Taxes Consolidation Act 1997 section 579B

Trustees ceasing to be resident in the State

Section 579B imposes a capital gains tax charge where the trustees of a settlement become non-resident, by deeming a disposal and reacquisition of the trust's assets at market value.

• When trustees become neither resident nor ordinarily resident in the State, they are deemed to have disposed of and reacquired the defined assets at market value immediately before the relevant time.
• The defined assets are all settled property, but exclude assets used in an Irish branch or agency trade after the relevant time, and assets that would not attract Irish tax on disposal under a double taxation treaty.
• Roll-over relief under section 597 is denied where old assets were disposed of before the relevant time and new assets are acquired after it, and any deferred gain under that section is brought into charge immediately before the relevant time, unless the new assets are used in an Irish branch or agency trade.
• The trustees may elect to pay the resulting capital gains tax in six equal annual instalments, with the first due on 31 October in the year following the deemed disposal and the remaining five on 31 October in each subsequent year.