Taxes Consolidation Act 1997 section 747AA

Treatment of certain offshore funds

Section 747AA removes offshore fund treatment from certain funds in the EU, EEA or OECD treaty countries that are excluded from the gross roll-up regime because they are personal portfolio funds.

• Where an offshore fund is excluded from the gross roll-up regime under section 747B(2A) (personal portfolio funds), neither the Chapter 2 offshore fund rules nor the section 747A CGT treatment apply to that fund.
• The effect is that such funds do not qualify for offshore fund treatment of any sort — neither the gross roll-up charge nor the more favourable CGT-based treatment is available.
• Instead, income and gains arising from these funds are taxed under general taxation principles, in the same way as income and gains from Irish entities that fall outside the domestic gross roll-up regime.
• The section applies to offshore funds located in the EU, the European Economic Area, or in OECD countries with which Ireland has a double taxation agreement.