Taxes Consolidation Act 1997 section 739B

Interpretation and application

Section 739B defines the key terms used in the exit tax regime for investment undertakings and sets out when the regime applies.

• A chargeable event arises when an investment undertaking makes a payment to a unit holder, when a unit holder transfers or sells units, when units are appropriated to meet tax, or when an eight-year holding period ends — but certain exchanges, spouse or civil partner transfers, clearing system transactions and court funds manager changes are excluded.
• An investment undertaking covers authorised unit trust schemes, UCITS vehicles, and authorised investment companies (but not offshore funds), and references to an investment undertaking include any trustee or management company authorised to act on its behalf.
• The regime applies from 1 April 2000 to funds that were specified collective investment undertakings (IFSC funds) on 31 March 2000, from the date of first unit issue for funds commencing on or after 1 April 2000, and from the date a previously exempt unit trust becomes an investment undertaking.
• Where the Courts Service invests court-controlled money in an investment undertaking, it must deduct and account for exit tax in the same way as the fund itself, and must make an annual electronic return to Revenue by 28 February each year detailing total gains and each beneficial owner's entitlement.