Taxes Consolidation Act 1997 section 613A

Supplementary provisions

Section 613A modifies the capital gains tax exemption under section 613 for disposals of interests in settlements whose trustees have migrated offshore, by requiring a deemed disposal and reacquisition of the interest at market value.

• Where a trust migrates offshore and a beneficiary later disposes of an interest acquired before the migration, the chargeable gain is calculated as if the interest had been disposed of and reacquired at market value immediately before the migration.
• This deemed disposal does not apply if the trustees had already fallen out of charge to Irish CGT under a double taxation agreement before the beneficiary acquired the interest.
• Where the trustees fell out of charge under a treaty during the period between the beneficiary acquiring the interest and the migration, the deemed disposal is set at the time the trustees first fell out of charge rather than at migration.
• Where the general deemed disposal at migration applies, the alternative deemed disposal linked to a treaty exit does not also apply.