Taxes Consolidation Act 1997 section 739V

Transfer of IREF business to a company

Section 739V provides a mechanism for an investment undertaking to transfer its IREF business to a company, with the resulting IREF withholding tax deferred for up to 10 years, subject to certain conditions.

• An investment undertaking may transfer all or part of its IREF business and assets to a specified company, provided shares are issued to unit holders in proportion to their holdings and the fund retains no transferred business assets after the transfer.
• The investment undertaking is treated as disposing of the assets at their book value, the specified company is treated as having carried on the business from its commencement, and unit holders are treated as having acquired their shares at the same time and cost as their original units.
• The transfer is an IREF taxable event, but the parties may jointly elect to defer the withholding tax until the earlier of disposal of the shares, the 10th anniversary, a liquidation, or the company ceasing to be EU/EEA tax resident.
• Instruments giving effect to the transfer are exempt from stamp duty, and the specified company must file an annual statement with Revenue providing information relevant to the deferral.