Taxes Consolidation Act 1997 section 747A

Capital gains tax: rate of charge

Section 747A imposes a capital gains tax rate of 40 per cent on the disposal of a material interest in a qualifying (distributing) offshore fund.

• A 40 per cent CGT rate applies to disposals on or after 12 February 1998 of a material interest in a qualifying offshore fund (i.e. one certified by Revenue as a distributing fund).
• The section also catches interests in Irish-resident companies or unit trust schemes that were qualifying offshore funds at any material time on or after 1 January 1991.
• The anti-avoidance rules in section 741(2) to (7), which apply to non-qualifying offshore funds, are extended to qualifying offshore funds for the purposes of this section.
• The 40 per cent rate overrides the general CGT rate that would otherwise apply under section 28(3).