Taxes Consolidation Act 1997 section 683

Charge to tax on sums received from sale of scheduled mineral assets

Section 683 imposes a charge to tax under Schedule D Case IV on capital sums received from the sale of scheduled mineral assets, including the grant of a licence to work scheduled minerals.

• Capital sums from the sale of scheduled mineral assets are charged to tax under Case IV of Schedule D in the chargeable period the sum is received, but an Irish-resident individual may elect within 24 months to spread the charge equally over six years
• Where the seller is non-resident, the purchaser must deduct income tax at the standard rate from the payment as if it were an annual payment under section 238, and the non-resident individual may also elect for a six-year spread with any excess tax refunded year by year
• Where the seller originally acquired the scheduled mineral asset for a capital sum, the taxable amount is reduced by that acquisition cost, but withholding tax under section 238 must still be applied to the gross proceeds with relief given by repayment
• Compensation paid by the Minister for Communications, Climate Action and Environment for the compulsory acquisition of mineral rights under the Minerals Development Act 1979 is treated as a capital sum from the sale of a scheduled mineral asset