Taxes Consolidation Act 1997 section 739J

Investment limited partnerships

Section 739J provides for the tax treatment of investment limited partnerships (ILPs), establishing them as tax-transparent entities where income, gains and losses flow through to the partners.

• An ILP is not itself chargeable to tax on its relevant income, relevant gains or relevant payments; instead, these amounts are treated as arising directly to the partners in proportion to their partnership interests.
• Relevant losses of the ILP are similarly allocated to the partners, comprising allowable capital losses and income tax losses to the extent they exceed corresponding gains or income.
• The ILP must file an annual electronic statement with Revenue by 28 February following each year of assessment, detailing total relevant income, gains and losses, partner information, the business activities undertaken and the net asset value of the ILP.
• A penalty of €3,000 applies where the partners of an ILP fail to file the annual statement or file an incorrect or incomplete statement; interest earned by the ILP on deposits is exempt from DIRT.