Taxes Consolidation Act 1997 section 739D

Gain arising on a chargeable event

Section 739D sets out how gains arising on chargeable events in investment undertakings are computed and provides exemptions from exit tax for certain categories of unit holders through a declaration procedure.

• Gains on chargeable events are calculated differently depending on whether the event is a payment, redemption, transfer, or deemed disposal at an eight-year anniversary.
• Various exempt unit holders (pension schemes, life assurance companies, charities, and others) can avoid exit tax by providing appropriate declarations to the investment undertaking.
• Non-resident unit holders can be exempt from exit tax through declaration procedures, or where the investment undertaking has Revenue approval confirming equivalent measures are in place.
• Investment undertakings must retain declarations for six years after the unit holder ceases to hold units in the undertaking and any associated undertakings.