The following important updates from Revenue appeared on their website on Friday 28th in relation to Corporation Tax.
Finance Act 2014 – Corporation Tax Update
The following tax manuals have been updated to reflect amendments to corporation tax provisions of the Taxes Consolidation Act 1997 introduced in Finance Act 2014:
Part 02.02.03 (PDF, 132KB) – Company Residence in the State [section 23A TCA 1997]
Section 43 of the Finance Act amended the rules in relation to company residence to provide that a company which is incorporated in the State will be regarded as tax resident in the State.
(PDF, 108KB) – Accelerated Capital Allowances for Energy-Efficient Equipment [section 285A TCA 1997]
Section 38 provided for a 3-year extension, to 31 December 2017, of the period for which expenditure on energy-efficient equipment will qualify for accelerated capital allowances and amended the descriptions of the qualifying classes of technology.
(PDF, 179KB) – Capital Allowances for Intangible Assets [section 291A TCA 1997]
Section 40 removed the 80% cap on the aggregate amount of capital allowances, and related interest expense, which may be offset in any accounting period against trading income of the relevant trade in which the intangible assets are used. It also extended the list of specified intangible assets to include customer lists, except where acquired in connection with the transfer of a business as a going concern.
(PDF, 142KB) – Tax Relief for new Start-up Companies [section 486C TCA 1997]
Section 39 extended the date for commencement of a qualifying trade by a start-up company to 31 December 2015. In addition to updating the tax manual to reflect this amendment, it has been revised to incorporate relevant Revenue Tax Briefing articles on section 486C.
(PDF, 88KB) – Company Ceasing to be Member of Group [section 623 TCA 1997]
Section 41 clarified when tax becomes due and payable in respect of a chargeable gain arising under section 623 of the Taxes Consolidation Act 1997 on a company leaving a group.
For additional information, please consult Revenue’s Notes for Guidance on the Taxes Consolidation Act 1997. The Finance Act 2014 edition of the Notes for Guidance is available on the Revenue website at: Tax Practitioners – Legislation – Notes for Guidance.
All the best,
The Team at Jefferson