The Taxes Consolidation Act, 1997, is hereby amended by the substitution for section 649A (inserted by section 65 of the Finance Act, 1998) of the following section:

"Relevant disposals: rate of charge.

649A.

(1) Notwithstanding subsection (3) of section 28, and subject to subsection (2), the rate of capital gains tax in respect of a chargeable gain accruing to a person on a relevant disposal shall be -

(a) subject to paragraph (b), in the case of a disposal on or after the 3rd day of December, 1997, 40 per cent, and

(b) in the case of a disposal, on or after the 6th day of April, 2002, of land which, in accordance with a development objective (as indicated in the development plan of the planning authority concerned), is for use solely or primarily for residential purposes, 60 per cent.

(2)

(a) Subsection (1) shall not apply to a relevant disposal to which this subsection applies and accordingly, the rate of capital gains tax in respect of a chargeable gain on such a relevant disposal shall be the rate specified in subsection (3) of section 28.

(b) This subsection shall apply to a relevant disposal -

(i) to which section 650 refers, or

(ii) being a disposal, at any time in the period beginning on the 23rd day of April, 1998, and ending on the 5th day of April, 2002, of land -