Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

I move amendment No. 19:

In page 23, between lines 15 and 16, to insert the following:“(II) by deleting paragraph (a) of the definition of “IREF excluded profits”,”.

These amendments relate to the taxation of profits arising on the disposal of Irish land that has been held by an Irish real estate fund for more than five years. This proposal will remove that five-year exemption. This amendment provides that exemption will apply to the profits arising on land disposed of prior to 1 January 2019. Distributions out of the profits of such deposit disposals after that will be subject to the normal Irish real estate fund, IREF, withholding tax rules.

Given the changes I am making elsewhere in the Finance Bill 2017 on capital gains tax and stamp duty, I felt it was important that these provisions were also amended for consistency. In applying this provision from the start of 2019, I am ensuring that this change is introduced in a timely way while avoiding any undue disruption. I commend the amendment to the committee. I would also like to flag the possibility of a further amendment on the IREF provisions on Report Stage.