Taxes Consolidation Act 1997 section 737

Special investment schemes

Section 737 provided for the taxation of special investment schemes, which were authorised unit trust schemes required to invest a significant proportion of their funds in Irish equities, and for the tax treatment of holders of special investment units. This section is now spent.

• A special investment scheme was an authorised unit trust scheme that met minimum Irish equity investment thresholds, with participation restricted to holders of special investment units purchased between 1 February 1993 and 31 December 2000, subject to a maximum individual investment of €63,500 and strict ownership conditions.
• Income and gains (including unrealised gains arising from a deemed annual disposal at market value on 31 December each year) accruing to the scheme for the benefit of unit holders were taxed at an effective rate of 20 per cent, with no surcharge under section 805 and no DIRT on scheme deposits.
• Net capital losses of a year of assessment could be set against scheme income of that year, with any excess carried forward; on cessation of the scheme, unused losses of the final year could be carried back against gains of the three preceding years.
• Payments received by a unit holder in respect of special investment units were exempt from income tax, disposals of units did not give rise to chargeable gains, and no credit for tax paid by the scheme could be imputed to the unit holder.