Taxes Consolidation Act 1997 section 736

Option for non-application of section 735

Section 736 allows unit trusts linked to life companies to opt into the collective investment undertaking regime by meeting certain conditions, despite the exclusion imposed by section 735.

• A unit trust that is an authorised scheme under the Unit Trusts Act 1990 may elect to be treated as a collective investment undertaking, notwithstanding the exclusion in section 735, provided the trustees pay capital gains tax on a notional disposal of all assets at 31 March 1992 and notify the Revenue Commissioners by 1 November 1992.
• Once the conditions are met, the unit trust is deemed to have been a collective investment undertaking from 1 April 1992 for the purposes of section 734 and Schedule 18, bringing the life company within the regime that taxes the annual increase in value of units.
• Units held by a person on 31 March 1992 are treated as having been acquired on that date for the purposes of computing chargeable gains arising on or after 1 April 1992, and the exemption from tax on disposal of units under section 731(6) ceases to apply from 1 April 1992.
• Where the consideration for any disposal or acquisition of an asset on 31 March 1992 falls to be determined under this section, it is deemed to be the market value of the asset on that date, construed in accordance with section 548.