Taxes Consolidation Act 1997 section 29A

Temporary non-residents

Section 29A taxes individuals who leave Ireland and become temporarily non-resident to avoid capital gains tax (CGT) on the disposal of significant shareholdings.

• The section targets individuals who temporarily cease to be Irish resident and dispose of shares worth 5% or more of a company's issued share capital, or worth more than €500,000, during their period of non-residence.
• Where such a disposal occurs within five tax years of departure, the individual is deemed to have sold and reacquired the shares on the last day of the tax year in which they left Ireland, bringing the gain within the Irish CGT charge.
• If the market value of the shares at the actual date of disposal differs from their market value on the last day of the year of departure, the actual disposal value is used instead.
• Credit is available for foreign tax paid on the disposal in a country with which Ireland has a double taxation agreement, limited to the amount of Irish CGT arising on the deemed disposal.