Taxes Consolidation Act 1997 section 48

Exemption of premiums on certain securities

Section 48 provides an exemption from tax for profits arising on the redemption of certain Government and international securities, with specific exceptions for discounted non-interest-bearing securities issued after 25 January 1984.

• Profits on redemption of Irish Government securities, guaranteed State body securities, EU institution securities, and World Bank securities are exempt from tax, unless taken into account in computing trade profits.
• The exemption does not apply to non-interest-bearing securities issued at a discount (such as Exchequer Bills), Agricultural Commodities Intervention Bills, or strips of Government securities issued after 25 January 1984, unless a tender was submitted on or before that date.
• Non-resident owners of these discounted securities are exempt from tax on any profit from selling, disposing of, or redeeming them.
• The non-resident exemption does not apply to corporation tax chargeable on income of an Irish branch or agency of a non-resident company.