Chapter 5

Capital Gains Tax

52 .— (1) The Principal Act is amended in Chapter 6 of Part 19—

(a) in section 598—

(i) in subsection (1)(a), in the definition of “qualifying assets”—

(I) in paragraph (iii) by deleting “and” and in paragraph (iv)(II) by deleting “section 652(5)(a);” and substituting “section 652(5)(a), and”, and

(II) by inserting the following after paragraph (iv):

“(v) land which has been let by the individual at any time in the period of 15 years ending with the disposal where―

(I) immediately before the time the land was first let in that period of 15 years, the land was owned by the individual and used for the purposes of farming carried on by the individual for a period of not less than 10 years ending at that time, and

(II) the disposal is to a child (within the meaning of section 599) of the individual;”,

and

(ii) in subsection (2)(a) by substituting “€750,000” for “€500,000” in each place where it occurs,

and

(b) in section 599—

(i) by substituting the following for subsection (1)(a):

“(1) (a) In this section ‘child’, in relation to a disposal for which relief is claimed under this section, includes—

(i) a child of a deceased child,

(ii) a nephew or a niece who has worked substantially on a full-time basis, for the period of 5 years ending with the disposal, in carrying on, or assisting in the carrying on of, the trade, business or profession concerned or the work of, or connected with, the office or employment concerned, and

(iii) an individual (in this paragraph referred to as ‘the first-mentioned individual’) who resided with, was under the care of and was maintained at the expense of the individual making the disposal throughout—

(I) a period of 5 years, or

(II) periods which together comprised at least 5 years,

before the first-mentioned individual attained the age of 18 years but only if such claim is not based on the uncorroborated testimony of one witness.”,

and

(ii) by inserting the following after subsection (1)(c):

“(d) Where the qualifying asset is land used for the purposes of farming and the consideration for its disposal consists in whole or in part of other such land, a gain shall not be treated as arising on the disposal of that other land by the child concerned but that other land shall be treated for the purposes of the Capital Gains Tax Acts as having been acquired by the individual at the same time and for the same value and used by the individual for the same purposes as it was originally acquired and used by the child concerned.”.

(2) (a) Subject to paragraph (b), subsection (1) applies as respects disposals made on or after the date of the passing of this Act.

(b) Paragraph (a)(ii) of subsection (1) applies as respects disposals made on or after 1 January 2007.

53 .— (1) Section 603A of the Principal Act is amended by substituting the following for subsection (1A):

“(1A) This section applies to the disposal of land which at the date of the disposal—

(a) has a market value that does not exceed €254,000, and

(b) comprises—

(i) the area of land on which a dwelling house referred to in subsection (2)(b) is to be constructed, and

(ii) an area of land for occupation and enjoyment with that dwelling house as its garden or grounds which, exclusive of the area referred to in subparagraph (i), does not exceed 0.4047 hectare.”.

(2) This section applies to disposals made on or after 1 February 2007.

54 .— (1) Part 1 of Schedule 15 to the Principal Act is amended in paragraphs 3, 37 and 38 by deleting “gain” and substituting “gain or, if greater, the consideration for the disposal under the Capital Gains Tax Acts”.

(2) This section applies to disposals made on or after 1 February 2007.

55 .— (1) Section 746 of the Principal Act is amended—

(a) in subsection (5) by substituting “resident or ordinarily resident” for “ordinarily resident”, and

(b) in subsections (5) and (6) by substituting “sections 806, 807, 807A, 807B and 807C” for “sections 806, 807 and 807A” in each place where it occurs.

(2) This section applies as on and from 1 February 2007.

56 .— (1) Section 980 of the Principal Act is amended—

(a) by substituting the following for subsection (5):

“(5) Where any payment referred to in subsection (4)(a) is made by or on behalf of any person, that person shall, within 30 days of the date of the payment, deliver to the Revenue Commissioners an account of the payment and of the amount deducted from the payment, and pay to the Collector-General an amount of capital gains tax equal to 15 per cent of the amount of the payment.

(5A) Capital gains tax which by virtue of subsection (5) is payable by a person who makes a payment shall—

(a) be payable by that person in addition to any capital gains tax which by virtue of any other provision of the Capital Gains Tax Acts is payable by that person,

(b) be due within 30 days of the time when the payment is made, and

(c) be payable by that person without the making of an assessment,

but tax which has become so due may be assessed on the person making the payment (whether or not the tax has been paid when the assessment is made) if that tax or any part of that tax is not paid on or before the due date.”,

(b) by substituting the following for subsection (7):

“(7) Where the amount of capital gains tax which, by virtue of subsection (5A), a person has become liable to pay to the Collector-General, has been so paid, appropriate relief shall, on a claim being made in that behalf, be given to the person chargeable in respect of the gain on the disposal, whether by discharge, repayment or otherwise.”,

and

(c) by deleting subsection (10).

(2) This section applies to disposals made on or after the date of the passing of this Act.