Taxes Consolidation Act 1997 section 739G

Taxation of unit holders in investment undertakings

Section 739G sets out how payments from investment undertakings are taxed in the hands of unit holders, depending on whether the unit holder is an individual or a company, and whether exit tax has already been deducted.

• An individual unit holder has no further tax liability on a payment from which exit tax has been deducted; if exit tax has not been deducted, the payment is taxable as income under Case IV of Schedule D.
• A company unit holder is generally taxable under Case IV of Schedule D, with the treatment varying according to whether the payment is a relevant payment, whether exit tax has been deducted, and whether the company is within the charge to corporation tax under Case I or is a section 110 company.
• Non-resident companies and non-resident, non-ordinarily resident individuals are not chargeable to Irish income tax or capital gains tax on payments from the investment undertaking.
• Where exit tax arises on the death of a unit holder, the amount paid is treated as capital gains tax for the purpose of obtaining a credit against capital acquisitions tax on the same event.

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