Taxes Consolidation Act 1997 section 739LB

Profit: calculating profits available for distribution

Section 739LB provides that any disbursement or expense taken into account in computing the profits of an Irish real estate fund (IREF) must have been wholly and exclusively incurred for the purposes of the IREF business, with disallowed amounts charged to income tax under Case IV of Schedule D.

• Any expense or disbursement deducted in computing IREF profits that was not wholly and exclusively incurred for the purposes of the IREF business is a "disallowed amount".
• The IREF is treated as receiving income equal to the disallowed amount, chargeable to income tax under Case IV of Schedule D in the year of assessment in which the relevant accounting period ends.
• No loss, deficit, expense or allowance may be set off against the income so charged.
• The section applies to IREF accounting periods commencing on or after 9 October 2019, with transitional split-period rules for accounting periods straddling that date.