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11 1979

FINANCE ACT, 1979

Chapter VIII

Capital Gains Tax

Amendment of section 25 (private residence) of Capital Gains Tax Act, 1975.

35. Section 25 of the Capital Gains Tax Act, 1975 , is hereby amended by the insertion after subsection (9) of the following subsection :

“(9A) (a) In this subsection ‘dependent relative’ means, in relation to an individual, a relative of the individual, or of the wife or husband of the individual, who is incapacitated by old age or infirmity from maintaining himself, or the widowed mother (whether or not she is so incapacitated) of the individual or of the wife or husband of the individual.

(b) If as respects a gain accruing to an individual on the disposal, on or after the 6th day of April, 1979, of, or of an interest in, a dwelling-house or part of a dwelling-house which is, or has at any time in his period of ownership been, the sole residence of a dependent relative of the individual, provided rent free and without any other consideration, the individual so claims, such relief shall be given in respect of it and of its garden or grounds as would be given under this section if the dwelling-house (or part of the dwelling-house) had been the individual's only or main residence in the period of residence by the dependent relative, and shall be so given in addition to any relief available under this section apart from this subsection :

Provided that—

(i) not more than one dwelling-house (or part of a dwelling-house) may qualify for relief as being the residence of a dependent relative of the claimant at any one time nor, in the case of a man and his wife living with him, as being the residence of a dependent relative of the claimant or of the claimant's wife or husband at any one time, and

(ii) the inspector, before allowing a claim, may require the claimant to show—

(I) that the giving of the relief claimed will not, under paragraph (i), preclude the giving of relief to the wife or husband of the claimant, or

(II) that a claim by the said wife or husband to any such relief has been relinquished.”.

Amendment of section 27 (disposal within the family of business or farm) of Capital Gains Tax Act, 1975.

36. Section 27 (inserted by the Capital Gains Tax (Amendment) Act, 1978 ) of the Capital Gains Tax Act, 1975 , is hereby amended by the insertion after subsection (1) (c) of the following paragraph :

“(d) For the purposes of paragraph (a), an illegitimate child who has not, on or before the date of the disposal, been legitimated or adopted in the manner described in section 36 (a) (ii) of the Finance Act, 1977 , shall, if the disposal is made to him by his mother on or after the 6th day of April, 1979, be the child of his mother.”.

Amendment of section 31 (unit trusts) of Capital Gains Tax Act, 1975.

37. —(1) It is hereby declared and enacted that, for the purposes of any assessment to capital gains tax made on or after the 11th day of May, 1979, subsection (4) of section 31 of the Capital Gains Tax Act, 1975 , shall not have effect and shall be deemed never to have had effect as respects a unit trust to which the provisions of subsection (5A) (inserted by the Finance Act, 1977 ) of that section apply.

(2) The said section 31 is hereby amended by the insertion in subsection (5) after “the units in the unit trust shall” of “for that year” and the said subsection, as so amended, is set out in the Table to this section.

TABLE

(5) If throughout a year of assessment all the assets of a unit trust are such that they are not chargeable assets or are assets in respect of which a gain would not be a chargeable gain, the units in the unit trust shall for that year be deemed not to be chargeable assets for the purposes of this Act.