Taxes Consolidation Act 1997 section 572

Funds in court

Section 572 deals with the capital gains tax treatment of funds held and invested by the Accountant of the Courts of Justice on behalf of beneficiaries.

• Funds in court include money, investments, annuities, stocks, shares and other securities standing to the account of the Accountant in the books of the Bank of Ireland or any company, as well as boxes and other effects.
• The Accountant is treated as a nominee for the persons entitled to or interested in the funds, meaning any capital gains tax liability falls on the beneficial owner rather than on the Accountant.
• Where the Accountant transfers investments between accounts by internal set-off rather than by actual sale and repurchase, the transfer is still treated as a disposal and acquisition for capital gains tax purposes.
• The section applies equally to funds administered in the Circuit Court, so the Accountant attached to the Circuit Court is likewise not liable to account for capital gains tax on gains arising in the course of administering those funds.