Roll-over Relief on Shares
01/05/2001
Query
The term ‘qualifying trading operations’ means all trading operations except dealing in shares, securities, land, currencies, futures or traded options.
Decision
For the purpose of relief under section 591, investment in a property development company will not be excluded provided: 1. The land is acquired with a view to the development and disposal of the completed development: and 2. Most of the profit is derived from the enhanced property resulting from the development (as opposed to increases in the value of land from the obtaining of planning permission or a general rise in land values).This type of operation that would be excluded would include situations where land is simply bought and sold without actual being developed. Revenue would not seek to exclude genuine building and construction companies from the relief.
Capital Gains Tax
Section 591(8), Taxes Consolidation Act, 1997
Origin: Office of the Chief Inspector of Taxes
File ref:G159(a)