Irish Revenue updated guidance on Capital Gains Tax (CGT) group relief for transfers of assets within corporate groups, including the classification of foreign entities under section 617 of the Taxes Consolidation Act 1997 (TCA 1997).

Irish Revenue issued eBrief No. 135/26 on 10 September 2026, announcing updates to Tax and Duty Manual Part 20-01-04, covering transfers of assets, other than trading stock, within a group under section 617 of the Taxes Consolidation Act 1997 (TCA 1997).

The manual explains the Capital Gains Tax (CGT) group relief provisions that apply when chargeable assets are transferred between members of the same group of companies. In general, qualifying transfers are treated for Corporation Tax (CT) on chargeable gains as taking place on a “no gain / no loss” basis, with the acquiring company taking over the relevant base cost, enhancement expenditure and transfer costs.

The updated guidance includes new information on the classification of foreign entities for section 617 purposes. Where the status of a foreign entity as opaque or transparent is unclear, taxpayers are directed to TDM Part 35C-00-02 or the Revenue Technical Service (RTS) framework.

Section 617 relief is subject to residency and chargeability conditions for both the transferor and transferee. The relief is also unavailable where the acquiring company is an authorised investment company (investment undertaking), a Real Estate Investment Trust (REIT) or group REIT member, or an authorised ICAV.

Following changes introduced by the Finance Act 2017, the definition of a group of companies can cover entities resident in an EU member state or a double taxation treaty country, provided the relevant entity is subject to a tax corresponding to Irish CT. Previous administrative concessions for non-resident CGT groups ceased to apply to transfers from 1 January 2021, when statutory provisions for non-resident groups took effect.

The guidance also confirms that relief applies to actual transactions rather than deemed disposals and covers certain corporate mergers and divisions under the Companies Act 2014. However, section 617 relief is excluded for specified transactions, including certain intra-group debts, share redemptions, capital distributions and insurance recoveries.

For specified intangible assets within section 291A TCA 1997, group members can jointly elect to disapply the “no gain / no loss” treatment. The election must be submitted to the Collector General within 12 months from the end of the accounting period in which the asset was acquired.