relation to shares, within the meaning of paragraph (c) of the definition of ‘IREF assets’, any distribution made in relation to those shares, and (c) in relation to shares, within the meaning of paragraph (b) of the definition of ‘IREF assets’, any profits or gains other than property income dividends in relation to those shares; ‘IREF profits’ means the profits and gains of an IREF business as shown in the income statement of the IREF, any amount of the profits and gains realised on the disposal of an IREF asset (other than those referred to in paragraphs (b) to (e) of the definition of ‘IREF assets’) not otherwise shown in the income statement and excluding IREF excluded profits; ‘IREF taxable amount’, in relation to an IREF taxable event and a unit holder, means an amount calculated in accordance with section 739L; ‘IREF taxable event’ in respect of a unit holder means— (a) the making of a relevant payment, (b) the cancellation, redemption or repurchase of units from a unit holder, including on a liquidation, (c) any exchange by a unit holder of units in a sub-fund of an investment undertaking for units in another sub-fund of that investment undertaking, (d) the issuing of units as paid-up, otherwise than by the receipt of new consideration, (e) an IREF ceasing to be an IREF including on it ceasing to be an investment undertaking or on it ceasing to have 25 per cent of its value derived from IREF assets, (f) the disposal of a unit by a unit holder, other than in circumstances that would give rise to an IREF taxable event under paragraph (b) or (c), or (g) the sale or transfer of the right to receive any of the accrued IREF profit without the sale or transfer of the unit to which the accrued IREF profit relates or where the accrued IREF profit in respect of the unit becomes receivable otherwise than by the unit holder; ‘IREF withholding tax’, in relation to an IREF taxable event, means a sum representing income tax at a rate of 20 per cent on the IREF taxable amount; ‘purchased IREF profits’ means the IREF profits, including any retained IREF profits, which have arisen and accrued to a unit prior to that unit being acquired by the unit holder; ‘relevant payment’, means a payment including a distribution, whether in cash or non-cash, made to a unit holder by an IREF by reason of the rights conferred to the unit holder as a result of holding a unit or units in the IREF, other than a payment made in respect of the cancellation, redemption or repurchase of a unit; ‘retained IREF profits’ means the portion of the retained profits of the investment undertaking attributable to the IREF profits, and where those profits arose in an accounting period which commenced prior to 1 January 2017 or 20 October 2016, as the case may be, those profits shall be the profits which would be IREF profits if they arose in an accounting period which commenced on or after that date;

‘specified person’ means a unit holder in respect of which a gain is not treated as arising to an investment undertaking on the happening of a chargeable event under subsection (6) (other than paragraphs (cc), (e), and (kb)), (7), (7A) (as it applies to a declaration made under subsection (6) or (7)), (7B) (as it applies to a declaration made under subsection (7) or (9)), (8), (8A), (8D), (8E), (9) or (9A) of section 739D, but shall not, subject to section 739M, include— (a) a fund approved under section 774, 784(4) or 785(5), a PRSA within the meaning of section 787A, or a person exempt from income tax under section 790B, (b) an investment undertaking, (c) a company carrying on life business (within the meaning of section 706), (d) a person who is exempt from— (i) income tax under Schedule D by virtue of section 207(1)(b), or (ii) corporation tax by virtue of section 207(1)(b) as it applies for the purposes of corporation tax under section 76(6), (e) a credit union, (f) a scheme, undertaking or company equivalent to those referred to in paragraphs (a) to (c), authorised by a Member State or an EEA state and subject to supervisory and regulatory arrangements at least equivalent to those applied to those schemes, undertakings or companies, as the case may be, in the State, or (g) a qualifying company, within the meaning of section 110, where the IREF is in possession of a valid declaration, in accordance with Schedule 2C, immediately before the IREF taxable event; ‘TIN’ has the meaning assigned to it in section 891F and includes a tax reference number as defined in section 891B; ‘umbrella scheme’ has the meaning given to it in section 739B.

Calculating the IREF taxable amount 739L. The IREF taxable amount in relation to an IREF taxable event shall be calculated as:

A x B-D C where— A is the portion of the IREF taxable event which is attributable to the retained profits of the IREF, B is the retained IREF profits, C is the retained profits of the IREF, and D is the purchased IREF profits not previously distributed by the IREF.

Anti-avoidance: multiple funds 739M. (1) In this Chapter— ‘personal portfolio IREF’ means an IREF under the terms of which some or all of the IREF assets or IREF business may be, or was, selected or influenced by— (a) the unit holder, (b) a person acting on behalf of the unit holder, (c) a person connected with the unit holder, (d) a person connected with a person acting on behalf of the unit holder, (e) the unit holder and a person connected with the unit holder, or (f) a person acting on behalf of both the unit holder and a person connected with the unit holder.

Anti-avoidance: multiple funds further measures 739N. (1) Where— (a) an IREF would otherwise be a personal portfolio IREF in accordance with section 739M(3)(a), and (b) the scheme, undertaking or company, as the case may be, in respect of which it is a personal portfolio IREF would not be a personal portfolio IREF under section 739M(3)(b)(i), then the IREF shall not be considered to be a personal portfolio IREF in respect of the unit holder concerned.

Tax arising on IREF taxable event 739O. (1) In this section a ‘holder of excessive rights’ means a person who is beneficially entitled, directly or indirectly, to at least 10 per cent of the units in an IREF.

Withholding tax arising on IREF taxable event 739P. (1) On the happening of an event mentioned in paragraphs (a) to (e) of the definition of ‘IREF taxable event’ in respect of a specified person— (a) the IREF shall deduct IREF withholding tax out of the IREF taxable amount, (b) the specified person shall allow such deduction referred to in paragraph (a) on the receipt of the residue of the IREF taxable amount, and (c) the IREF shall be acquitted and discharged of so much money as is represented by the deduction referred to in paragraph (a) as if that amount of money had actually been paid to the specified person.

Repayment of IREF withholding tax 739Q. (1) In this section, ‘relevant person’ means a specified person, who during an accounting period was subject to withholding tax on an IREF taxable event and would but for section 739P be entitled to a repayment of tax.

Returns, payment and collection of IREF withholding tax 739R. (1) Notwithstanding any other provision of the Tax Acts, this section shall apply for the purposes of regulating the time and manner in which IREF withholding tax shall be accounted for and paid.

Statement to be given to recipients on the making of an IREF relevant payment 739S. (1) Every IREF shall, at the time of the IREF taxable event (within the meaning of paragraphs (a) to (e) of the definition of ‘IREF taxable event’), give the unit holder a statement in writing, or by means of electronic communications, specifying the following details: (a) the name and address of the IREF; (b) the name and address of the unit holder; (c) the date the IREF taxable event occurred; (d) the IREF taxable amount; (e) the amount of the IREF withholding tax deducted in relation to the IREF taxable event.

Deduction from consideration on the disposal of certain units 739T. (1) This section— (a) applies on the happening of an event specified in paragraph (f) or (g) of the definition of ‘IREF taxable event’, and (b) shall not apply where the amount or value of any consideration payable in relation to the happening of such an IREF taxable event does not exceed the sum of €500,000; but where the taxable event involves a disposal, sale or transfer by the unit holder in parts— (i) to the same person, or (ii) to persons who are acting in concert or who are connected persons, whether on the same or different occasions, the several disposals, sales or transfers shall, for the purposes of this paragraph, be treated as a single disposal, sale or transfer.