Finance Act, 1995

Finance Act, 1995 Skip to content Disclaimer Feedback Helpdesk Gaeilge Léim go dtí an t-ábhar Séanadh Aiseolas Deasc chabhrach English Gaeilge English Produced by the Office of the Attorney General Táirgthe ag Oifig an Ard-Aighne Home Legislation Acts of the Oireachtas Statutory Instruments Pre-1922 Legislation Constitution External Resources Bills (Houses of the Oireachtas) Iris Oifigiúil / Official Gazette Revised Acts (LRC) Classified List of Legislation (LRC) Translations (acts.ie) Translations (Houses of the Oireachtas) Government Publications for Sale EU Law (EUR-Lex) FAQ Disclaimer Feedback Helpdesk Search Baile Reachtaíocht Achtanna an Oireachtais Ionstraimí Reachtúla Reachtaíocht Réamh-1922 Bunreacht Acmhainní Seachtracha Billí (Tithe an Oireachtais) Iris Oifigiúil Achtanna Athbhreithnithe (CAD) (An Coimisiún um Athchóiriú an Dlí) Liosta Rangaithe Reachtaíochta Aistriúcháin (achtanna.ie) Aistriúcháin (Tithe an Oireachtais) Foilseacháin Rialtais ar Díol Dlí AE (EUR-Lex) CCanna (Ceisteanna Coitianta) Séanadh Aiseolas Deasc chabhrach Cuardach TitleTeideal Year(s) or rangeBliain nó blianta nó raon TypeCineál All Legislation Acts Statutory Instruments Advanced SearchCuardach Casta HomeBaile ActsAchtanna 1995 Finance Act, 1995 Finance Act, 1995 Permanent Page URL View by SectionAmharc de réir Ailt View Full ActAmharc ar an Acht Iomlán Bill History Stair Bille Commencement, Amendments, SIs made under the Act Tosach Feidhme, Leasuithe, IRí arna ndéanamh faoin Acht Print Full ActPriontáil an tAcht Iomlán Number 8 of 1995 FINANCE ACT, 1995 ARRANGEMENT OF SECTIONS

PART I

Income Tax, Corporation Tax and Capital Gains Tax

Chapter I

Income Tax Section

Section 1

Amendment of provisions relating to exemption from income tax.

Section 2

Alteration of rates of income tax.

Section 3

Personal reliefs.

Section 4

Amendment of section 6 (special allowance in respect of P.R.S.I. for 1982-83) of Finance Act, 1982.

Section 5

Amendment of section 142A (allowance for rent paid by certain tenants) of Income Tax Act, 1967.

Section 6

Relief for fees paid to private colleges.

Section 7

Allowance for service charges.

Section 8

Tax relief for designated charities.

Section 9

Amendment of section 8 (restriction of relief in respect of interest paid on certain loans at a reduced rate) of Finance Act, 1982.

Section 10

Amendment of provisions relating to the taxation of certain benefits payable under Social Welfare Acts.

Section 11

Amendment of provisions relating to the taxation of certain savings and investments.

Section 12

Amendment of provisions relating to settlements on minors.

Section 13

Amendment of section 439 (dispositions for short periods) of Income Tax Act, 1967.

Section 14

Returns of certain information in relation to rent.

Section 15

Amendment of section 191 (error or mistake) of Income Tax Act, 1967.

Section 16

Amendment of Chapter IX (Profit Sharing Schemes) of Part I of, and Third Schedule (Profit Sharing Schemes) to, Finance Act, 1982.

Section 17

Amendment of Chapter III (Income Tax: Relief for Investment in Corporate Trades) of Part I of Finance Act, 1984.

Section 18

Amendment of section 17 (tax deductions from payments to subcontractors in the construction industry) of Finance Act, 1970.

Section 19

Short-lived businesses.

Chapter II

Income Tax, Corporation Tax and Capital Gains Tax

Section 20

Amendment of section 19 (relief for expenditure on significant buildings) of Finance Act, 1982.

Section 21

Farming: amendment of provisions relating to relief in respect of increase in stock values.

Section 22

Compulsory disposals of livestock.

Section 23

Capital allowances for, and deduction in respect of, vehicles.

Section 24

Amendment of section 265 (balancing allowances and balancing charges) of Income Tax Act, 1967, etc.

Section 25

Amendment of section 272 (balancing allowances and balancing charges) of Income Tax Act, 1967.

Section 26

Amendment of section 51 (application of certain allowances in relation to certain areas and certain expenditure) of Finance Act, 1988.

Section 27

Amendment of section 81 (application of certain allowances in relation to certain expenditure) of Finance Act, 1990.

Section 28

Amendment of section 49 (tax treatment of foreign trusts) of Finance Act, 1993.

Section 29

Tax relief for certain branch profits.

Section 30

Amendment of section 48 (surcharge for late submission of returns) of Finance Act, 1986.

Section 31

Amendment of section 18 (date for payment of tax) of Finance Act, 1988.

Section 32

Amendment of Chapter V (Urban Renewal: Relief from Income Tax and Corporation Tax) of Part I of Finance Act, 1986.

Section 33

Amendment of section 27 (designated areas for urban renewal relief) of Finance Act, 1987.

Section 34

Amendment of Chapter VII (Urban Renewal: Temple Bar and Other Areas) of Part I of Finance Act, 1991.

Section 35

Amendment of Chapter IV (Urban Renewal Reliefs: Introduction of New Scheme in Certain Areas) of Part I of Finance Act, 1994.

Section 36

Amendment of section 35 (relief for investments in films) of Finance Act, 1987.

Section 37

Non-distributing investment companies.

Section 38

Amendment of section 18 (taxation of collective investment undertakings) of Finance Act, 1989.

Section 39

Amendment of section 27 (distributions to non-residents) of Finance Act, 1994.

Section 40

Certain interest not to be chargeable.

Section 41

Returns of material interest in offshore funds.

Section 42

Amendment of Chapter VI (Petroleum Taxation) of Part I of Finance Act, 1992.

Section 43

Exemption of certain employment grants to certain industrial undertakings.

Section 44

Exemption of the Irish Horseracing Authority, Irish Thoroughbred Marketing Limited and the Tote.

Section 45

Tax credits in respect of distributions.

Chapter III

Income Tax and Corporation Tax: Reliefs for Renewal and Improvement of Certain Resort Areas

Section 46

Interpretation (Chapter III).

Section 47

Accelerated capital allowances in relation to construction or refurbishment of certain industrial buildings or structures.

Section 48

Capital allowances in relation to construction or refurbishment of certain commercial premises.

Section 49

Double rent allowance in respect of rent paid for certain business premises.

Section 50

Deduction for certain expenditure on construction of rented residential accommodation.

Section 51

Rented residential accommodation: deduction for expenditure on conversion.

Section 52

Rented residential accommodation: deduction for expenditure on refurbishment.

Section 53

Provisions supplementary to sections 50 to 52.

Chapter IV

Corporation Tax

Section 54

Rate of corporation tax.

Section 55

Amendment of section 162 (surcharge on undistributed income of service companies) of Corporation Tax Act, 1976.

Section 56

Amendment of section 45 (credit for bank levy) of Finance Act, 1992.

Section 57

Relief for certain payments to National Co-operative Farm Relief Services Ltd. and certain payments made to its members.

Section 58

Amendment of section 141 (particulars to be supplied by new companies) of Corporation Tax Act, 1976.

Section 59

Deduction for certain expenditure on research and development.

Section 60

Amendment of section 23 (double taxation relief: supplementary) of Corporation Tax Act, 1976.

Section 61

Amendment of section 41 (basis of relief from corporation tax) of Finance Act, 1980.

Section 62

Double taxation relief.

Section 63

Amendment of section 39C (credit for foreign tax) of Finance Act, 1980.

Section 64

Amendment of section 43 (overseas life assurance companies: investment income) of Corporation Tax Act, 1976.

Section 65

Amendment of section 39B (relief in relation to income from certain trading operations carried on in Custom House Docks Area) of Finance Act, 1980.

Section 66

Amendment of section 55 (late submission of returns: restriction of certain claims of relief) of Finance Act, 1992.

Section 67

Amendment of section 51 (relief for gifts to First Step) of Finance Act, 1993.

Section 68

Amendment of section 20A (foreign life assurance and deferred annuities: taxation and returns) of Capital Gains Tax Act, 1975.

Section 69

Amendment of section 46B (gains or losses arising by virtue of section 46A) of Corporation Tax Act, 1976.

Chapter V

Capital Gains Tax

Section 70

Amendment of Schedule 4 (administration) to Capital Gains Tax Act, 1975.

Section 71

Amendment of section 26 (disposal of business or farm on retirement) of Capital Gains Tax Act, 1975.

Section 72

Amendment of section 27 (disposal within the family of business or farm) of Capital Gains Tax Act, 1975.

Section 73

Amendment of section 39 (amendment of provisions regarding replacement of assets) of Finance Act, 1982.

Section 74

Amendment of section 27 (relief for individuals on certain reinvestment) of Finance Act, 1993.

Section 75

Amendment of section 66 (reduced rate of capital gains tax on certain disposals of shares by individuals) of Finance Act, 1994.

Section 76

Amendment of paragraph 11 (disposal of certain assets) of Schedule 4 to Capital Gains Tax Act, 1975.

PART II

Customs and Excise

Chapter I

Excise Duty on Tobacco Products other than Cigarettes — Introduction of Tax Stamps

Section 77

Interpretation (Chapter I).

Section 78

Amendment of section 2A (liability for duty to be paid by tax stamps) of Principal Act.

Section 79

Amendment of section 2B (sale of cigarettes) of Principal Act.

Section 80

Amendment of section 3 (repayment, remission and deferment of payment) of Principal Act.

Section 81

Amendment of section 8 (regulations) of Principal Act.

Section 82

Amendment of section 10A (offences in relation to tax stamps) of Principal Act.

Section 83

Amendment of section 18 (power to refuse delivery of goods) of Finance Act, 1939.

Section 84

Amendment of Chapter I (Excise Duty on Cigarettes— Introduction of Tax Stamps) of Part II of Finance Act, 1994.

Chapter II

Excise Duties — Powers of Officers, Detention, Seizure and Forfeiture

Section 85

Definitions (Chapter II).

Section 86

Power to stop and search vehicles.

Section 87

Power to enter and search premises.

Section 88

Detention of goods and vehicles.

Section 89

Seizure of goods and vehicles.

Section 90

Notice of seizure.

Section 91

Notice of claim.

Section 92

Condemnation.

Section 93

Proceedings for condemnation by court.

Section 94

Power to deal with seizures before condemnation.

Section 95

Miscellaneous amendments.

Section 96

Repeals and revocation.

Chapter III

Vehicle Registration Tax

Section 97

Amendment of section 132 (charge of excise duty) of Finance Act, 1992.

Section 98

Repayment of amounts in respect of vehicle registration tax in certain cases.

Chapter IV

Implementation of Council Directive No. 94/74/EC

Section 99

Application of section 104 (excisable products) of Finance Act, 1992, and reliefs for hydrocarbons.

Section 100

Amendment of section 111 (accompanying documents) of Finance Act, 1992.

Section 101

Amendment of section 117 (regulations) of Finance Act, 1992.

Section 102

Commencement (Chapter IV).

Chapter V

Appeals in relation to Excise Duty

Section 103

Definitions (Chapter V).

Section 104

Appeals to Revenue Commissioners.

Section 105

Appeals to Appeal Commissioners.

Section 106

Payment of duty pending appeal.

Section 107

Exclusion of criminal matters.

Section 108

Repeal (Chapter V).

Section 109

Commencement (Chapter V).

Chapter VI

Miscellaneous

Section 110

Tobacco products.

Section 111

Duty on licence for the sale of intoxicating liquor.

Section 112

Amendment of section 77 (spirits retailers' on-licences) of Finance Act, 1993.

Section 113

Amendment of section 89 (exemption from duty on certain bets) of Finance Act, 1994.

Section 114

Amendment of section 43 (gaming machine licence duty) of Finance Act, 1975.

Section 115

Amendment of section 49 (grant of licences and date of expiration of licences) of Finance (1909-10) Act, 1910.

Section 116

Excise duty on motor fuel substitutes.

Section 117

Amendment of section 20 (provisions in relation to excise duty and licences under Act of 1952) of Finance (No. 2) Act, 1992.

PART III

Value-Added Tax

Section 118

Intepretation (Part III).

Section 119

Amendment of section 1 (interpretation) of Principal Act.

Section 120

Amendment of section 3 (supply of goods) of Principal Act.

Section 121

Amendment of section 3A (intra-Community acquisition of goods) of Principal Act.

Section 122

Amendment of section 4 (special provisions in relation to the supply of immovable goods) of Principal Act.

Section 123

Amendment of section 5 (supply of services) of Principal Act.

Section 124

Amendment of section 8 (taxable persons) of Principal Act.

Section 125

Amendment of section 10 (amount on which tax is chargeable) of Principal Act.

Section 126

Margin scheme goods.

Section 127

Special scheme for auctioneers.

Section 128

Amendment of section 11 (rates of tax) of Principal Act.

Section 129

Amendment of section 12 (deductions for tax borne or paid) of Principal Act.

Section 130

Special scheme for means of transport supplied by taxable dealers.

Section 131

Amendment of section 14 (determination of tax due by reference to cash receipts) of Principal Act.

Section 132

Amendment of section 17 (invoices) of Principal Act.

Section 133

Amendment of section 18 (inspection and removal of records) of Principal Act.

Section 134

Amendment of section 19 (tax due and payable) of Principal Act, etc.

Section 135

Amendment of section 20 (refund of tax) of Principal Act.

Section 136

Amendment of section 22 (estimation of tax due for a taxable period) of Principal Act.

Section 137

Amendment of section 25 (appeals) of Principal Act.

Section 138

Amendment of section 32 (regulations) of Principal Act.

Section 139

Amendment of First Schedule to Principal Act.

Section 140

Amendment of Sixth Schedule to Principal Act.

Section 141

Addition of Eighth Schedule to Principal Act.

PART IV

Stamp Duties

Section 142

Levy on banks.

Section 143

Amendment of section 19 (conveyance or transfer on sale— limit on stamp duty in the case of certain transactions between bodies corporate) of Finance Act, 1952.

Section 144

Relief from stamp duty in case of reconstructions or amalgamations of companies.

Section 145

Amendment of Chapter II (stamp duty on capital companies) of Part IV of Finance Act, 1973.

Section 146

Amendment of section 92 (levy on certain premiums of insurance) of Finance Act, 1982.

Section 147

Amendment of section 208 (location of insurance risk for stamp duty purposes) of Finance Act, 1992.

Section 148

Amendment of section 106 (exemption from stamp duty of certain loan capital and securities) of Finance Act, 1993.

Section 149

Amendment of section 107 (particulars to be delivered in cases of transfers and leases) of Finance Act, 1994.

Section 150

Stock borrowing.

PART V

Residential Property Tax

Section 151

Application (Part V).

Section 152

Amendment of section 96 (charge of residential property tax) of Finance Act, 1983.

Section 153

Amendment of section 100 (market value exemption limit) of Finance Act, 1983.

Section 154

Amendment of section 101 (income exemption limit) of Finance Act, 1983.

Section 155

Repeal (Part V).

PART VI

Capital Acquisitions Tax

Section 156

Interpretation (Part VI).

Section 157

Amendment of section 2 (interpretation) of Principal Act.

Section 158

Amendment of section 19 (value of agricultural property) of Principal Act.

Section 159

Amendment of section 52 (appeals in other cases) of Principal Act.

Section 160

Amendment of section 55 (exemption of certain objects) of Principal Act.

Section 161

Business relief.

Section 162

Amendment of section 134 (exclusion of value of excepted assets) of Finance Act, 1994.

Section 163

Amendment of section 135 (withdrawal of relief) of Finance Act, 1994.

Section 164

Payment of tax on certain assets by instalments.

Section 165

Exemption of certain inheritances taken by parents.

Section 166

Heritage property of companies.

PART VII

Miscellaneous

Chapter I

Provisions Relating to Residence of Individuals

Section 167

Amendment of Chapter IV (Interest Payments by Certain Deposit Takers) of Part I of Finance Act, 1986.

Section 168

Amendment of section 175 (power to obtain information as to interest paid or credited without deduction of tax) of Income Tax Act, 1967.

Section 169

Amendment of section 152 (application of Part III (Schedule C) and section 52 (Schedule D) of Income Tax Act, 1967) of Finance Act, 1994.

Section 170

Amendment of section 154 (deduction for income earned outside the State) of Finance Act, 1994.

Chapter II

General

Section 171

Capital Services Redemption Account.

Section 172

Duties of a relevant person in relation to certain revenue offences.

Section 173

Amendment of provisions relating to appeals.

Section 174

Amendment of section 115 (liability to tax, etc., of holder of fixed charge on book debts of company) of Finance Act, 1986.

Section 175

Power to obtain information.

Section 176

Relief for donations of heritage items.

Section 177

Tax clearance certificates in relation to public sector contracts.

Section 178

Care and management of taxes and duties.

Section 179

Short title, construction and commencement.

FIRST SCHEDULE Amendments Consequential on Changes In Personal Reliefs SECOND SCHEDULE Amendments Consequential on Changes In Amounts of Tax Credits In Respect of Distributions THIRD SCHEDULE Income Tax and Corporation Tax: Reliefs for Renewal and Improvement of Certain Resort Areas FOURTH SCHEDULE Change in Rate of Corporation Tax: Consequential Provisions FIFTH SCHEDULE Excise Duties — Miscellaneous Amendments SIXTH SCHEDULE Excise Duties — Repeal of Certain Provisions SEVENTH SCHEDULE Rates of Excise Duty on Tobacco Products Number 8 of 1995 FINANCE ACT, 1995 AN ACT TO CHARGE AND IMPOSE CERTAIN DUTIES OF CUSTOMS AND INLAND REVENUE (INCLUDING EXCISE), TO AMEND THE LAW RELATING TO CUSTOMS AND INLAND REVENUE (INCLUDING EXCISE) AND TO MAKE FURTHER PROVISIONS IN CONNECTION WITH FINANCE. [2nd June, 1995] BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

PART I

Income Tax Corporation Tax and Capital Gains Tax

Chapter I

Income Tax Amendment of provisions relating to exemption from income tax.

1.—As respects the year of assessment 1995-96 and subsequent years of assessment, the Finance Act, 1980 , is hereby amended— (a) in section 1, by the substitution, in subsection (2) (inserted by the Finance Act, 1989 ), of “£7,400” and “£3,700”, respectively, for “£7,200” and “£3,600” (inserted by the Finance Act, 1993 ), and (b) in section 2, by the substitution, in subsection (6) (inserted by the Finance Act, 1989 )— (i) of “£8,600” and “£9,800”, respectively, for “£8,200” and “£9,400” (inserted by the Finance Act, 1993 ), in paragraph (a), and (ii) of “£4,300” and “£4,900”, respectively, for “£4,100” and “£4,700” (inserted by the Finance Act, 1993 ), in paragraph (b), and the said subsection (2) of the said section 1 and the said subsection (6) of the said section 2, as so amended, are set out in the Table to this section.

TABLE

Provided that, if at any time during the year of assessment either the individual or his spouse was of the age of seventy-five years or upwards, “the specified amount” means £9,800, and (b) in any other case, £4,300:

Provided that, if at any time during the year of assessment the individual was of the age of seventy-five years or upwards, “the specified amount” means £4,900.

Alteration of rates of income tax.

2.—

Section 2

of the Finance Act, 1991 , is hereby amended, as respects the year of assessment 1995-96 and subsequent years of assessment, by the substitution of the following Table for the Table to that section: “TABLE PARTI Part of taxable income Rate of tax Description of rate

(1)

(2)

PART II

Part of taxable income Rate of tax Description of rate

(1)

(2)

Personal reliefs.

3.—(1) Where a deduction falls to be made from the total income of an individual for the year of assessment 1995-96 or any subsequent year of assessment in respect of relief to which the individual is entitled under a provision mentioned in column (1) of the Table to this subsection and the amount of the deduction would, but for this section, be an amount specified in column (2) of the said Table, the amount of the deduction shall, in lieu of being the amount specified in the said column (2), be the amount specified in column (3) of the said Table opposite the mention of the amount in the said column (2) TABLE Statutory provision Amount to be deducted from total income for the year 1994-95 Amount to be deducted from total income for the year 1995-96 and subsequent years

(1)

(2)

(2)

Section 3

of the Finance Act, 1994 , shall have effect subject to the provisions of this section.

Amendment of section 6 (special allowance in respect of P.R.S.I. for 1982-83) of Finance Act, 1982.

4.—

Section 6

of the Finance Act, 1982 , shall have effect for the purpose of ascertaining the amount of income on which an individual referred to therein is to be charged to income tax for the year 1995-96, as if in subsection (2)— (a) “1995-96” were substituted for “1982-83”, and (b) “£140” were substituted for “£312” in each place where it occurs.

Amendment of section 142A (allowance for rent paid by certain tenants) of Income Tax Act, 1967.

5.—As respects the year of assessment 1995-96 and subsequent years of assessment, section 142A (inserted by the Finance Act, 1982 ) of the Income Tax Act, 1967 , is hereby amended— (a) in paragraph (a) of subsection (2), by the substitution of the following subparagraph for subparagraph (ii): “(ii) in the year of assessment, he has made a payment on account of rent in respect of residential premises which, during the period in respect of which the payment was made, was his only or main residence,”:

Provided that this paragraph shall not apply for the year of assessment 1995-96 in the case of an individual who, but for this paragraph, would be entitled to relief in accordance with the provisions of the said subsection (2), (b) by the insertion of the following subsection after subsection (2): “(2A) (a) Where, in relation to income tax for 1995-96 and each subsequent year of assessment, a claimant would, but for the provisions of subparagraph (i) of paragraph (a) of subsection (2), be entitled to relief in accordance with the provisions of that subsection, the income tax to be charged on that individual for that year of assessment, other than in accordance with section 5

Relief for fees paid to private colleges.

6.—(1) In this section— “academic year”, in relation to an approved course, means a year of study commencing on a date not earlier than the 1st day of August in a year of assessment; “dependant”, in relation to an individual, means a spouse or child of the individual or a person in respect of whom the individual is or was the legal guardian; “approved college” means a college in the State— (a) which operates in accordance with a code of standards which, from time to time, may, with the consent of the Minister for Finance, be laid down by the Minister, and (b) which the Minister approves of for the purposes of this section; “approved course” means a full time undergraduate course of study in an approved college which— (a) is of at least 2 academic years duration, and (b) the Minister, having regard to a code of standards which, from time to time, may, with the consent of the Minister for Finance, be laid down by the Minister in relation to the quality of education to be offered on approved courses, approves of for the purposes of this section; “the Minister” means the Minister for Education; “qualifying fees”, in relation to an approved course and an academic year, means the amount of fees, chargeable in respect of tuition to be provided in relation to that course in that year, which, with the consent of the Minister for Finance, the Minister approves of for the purposes of this section.

(7)

Section 198

(inserted by the Finance Act, 1980 ) of the Income Tax Act, 1967 , is hereby amended, in subsection (1) (a), by the insertion of the following subparagraph after subparagraph (xiv) (inserted by the Finance Act, 1994 ): “(xv) so far as it flows from relief under section 6 of the Finance Act, 1995, in the proportions in which they incurred the expenditure giving rise to the relief,”.

Allowance for service charges.

7.—(1) (a) In this section— “appropriate percentage”, in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year; “claimant” has the meaning assigned to it by subsection (2); “financial year” means the period of twelve months ending on the 31st day of December in that year; “group water supply scheme” means a scheme referred to in the Housing (Improvement Grants) Regulations, 1983 ( S.I. No. 330 of 1983 ); “local authority” means a council of a county, a corporation of a county or other borough and a council of an urban district; “service” means the provision by or on behalf of a local authority of— (i) a supply of water for domestic purposes, (ii) domestic refuse collection or disposal, and (iii) domestic sewage disposal facilities; “service charge” means a charge imposed under— (i) the Local Government (Financial Provisions) (No. 2) Act, 1983 , or (ii) section 65A (inserted by the Local Government (Sanitary Services) Act, 1962 and amended by the said Local Government (Financial Provisions) (No. 2) Act, 1983 ) of the Public Health (Ireland) Act, 1878 , in respect of the provision by a local authority of any service or services and “service charges” shall be construed accordingly; “specified limit” means £150. (b) References to an amount paid on time mean payment of that amount by such date or dates as a local authority shall decide.

Provided that— (i) in the case of a claimant who is assessed to tax for the year of assessment in accordance with the provisions of section 194 of the Income Tax Act, 1967 , any payments made by the spouse of the claimant, in respect of which that spouse would have been entitled to relief under this section if the spouse were assessed to tax for the year of assessment in accordance with the provisions of section 193 (apart from the proviso thereto) of the said Act, shall be deemed to have been made by the claimant; (ii) in the case of an individual who resides on a full-time basis in the premises to which the service charges relate and pays such service charges in accordance with the requirements of this section on behalf of the claimant, that claimant may disclaim the relief provided by this section in favour of the individual and such disclaimer shall be in such form as the Revenue Commissioners may require.

Provided that where, exceptionally, the return provided by a local authority is not a complete return, a supplementary return, in similar format, shall be provided to the Revenue Commissioners not later than two months after the end of the said financial year; (ii) where a local authority makes a return in accordance with the foregoing provisions of this paragraph, the certificate mentioned in paragraph (a) need not be given to any claimant referred to in such return.

Tax relief for designated charities.

8.—(1) (a) In this section— “designated charity” means any body or institution in the State which, following application by it to the Minister in such form and containing such information as the Minister may require, is designated for the purposes of this section by the Minister with the consent of the Minister for Finance; “the Minister” means the Minister for Foreign Affairs; “qualifying donation” shall be construed in accordance with subsection (5); “relevant year of assessment”, in relation to a qualifying donation, means the year of assessment in which the qualifying donation is made. (b) For the purposes of this section, a person shall be regarded as connected with the donor if such person would be so regarded in accordance with the provisions of section 16 of the Finance (Miscellaneous Provisions) Act, 1968 . (c) References, in relation to a donation, to the grossed up amount are to the amount which after deducting income tax at the standard rate for the relevant year of assessment leaves the amount of the donation.

Provided that, if the total amount of the tax referred to in subsection (5) (b) (i) (II) is not paid, the amount of any repayment which would otherwise be made to a designated charity in accordance with the provisions of this section shall not exceed the amount of tax actually paid by the donor.

Amendment of section 8 (restriction of relief in respect of interest paid on certain loans at a reduced rate) of Finance Act, 1982.

9.—

Section 8

of the Finance Act, 1982 , is hereby amended, as respects the year 1995-96 and subsequent years of assessment, by the substitution in the definition of “the specified rate” (inserted by the Finance Act, 1989 ) in subsection (1) of— (a) “7 per cent.” for “7.5 per cent.” (inserted by the Finance Act, 1994 ) in both places where it occurs, and (b) “11 per cent.” for “11.5 per cent.” (inserted by the Finance Act, 1994 ), and the said definition, as so amended, is set out in the Table to this section.

TABLE “the specified rate”, in relation to a preferential loan, means— (i) in a case where— (I) the interest which is paid on the preferential loan qualifies for relief under section 76

Amendment of provisions relating to the taxation of certain benefits payable under Social Welfare Acts.

10.—(1)

Section 15

of the Finance Act, 1992 , is hereby amended, as respects the year of assessment 1995-96 and subsequent years of assessment, by the substitution of the following subsection for subsection (2): “(2) All amounts falling to be paid on foot of the benefits to which this section applies (other than amounts so payable in respect of a qualified child within the meaning of section 2

Part V

of the Income Tax Act, 1967 , are applied by section 125 of that Act:

Provided that— (I) the first £10 of the aggregate of the amounts of unemployment benefit payable to a person in respect of one or more days of unemployment comprised in any income tax week (other than an amount so payable in respect of a qualified child within the meaning as aforesaid) shall be disregarded for all the purposes of the Income Tax Acts, and (II) for the purposes of this proviso, ‘income tax week’ means one of the successive periods of 7 days in a year of assessment beginning on the 1st day of that year, or on any 7th day after that day, the last day of a year of assessment (or the last 2 days of a year of assessment ending in a leap year) being taken as included in the last income tax week of that year of assessment.”.

(2)

Section 10

of the Finance Act, 1994 , shall apply and have effect, as respects the year of assessment 1995-96, as if— (a) in subsection (1), the definitions of “day of unemployment” and “period of interruption of employment” were deleted, and (b) the following subsection were substituted for subsection (2): “(2) Notwithstanding the provisions of section 15 (as amended by the Finance Act, 1995) of the Finance Act, 1992 , and the Finance Act, 1992 (Commencement of Section 15) (Unemployment Benefit and Pay-Related Benefit) Order, 1994 (S.L No. 19 of 1994), the said section 15 shall not apply or have effect, as respects the year of assessment 1995-96, in relation to unemployment benefit paid or payable to a person employed in short-time employment.”.

Amendment of provisions relating to the taxation of certain savings and investments.

11.—(1) As respects any relevant interest (within the meaning of Chapter IV of Part I of the Finance Act, 1986 ) paid or credited on or after the 6th day of April, 1995, section 31 of the Finance Act, 1986 , is hereby amended, in subsection (1), by the substitution, in the definition of “appropriate tax” of the following paragraph for paragraph (a): “(a) in the case of a relevant deposit or relevant deposits held in a special savings account, at the rate of 15 per cent., and”.

Amendment of provisions relating to settlements on minors.

12.—(1) Chapter II of Part XXVIII of the Income Tax Act, 1967 , is hereby amended— (a) in section 443— (i) by the substitution of the following subsection for subsection (1): “(1) Where, by virtue or in consequence of a settlement and during the life of the settlor, any income is, in any year of assessment, paid to or for the benefit of a person, such income shall, if at the time of payment such person is a minor, be treated for the purposes of this Act as income of the settlor for that year and not as income of any other person:

Provided that— (a) for the purposes of this Chapter, but subject to section 444, income which, by virtue or in consequence of a settlement to which this Chapter applies, is so dealt with that it, or assets representing it, will or may become payable or applicable to or for the benefit of a person in the future (whether on the fulfilment of a condition, or on the happening of a contingency, or as the result of the exercise of a power or discretion conferred on any person, or otherwise) shall be deemed to be paid to or for the benefit of that person, and (b) any income dealt with as aforesaid which is not required by the settlement to be allocated, at the time when it is so dealt with, to any particular person or persons shall be deemed to be paid in equal shares to or for the benefit of each of the persons to or for the benefit of whom or any of whom the income or assets representing it will or may become payable or applicable.”, and (ii) by the addition of the following subsection after subsection (4): “(5) This Chapter shall not apply to any income which, by virtue or in consequence of a settlement and during the life of the settlor, is in any year of assessment paid to or for the benefit of a minor, not being a child of the settlor, if such minor is permanently incapacitated by reason of mental or physical infirmity.”, (b) in section 444, by the substitution of the following paragraphs for paragraphs (a) and (b): “(a) section 443 (1) shall not apply in respect of any part of such income which is, in the said year of assessment, accumulated for the benefit of a person nor in respect of income arising in the said year of assessment from accumulations of the income hereinbefore mentioned; (b) whenever in any year of assessment any sum whatsoever is paid under the trusts of such irrevocable instrument out of such property or the accumulations of the income thereof or out of the income of such property or the income of the said accumulations to or for the benefit of a person who at the time of payment, is a minor, such sum shall be deemed for the purposes of this Chapter to be paid as income, but subject to the limitation that this paragraph shall not apply to so much of such sum as is equal to the amount by which the aggregate of such sum and all other (if any) sums paid after the 5th day of April, 1937, under the trusts of such irrevocable instrument to or for the benefit of the said person or any other person (being a person who, at the beginning of the year of assessment in which such other sum was paid, was a minor) exceeds the aggregate amount of the income arising after the 5th day of April, 1937, from such property together with the income arising after the said date from the said accumulations.”,

(c) in section 445— (i) by the substitution, in paragraph (a), of the following subparagraphs for subparagraphs (i) and (ii): “(i) the payment or application to or for the settlor for the settlor's own benefit of any capital or income or accumulations of income in any circumstances whatsoever during the life of a person to or for the benefit of whom any income or accumulations of income is or are or may be payable or applicable under the trusts of the instrument; (ii) the payment or application during the life of the settlor to or for the wife or husband of the settlor for her own or his own benefit of any capital or income or accumulations of income in any circumstances whatsoever during the life of any such person as aforesaid;”, and (ii) by the substitution, in paragraph (b), of the following subparagraphs for subparagraphs (i) to (iii): “(i) a provision whereunder any capital or income or accumulations of income will or may become payable to or applicable for the benefit of the settlor, or the wife or the husband of the settlor, on the bankruptcy of a person to or for the benefit of whom any income or accumulations of income is or are or may be payable or applicable under the trusts of the instrument; (ii) a provision whereunder any capital or income or accumulations of income will or may become payable to or applicable for the benefit of the settlor, or the wife or the husband of the settlor, in the event of any such person as aforesaid making an assignment of or charge on such capital or income or accumulations of income; (iii) a provision for the termination of the trusts of the instrument in such circumstances or manner that such termination would not, during the life of any such person as aforesaid, benefit any person other than such person or his or her wife, husband, or issue;”, and (d) in section 447, by the insertion of the following definition before the definition of “settlement”: “‘minor’ means a person who is under the age of eighteen years and who is not or has not been married;”.

(3)

Section 440

, and subsection (4) of section 443 (as amended by this section), of the Income Tax Act, 1967 , shall cease to apply and have effect as on and from the 6th day of April, 1995.

Amendment of section 439 (dispositions for short periods) of Income Tax Act, 1967.

13.—(1) (a)

Section 439

of the Income Tax Act, 1967 , is hereby amended by the substitution of the following subsection for subsection (1A) (inserted by the Finance Act, 1979 ): “(1A) (a) This subsection applies to a disposition or dispositions of a kind or kinds referred to in paragraphs (ii) to (iv) of subsection (1) made, directly or indirectly, by a person being an individual (in this subsection referred to as the ‘disponer’) except in so far as, by virtue or in consequence thereof, income is payable or applicable in a year of assessment, in the manner referred to in paragraph (iii) or (iv) of the said subsection (1), to or for the benefit of a person being an individual who is permanently incapacitated by reason of mental or physical infirmity. (b) Notwithstanding the provisions of subsection (1), in relation to a disponer, any income which— (i) is payable or applicable in a year of assessment by virtue or in consequence of a disposition or dispositions to which this subsection applies, and (ii) is in excess of 5 per cent, of the total income of that disponer for the year of assessment, shall be deemed for the purposes of this Act to be the income of the disponer, if living, and not to be the income of any other person. (c) In a case where this subsection has effect, in relation to any disponer, for the purpose of determining, for income tax purposes, the amount of income which remains the income of persons other than the disponer for a year of assessment by virtue or in consequence of a disposition or dispositions to which this subsection applies, the aggregate of the income so remaining shall be apportioned amongst those other persons in proportion to their entitlements under such disposition or dispositions for that year.”. (b) Subject to subsection (3), this subsection shall apply in respect of every disposition (within the meaning of Chapter I of Part XXVIII of the Income Tax Act, 1967 ) made on or after the 8th day of February, 1995, and it shall also apply, as on and from the 6th day of April, 1995, in respect of every disposition (within the same meaning) which was made before the 8th day of February, 1995.

Returns of certain information in relation to rent.

14.—(1)

Section 94

of the Income Tax Act, 1967 , is hereby amended by the insertion of the following paragraph after paragraph (d) (inserted by the Finance Act, 1992 ): “(e) any Minister of the Government who, or any health board, local authority (within the meaning assigned to it by section 2

Amendment of section 191 (error or mistake) of Income Tax Act, 1967.

15.—As respects the year of assessment 1995-96 and subsequent years of assessment, section 191 of the Income Tax Act, 1967 , is hereby amended— (a) in subsection (1), by the deletion of “under Schedule D or Schedule E”, (b) in subsection (5), by the substitution of “to income tax” for “under Schedule D or Schedule E, as the case may be,”, and (c) by the deletion of subsection (6), and the said subsections (1) and (5) (other than the proviso thereto), as so amended, are set out in the Table to this section.

TABLE

Amendment of Chapter IX (Profit Sharing Schemes) of Part I of, and Third Schedule (Profit Sharing Schemes) to, Finance Act, 1982.

16.—Chapter IX of Part I of, and the Third Schedule to, the Finance Act, 1982 , are hereby amended, as respects the year of assessment 1995-96 and subsequent years of assessment, by the substitution in subsections (1) and (2) of section 56 and subparagraph (4) of paragraph 1 of the Third Schedule of “£10,000” for “£2,000”, and the said subsections (1) and (2) and the said subparagraph (4), as so amended, are set out in the Table to this section.

TABLE

Amendment of Chapter III (Income Tax: Relief for Investment in Corporate Trades) of Part I of Finance Act, 1984.

17.—(1) Chapter III of Part I of the Finance Act, 1984 , is hereby amended— (a) in section 11 (1)— (i) by the substitution of the following definition for the definition of “industrial development agency” (inserted by the Finance Act, 1990 ): “‘industrial development agency’ means Forbairt, the Industrial Development Agency (Ireland), the Shannon Free Airport Development Company Limited or Údarás na Gaeltachta, as may be appropriate;”, (ii) by the deletion of the definition of “relevant company” (inserted by the Finance Act, 1993 ), (iii) by the substitution of the following definition for the definition of “relevant employment” (inserted by the Finance Act, 1993 ): “‘relevant employment’, in relation to a specified individual, means employment throughout the relevant period by the company in which the individual makes a relevant investment (being that individual's first such investment in that company) and where the individual is a full-time employee or full-time director of the company;”, (iv) by the substitution of the following definition for the definition of “relevant investment” (inserted by the Finance Act, 1993 ): “‘relevant investment’, in relation to a specified individual, means the amount, or the aggregate of the amounts, subscribed in a year of assessment by the individual for eligible shares in a qualifying company which carries on or intends to carry on relevant trading operations;”, (v) by the deletion of the definition of “relevant shares” (inserted by the Finance Act, 1993 ), (vi) by the substitution of the following definition for the definition of “relevant trading operations” (as amended by the Finance Act, 1994 ): “‘relevant trading operations’ has the meaning assigned to it by section 16A (inserted by the Finance Act, 1995);”, and (vii) by the substitution of the following definition for the definition of “specified individual” (as amended by the Finance Act, 1994 ): “‘specified individual’ has the meaning assigned to it by section 14A (inserted by the Finance Act 1995);”, (b) in section 12— (i) by the substitution of the following paragraphs for paragraph (iii) of the proviso (substituted by the Finance Act, 1993 ) to paragraph (c) of subsection (1): “(iii) for the purposes of qualifying trading operations such as are referred to in subparagraph (iie) (inserted by the Finance Act, 1995) of paragraph (a) of subsection (2) of section 16, the aforementioned evidence shall include the certificate referred to in subsection (3C) (as so inserted) of section 16, and (iv) for the purposes of relevant trading operations, the aforementioned evidence shall include the certificate referred to in section 16A (1) (inserted by the Finance Act, 1995),”,

(ii) by the substitution of the following proviso for the second proviso (inserted by the Finance Act, 1993 ) to subsection (3): “Provided also that— (a) a specified individual may, in relation to a relevant investment made by such individual (being that individual's first such investment), elect, by notice in writing to the inspector, to have the relief due given as a deduction from such individual's total income for any one of the five years of assessment immediately prior to the year of assessment in which the eligible shares in respect of that investment are issued which such individual nominates for the purpose and, accordingly, subject to section 13 and paragraphs (c) and (d), for the purpose of granting such relief, but for no other purpose of this Chapter, the shares shall be deemed to have been issued in the year of assessment so nominated, and (b) where the specified individual makes a subsequent relevant investment (being that individual's second such investment)— (i) in the same company as that individual's first such investment, and (ii) within either the year of assessment following the end of the year of assessment in which that individual's first such investment was made or the year of assessment subsequent to that year, then, the specified individual may, in relation to that individual's second such investment, elect, by notice in writing to the inspector, to have the relief due given as a deduction from that individual's total income for any one of the five years of assessment immediately prior to the year of assessment in which the eligible shares in respect of that individual's first such investment were issued which that individual nominates for the purpose and, accordingly, subject to section 13 and paragraphs (c) and (d), for the purpose of granting such relief, but for no other purpose of this Chapter, the shares issued in respect of the second such investment shall be deemed to have been issued in that year of assessment, and (c) where any of the years of assessment following the year of assessment nominated under paragraph (a) or (b), as the case may be, precede the year of assessment in which the eligible shares in respect of the individual's first relevant investment are, in fact, issued, subsections (2A), (2B) and (2C) (inserted by the Finance Act, 1987 ) of section 13 shall operate to give relief in such years of assessment as may be nominated by that individual for that purpose, and (d) to the extent that the amount of the relief which would be due in respect of the individual's first relevant investment or second relevant investment, as the case may be, has not been given in accordance with the foregoing provisions, it shall, subject to the provisions of subsections (2A), (2B) and (2C) (inserted by the

Finance Act, 1987 ) of section 13, be given for the year of assessment in which the eligible shares in respect of the first such investment or the second such investment, as the case may be, are, in fact, issued or, if appropriate, a subsequent year of assessment, and (e) this proviso shall apply in respect of not more than two, and only two, relevant investments made by a specified individual on or after the passing of the Finance Act, 1995.”, (iii) by the substitution of “relevant trading operations” for “the trade” in subsection (4) (a) (i), (iv) by the insertion of the following subsection after subsection (6): “(6A) In the case of a claim allowed before a specified individual commences a relevant employment with the company in which the individual has made a relevant investment (being that individual's first such investment), the relief shall be withdrawn if the specified individual fails to commence such employment— (a) within the year of assessment in which the investment is made, or (b) if later, within six months of the date of— (i) where the investment consists of the subscription of only one amount for eligible shares, that subscription, or (ii) where the investment consists of the subscription of more than one amount for eligible shares, the last such subscription.”, (v) by the insertion of the following subsection after subsection (10): “(10A) Where an individual is entitled to relief under this section in respect of a subscription by him for eligible shares in a company he shall not be entitled to relief in respect of that subscription under section 12 of the Finance Act, 1986 .”, and (vi) by the insertion of the following proviso to subsection (11): “Provided that for the purposes of a relevant investment this subsection shall apply and have effect as if ‘the 5th day of April, 1998’ were substituted for ‘the 5th day of April, 1996’.”, (c) in subsections (2A) and (2B) of section 13, by the substitution of the following proviso for each of the provisos thereto: “Provided that this subsection shall not apply or have effect— (i) in the case of a relevant investment, for any year of assessment subsequent to the year 1997-98, and (ii) in any other case, for any year of assessment subsequent to the year 1995-96.”, (d) by the insertion of the following section after section 14: “Specified individual.

14A.—(1) An individual is a specified individual if the individual qualifies for relief in respect of a relevant investment and complies with the requirements of this section.

Provided that this subsection shall not apply to an individual who makes a subscription for eligible shares in a qualifying company which carries on or intends to carry on such qualifying trading operations as are referred to in subparagraph (iib) (inserted by the Finance Act, 1995) of paragraph (a) of subsection (2) of section 16.

section 12

(iii) are carried on for the purpose of— (I) acquiring new knowledge with a view to that knowledge having a specific commercial application, or (II) creating new or improved materials, products, devices, processes or services, and other activities that are carried on wholly or mainly in the State for a purpose directly related to the carrying on of activities of the kind referred to in subparagraph (iii):

Provided that activities that are carried on by way of— (A) market research, market testing, market development, sales promotion or consumer surveys, (B) quality control, (C) prospecting, exploring or drilling for minerals, petroleum or natural gas for the purpose of determining the size or quality of any deposits, (D) the making of cosmetic modifications or stylistic changes to products, processes or production methods, (E) management studies or efficiency surveys, or (F) research in social sciences, arts or humanities, shall not be research and development activities. (b) For the purposes of paragraph (a) systematic, investigative or experimental activities or other activities shall be regarded as carried on wholly or mainly in the State if, and only if, not less than 75 per cent. of the total amount expended in the course of such activities in the relevant period is expended in the State. (2C) For the purposes of subsection (2), the cultivation of horticultural produce means the cultivation, in a greenhouse or greenhouses within the State, of plants used for food or for the production of food or ornament or of herbaceous plants, and includes the technical procedures, in relation to such cultivation, necessary for the production and preparation for market of flowers, decorative foliage, fruit, nursery stock, herbs and vegetable crops (including potatoes and seed potatoes), in respect of which greenhouse or greenhouses a certificate has been issued by the Minister for Agriculture, Food and Forestry certifying that— (a) the construction, improvement or repair of the greenhouse or greenhouses concerned, or (b) the installation or improvement of irrigation or heating facilities in the greenhouse or greenhouses concerned, may be eligible to be grant-aided under a scheme of assistance administered by the Minister.”, (g) by the insertion of the following section after section 16— “Relevant trading operations.

16A.—(1) For the purposes of this Chapter ‘relevant trading operations’ means qualifying trading operations (other than such operations as are referred to in subparagraph (iiib) (inserted by the Finance Act, 1990 ) of paragraph (a) of subsection (2) of section 16 ) in respect of which a certifying agency or a certifying Minister, as the case may be, (hereafter in this section referred to as ‘the authority’) has given a certificate under subsection (2).

Amendment of section 17 (tax deductions from payments to subcontractors in the construction industry) of Finance Act, 1970.

18.—(1)

Section 17

(as amended by the Finance Act, 1992 ) of the Finance Act, 1970 , is hereby amended— (a) in subsection (1), by the substitution of the following definition for the definition of “certification of authorisation”: “‘certificate of authorisation’ means a certificate issued under subsection (7), which certificate shall be valid for such period as the Revenue Commissioners may by regulations made in accordance with subsection (5) provide;”, (b) in subsection (5)— (i) by the insertion of the following paragraph after paragraph (a): “(aa) (i) the making, before the entering into of a relevant contract, by the persons who intend to enter into such a contract of a declaration, in a specified form, to the effect that, having regard to guidelines published by the Revenue Commissioners for the information of such persons as to the distinctions between contracts of employment and relevant contracts and without prejudice to the question of whether a particular contract is a contract of employment or a relevant contract, they have satisfied themselves that in their opinion the contract which they propose to enter into is not a contract of employment, (ii) the publication of guidelines by the Revenue Commissioners for the purposes of subparagraph (i), and (iii) the keeping by principals of every such declaration and the inspection of any or all such declarations;”, and (ii) by the insertion of the following paragraph after paragraph (d): “(dd) the furnishing by sub-contractors to principals of all such information or particulars as are required by principals to enable principals to comply with any provision of regulations made under this section;”, and (c) in subsection (10), by the substitution of the following sub-paragraph for subparagraph (iv) of paragraph (c): “(iv) who fails to comply with any provision of regulations made under this section requiring such person— (I) to make any declaration, or (II) to provide any information or particulars to principals, or (III) to keep or produce any records, documents or declarations,”.

Short-lived businesses.

19.—As respects the year 1995-96 and subsequent years of assessment, the Income Tax Act, 1967 , is hereby amended by the insertion after section 58 of the following section: “58A.—(1) This section applies to a trade or profession which has been set up and commenced in a year of assessment and which is permanently discontinued within the second year of assessment following that year of assessment and in respect of which the aggregate of the profits or gains on which any person has been charged, or would be charged to income tax, by virtue of any other provision of this Act, exceeds the aggregate of the profits or gains arising in the period beginning on the date of set up and commencement and ending on the date of permanent discontinuance of the trade or profession.

Chapter II

Income Tax, Corporation Tax and Capital Gains Tax Amendment of section 19 (relief for expenditure on significant buildings) of Finance Act, 1982.

20.—

Section 19

(as amended by the Finance Act, 1994 ) of the Finance Act, 1982 , is hereby amended as on and from the date of the passing of this Act— (a) in subsection (1), by the insertion of the following definition after the definition of “qualifying expenditure”: “‘tourist accommodation facility’ means an accommodation facility— (a) registered in the register of guest houses maintained and kept by Bord Fáilte Éireann under Part III of the Tourist Traffic Act, 1939 , or (b) listed in the list published or caused to be published by Bord Fáilte Éireann under section 9 of the Tourist Traffic Act, 1957 ;”, (b) in paragraph (a) of subsection (2)— (i) by the substitution in subparagraph (ii) of the following clause for clause (B): “(B) the days and times during the year when access to the approved building is afforded to the public or the period or periods during the year when the approved building is in use as a tourist accommodation facility, as the case may be,”, (ii) by the insertion of “and” after “promotion of tourism,” in subparagraph (ii), and (iii) by the insertion of the following subparagraph after subparagraph (ii): “(iii) where, the approved building was in use as a tourist accommodation facility in any of the chargeable periods applicable for the purposes of subparagraph (ii), that the approved building was registered in the register of guest houses maintained and kept by the Board under Part III of the Tourist Traffic Act, 1939 , or listed in the list published or caused to be published by the Board under section 9 of the Tourist Traffic Act, 1957 , in those chargeable periods,”, and (c) in subsection (4)— (i) by the substitution of the following subparagraph for subparagraph (ii) of paragraph (a): “(ii) by the Revenue Commissioners, to be a building either— (I) to which reasonable access is afforded to the public, or (II) which is in use as a tourist accommodation facility for at least six months in any calendar year (hereafter in this subsection referred to as the ‘required period’) including not less than four months in the period commencing on the 1st day of May and ending on the 30th day of September in any such year.”, (ii) by the insertion in paragraph (d)— (I) of “or the building ceases to be used as a tourist accommodation facility for the required period (as the case may be)” after “the public”, and (II) of “or such use (as the case may be)” after “such access”, and the said paragraph (apart from subparagraphs (i) and (ii) thereof) as so amended is set out in the Table to this section, and

(iii) by the addition of the following paragraph after paragraph (d): “(e) Where— (i) the Revenue Commissioners make a determination (hereafter in this paragraph referred to as the ‘first-mentioned determination’) that a building is either a building to which reasonable access is afforded to the public or a building which is in use as a tourist accommodation facility for the required period, and (ii) such access ceases to be so afforded or such building ceases to be so used, as the case may be, in a chargeable period subsequent to the chargeable period in which the first-mentioned determination was made, and (iii) on application to them in that chargeable period in that behalf by the person who owns or occupies the building the Revenue Commissioners revoke the first-mentioned determination and make a further determination (hereafter in this paragraph referred to as the ‘second-mentioned determination’) with effect from the date of revocation of the first-mentioned determination— (I) in the case of a building in respect of which a determination was made that it is a building to which reasonable access is afforded to the public, that the building is a building which is in use as a tourist accommodation facility for the required period, or (II) in the case of a building in respect of which a determination was made that it is a building which is in use as a tourist accommodation facility for the required period, that the building is a building to which reasonable access is afforded to the public, then, paragraph (d) shall not apply on the revocation of the first-mentioned determination and, for the purposes of that paragraph, the second-mentioned determination shall be treated as having been made at the time of the making of the first-mentioned determination.”.

TABLE (d) Where under paragraph (a) the Revenue Commissioners make a determination in relation to a building, and reasonable access to the building ceases to be afforded to the public or the building ceases to be used as a tourist accommodation facility (as the case may be), the Revenue Commissioners may, by notice in writing given to the owner or occupier of the building, revoke the determination with effect from the date on which they consider that such access or such use (as the case may be) so ceased, and Farming: amendment of provisions relating to relief in respect of increase in stock values.

21.—(1) Section 31A (inserted by the Finance Act, 1976 ) of the Finance Act, 1975 , is hereby amended by the substitution in paragraph (iv) (inserted by the Finance Act, 1979 ) of the proviso to subsection (4) (a) of “1997” for “1995” (inserted by the Finance Act, 1993 ) and the said paragraph (iv), as so amended, is set out in the Table to this subsection.

TABLE (iv) a deduction shall not be allowed under the provisions of this section in computing a company's trading income for any accounting period which ends on or after the 6th day of April, 1997.

(2)

Section 12

of the Finance Act, 1976 , is hereby amended by the substitution in subsection (3) of “1996-97” for “1994-95” (inserted by the Finance Act, 1993 ) and the said subsection (3), as so amended, is set out in the Table to this subsection.

TABLE

Provided that where Teagasc certifies that any other qualification corresponds to a qualification which is set out in the said Sixth Schedule, that other qualification shall, for the purposes of this subsection, be treated as if it were the corresponding qualification so set out.

Compulsory disposals of livestock.

22.—(1) In this section— “accounting period” means— (a) in relation to a company, an accounting period determined in accordance with the provisions of section 9 of the Corporation Tax Act, 1976 , and (b) in relation to a person other than a body corporate, a period determined in accordance with the provisions of section 12 of the Finance Act, 1976 ; “chargeable period” has the same meaning as it has in paragraph 1 of the First Schedule to the Corporation Tax Act, 1976 ; “excess” means the excess of the relevant amount over the value of the stock to which this section applies at the beginning of the accounting period in which the disposal takes place; “farming” has the same meaning as it has in Chapter II of Part I of the Finance Act, 1974 ; “person” means a person who is resident in the State and not resident elsewhere and includes a body corporate; “relevant amount” means the amount of any income received by a person as a result, or in consequence, of a disposal of stock to which this section applies; “specified return date for the chargeable period” has the same meaning as it has in section 9 of the Finance Act, 1988 ; “stock to which this section applies” means cattle forming part of the trading stock of a trade of farming where all such cattle are compulsorily disposed of on or after the 6th day of April, 1993, under any statute relating to the eradication or control of diseases in livestock:

Provided that, for the purposes of this section, all such cattle shall be regarded as compulsorily disposed of where, in the case of any disease eradication scheme relating to the eradication or control of brucellosis in livestock, all eligible cattle for the purposes of any such scheme, together with such other cattle as are required to be disposed of, are disposed of; “trading stock” has the same meaning as it has in section 31 of the Finance Act, 1975 .

Provided that, notwithstanding the foregoing provisions of this subsection, where the person further elects, the excess shall be treated as arising in such equal instalments in the accounting period in which it arises and in the immediately succeeding accounting period.

Provided that, where the expenditure incurred on replacement as aforesaid is less than the relevant amount, the deduction in each of the two accounting periods referred to in subsection (3) or in the proviso thereto under the said section 31A or section 12, as appropriate, shall be reduced to an amount that bears the same proportion to the excess as the expenditure incurred in each of the said two accounting periods bears to the relevant amount.

Provided that, where the specified return date was a date prior to the date of the passing of this Act, the said election shall be made on or before the 31st day of December, 1995.

Capital allowances for, and deduction in respect of, vehicles.

23.—(1) (a) Subject to paragraph (b), sections 25 to 29 of the Finance Act, 1973 , shall have effect, in relation to expenditure incurred on the provision or hiring of a vehicle to which those sections apply, as if for “£2,500” (construed as a reference to £13,000 by virtue of section 21 of the Finance Act, 1994 ), in each place where it occurs in those sections, there were substituted “£14,000”. (b) Paragraph (a) shall apply only to expenditure incurred on the provision or hiring of a vehicle which, on or after the 9th day of February, 1995, is not a used or secondhand vehicle and is first registered in the State under section 131 of the Finance Act, 1992 , without having been previously registered in any other State which duly provides for the registration of a mechanically propelled vehicle, and it does not include— (i) as respects the said sections 25 to 27, expenditure incurred before the 9th day of February, 1995, or incurred within 12 months after that date under a contract entered into before that date, and (ii) as respects subsections (2) and (3) of the said section 28 and the said section 29, expenditure incurred under a contract entered into before the 9th day of February, 1995.

(2)

Section 32

of the Finance Act, 1976 , shall have effect, in relation to qualifying expenditure (within the meaning of that section) incurred after the 8th day of February, 1995, as if for “£3,500” (construed as a reference to £13,000 by virtue of section 21 of the Finance Act, 1994 ), in each place where it occurs, there were substituted “£14,000”.

Amendment of section 265 (balancing allowances and balancing charges) of Income Tax Act, 1967, etc.

24.—(1)

Section 265

of the Income Tax Act, 1967 , is hereby amended in subsection (1) (c) by the substitution of “ceases altogether to be used” for “ceases to be used as an industrial building or structure” (inserted by section 22

Amendment of section 272 (balancing allowances and balancing charges) of Income Tax Act, 1967.

25.—(1)

Section 272

(as amended by section 24 (b) of the Finance Act, 1994 ) of the Income Tax Act, 1967 , is hereby amended— (a) by the substitution of “paragraphs (a), (b), (c) and (d) of subsection (1)” for “paragraphs (a), (b) and (c) of subsection (1)” in both paragraphs (a) and (b) of subsection (5), and (b) by the addition of the following subsection after subsection (5): “(6) Where— (a) the sale, insurance, salvage or compensation moneys consist of a payment or payments to a person under the scheme for compensation in respect of the decommissioning of fishing vessels which is to be implemented by the Minister for the Marine pursuant to Council Regulation (EC) No. 3699/93 of 21 December 1993* , and (b) on account of the receipt by the person of the said payment or payments, a balancing charge falls, other than by reason of the proviso to this subsection, to be made on the person for any chargeable period, then, the amount on which the balancing charge is to be made for that chargeable period shall be an amount equal to one-third of the amount (hereafter in this subsection referred to as ‘the original amount’) on which the balancing charge would, but for this subsection, have fallen to be made:

Provided that there shall be made on the person for each of the two immediately succeeding chargeable periods a balancing charge and the amount on which that charge is made for each of those periods shall be an amount equal to one-third of the original amount.”.

Amendment of section 51 (application of certain allowances in relation to certain areas and certain expenditure) of Finance Act, 1988.

26.—

Section 51

(as amended by section 33

Provided that, as respects machinery or plant or an industrial building which is provided for the purposes of a project approved by an industrial development agency in the period from the 1st day of January, 1986, to the 31st day of December, 1988, paragraph (cc) shall apply as if the reference therein to ‘the 31st day of December, 1995’ were a reference to ‘the 31st day of December, 1996’;”.

Amendment of section 81 (application of certain allowances in relation to certain expenditure) of Finance Act, 1990.

27.—

Section 81

of the Finance Act, 1990 , is hereby amended by the substitution of the following subsection for subsection (1): “(1) This section applies to— (a) machinery or plant or an industrial building or structure which is provided for the purposes of a project which was approved for grant assistance by the Industrial Development Authority, the Shannon Free Airport Development Company Limited or Údarás na Gaeltachta in the period from the 1st day of January, 1989, to the 31st day of December, 1990, and in respect of the provision of which expenditure is incurred before the 31st day of December, 1997:

Provided that, as respects machinery or plant or an industrial building or structure which is provided for the purposes of any such project which is specified in the list referred to in subsection (3A) (b) (iv) of section 84A of the Corporation Tax Act, 1976 , paragraph (a) shall apply as if the reference therein to ‘the 31st day of December, 1997’ were a reference to ‘the 31st day of December, 2002’, (b) a building or structure which is to be an industrial building or structure within the meaning of section 255