Finance Act, 1997

Finance Act, 1997 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 1997 Finance Act, 1997 Finance Act, 1997 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 Open PDFOscail PDF Print Full ActPriontáil an tAcht Iomlán Number 22 of 1997 FINANCE ACT, 1997 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 provisions relating to the taxation of certain social welfare benefits.

Section 5

Amendment of section 4 (separated spouses: adaptation of special provisions as to married persons) of Finance Act, 1983.

Section 6

Amendment of section 127 (regulations) of Income Tax Act, 1967.

Section 7

Amendment of section 15 (relief for fees paid for part-time third level education) of Finance Act, 1996.

Section 8

Relief for fees paid for training courses.

Section 9

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

Section 10

Amendment of section 14 (relief to individuals on loans applied in acquiring interest in companies) of Finance Act, 1992.

Section 11

Income from scholarships.

Section 12

Amendment of section 115 (exemptions and reliefs in respect of tax under section 114) of Income Tax Act, 1967 .

Section 13

Tax deductions from payments made to sub-contractors.

Section 14

Tax relief for agreed pay restructuring.

Section 15

Amendment of section 4 (charge of tax on sums applied outside the State in repaying certain loans) of Finance Act, 1971.

Chapter II

Income Tax, Corporation Tax and Capital Gains Tax

Section 16

Relief for gifts made to third level institutions.

Section 17

Amendment of provisions relating to relief for expenditure on significant buildings, etc.

Section 18

Amendment of section 134 (deduction for increase in stock values) of Finance Act, 1996.

Section 19

Amendment of section 135 (special provision for qualifying farmers) of Finance Act, 1996.

Section 20

Farming: allowances for capital expenditure on the construction of farm buildings etc. for control of pollution.

Section 21

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

Section 22

Amendment of section 241 (wear and tear of machinery, plant, etc.) of Income Tax Act, 1967.

Section 23

Amendment of Chapter I (Industrial Buildings and Structures: Annual Allowances and Balancing Allowances and Charges) of Part XVI of Income Tax Act, 1967.

Section 24

Capital allowances: room ownership schemes.

Section 25

Capital allowances for buildings used for third level educational purposes.

Section 26

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

Section 27

Amendment of provisions relating to double rent allowance.

Section 28

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 29

Relief for pre-trading expenditure.

Section 30

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

Section 31

Amendment of section 14 (special portfolio investment accounts) of Finance Act, 1993.

Section 32

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

Section 33

Taxation of strips of securities.

Section 34

Amendment of section 138 (tax treatment of securities issued at a discount) of Finance Act, 1990.

Section 35

Amendment of section 17 (undertakings for collective investment) of Finance Act, 1993.

Section 36

Amendment of section 31 (interest payments by companies and to non-residents) of Finance Act, 1974.

Section 37

Tax credits in respect of distributions.

Section 38

Amendment of section 37 (application of section 25 (attribution of distributions to accounting periods) of Finance Act, 1989, to interim dividends) of Finance Act, 1992.

Section 39

Amendment of Chapter VIII (taxation of acquisition by a company of its own shares) of Part I of Finance Act, 1991.

Section 40

Amendment of section 40 (treatment under Tax Acts of certain employment grants and recruitment subsidies) of Finance Act, 1996.

Section 41

Employers' pension contributions.

Section 42

Deemed disposal of assets on company ceasing to be resident in the State.

Section 43

Postponement of charge on deemed disposal under section 42.

Section 44

Tax on non-resident company recoverable from another member of group or from controlling director.

Section 45

Amendment of section 464 (issue of securities with exemption from tax) of Income Tax Act, 1967.

Section 46

Amendment of section 470 (securities of Irish local authorities issued abroad) of Income Tax Act, 1967.

Section 47

Amendment of section 474 (exemption of certain securities from tax) of Income Tax Act, 1967.

Section 48

Replacement of harbour authorities by port companies.

Section 49

Treatment of certain profits and gains for tax purposes.

Section 50

Amendment of Chapter IX (profit sharing schemes) of Part 1 of, and Third Schedule (profit sharing schemes) to, Finance Act, 1982.

Section 51

Employee share ownership trusts.

Chapter III

Urban Renewal Reliefs: Introduction of New Scheme in the Dublin Docklands Area

Section 52

Interpretation (Chapter III).

Section 53

Qualifying area.

Section 54

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

Section 55

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

Section 56

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

Section 57

Residential accommodation: allowance to owner-occupiers in respect of expenditure on construction or refurbishment.

Section 58

Provisions supplementary to section 57.

Chapter IV

Corporation Tax

Section 59

Rate of corporation tax.

Section 60

Amendment of section 28A (reduced rate of corporation tax for certain income) of Corporation Tax Act, 1976.

Section 61

Repeal of section 80 (exemption of income from carrying out of voluntary health insurance schemes) of Corporation Tax Act, 1976.

Section 62

Exemption of harbour authorities and port companies.

Section 63

Exemption of income of body designated under Irish Take-over Panel Act, 1997.

Section 64

Amendment of section 56 (relief for gifts to The Enterprise Trust Ltd.) of Finance Act, 1992.

Section 65

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

Section 66

Amendment of section 36 (amendment of section 39B (relief in relation to income from certain trading operations carried on in Custom House Docks Area) of Finance Act, 1980) of Finance Act, 1988.

Section 67

Amendment of section 35 (profits of life business) of Corporation Tax Act, 1976.

Section 68

Amendment of section 36 (investment income reserved for policy holders) of Corporation Tax Act, 1976.

Section 69

Amendment of section 46A (deemed disposal and reacquisition of certain assets) of Corporation Tax Act, 1976.

Chapter V

Capital Gains Tax

Section 70

Amendment of Schedule 2 to Capital Gains Tax Act, 1975.

Section 71

Divorced persons: transfers of assets.

Section 72

Separated spouses: transfers of assets.

Section 73

Amendment of section 15 (settled property) of Capital Gains Tax Act, 1975.

Section 74

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

Section 75

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

Section 76

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

Section 77

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

Section 78

Amendment of section 46 (debts) of Capital Gains Tax Act, 1975.

PART II

Customs and Excise

Chapter I

Vehicle Registration Tax

Section 79

Interpretation (Chapter I).

Section 80

Vehicle built up from chassis or monocoque or assembly.

Section 81

Evidence of computer stored records in court proceedings.

Chapter II

Miscellaneous

Section 82

Hydrocarbons and substitute motor fuel.

Section 83

Amendment of section 56 (hydrocarbons) of Finance Act, 1988.

Section 84

Recycled hydrocarbon oil used as a motor fuel.

Section 85

Tobacco products.

Section 86

Amendment of section 1 (interpretation) of Finance (Excise Duty on Tobacco Products) Act, 1977.

Section 87

Amendment of section 10A (offences in relation to tax stamps) of Finance (Excise Duty on Tobacco Products) Act, 1977.

Section 88

Amendment of section 106 (treatment of excisable products released for consumption in another Member State) of Finance Act, 1992.

Section 89

Amendment of penalties under section 186 (illegally importing) of Customs Consolidation Act, 1876.

Section 90

Amendment of section 34 (amendments relative to penalties) of Finance Act, 1963.

Section 91

Amendment of section 89 (seizure of goods and vehicles) of Finance Act, 1995.

Section 92

Obligation to answer certain questions, detention and arrest in respect of certain tobacco products.

Section 93

Amendment of section 94 (power to deal with seizures before condemnation) of Finance Act, 1995.

Section 94

Ships stores.

PART III

Value-Added Tax

Section 95

Interpretation (Part III).

Section 96

Amendment of section 1 (interpretation) of Principal Act.

Section 97

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

Section 98

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

Section 99

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

Section 100

Amendment of section 7 (waiver of exemption) of Principal Act.

Section 101

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

Section 102

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

Section 103

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

Section 104

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

Section 105

Amendment of section 12A (special provisions for tax invoiced by flat-rate farmers) of Principal Act.

Section 106

Amendment of section 13 (remission of tax on goods exported, etc.) of Principal Act.

Section 107

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

Section 108

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

Section 109

Amendment of section 25 (appeals) of Principal Act.

Section 110

Amendment of First Schedule to Principal Act.

Section 111

Amendment of Second Schedule to Principal Act.

Section 112

Amendment of Fourth Schedule to Principal Act.

Section 113

Amendment of Sixth Schedule to Principal Act.

Section 114

Revocation (Part III).

PART IV

Stamp Duties

Chapter I

Special provisions relating to residential property

Section 115

Interpretation (Chapter I).

Section 116

Commencement (Chapter I).

Section 117

Amendment of the First Schedule.

Section 118

Amendment of section 122 (definitions) of the Act of 1891.

Section 119

Amendment of section 58 (conveyances on sale: direction as to duty in certain cases) of the Act of 1891.

Section 120

Amendment of section 77 (leases: directions as to duty in certain cases) of the Act of 1891.

Section 121

Surcharges.

Section 122

Furnishing of an incorrect certificate.

Chapter II

Miscellaneous

Section 123

Amount chargeable to duty where chargeable on new dwellinghouse or apartment.

Section 124

Provision relating to section 112 (stamp duty on transfers of building land) of Finance Act, 1990.

Section 125

Amendment of section 207 (exemption from stamp duty of certain financial services instruments) of Finance Act, 1992.

Section 126

Amendment of section 112 (relief from stamp duty in respect of transfers to young trained farmers) of Finance Act, 1994.

Section 127

Exemption of certain transfers from stamp duty following the dissolution of a marriage.

Section 128

Exemption from stamp duty of certain instruments (Dublin Docklands Development Authority).

Section 129

Exemption from stamp duty of certain policies of health insurance.

Section 130

Repeal (Part IV).

PART V

Residential Property Tax

Section 131

Abolition of residential property tax.

Section 132

Amendment of section 110A (clearance on sale of certain residential property) of Finance Act, 1983.

PART VI

Capital Acquisitions Tax

Section 133

Interpretation (Part VI).

Section 134

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

Section 135

Amendment of section 57 (exemption of certain securities) of Principal Act.

Section 136

Second Schedule (computation of tax) to Principal Act, declaratory provision.

Section 137

Amendment of section 39 (extension of section 55 (exemption of certain objects) of Capital Acquisitions Tax Act, 1976) of Finance Act, 1978.

Section 138

Amendment of section 117 (reduction of market value of certain dwellings) of Finance Act, 1991.

Section 139

Amendment of section 126 (business relief) of Finance Act, 1994.

Section 140

Amendment of section 127 (relevant business property) of Finance Act, 1994.

Section 141

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

Section 142

Exemption of certain transfers from capital acquisitions tax following the dissolution of a marriage.

Section 143

Abatement and postponement of probate tax on certain property.

PART VII

Miscellaneous Pre-Consolidation Provisions

Chapter I

Income Tax, Corporation Tax and Capital Gains Tax

Section 144

Securities of certain State-owned companies.

Section 145

Relief for interest paid on certain home loans.

Section 146

Pre-consolidation amendments and repeals.

Chapter II

Urban Renewal: Temple Bar Area

Section 147

Preliminary and general.

Section 148

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

Section 149

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

Section 150

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

Section 151

Rented residential accommodation: deduction for certain expenditure on construction.

Section 152

Rented residential accommodation: deduction for certain expenditure on conversion.

Section 153

Rented residential accommodation: deduction for certain expenditure on refurbishment.

Section 154

Residential accommodation: allowance to owner-occupiers in respect of expenditure on construction or refurbishment.

Section 155

Provisions supplementary to sections 151 to 154.

Section 156

Repeals and consequential amendments.

PART VIII

Miscellaneous

Section 157

Amendment of section 162 (Collector-General) of Income Tax Act, 1967.

Section 158

Amendment of section 23 (publication of names of defaulters) of Finance Act, 1983.

Section 159

Evidence of authorisation.

Section 160

Tax clearance for moneylenders, mortgage intermediaries and credit intermediaries.

Section 161

Amendment of section 54 (creation and issue of securities by Minister for Finance) of Finance Act, 1970, etc.

Section 162

Advance of moneys to Post Office Savings Bank Fund by the Minister for Finance.

Section 163

Amendment of National Treasury Management Agency Act, 1990.

Section 164

Capital Services Redemption Account.

Section 165

Care and management of taxes and duties.

Section 166

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 Employee Share Ownership Trusts FOURTH SCHEDULE Farm Buildings and Structures to Which Allowances for the Control of Pollution Apply FIFTH SCHEDULE Replacement of Harbour Authorities by Port Companies SIXTH SCHEDULE Change in Rate of Corporation Tax: Consequential Provisions SEVENTH SCHEDULE Rates of Excise Duty on Tobacco Products EIGHTH SCHEDULE Stamp Duty on Instruments NINTH SCHEDULE

PART I

Pre-Consolidation Amendments

PART II

Pre-Consolidation Repeals TENTH SCHEDULE Income Tax and Corporation Tax: Reliefs for Certain Enterprise Areas

PART I

Interpretation

PART II

Description of Cherry Orchard/Gallanstown Enterprise Area

PART III

Description of Finglas Enterprise Area

PART IV

Description of Rosslare Harbour Enterprise Area Acts Referred to Capital Acquisitions Tax Act, 1976 1976, No. 8 Capital Gains Tax Act, 1975 1975, No. 20 Child Care Act, 1991 1991, No. 17 Companies Acts 1963 to 1990 Consumer Credit Act, 1995 1995, No. 24 Corporation Tax Act, 1976 1976, No. 7 Criminal Procedure Act, 1967 1967, No. 12 Customs Act, 1956 1956, No. 7 Customs and Inland Revenue Act, 1879 42 & 43 Vict., c. 21 Customs Consolidation Act, 1876 39 & 40 Vict., c. 36 Dentists Act, 1985 1985, No. 9 Dublin Docklands Development Authority Act, 1997 1997, No. 7 Family Law Act, 1995 1995, No. 26 Family Law (Divorce) Act, 1996 1996, No. 33 Finance (1909-10) Act, 1910 10 Edw. 7 & 1 Geo. 5, c. 8 Finance Act, 1950 1950, No. 18 Finance Act, 1963 1963, No. 23 Finance Act, 1967 1967, No. 17 Finance Act, 1968 1968, No. 33 Finance Act, 1969 1969, No. 21 Finance Act, 1970 1970, No. 14 Finance Act, 1971 1971, No. 23 Finance Act, 1972 1972, No. 19 Finance Act, 1973 1973, No. 19 Finance Act, 1974 1974, No. 27 Finance Act, 1975 1975, No. 6 Finance Act, 1976 1976, No. 16 Finance Act, 1977 1977, No. 18 Finance Act, 1978 1978, No. 21 Finance Act, 1979 1979, No. 11 Finance Act, 1980 1980, No. 14 Finance Act, 1981 1981, No. 16 Finance Act, 1982 1982, No. 14 Finance Act, 1983 1983, No. 15 Finance Act, 1984 1984, No. 9 Finance Act, 1985 1985, No. 10 Finance Act, 1986 1986, No. 13 Finance Act, 1987 1987, No. 10 Finance Act, 1988 1988, No. 12 Finance Act, 1989 1989, No. 10 Finance Act, 1990 1990, No. 10 Finance Act, 1991 1991, No. 13 Finance Act, 1992 1992, No. 9 Finance (No. 2) Act, 1992 1992, No. 28 Finance Act, 1993 1993, No. 13 Finance Act, 1994 1994, No. 13 Finance Act, 1995 1995, No. 8 Finance Act, 1996 1996, No. 9 Finance (Excise Duty on Tobacco Products) Act, 1977 1977, No. 32 Finance (Miscellaneous Provisions) Act, 1968 1968, No. 7 Finance (Taxation of Profits of Certain Mines) Act, 1974 1974, No. 17 Harbours Act, 1946 1946, No. 9 Harbours Act, 1996 1996, No. 11 Health Acts, 1947 to 1996 Health Contributions Act, 1979 1979, No. 4 Health Insurance Act, 1994 1994, No. 16 Higher Education Authority Act, 1971 1971, No. 22 Housing (Miscellaneous Provisions) Act, 1979 1979, No. 27 Income Tax Act, 1967 1967, No. 6 Industrial and Commercial Property (Protection) Act, 1927 1927, No. 16 Industrial and Provident Societies Acts, 1893 to 1978 Industrial Development Act, 1986 1986, No. 9 Industrial Development Act, 1993 1993, No. 19 Industrial Development Act, 1995 1995, No. 28 Irish Horseracing Industry Act, 1994 1994, No. 18 Irish Takeover Panel Act, 1997 1997, No. 5 Judicial Separation and Family Law Reform Act, 1989

1989, No. 6 Labour Services Act, 1987 1987, No. 15 Local Authorities (Higher Education Grants) Acts, 1968 to 1992 Local Government (Financial Provisions) Act, 1978 1978, No. 35 Local Government (Planning and Development) Acts, 1963 to 1993 Medical Practitioners Act, 1978 1978, No. 4 National Archives Act, 1986 1986, No. 11 National Treasury Management Agency Act, 1990 1990, No. 18 Official Secrets Act, 1963 1963, No. 1 Patents Act, 1964 1964, No. 12 Patents Act, 1992 1992, No. 1 Registration of Business Names Act, 1963 1963, No. 30 Social Welfare (Consolidation) Act, 1993 1993, No. 27 Stamp Act, 1891 54 & 55 Vict., c. 39 Succession Act, 1965 1965, No. 27 Trade Union Act, 1941 1941, No. 22 Trade Union Act, 1942 1942, No. 23 Urban Renewal Act, 1986 1986, No. 19 Value-Added Tax Act, 1972 1972, No. 22 Value-Added Tax Acts, 1972 to 1996 Value-Added Tax (Amendment) Act, 1978 1978, No. 34 Youth Employment Agency Act, 1981 1981, No. 32 Number 22 of 1997 FINANCE ACT, 1997 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. [10th May, 1997] 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 1997-98 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 “£8,000” and “£4,000”, respectively, for “£7,800” and “£3,900” (inserted by the Finance Act, 1996 ), and (b) in section 2, by the substitution, in subsection (6) (inserted by the Finance Act, 1989 )— (i) of “£9,200” and “£10,400”, respectively, for “£9,000” and “£10,200” (inserted by the Finance Act, 1996 ), in paragraph (a), and (ii) of “£4,600” and “£5,200”, respectively, for “£4,500” and “£5,100” (inserted by the Finance Act, 1996 ), 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 £10,400, and (b) in any other case, £4,600:

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 £5,200.

Alteration of rates of income tax.

2.—

Section 2

of the Finance Act, 1991 , is hereby amended, as respects the year of assessment 1997-98 and subsequent years of assessment, by the substitution of the following Table for the Table to that section:

TABLE

PART I

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)

3.—(1) Where a deduction falls to be made from the total income of an individual for the year of assessment 1997-98 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 1996-97 Amount to be deducted from total income for the year 1997-98 and subsequent years

(1)

(2)

(2)

Section 3

of the Finance Act, 1986 , and section 3 of the Finance Act, 1996 , shall have effect subject to the provisions of this section.

Amendment of provisions relating to the taxation of certain social welfare benefits.

4.—(1)

Section 15

of the Finance Act, 1992 , is hereby amended, in subsection (2) (inserted by the Finance Act, 1995 ), by the insertion of the following additional proviso: “Provided also that the aggregate of the amounts of disability benefit, or of injury benefit, or of both disability benefit and injury benefit, payable to a person in respect of— (a) for the year of assessment 1997-98, the first 18 days, and (b) for the year of assessment 1998-99 and subsequent years of assessment, the first 36 days, incapacity for work for which the person is entitled to payment of either disability benefit or injury benefit shall be disregarded for all the purposes of the Income Tax Acts.”.

Amendment of section 4 (separated spouses: adaptation of special provisions as to married persons) of Finance Act, 1983 .

5.—As respects the year of assessment 1997-98 and subsequent years of assessment— (a) section 4 of the Finance Act, 1983 , is hereby amended by the insertion of the following subsection after subsection (2): “(3) Notwithstanding the provisions of subsection (1), where a payment to which section 3 applies is made in a year of assessment by a spouse who is a party to marriage, that has been dissolved, for the benefit of the other spouse and— (a) the dissolution was under either— (i) section 5 of the Family Law (Divorce) Act, 1996 , or (ii) the law of a country or jurisdiction other than the State, being a divorce that is entitled to be recognised as valid in the State, (b) both spouses are resident in the State for tax purposes for that year of assessment, and (c) neither spouse has entered into another marriage, then, the other provisions of this section shall, with any necessary modifications, have effect in relation to the spouses for that year of assessment as if their marriage had not been dissolved.”, and (b) section 49 of the Family Law Act, 1995 , and section 32 of the Family Law (Divorce) Act, 1996 , are hereby repealed.

Amendment of section 127 (regulations) of Income Tax Act, 1967 .

6.—(1)

Section 127

of the Income Tax Act, 1967 , is hereby amended by the insertion of the following after subsection (5): “(5A) (a) Notwithstanding the provisions of subsection (5), regulations made in accordance with the provisions of paragraphs (f) and (g) of subsection (1) shall not apply to an employer (being an individual) who pays emoluments to an employee engaged by that employer in a domestic employment where— (i) the emoluments from that employment are less than £30 per week, and (ii) the employer has only one such employee. (b) In this subsection— ‘domestic employee’ means an employee who is employed solely on domestic duties (including the minding of children) in the employer's private dwelling house; ‘domestic employment’ means employment by reference to which an employee is a domestic employee.”.

Amendment of section 15 (relief for fees paid for part-time third level education) of Finance Act, 1996 .

7.—

Section 15

of the Finance Act, 1996 , is hereby amended— (a) in subsection (1)— (i) by the substitution of the following for the definition of “approved college”: “‘approved college’, in relation to a year of assessment, means a college or institution in the State, or a college or institution in another Member State of the European Union providing distance education in the State, which— (a) provides courses to which a scheme approved by the Minister under the Local Authority (Higher Education) Grants Acts, 1968 to 1992, applies, or (b) 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 which the Minister approves of for the purposes of this section;”, (ii) by the substitution of the following for the definition of “qualifying individual”: “‘qualifying individual’ means— (a) an individual other than an individual who has been conferred with a certificate, diploma or degree in respect of the completion by him or her of an undergraduate course of study of not less than 2 academic years duration, or (b) an individual who has been conferred with a certificate or diploma as referred to in paragraph (a) and who is pursuing an approved course in respect of which the approved college certifies that the certificate or diploma, as the case may be, with which he or she has been conferred, has qualified him or her for exemption for one or more years of study from the normal duration of the approved course but is not otherwise an individual who is not a qualifying individual for the purposes of paragraph (a).”, and (b) by the insertion of the following subsection after subsection (2): “(2A) Notwithstanding the provisions of subsection (2), where, for any year of assessment— (a) the spouse of a qualifying individual is assessed to tax in accordance with the provisions of section 194 (inserted by the Finance Act, 1980 ) of the Income Tax Act, 1967 , and (b) qualifying fees are paid by the qualifying individual, or paid by that spouse on behalf of the qualifying individual, in respect of an approved course for the academic year in relation to that course commencing in that year of assessment, then, relief under this section shall, except where the provisions of section 197 (as so inserted) of the Income Tax Act, 1967 , apply, be granted to the spouse of the qualifying individual in respect of the qualifying fees so paid as if he or she were a qualifying individual and the qualifying fees had been paid by him or her on his or her own behalf.”.

Relief for fees paid for training courses.

8.—(1) In this section— “An Foras” means An Foras Áiseanna Saothair; “approved course provider” means a person providing approved courses who— (a) operates in accordance with a code of standards which from time to time may, with the consent of the Minister for Finance, be agreed between An Foras and the Minister, and (b) is approved of by An Foras for the purposes of this section; “approved course” means a course of study or training, other than a post graduate course, provided by an approved course provider which— (a) is confined to— (i) such aspects of information technology, or (ii) such foreign languages, as are approved of by the Minister, with the consent of the Minister for Finance, for the purposes of this section, (b) is of less than two years duration, (c) results in the awarding of a certificate of competence, and (d) having regard to a code of standards which, from time to time, may, with the consent of the Minister for Finance, be agreed between An Foras and the Minister in relation to— (i) the quality and standard of training to be provided on the approved course, and (ii) the methods and facilities to be used by the course provider in delivering the course and in assessing competence, is approved of by An Foras for the purposes of this section; “certificate of competence”, in relation to an approved course, means a certificate awarded in accordance with the standards set out in the code of standards referred to in paragraph (d) of the definition of “approved course” and certifying that a minimum level of competence has been achieved by the individual to whom the certificate is awarded; “foreign language” means a language other than an official language of the State; “the Minister” means the Minister for Enterprise and Employment; “qualifying fees”, in relation to an approved course, means the amount of fees chargeable in respect of tuition to be provided in relation to such course where the net amount of such fees are not less than £250 and to the extent that they do not exceed £1,000.

Section 8

of the Finance Act, 1997”.

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

9.—Chapter III of Part I of the Finance Act, 1984 , is hereby amended— (a) in subsection (1) of section 11, by the substitution, as on and from the 6th day of April, 1997, of the following definition for the definition of “unquoted company”: “‘unquoted company’ means a company none of whose shares, stocks or debentures— (i) are listed in the official list of a stock exchange, or (ii) are quoted on an unlisted securities market of a stock exchange other than on the market known as the Developing Companies Market of the Irish Stock Exchange.”, (b) in section 14A (inserted by the Finance Act, 1995 ), by the substitution, as respects a subscription for eligible shares made on or after the 2nd day of June, 1995, of the following subsection for subsection (3): “(3) The individual shall, throughout the relevant period, possess at least 15 per cent. of the issued ordinary share capital of the company in which that individual makes a relevant investment.”, (c) in section 16, by the substitution, as respects a relevant investment made on or after the passing of this Act, of the following subparagraph for subparagraph (iic) of paragraph (a) of subsection (2): “(iic) the rendering of such services as are referred to in subparagraph (ii) in respect of which an industrial development agency or a County Enterprise Board (being a board referred to in the Schedule to the Industrial Development Act, 1995 ) has provided financial support of not less than £2,000 towards the undertaking of a feasibility study by a person approved of by the agency or the County Enterprise Board into the potential commercial viability of the services to be rendered,”, and (d) in section 16A (inserted by the Finance Act, 1995 ), as respects a relevant investment made on or after the passing of this Act, by the addition of the following after subsection (6): “(7) (a) For the purposes of this Chapter, a certificate under subsection (2) may, instead of being given by an authority, be given by a County Enterprise Board (being a board referred to in the Schedule to the Industrial Development Act, 1995 ) to a company carrying on or intending to carry on one or more such qualifying trading operations as are mentioned in— (i) subparagraph (i) (as amended by the Finance Act, 1993 ), (ii) subparagraph (ii) (inserted by the Finance Act, 1990 ), and (iii) subparagraph (iic) (inserted by the Finance Act, 1997), of paragraph (a) of subsection (2) of section 16 and the provisions of subsections (2) and (6) of this section shall, subject to the modification specified in paragraph (b) and any other necessary modification, apply accordingly.

(b) The modification referred to in paragraph (a) is that, for the purposes of this subsection, the guidelines of the kind mentioned in subsection (2)(b) shall be agreed between the Minister for Finance and the Minister for Arts, Culture and the Gaeltacht or the Minister for Enterprise and Employment, as may be appropriate in the circumstances.”.

Amendment of section 14 (relief to individuals on loans applied in acquiring interest in companies) of Finance Act, 1992 .

10.—As on and from the 6th day of April, 1997, section 14 of the Finance Act, 1992 , is hereby amended by the substitution of the following definition for the definition of “quoted company”: “‘quoted company’ means a company whose shares, or any class of whose shares— (a) are listed in the official list of the Irish Stock Exchange or any other stock exchange, or (b) are quoted on an unlisted securities market of any stock exchange;”.

Income from scholarships.

11.—(1)

Section 353

of the Income Tax Act, 1967 , is hereby amended by the substitution of the following for subsections (2) and (3): “(2) Nothing in subsection (1) shall be construed as conferring on any person other than the person holding the scholarship in question any exemption from a charge to tax.

(4)

Section 178

of the Income Tax Act, 1967 , is hereby amended, in subsection (1), by the insertion of the following after paragraph (aaa) (inserted by the Finance Act, 1982 ): “(aaaa) particulars of any relevant scholarships (within the meaning of section 353 (as amended by the Finance Act, 1997) of the Income Tax Act, 1967 ) in relation to those persons;”.

Amendment of section 115 (exemptions and reliefs in respect of tax under section 114) of Income Tax Act, 1967 .

12.—

Section 115

of the Income Tax Act, 1967 , is hereby amended in subsection (1A) (inserted by the Finance Act, 1993 )— (a) by the insertion in paragraph (a) of the following after subparagraph (iii): “(iv) a benefit paid in pursuance of any statutory scheme (within the meaning of Chapter II of Part I of the Finance Act, 1972 ), other than a payment representing normal retirement benefits, which is made in consideration or in consequence of, or otherwise in connection with, the termination of the holding of an office or employment in circumstances— (I) of redundancy or abolition of office, or (II) for the purposes of facilitating improvements in the organisation of the employing company, organisation, Department or other body by which greater efficiency or economy can be effected, and for the purposes of this subparagraph, ‘normal retirement benefits’ means recognised superannuation benefits customarily payable to an individual on retirement at normal retirement date under the relevant statutory scheme, notwithstanding that, in relation to the termination of an office or employment in the circumstances described in this subparagraph, such benefits may be paid earlier than the designated retirement date or may be calculated by reference to a period greater than the individual's actual period of service in the office or employment, and includes benefits described as short service gratuities which are calculated on a basis approved by the Minister for Finance.”, and (b) by the insertion, in paragraph (b), of the following after subparagraph (ii): “(iii) Subparagraph (iv) of paragraph (a) shall apply and have effect in relation to any statutory scheme established or amended after the passing of the Finance Act, 1997.”.

Tax deductions from payments made to subcontractors.

13.—(1)

Section 17

of the Finance Act, 1970 , is hereby amended— (a) by the substitution in subsection (1), with effect from the 6th day of October, 1997, of the following for paragraph (a) of the definition of “forestry operations” (inserted by the Finance Act, 1992 ): “(a) the planting, thinning, lopping or felling of trees in woods, forests or other plantations; (aa) the maintenance of woods, forests and plantations and the preparation of land, including woods or forests which have been harvested, for planting;”, (b) by the substitution of the following for clause (C) of subsection (4)(C)(ii): “(C) in respect of— (I) employment contributions and self-employment contributions under the Social Welfare Acts, (II) health contributions under the Health Contributions Act, 1979 , and (III) Employment and Training Levy under the Youth Employment Agency Act, 1981 , as amended by the Labour Services Act, 1987 .”, and (c) by the insertion, as respects offences committed or penalties incurred on or after the passing of this Act, of the following after subsection (10): “(10A) Notwithstanding the provisions of any other enactment, summary proceedings in respect of offences under this section may be instituted within 10 years of the commission of the offence. (10B) The provisions of sections 128(4), 500(4), 501(3), 502(3), 506 and 507 of the Income Tax Act, 1967 , shall, with any necessary modifications, apply for the purposes of this section and any regulations made thereunder as they apply for the purposes of those provisions.”.

Tax relief for agreed pay restructuring.

14.—(1) (a) In this section— “basic pay”, in relation to a participating employee of a qualifying company, means the employee's emoluments (other than non-pecuniary emoluments) from the company in respect of an employment held with the company; “collective agreement” means an agreement entered into by a company with, or on behalf of, one or more than one body representative of employees of the company where each such body is either the holder of a negotiation licence under the Trade Union Act, 1941 or is an excepted body within the meaning of section 6 of that Act as amended by the Trade Union Act, 1942 ; “control”, in relation to a qualifying company, means the power of a person to secure, by means of the holding of shares or the possession of voting power in or in relation to that qualifying company or any other qualifying company, or by virtue of any power conferred by the articles of association or any other document regulating that or any other qualifying company, that the affairs of the first-mentioned qualifying company are conducted in accordance with the wishes of that person and, in relation to a partnership, means the right to a share of more than one-half of the assets, or of more than one-half of the income, of the partnership; “emoluments” has the meaning assigned to it by section 138B (inserted by the Finance Act, 1980 ) of the Income Tax Act, 1967 ; “employment” means an office or employment of profit such that any emoluments thereof fall to be charged to tax under Schedule E; “the Minister” means the Minister for Enterprise and Employment; “participating employee”, in relation to a qualifying company, means a qualifying employee who is a participant in a relevant agreement with the company; “qualifying company” means a company to which the Minister has issued a certificate under subsection (2) which certificate has not been withdrawn under that subsection; “qualifying employee”, in relation to a qualifying company, means an employee of the company in receipt of emoluments from the company; “reduced basic pay”, in relation to a participating employee, means the basic pay of the employee as reduced by the substantial reduction provided for in the relevant agreement concerned; “relevant agreement”, in relation to a qualifying company, means a collective agreement covering all, or substantially all, of the qualifying employees of the company— (a) which provides, amongst other things, for— (i) a substantial reduction in the basic pay of the participating employees, (ii) the payment of the reduced basic pay to the participating employees for the duration of the relevant period, and

(iii) the payment to the participating employees of a lump sum to compensate for that reduction, and (b) which is registered with the Labour Relations Commission; “relevant date”, in relation to a relevant agreement, means the date the relevant agreement was registered with the Labour Relations Commission; “relevant period”, in relation to a relevant agreement, means the period of 5 years commencing with the relevant date in relation to that agreement; “specified amount”, in relation to a participating employee, means £6,000 together with £200 for each complete year of service (subject to a maximum of 20 years), up to the relevant date, of the employee in the service of the qualifying company. (b) For the purposes of this section— (i) a reduction in the basic pay of a participating employee shall not be regarded as substantial unless it amounts to at least 10 per cent. of the average for one year of the employee's basic pay ascertained by reference to such pay for the two year period ending with the relevant date, and (ii) employments in respect of which payments to which this section applies are made shall be treated as held with associated qualifying companies if, on the date of any of those payments, one of those companies is under the control of the other or of a third person who controls or is under the control of the other on that or any other such date.

Amendment of section 4 (charge of tax on sums applied outside the State in repaying certain loans) of Finance Act, 1971 .

15.—

Section 4

of the Finance Act, 1971 , is hereby amended by the addition after subsection (5) of the following subsection: “(6) In relation to income applied in or towards satisfaction of a debt for money lent on or after the 20th day of February, 1997, or a debt incurred for satisfying in whole or in part any such debt, this section shall apply and have effect as if the references to ordinarily resident in the State in subsection (1) and subsection (2) were references to resident or ordinarily resident in the State.”.

Chapter II

Income Tax, Corporation Tax and Capital Gains Tax Relief for gifts made to third level institutions.

16.—(1) In this section— “approved institution” means an institution in the State in receipt of public funding which provides courses to which a scheme approved by the Minister under the Local Authorities (Higher Education Grants) Acts, 1968 to 1992, applies or any body established in the State for the sole purpose of raising funds for such an institution; “approved project” means a project in respect of which the Minister has given a certificate under subsection (2) which certificate has not been revoked under that subsection; “project” means one or more of the following— (a) the undertaking of research; (b) the acquisition of equipment; (c) infrastructural development in institutions specified in the guidelines referred to in subsection (2) (a) (i); (d) the provision of facilities designed to increase student numbers in areas of skills needs; “Minister” means the Minister for Education; “relevant gift” means a gift of money which— (a) on or after the 6th day of April, 1997, is made to an approved institution for the sole purpose of funding an approved project, (b) is or will be applied by the approved institution for the said purpose, and (c) is not, apart from this section, deductible in computing for the purposes of tax the profits or gains of a trade or profession, or is not income to which the provisions of section 439 of the Income Tax Act, 1967 , apply, or is not a gift of money to which the provisions of section 32 of the Finance Act, 1984 , apply; “tax” means income tax or corporation tax, as the case may be.

Amendment of provisions relating to relief for expenditure on significant buildings, etc.

17.—(1) Section 19 (as amended by the Finance Act, 1995 ) of the Finance Act, 1982 , is hereby amended— (a) in subsection (1)— (i) by the insertion of the following definition after the definition of “approved building”: “‘approved object’, in relation to an approved building, has the meaning assigned to it by subsection (4A);”, (ii) by the substitution of the following definition for the definition of “authorised person”: “‘authorised person’ means— (a) an inspector or other officer of the Revenue Commissioners authorised by them in writing for the purposes of this section, or (b) a person authorised by the Minister in writing for the purposes of this section;”, (iii) by the insertion of the following definition after the definition of “chargeable period”: “‘the Minister’ means the Minister for Arts, Culture and the Gaeltacht;”, (iv) by the insertion of the following definition after the definition of “the Minister” (inserted by subparagraph (iii)): “‘public place’, in relation to an approved building in use as a tourist accommodation facility, means a part of the building to which all patrons of the facility have access;”, (v) by the substitution of the following definition for the definition of “qualifying expenditure”: “‘qualifying expenditure’, in relation to an approved building, means expenditure incurred, by the person who owns or occupies the approved building, on one or more of the following— (a) the repair, maintenance or restoration of the approved building or the maintenance or restoration of any land occupied or enjoyed with the approved building as part of its garden or grounds of an ornamental nature, and (b) to the extent that the aggregate expenditure in a chargeable period does not exceed £5,000— (i) the repair, maintenance or restoration of an approved object in the approved building, (ii) the installation, maintenance or replacement of a security alarm system in the approved building, and (iii) public liability insurance for the approved building;”, (vi) by the insertion of the following definition after the definition of “qualifying expenditure”: “‘security alarm system’ means an electrical apparatus installed as a fixture in the approved building which, when activated, is designed to give notice to the effect that there is an intruder present or attempting to enter the approved building in which it is installed;”, and (vii) by the insertion of the following paragraph after paragraph (b): “(c) For the purposes of this section, references to an approved building, unless the contrary intention is expressed, shall be construed as including a reference to any land occupied or enjoyed with an approved building as part of its garden or grounds of an ornamental nature.”,

(b) in subsection (2), by the substitution, in paragraph (a), of the following subparagraph for subparagraph (i): “(i) that he has incurred in a chargeable period qualifying expenditure in relation to an approved building,”, (c) by the insertion of the following subsection after subsection (2): “(2A) (a) Where— (i) by virtue of subsection (2), qualifying expenditure in a chargeable period is treated as if it were a loss sustained in the chargeable period in a trade carried on by the person separate from any trade actually carried on by that person, and (ii) owing to an insufficiency of income, relief under the Tax Acts cannot be given for any part of the qualifying expenditure so treated (in this subsection referred to as ‘the unrelieved amount’), then, all the provisions of the Tax Acts shall apply as if the unrelieved amount were a loss sustained in the next following chargeable period in a trade carried on by the person separate from any trade actually carried on by that person. (b) Where owing to an insufficiency of income, relief under the Tax Acts cannot be given by virtue of paragraph (a) for any part of the unrelieved amount, then all the provisions of the Tax Acts shall apply as if that part of the unrelieved amount were a loss sustained in the chargeable period next following the period referred to in paragraph (a) in a trade carried on by the person separate from any trade actually carried on by that person. (c) Where, in any chargeable period, relief under the Tax Acts is due by virtue of two or more of the following provisions, that is to say, subsection (2) and paragraphs (a) and (b) of this subsection, then the following provisions shall apply— (i) any relief due under those Acts by virtue of paragraph (b) shall be given in priority to any relief due under those Acts by virtue of subsection (2) or paragraph (a), and (ii) where relief has been given in accordance with subparagraph (i) or where no such relief is due, any relief due under those Acts by virtue of paragraph (a) shall be given in priority to relief due under those Acts by virtue of subsection (2).”, (d) in subsection (4)— (i) by the substitution in paragraph (a) of the following subparagraph for subparagraph (i): “(i) by the Minister, to be a building which is intrinsically of significant scientific, historical, architectural or aesthetic interest, and”, (ii) by the substitution of the following paragraph for paragraph (c): “(c) Where under paragraph (a) the Minister makes a determination in relation to a building and, by reason of any alteration made to the building, or any deterioration of the building, subsequent to the determination being made, the Minister considers that the building is no longer a building which is intrinsically of significant scientific, historical, architectural or aesthetic interest, the Minister may, by notice in writing given to the owner or occupier of the building, revoke the determination with effect from the date on which the Minister considers that the building ceased to be a building which is intrinsically of significant scientific, historical, architectural or aesthetic interest, and this subsection shall cease to apply to the building from that date.”,

(e) by the insertion of the following subsection after subsection (4): “(4A) (a) In this subsection, ‘approved object’, in relation to an approved building, means an object (including a picture, sculpture, print, book, manuscript, piece of jewellery, furniture, or other similar object) or a scientific collection which is owned by the owner or occupier of the approved building and which, on application to them in that behalf by that person, is determined— (i) by the Minister, after consideration of any evidence in relation to the matter which such owner or occupier submits to the Minister and after such consultation (if any) as may seem to the Minister to be necessary with such person or body of persons as in the opinion of the Minister may be of assistance to the Minister, to be an object which is intrinsically of significant national, scientific, historical or aesthetic interest, and (ii) by the Revenue Commissioners, to be an object reasonable access to which is afforded, and in respect of which reasonable facilities for viewing are provided, in the building to the public. (b) Without prejudice to the generality of the requirement that reasonable access be afforded, and that reasonable facilities for viewing be provided, to the public, access to and facilities for the viewing of an object shall not be regarded as being reasonable access afforded, or the provision of reasonable facilities for viewing, to the public unless, subject to such temporary removal as is necessary for the purposes of the repair, maintenance or restoration of the object as is reasonable— (i) in a case where the approved building is a tourist accommodation facility, the object is displayed in a public place in the building, or (ii) in the case of any other approved building— (I) access to the object is afforded and such facilities for viewing the object are provided to the public on the same days and at the same times as access is afforded to the public to the approved building in which the object is kept, and (II) the price, if any, paid by the public in return for such access is, in the opinion of the Revenue Commissioners, reasonable in amount and does not operate to preclude the public from seeking access to the object. (c) Where under paragraph (a) the Minister makes a determination in relation to an object and, by reason of any alteration made to the object, or any deterioration of the object, subsequent to the determination being made, the Minister considers that the object is no longer an object which is intrinsically of significant national, scientific, historical or aesthetic interest, the Minister may, by notice in writing given to the owner or occupier of the building, revoke the determination with effect from the date on which the Minister considers that the object ceased to be an object which is intrinsically of significant national, scientific, historical or aesthetic interest, and this subsection shall cease to apply to the object from that date.

(d) Where under paragraph (a) the Revenue Commissioners make a determination in relation to an object and— (i) reasonable access to the object ceases to be afforded, or reasonable facilities for the viewing of the object cease to be provided, to the public, or (ii) the object ceases to be owned by the person to whom relief in respect of that qualifying expenditure has been granted under this section, the Revenue Commissioners may, by notice in writing given to the owner or occupier of the approved building in which the object is or was kept, revoke that determination with effect from the date on which they consider that such access, such facilities for viewing or such ownership, as the case may be, so ceased, and— (i) this subsection shall cease to apply to the object from that date, and (ii) if relief has been given under this section in respect of qualifying expenditure incurred in relation to that object in the period of two years ending on the date from which the revocation has effect, that relief shall be withdrawn and there shall be made all such assessments or additional assessments as are necessary to give effect to the provisions of this subsection.”, and (f) by the substitution in subsection (5) of the following paragraph for paragraph (a): “(a) Where a person makes a claim under subsection (2), an authorised person may, at any reasonable time, enter the building in relation to which the qualifying expenditure has been incurred for the purpose of inspecting, as the case may be, the building or an object or of examining any work in respect of which the expenditure to which the claim relates was incurred.”.

(2)

Section 29

of the Finance Act, 1993 , is hereby amended in subsection (1)— (a) by the substitution of the following paragraph for paragraph (a) of the definition of “approved garden”: “(a) by the Minister for Arts, Culture and the Gaeltacht, to be a garden which is intrinsically of significant horticultural, scientific, historical, architectural or aesthetic interest, and”, (b) by the substitution of the following definition for the definition of “qualifying expenditure”: “‘qualifying expenditure’, in relation to an approved garden, means expenditure incurred, by the person who owns or occupies the approved garden, on one or more of the following— (a) the maintenance or restoration of the approved garden, and (b) to the extent that the aggregate expenditure in a chargeable period does not exceed £5,000— (i) the repair, maintenance or restoration of an approved object in the approved garden, (ii) the installation, maintenance or replacement of a security alarm system in the approved garden, and (iii) public liability insurance for the approved garden;”, and (c) by the insertion of the following definition after the definition of “qualifying expenditure”: “‘security alarm system’ means an electrical apparatus installed as a fixture in the approved garden which, when activated, is designed to give notice to the effect that there is an intruder present or attempting to enter the approved garden in which it is installed.”.

Amendment of section 134 (deduction for increase in stock values) of Finance Act, 1996 .

18.—

Section 134

of the Finance Act, 1996 , is hereby amended in subsection (3)— (a) by the substitution in paragraph (a) of “1999” for “1997”, and (b) by the substitution in paragraph (b) of “1998-99” for “1996-97”, and the said paragraphs (a) and (b), as so amended, are set out in the Table to this section.

TABLE (a) 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, 1999. (b) Any deduction allowed by virtue of this section in computing the profits or gains of the trade of farming for an accounting period of a person other than a company shall not have effect for any purpose of the Income Tax Acts for any year of assessment later than the year 1998-99.

Amendment of section 135 (special provision for qualifying farmers) of Finance Act, 1996 .

19.—

Section 135

of the Finance Act, 1996 , is hereby amended in paragraph (b) of subsection (1)— (a) by the substitution in subparagraph (ii) of “three immediately succeeding years of assessment, or” for “three immediately succeeding years of assessment.”, and (b) by the insertion of the following subparagraph after subparagraph (ii): “(iii) on or after the 6th day of April, 1997, and before the 6th day of April, 1999, for the year of assessment in which the person becomes a qualifying farmer and for the immediately succeeding year of assessment.”.

Farming: allowances for capital expenditure on the construction of farm buildings etc. for control of pollution.

20.—(1) This section applies to any person— (a) carrying on farming, the profits or gains of which are chargeable to tax in accordance with the provisions of section 15 of the Finance Act, 1974 , and (b) for whom, in respect of capital expenditure to which paragraph (c) refers and in respect of farm land occupied by him or her, a farm nutrient management plan has been drawn up by an agency or planner approved to draw up such plans by the Department of Agriculture, Food and Forestry, and drawn up in accordance with— (i) the guidelines in relation to such plans entitled “Farm Nutrient Management Plan” which were issued by the Department of Agriculture, Food and Forestry on the 21st day of March, 1997, or (ii) a plan drawn up under the scheme known as the Rural Environment Protection Scheme (REPS) or the scheme known as the Erne Catchment Nutrient Management Scheme, both being schemes administered by the Department of Agriculture, Food and Forestry, and (c) who incurs capital expenditure on or after the 6th day of April, 1997, and before the 6th day of April, 2000, on the construction of those farm buildings (excluding a building or part of a building used as a dwelling) or structures specified in the Fourth Schedule in the course of a trade of farming land occupied by such person where such building or structures are constructed in accordance with the said farm nutrient management plan and are certified as being necessary by the said agency or planner for the purpose of securing a reduction in or the elimination of any pollution arising from the trade of farming.

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

21.—(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 £14,000 by virtue of section 23 of the Finance Act, 1995 ), in each place where it occurs in those sections, there were substituted “£15,000”. (b) Paragraph (a) shall apply only to expenditure incurred on or after the 23rd day of January, 1997, on the provision or hiring of a vehicle which, on or after that date 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.

(2)

Section 32

of the Finance Act, 1976 , shall have effect, in relation to qualifying expenditure (within the meaning of that section) incurred on or after the 23rd day of January, 1997, as if for “£3,500” (construed as a reference to £14,000 by virtue of section 23 of the Finance Act, 1995 ), in each place where it occurs, there were substituted “£15,000”.

Amendment of section 241 (wear and tear of machinery, plant, etc.) of Income Tax Act, 1967 .

22.—

Section 241

of the Income Tax Act, 1967 , is hereby amended by the substitution of the following subsections for subsection (10): “(10) The preceding provisions of this section shall, with any necessary modifications, apply in relation to professions, employments, offices and, subject to subsection (11), the letting of any premises the profits or gains from which are chargeable under Chapter VI of Part IV as they apply in relation to trades.

Amendment of Chapter I (Industrial Buildings and Structures: Annual Allowances and Balancing Allowances and Charges) of Part XVI of Income Tax Act, 1967 .

23.—(1) Chapter I of Part XVI of the Income Tax Act, 1967 , is hereby amended— (a) in section 265 by the insertion in paragraph (d) of subsection (1) after “other than rent or an amount treated” of “or partly treated”, and (b) in subsection 266 by the addition after subsection (6) of the following subsection: “(7) If, on receipt of consideration of the type referred to in subsection (1) (d) of section 265, a balancing allowance is made in respect of the expenditure, there shall be written off at the time of the event giving rise to the balancing allowance or, if later, on the 26th day of March, 1997, the amount by which the residue of the expenditure before the said event exceeds the said consideration.”.

Capital allowances: room ownership schemes.

24.—(1) In this section— “hotel investment” means capital expenditure incurred either on the construction of, or the acquisition of a relevant interest in, a building or structure which falls to be regarded as an industrial building or structure within the meaning of section 255 (1) (d) of the Income Tax Act, 1967 , other than a building or structure to which the first proviso to that provision relates; “hotel partnership” includes any syndicate, group or pool of persons, whether or not a partnership, through or by means of which, a hotel investment is made; “market value” shall be construed in accordance with section 49 of the Capital Gains Tax Act, 1975 ; “member” in relation to a hotel partnership includes every person who participates in that partnership or who has contributed capital, directly or indirectly, to that partnership; “preferential terms” in relation to the acquisition of an interest referred to in subsection (4) (a) (i), means terms under which such interest is acquired for a consideration which, at the time of the acquisition, is or may be other than its market value.

Capital allowances for buildings used for third level educational purposes.

25.—(1) In this section— “approved institution” means an institution in the State in receipt of public funding which provides courses to which a scheme approved by the Minister for Education under the Local Authorities (Higher Education Grants) Acts, 1968 to 1992, applies; “qualifying expenditure” means capital expenditure incurred on— (a) the construction of a qualifying premises, or (b) the provision of machinery or plant, which, following receipt of the advice of An tÚdarás, is approved for that purpose by the Minister for Education with the consent of the Minister for Finance; “qualifying premises” means a building or structure which— (a) apart from this section, is not an industrial building or structure within the meaning of section 255 of the Income Tax Act, 1967 , and (b) (i) is in use for the purposes of third level education provided by an approved institution, (ii) is let to an approved institution on bona fide commercial terms for such consideration as might be expected to be paid in a letting of the building or structure which was negotiated on an arm's length basis, but does not include any part of a building or structure in use as, or as part of, a dwelling-house; “An tÚdarás” means the Body established by section 2 of the Higher Education Authority Act, 1971 .

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

26.—Chapter IV of Part I of the Finance Act, 1994 , is hereby amended— (a) in section 38— (i) by the substitution of the following definition for the definition of “enterprise area” in subsection (1): “‘enterprise area’ means— (a) an area or areas specified as an enterprise area by order under section 39, or (b) an area or areas described in the Tenth Schedule to the Finance Act, 1997;”, (ii) by the substitution of the following definition for the definition of “qualifying period” in subsection (1): “‘qualifying period’ means— (a) subject to subsection (3) and section 39 and other than for the purposes of section 41B, the period commencing on the 1st day of August, 1994, and ending on the 31st day of July, 1997, or (b) in respect of an area or areas described in the Tenth Schedule to the Finance Act, 1997, the period commencing on the 1st day of July, 1997, and ending on the 30th day of June, 2000;”, (iii) by the insertion of the following definition after the definition of “qualifying period” in subsection (1): “‘the relevant local authority’, in relation to the construction of, conversion into, refurbishment of, or, as the case may be, construction or refurbishment of a building or structure to which paragraph (a) of subsection (3) applies, means the council of a county or the corporation of a county or other borough or, where appropriate, the urban district council, in whose functional area the qualifying premises is situated;”, and (iv) by the addition of the following subsections after subsection (2): “(3) (a) Where in relation to the construction of, conversion into, refurbishment of, or, as the case may be, construction or refurbishment of a building or structure which is— (i) to be an industrial building or structure to which section 40 applies, (ii) a qualifying premises within the respective meanings assigned in sections 41, 42 (other than a building or structure to which paragraph (a) (iv) of that meaning in that section applies), 43, 44, 45 and 46, or (iii) a qualifying building within the meaning assigned in section 41A, the relevant local authority gives a certificate in writing, on or before the 30th day of September, 1997, to the person constructing, converting or refurbishing, as the case may be, such a building or structure stating that it is satisfied that not less than 15 per cent. of the total cost of the building or structure had been incurred prior to the 31st day of July, 1997, then, the reference in paragraph (a) of the definition of ‘qualifying period’ in subsection (1) to the period ending on the 31st day of July, 1997, shall, as respects such a building or structure, be construed as a reference to a period ending on the 31st day of July, 1998, and the references in paragraph (a) of subsection (2) and paragraph (a) (i) of subsection (3) of section 40 and in paragraphs (a) (i) and (b) (i) (I) of subsection (8) of section 41A to ‘before the 1st day of August, 1997’ and the reference in paragraph (a) (i) of subsection (4) of section 41 to ‘the 1st day of August, 1997’ shall be construed as references to ‘before the 1st day of August, 1998’ and ‘the 1st day of August, 1998’, respectively.

(b) In considering whether to give such a certificate as is referred to in paragraph (a), the relevant local authority shall have regard only to the guidelines in relation to the giving of such certificates entitled ‘Extension from 31 July, 1997, to 31 July, 1998, of the time limit for qualifying expenditure on developments’ which were issued by the Department of the Environment on the 28th day of January, 1997.

Amendment of provisions relating to double rent allowance.

27.—

Section 45

of the Finance Act, 1986 , section 42 of the Finance Act, 1994 , and section 49 of the Finance Act, 1995 , are hereby amended— (a) in subsection (2) of the said section 45, (b) in subsection (3) of the said section 42, and (c) in subsection (3) of the said section 49, by the substitution in each case for “equal to the amount of the first-mentioned deduction” of the following: “(in this subsection referred to as ‘the second-mentioned deduction’) equal to the amount of the first-mentioned deduction but, as respects a qualifying lease granted on or after the 21st day of April, 1997, where the first-mentioned deduction is on account of rent which is payable by such person to a connected person, such person shall not be entitled in that computation to the second-mentioned deduction”.

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

28.—Section 39B (as amended by the Finance Act, 1995 ) of the Finance Act, 1980 , is hereby amended by the addition, after subsection (9), of the following subsection: “(10) (a) For the purposes of this section, the Minister for Finance, after consultation with the Minister for the Environment, may, by order direct that the definition of ‘the Custom House Docks Area’ contained in section 41 of the Finance Act, 1986 , shall include such area or areas described in the order which, but for the order, would not be included in that definition, and where the Minister for Finance so orders, the said definition of ‘the Custom House Docks Area’ shall, for the purposes of this section, be deemed to include the said area or areas. (b) The Minister for Finance may, for the purposes of making an order under this section and an order under section 27 of the Finance Act, 1987 , exercise the powers to make those orders by making one order for the purposes of both of those sections. (c) The Minister for Finance may make orders for the purpose of this section and any order made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the order is passed by Dáil Éireann within the next twenty-one days on which Dáil Éireann has sat after the order is laid before it, the order shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.”.

Relief for pre-trading expenditure.

29.—(1) Subject to subsection (4), where a person incurs expenditure for the purposes of a trade or profession before the time that the trade or profession has been set up and commenced by that person, and such expenditure— (a) is incurred not more than three years before that time, and (b) is not allowable, apart from this section, as a deduction for the purpose of computing the profits or gains of the trade or profession for the purposes of Case I or Case II of Schedule D, but would have been so allowable if it had been incurred after that time, then the expenditure shall be treated for that purpose as having been incurred at that time.

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

30.—(1) Section 35 (inserted by section 31

(ii) in paragraph (a) of the proviso by the substitution of “£3,000,000” for “£2,000,000”, and (iii) in paragraph (b) of the proviso by the substitution of “£3,000,000” for “£2,000,000”.

Amendment of section 14 (special portfolio investment accounts) of Finance Act, 1993 .

31.—(1) Section 14 (as amended by section 37 of the Finance Act, 1996 ) of the Finance Act, 1993 is hereby amended— (a) in the definition of “qualifying shares” in paragraph (a) of subsection (1) by the substitution for subparagraph (ii) of the following subparagraph: “(ii) quoted on the market known as the Developing Companies Market, or the market known as the Exploration Securities Market, of the Irish Stock Exchange,”, and (b) in subsection (2) by the substitution for paragraph (b) of the following paragraph: “(b) the amount of a specified deposit or, if there is more than one, the aggregate of such amounts in respect of assets held at the same time as part of a special portfolio investment account shall not exceed— (i) in the case of a special portfolio investment account in respect of which— (I) the first specified deposit was made on or before the 5th day of April, 2000, and (II) an amount (hereafter in this paragraph referred to as the ‘particular amount’) equal to the whole or a part of the specified deposit or specified deposits, has been used to acquire shares in a company quoted on the market known as the Developing Companies Market of the Irish Stock Exchange and those shares are, at that time, held as assets of the special portfolio investment account, £50,000 increased by the lesser of— (A) the particular amount, and (B) £10,000, and (ii) in the case of any other special portfolio investment account, £50,000;”.

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

32.—Section 18 (as amended by the Finance Act, 1996 ) of the Finance Act, 1989 , is hereby amended in subsection (1) by the insertion of the following proviso to the definition of “specified collective investment undertaking”: “Provided that, for the purposes of this definition, reference to a qualifying management company shall be construed as if— (i) in subsection (2) of section 39A (inserted by the Finance Act, 1981 ) of the Finance Act, 1980 , there were deleted ‘and any certificate so given shall, unless it is revoked under subsection (4), (4A) or (4B), remain in force until the 31st day of December, 2005’, and (ii) in subsection (2) of section 39B (inserted by the Finance Act, 1987 ) of the Finance Act, 1980 , there were deleted ‘and any certificate so given shall, unless it is revoked under subsection (4), (5) or (5A), remain in force until the 31st day of December, 2005’.”.

Taxation of strips of securities.

33.—(1) In this section— “chargeable period” has the meaning assigned to it in paragraph 1 (2) of the First Schedule to the Corporation Tax Act, 1976 ; “market value” has the meaning assigned to it in section 49 of the Capital Gains Tax Act, 1975 ; “nominal value”, in relation to a unit of a security, means— (a) where the interest on the unit of the security is expressed to be payable by reference to a given value, that value, and (b) in any other case, the amount which was paid for the unit of the security on its issue; “opening value”, in relation to a unit of a security from which at any time strips of the unit have been created by a person means— (a) in the case of a person who is carrying on a trade, which consists wholly or partly of dealing in securities of which the unit of the security is an asset in respect of which any profits or gains are chargeable to tax under Case I of Schedule D, an amount equal to the market value of the unit of the security at the time the strips were created, and (b) in the case of any other person, an amount equal to— (i) the market value of the unit of the security at the time the strips were created, or (ii) the nominal value of the unit of the security, whichever is the lesser; “relevant day”, in relation to a person who holds a strip, means— (a) where the person is not a company within the charge to corporation tax, the 5th day of April in a year of assessment, and (b) where the person is a company within the charge to corporation tax, the day on which an accounting period of the company ends; “securities” has the same meaning as it has in subsection (1) of section 29 of the Finance Act, 1984 , and a unit of a security shall be construed accordingly; “strip”, in relation to a unit of a security, means an obligation of the person who issued the security to make a payment, whether of interest or of principal, which has been separated from other obligations of that person to make payments in respect of the unit of the security.