Rented Residential Accomodation
03/02/1998
Query
A bona fides company reconstruction takes place whereby a new company is formed and the assets of an existing company are transferred to it. The shareholders and the number of shares held are the same in both companies. One of the assets transferred is a property on which rented residential relief has been claimed. Will a clawback arise in such circumstances?.
Decision
It has been decided not to allow the concessional treatment sought. This is on the basis that 1) there is no hardship involved 2) the properties are to be transferred between two seperate legal entities.
Income Tax
Section 325, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:IT983006