Finance Act 2007

Finance Act 2007 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 2007 Finance Act 2007 Finance Act 2007 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 11 of 2007 FINANCE ACT 2007 ARRANGEMENT OF SECTIONS

PART 1

Income Tax, Corporation Tax and Capital Gains Tax

Chapter 1

Interpretation Section

Section 1

1.Interpretation (Part 1).

Chapter 2

Income Tax

Section 2

Section 3

Section 4

Section 5

Section 6

Section 7

Section 8

Section 9

Section 10

Section 12

Section 13

Section 14

Section 15

Section 16

Section 17

Section 18

Chapter 3

Income Tax, Corporation Tax and Capital Gains Tax

Section 19

Section 20

Section 21

Section 22

Section 23

Section 24

Section 25

Section 26

Section 27

Section 28

Section 29

Section 30

Section 31

Section 32

Section 33

Section 34

Section 35

Section 36

Section 37

Section 38

Section 39

Section 40

Section 41

Section 42

Section 43

Section 44

Section 45

Chapter 4

Corporation Tax

Section 46

Section 47

Section 48

Section 49

Section 50

Section 51

Chapter 5

Capital Gains Tax

Section 52

Section 53

Section 54

Section 55

Section 56

PART 2

Excise

Section 57

Section 58

Section 59

Section 60

Section 61

Section 62

Section 63

Section 64

Section 65

Section 66

Section 67

Section 68

Section 69

Section 70

Section 71

Section 72

Section 73

Section 74

PART 3

Value-Added Tax

Section 75

Section 76

Section 77

Section 78

Section 79

Section 80

Section 81

Section 82

Section 83

Section 84

Section 85

Section 86

Section 87

Section 88

Section 89

Section 90

Section 91

Section 92

Section 93

Section 94

Section 95

Section 96

Section 97

Section 98

PART 4

Stamp Duties

Section 99

Section 100

Section 101

Section 102

Section 103

Section 104

Section 105

Section 106

Section 107

Section 108

Section 109

Section 110

Section 111

PART 5

Capital Acquisitions Tax

Section 112

Section 113

Section 114

Section 115

Section 116

Section 117

PART 6

Residential Property Tax

Section 118

PART 7

Miscellaneous

Section 119

Section 120

Section 121

Section 122

Section 123

Section 124

Section 125

Section 126

Section 127

Section 128

Section 129

Section 130

SCHEDULE 1 Amendments Consequential on Changes in Personal Tax Credits SCHEDULE 2 Miscellaneous Technical Amendments in Relation to Arrangements for Relief from Double Taxation SCHEDULE 3 Miscellaneous Amendments Relating to Council Directive 2006/112/EC SCHEDULE 4 Miscellaneous Technical Amendments in Relation to Tax Acts Referred to Betting Act 1931 1931, No. 27 Bonded Warehouses Act 1848 11 & 12 Vic., c. 122 Capital Acquisitions Tax Consolidation Act 2003 2003, No. 1 Civil Service Regulation Act 1956 1956, No. 46 Companies Act 1990 1990, No. 33 Corporation Tax Act 1976 1976, No. 7 Criminal Evidence Act 1992 1992, No. 12 Criminal Justice Act 2006 2006, No. 26 Family Law Act 1995 1995, No. 26 Family Law (Divorce) Act 1996 1996, No. 33 Finance (1909-10) Act 1910 10 Edw. 7, c. 8 Finance Act 1925 1925, No. 28 Finance Act 1964 1964, No. 15 Finance Act 1971 1971, No. 23 Finance Act 1983 1983, No. 15 Finance Act 1992 1992, No. 9 Finance Act 1993 1993, No. 13 Finance Act 1998 1998, No. 3 Finance Act 1999 1999, No. 2 Finance Act 2000 2000, No. 3 Finance Act 2001 2001, No. 7 Finance Act 2002 2002, No. 5 Finance Act 2003 2003, No. 3 Finance Act 2004 2004, No. 8 Finance Act 2005 2005, No. 5 Finance Act 2006 2006, No. 6 Finance (Excise Duty on Tobacco Products) Act 1977 1977, No. 32 Firearms Act 1925 1925, No. 17 Firearms (Firearm Certificates for Non-Residents) Act 2000 2000, No. 20 Health Act 1970 1970, No. 1 Housing Act 1988 1988, No. 28 Housing (Private Rented Dwellings) Act 1982 1982, No. 6 Industrial Development Act 1986 1986, No. 9 Industrial Development Act 1995 1995, No. 28 Industrial Development (Science Foundation Ireland) Act 2003 2003, No. 30 Insurance Act 1936 1936, No. 45 Investment Limited Partnership Act 1994 1994, No. 24 Intoxicating Liquor Act 1988 1988, No. 16 Irish Horseracing Industry Act 1994 1994, No. 18 Liqueur Act 1848 11 & 12 Vic., c. 121 Official Secrets Act 1963 1963, No. 1 Pensions (Amendment) Act 2002 2002, No. 18 Planning and Development Act 2000 2000, No. 30 Residential Tenancies Act 2004 2004, No. 27 Social Welfare Act 2000 2000, No. 4 Social Welfare (Consolidation) Act 1993 1993, No. 27 Social Welfare Consolidation Act 2005 2005, No. 26 Stamp Duties Consolidation Act 1999 1999, No. 31 Taxes Consolidation Act 1997 1997, No. 39 Tourist Traffic Acts 1939 to 2003 Unit Trusts Act 1990 1990, No. 37 Value-Added Tax Act 1972 1972, No. 22 Value-Added Tax Acts 1972 to 2006 Waiver of Certain Tax, Interest and Penalties Act 1993 1993, No. 24 Wildlife Acts 1976 and 2000 Number 11 of 2007 FINANCE ACT 2007 AN ACT TO PROVIDE FOR THE IMPOSITION, REPEAL, REMISSION, ALTERATION AND REGULATION OF TAXATION, OF STAMP DUTIES AND OF DUTIES RELATING TO EXCISE AND OTHERWISE TO MAKE FURTHER PROVISION IN CONNECTION WITH FINANCE INCLUDING THE REGULATION OF CUSTOMS.

[2nd April, 2007] BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

PART 1

Income Tax, Corporation Tax and Capital Gains Tax

Chapter 1

Interpretation Interpretation (Part 1).

1.— In this Part “ Principal Act ” means the Taxes Consolidation Act 1997 .

Chapter 2

Income Tax Amendment of section 15 (rate of charge) of Principal Act.

2.— As respects the year of assessment 2007 and subsequent years of assessment, section 15 of the Principal Act is amended— (a) by substituting “€25,000” for “€23,000” (inserted by the Finance Act 2006 ) in subsection (3), and (b) by substituting the following Table for the Table (as so inserted) to that section: “TABLE

PART 1

Part of taxable income Rate of tax Description of rate

(1)

(2)

PART 2

Part of taxable income Rate of tax Description of rate

(1)

(2)

PART 3

Part of taxable income Rate of tax Description of rate

(1)

(2)

Personal tax credits.

3.— (1) Where an individual is entitled under a provision of the Principal Act mentioned in column (1) of the Table to this subsection to have the income tax to be charged on the individual, other than in accordance with the provisions of section 16(2) of the Principal Act, reduced for the year of assessment 2007 or any subsequent year of assessment and the amount of the reduction would, but for this section, be an amount which is the lesser of— (a) the amount specified in column (2) of that Table, and (b) the amount which reduces that liability to nil, the amount of the reduction in accordance with paragraph (a) shall be the amount of the tax credit specified in column (3) of the Table.

TABLE Statutory Provision Existing tax credit Tax credit for the year 2007 and subsequent years

(1)

(2)

(3)

Section 461

(basic personal tax credit) (married person) €3,260 €3,520 (widowed person bereaved in year of assessment) €3,260 €3,520 (single person) €1,630 €1,760 Section 461A (additional tax credit for certain widowed persons) €500 €550

Section 462

(one-parent family tax credit) €1,630 €1,760

Section 463

(widowed parent tax credit) (1st year) €3,100 €3,750 (2nd year) €2,600 €3,250 (3rd year) €2,100 €2,750 (4th year) €1,600 €2,250 (5th year) €1,100 €1,750

Section 464

(age tax credit) (married person) €500 €550 (single person) €250 €275

Section 465

(incapacitated child tax credit) €1,500 €3,000

Section 468

(blind person’s tax credit) (blind person) €1,500 €1,760 (both spouses blind) €3,000 €3,520

Section 472

(employee tax credit) €1,490 €1,760

Age exemption.

4.— As respects the year of assessment 2007 and subsequent years of assessment, section 188 of the Principal Act is amended, in subsection (2), by substituting “€38,000” for “€34,000” (inserted by the Finance Act 2006 ) and “€19,000” for “€17,000” (as so inserted).

Amendment of section 473 (allowance for rent paid by certain tenants) of Principal Act.

5.— Section 473 of the Principal Act is amended, as respects the year of assessment 2007 and subsequent years of assessment, by the substitution in subsection (1) of the following definition for the definition of “specified limit” (inserted by the Finance Act 2006 ): “ ‘ specified limit ’, in relation to an individual for a year of assessment, means— (a) in the case of— (i) a married person assessed to tax in accordance with section 1017, or (ii) a widowed person, €3,600; but, if at any time during the year of assessment the individual was of the age of 55 years or over, ‘specified limit’ means €7,200, and (b) in any other case, €1,800; but, if at any time during the year of assessment the individual was of the age of 55 years or over, ‘specified limit’ means €3,600;”.

Amendment of section 244 (relief for interest paid on certain home loans) of Principal Act.

6.— As respects the year of assessment 2007 and subsequent years of assessment, section 244 of the Principal Act is amended in the definition of “ relievable interest ” in subsection (1)(a)— (a) by substituting “€6,000” for “€5,080”, (b) by substituting “€3,000” for “€2,540”, (c) by substituting “€16,000” for “€8,000”, and (d) by substituting “€8,000” for “€4,000”.

Amendment of section 122 (preferential loan arrangements) of Principal Act.

7.— As respects the year of assessment 2007 and subsequent years of assessment, section 122 of the Principal Act is amended in the definition of “ the specified rate” in subsection (1)(a)— (a) by substituting “4.5 per cent” for “3.5 per cent” (inserted by the Finance Act 2004 ) in both places where it occurs, and (b) by substituting “12 per cent” for “11 per cent” (inserted by the Finance Act 2003 ).

Employees of certain agencies: foreign service allowances.

8.— (1) The Principal Act is amended in Chapter 1 of Part 7 by inserting the following after section 196A (inserted by the Finance Act 2005 ): “196B.— (1) (a) In this section ‘ emoluments ’ means emoluments to which section 985A applies. (b) The agencies to which this section applies are as follows: (i) Enterprise Ireland; (ii) An Bord Bia; (iii) Tourism Ireland Ltd; (iv) The Industrial Development Agency (Ireland).

Personal reliefs: returns of certain information by third parties, etc.

9.— (1) The Principal Act is amended— (a) in section 459 by inserting the following after subsection (5): “(6) Where, on the basis of the information furnished to them under section 894A(2) or any other information in their possession, the Revenue Commissioners are satisfied as to the title of an individual to relief under any of the provisions specified in the Table to section 458 or under section 187 or 188 then, notwithstanding any other provision of the Income Tax Acts to the contrary, if the Revenue Commissioners consider it appropriate in the circumstances, the relief due may be given to the individual without the making of and proving of a claim for that relief.”, (b) in section 469— (i) in subsection (1)— (I) in paragraph (i) of the definition of “ health expenses ” by substituting “person” for “dependant of the individual referred to in paragraphs (a) and (b)(ii) of the definition of dependant”, and (II) by deleting the definitions of “ dependant ”, “ qualified person ” and “ relative ”, (ii) by substituting the following for subsection (2): “(2) Subject to this section, where an individual for a year of assessment proves that in the year of assessment he or she defrayed health expenses incurred for the provision of health care, the individual shall be entitled, for the purpose of ascertaining the amount of the income on which he or she is to be charged to income tax, to have a deduction made from his or her total income of the amount proved to have been so defrayed.”, and (iii) by inserting the following after subsection (6): “(7) Where relief is given under this section to any individual in respect of an amount used to defray health expenses, relief shall not be given under any other provision of the Income Tax Acts to that individual in respect of that amount.”, (c) in section 472C (inserted by the Finance Act 2001 )— (i) in subsection (7), by substituting “may on receipt of a request” for “shall on receipt of a request”, and (ii) by inserting the following after subsection (7): “(7A) Notwithstanding the provisions of any other enactment, where trade union subscriptions of employees of an employer are deducted by the employer from the emoluments of those employees and remitted to the trade union concerned, the employer may, for the purposes of enabling that trade union to make a return under the provisions of subsection (7) and for that purpose only, on receipt of a request in that behalf from the trade union furnish to the trade union the names and the Personal Public Service Numbers of the employees who are members of that trade union, and only those employees, from whose emoluments those deductions have been made.”,

(d) in section 473A (inserted by the Finance Act 2001 )— (i) in subsection (1), by deleting the definition of “dependant”, (ii) in subsection (2), by deleting “, on his or her own behalf or on behalf of his or her dependant,”, (iii) in subsection (4), by substituting “the person by whom the course is being, or was, undertaken” for “his or her dependant”, (iv) in subsection (6)(b), by deleting “by the individual or his or her dependant”, and (v) by inserting the following after subsection (8): “(9) Where relief is given under this section to any individual in respect of a payment of qualifying fees, relief shall not be given under any other provision of the Income Tax Acts to that individual in respect of that payment.”, and (e) in Chapter 3 of Part 38, by inserting the following after section 894: “Returns by third parties in relation to personal reliefs.

894A.— (1) In this section— ‘PPS Number’, in relation to an individual, means the individual’s Personal Public Service Number within the meaning of section 262 of the Social Welfare Consolidation Act 2005 ; ‘personal relief’ means a relief under any of the provisions specified in the Table to section 458.

Amendment of section 126 (tax treatment of certain benefits payable under Social Welfare Acts) of Principal Act.

10.— Section 126 of the Principal Act is amended— (a) by substituting the following for subsection (1): “(1) In this section ‘the Acts’ means the Social Welfare Acts.”, (b) in subsection (3)— (i) in paragraph (b) by substituting “section 2(3) of the Social Welfare Consolidation Act 2005 ” for “section 2(3)(a) of the Social Welfare (Consolidation) Act, 1993 ”, (ii) by inserting the following after paragraph (b): “(c) (i) In this paragraph ‘ short-time employment ’ has the same meaning as it has for the purposes of the Acts. (ii) Notwithstanding paragraphs (a) and (b) and the Finance Act 1992 (Commencement of Section 15) (Unemployment Benefit and Pay-Related Benefit) Order 1994 ( S.I. No. 19 of 1994 ), paragraph (b) shall not apply in relation to unemployment benefit paid or payable, to a person employed in short-time employment.”, and (c) by deleting subsection (8).

Exemption from tax on certain income.

11.— The Principal Act is amended— (a) in the definition of “relevant income” in section 189(2)(a) by substituting “section 59, 745 or 747E” for “section 59 or section 745”, (b) in the definition of “relevant income” in section 189A(4)(a) by substituting “section 59, 745 or 747E” for “section 59 or section 745”, and (c) in section 192(2) by substituting “section 59, 745 or 747E” for “section 59 or section 745”.

Exemption in respect of certain expense payments.

12.— As respects the year of assessment 2007 and subsequent years of assessment, the Principal Act is amended by inserting the following after section 195: “195A.— (1) In this section— ‘ body ’ means an unincorporated body of persons or a body corporate, being— (a) any board, council or committee, however expressed, or (b) any body of persons exercising some or all of the functions of such a board, council or committee, where the duties, other than incidental duties such as attendance at conventions or meetings as delegates on behalf of the body, of the office of members of the body are discharged in the course of meetings of the body concerned, or preparation for such meetings; ‘ civil servant ’ has the meaning assigned to it by section 1(1) of the Civil Service Regulation Act 1956 ; ‘ member ’, in relation to a body, means a person holding office as a member of that body— (a) who has no other duties directly or indirectly, whether as an employee of the body or of a person connected with that body, in relation to that body, and (b) whose annualised amount of the emoluments from the office for the year of assessment 2006 and for each subsequent year in which the person is a member of the body, other than payments to which this section applies, does not exceed— (i) in the case of a member who is the chairperson of the body, not being a body referred to in paragraph (b) of the definition of ‘body’, €24,000, and (ii) in any other case, €14,000; ‘ non-commercial body ’ means a body— (a) organised solely for purposes other than profit, where the declared purposes of the body can be ascertained from documents of record, (b) which, in fact, operates solely for purposes other than profit and, for this purpose, any activity generating income carried on by the body— (i) which is carried on for the purposes of assisting the body to achieve its purposes, and (ii) the income of which is used for those purposes, shall be regarded as operating for purposes other than profit, and (c) any benefit, or part of the income or accumulated income, of which, cannot be paid to, or cannot otherwise be made available to, any officer, employee or member of the body for the personal benefit of that person or a person connected with that person other than— (i) any wages, salaries, fees or honorariums for services rendered to the body but only if the amounts paid are no more than reasonable amounts that would be paid in a transaction at arm’s length for similar services by a body organised solely for purposes other than profit, being a body operating in accordance with paragraph (b),

(ii) any payment to which this section applies, (iii) any payment made to officers, employees or members to assist in the covering of expenses to attend conventions or meetings as delegates on behalf of the body where such attendance is to further the purposes of the body, and (iv) where the officer, employee or member concerned, or a person connected with such officer, employee or member, is also an object of the purposes of the body, a benefit which is in furtherance of the purposes of the body.

Amendment of Schedule 13 (accountable persons for purposes of Chapter 1 of Part 18) to Principal Act.

13.— (1) Schedule 13 to the Principal Act is amended— (a) by substituting the following for paragraph 5: “5. Primary Care Reimbursement Service.”, (b) by substituting the following for paragraph 118: “118. National Sports Campus Development Authority.”, (c) by deleting paragraphs 4 and 147, and (d) by inserting the following after paragraph 157 (inserted by the Finance Act 2006 ): “158. The Road Safety Authority.

Amendment of section 216A (rent-a-room relief) of Principal Act.

14.— As respects the year of assessment 2007 and subsequent years of assessment, section 216A of the Principal Act is amended by inserting the following after subsection (3): “(3A) Subsection (2) shall not apply for a year of assessment where the relevant sums arising to the individual are received from a child of the individual.”.

Amendment of section 216C (childcare services relief) of Principal Act.

15.— Section 216C of the Principal Act is amended in subsection (5) by substituting “€15,000” for “€10,000”.

Amendment of section 664 (relief for certain income from leasing of farm land) of Principal Act.

16.— (1) Section 664 of the Principal Act is amended— (a) in subsection (1)(a) in the definition of “the specified amount”— (i) in paragraph (ii)(VI)(B) of that definition by deleting “or” where it last occurs, (ii) by substituting the following for paragraph (ii)(VII) of that definition: “(VII) in the period beginning on 1 January 2006 and ending on 31 December 2006— (A) €15,000, in a case where the qualifying lease or qualifying leases is or are for a definite term of 7 years or more, and (B) €12,000, in any other case, or (VIII) on or after 1 January 2007— (A) €20,000, in a case where the qualifying lease or qualifying leases is or are for a definite term of 10 years or more, (B) €15,000, in a case where the qualifying lease or qualifying leases is or are for a definite term of 7 years or more, other than a case to which clause (A) applies, and (C) €12,000, in any other case,”, and (iii) in paragraph (iii) of that definition by substituting “subparagraph (I), (II), (III), (IV), (V), (VI), (VII) or (VIII), as may be appropriate, of paragraph (ii) of this definition” for “clause (I), (II), (III), (IV) or (V), as may be appropriate, of subparagraph (ii)”, and (b) in subsection (1)(b) by substituting the following for subparagraph (v): “(v) from a qualifying lease or qualifying leases made in the period beginning on 1 January 2006 and ending on 31 December 2006, and from a qualifying lease made before 1 January 2006, the specified amount shall not exceed— (I) €15,000, in a case where the qualifying lease or qualifying leases is or are for a definite term of 7 years or more, and (II) €12,000, in any other case; (vi) from a qualifying lease or qualifying leases made on or after 1 January 2007, and from a qualifying lease made at any other time, the specified amount shall not exceed— (I) €20,000, in a case where the qualifying lease or qualifying leases is or are for a definite term of 10 years or more, (II) €15,000, in a case where the qualifying lease or qualifying leases is or are for a definite term of 7 years or more, other than a case to which clause (I) applies, and (III) €12,000, in any other case.”.

Retirement benefits.

17.— (1) Part 30 of the Principal Act is amended— (a) in Chapter 1 by inserting the following after section 772: “Approval of retirement benefits products.

772A.— (1) In this section— ‘ promoter ’ means a person lawfully carrying on the business of granting annuities on human life and, where that person— (a) is not resident in the State, or (b) is not trading in the State through a fixed place of business, that person is an insurance undertaking authorised to transact insurance business in the State under Directive 2002/83/EC of the European Parliament and of the Council of 5 November 2002 1 ; ‘retirement benefits product’ means a product for the provision of relevant benefits in respect of which an application for approval has been made by a promoter to the Revenue Commissioners under this section and under which, if and when approved, a single member retirement benefits scheme may be established by way of a contract entered into with the promoter to secure the scheme; ‘single member retirement benefits scheme’, in relation to a retirement benefits product, means a retirement benefits scheme that relates to a single employee; ‘terms and rules’, in relation to a retirement benefits product, means the provisions governing a retirement benefits scheme to be established under the product, by whatever name such provisions are called.

Provisions relating to Chapter 2A (limitation on amount of certain reliefs used by certain high income individuals) of Part 15 of Principal Act.

18.— (1) Chapter 2A of Part 15 of the Principal Act is amended— (a) in section 485C— (i) in subsection (1)— (I) by substituting “In this Chapter and in Schedules 25B and 25C,” for “In this Chapter and Schedule 25B,”, (II) by substituting the following for the construction of “T” in the formula to the definition of “adjusted income”: “T is the amount of the individual’s taxable income for the tax year determined on the basis that— (a) this Chapter, other than section 485F, does not apply to the individual for the tax year, and (b) if the individual, being a married person, is assessable to tax for the tax year otherwise than under section 1016, the provisions under which the individual is assessable are modified in accordance with paragraphs (i) to (vi) of section 485FA,”, (III) by inserting the following after the definition of “excess relief”: “ ‘ Revenue officer ’ means an officer of the Revenue Commissioners;”, (IV) by substituting the following paragraphs for paragraph (b) of the definition of “ring-fenced income”: “(b) income referred to in section 261B or 267M, (c) income charged to tax in accordance with clause (I) or (II)(B) of section 730J(1)(a)(i) or section 730K(1)(b), and (d) income charged to tax in accordance with section 747D(a)(i) or section 747E(1)(b);”, and (V) by substituting “any relief arising under, or by virtue of, any of the provisions” for “any of the reliefs” in the definition of “specified relief”, (ii) by substituting the following paragraphs for paragraph (a) of subsection (3): “(a) where, in relation to any tax year and the capital allowances to be given effect to in that year, any provision of the Tax Acts requires allowances (in this paragraph referred to as the ‘first-mentioned allowances’) for one period to be given effect to, or to be deemed to be given effect to, in priority to allowances for another period (in this paragraph referred to as the ‘second-mentioned allowances’), then— (i) as respects the first-mentioned allowances, effect shall be given, or be deemed to be given, as the case may be, for an allowance which is not a specified relief in priority to any such allowance which is a specified relief and in priority to the second-mentioned allowances, and (ii) as respects the second-mentioned allowances, effect shall be given, or be deemed to be given, as the case may be, for an allowance which is not a specified relief in priority to any such allowance which is a specified relief, (ab) a deduction authorised by subsection (2) of section 97 shall be allowed in respect of a matter which is specifically referred to in that subsection in priority to a deduction authorised to be made under that subsection by virtue of a specified relief,

(ac) a deduction from total income shall be made in respect of a relief due for a tax year which is not a specified relief in priority to any such deduction due for the tax year which is a specified relief,”, and (iii) by substituting the following for subsection (4): “(4) Schedules 25B and 25C shall have effect for the purposes of this Chapter.”, (b) in section 485D(b) by substituting “the specified reliefs used by the individual in respect of the tax year” for “the specified reliefs used by the individual in the tax year”, (c) by substituting “sections 485F and 485FA” for “section 485F” in the construction of “T” in the formula in section 485E, (d) by inserting the following after section 485F: “Adaptation of provisions relating to taxation of married persons.

485FA.— Where this Chapter applies to an individual or his or her spouse for a tax year, and— (a) an election under section 1018 (including a deemed election under that section) to be assessed to tax in accordance with section 1017 has effect for the tax year, (b) an application under section 1023 has effect for that year, or (c) the provisions of section 1019(3) apply for that year, in respect of the individual and his or her spouse, then the following provisions shall apply: (i) the definition of ‘chargeable tax’ in section 3(1) shall apply as if the references to total income were references to taxable income; (ii) subsection (1) of section 1017 shall apply as if the following paragraph was substituted for paragraph (a) of that subsection: ‘(a) the husband shall be assessed and charged to income tax, not only in respect of his taxable income (if any) for that year, but also in respect of his wife’s taxable income (if any) for any part of that year of assessment during which she is living with him and, for this purpose and for the purposes of the Income Tax Acts, the last-mentioned income shall be deemed to be his income,’; (iii) the references to total income in— (I) subsection (3), (II) paragraph (a) of subsection (4) other than the references in subparagraph (ii) of that paragraph, and (III) subsection (4)(b), of section 1019 shall be construed as references to taxable income; (iv) the reference to so assessed and charged for each subsequent year of assessment in section 1019(4)(a) shall be construed as a reference to— (I) assessed and charged in respect of her taxable income (if any) and the taxable income (if any) of her husband for each subsequent year of assessment, where this Chapter applies for a tax year to either or both spouses, and (II) assessed and charged in respect of her total income (if any) and the total income (if any) of her husband for each subsequent year of assessment, in any other case; (v) the reference to so assessed to income tax for the year of assessment in which that notice or application is withdrawn and for each subsequent year of assessment in section 1019(4)(b) shall be construed as a reference to— (I) assessed to income tax in respect of her own taxable income (if any) and the taxable income (if any) of her husband for the year of assessment in which that notice or application is withdrawn and for each subsequent year of assessment, where this Chapter applies for a tax year to either or both spouses, and (II) assessed to income tax in respect of her own total income (if any) and the total income (if any) of her husband for the year of assessment in which that notice or application is withdrawn and for each subsequent year of assessment, in any other case;

and (vi) where paragraph (a) or (c) apply to an individual and his or her spouse for a tax year, then to the extent that— (I) the benefit flowing from such deductions as are specified in the provisions referred to in Part 1 of the Table to section 458 for the tax year exceeds the income tax chargeable on the individual’s income for the tax year, the balance shall be applied to reduce the income tax chargeable on the income of the individual’s spouse for that year, and (II) the benefit flowing from such deductions exceed the income tax chargeable on the spouse’s income for that year, the balance shall be applied to reduce the income tax chargeable on the income of the individual for that year.

Requirement to provide estimates and information.

485FB.— (1) In this section— ‘ chargeable person ’ and ‘ specified return date for the chargeable period’ have the same meanings as in Part 41; ‘ prescribed form ’ means a form prescribed by the Revenue Commissioners or a form used under the authority of the Revenue Commissioners, and includes a form which involves the delivery of a statement by any electronic, photographic or other process approved of by the Revenue Commissioners.

(c) Where, but for this Chapter, no assessment to income tax would be made on an individual for a tax year, then a Revenue officer shall, notwithstanding any other provision of the Tax Acts, make an assessment to income tax on the individual to the best of the officer’s judgement of the amounts chargeable to income tax, including any amount chargeable by virtue of paragraph (a), and the provisions of the Tax Acts, including in particular those provisions relating to the assessment, collection and recovery of tax and the payment of interest on unpaid tax, shall apply as respects— (i) any amount chargeable to income tax by virtue of paragraph (a), and (ii) any assessment to income tax made on the individual by virtue of this paragraph.”.

Section 304(4)

(income tax: allowances and charges in taxing a trade, etc.).

An amount equal to— (a) as respects the tax year 2007, the amount determined in accordance with paragraph 1 of Schedule 25C as referable to specified reliefs less any part of that amount (in this provision referred to as the ‘surplus’) for which effect cannot be given in that tax year, and (b) as respects any subsequent tax year, the surplus or that part of the surplus for which effect is given in that subsequent tax year.

15B

Section 305(1) (income tax: manner of granting, and effect of, allowances made by means of discharge or repayment of tax).

An amount equal to— (a) as respects the tax year 2007, the amount determined in accordance with paragraph 3 of Schedule 25C as referable to specified reliefs less any part of that amount (in this provision referred to as the ‘surplus’) for which effect cannot be given in that tax year, and (b) as respects any subsequent tax year, the surplus or that part of the surplus for which effect is given in that subsequent tax year. ”, (c) at reference number 38, in column (3), by substituting the following for paragraph (b): “(b) the amount determined by the formula— (G + E) — (D + R) where— G is the aggregate of the gross amount of each rent received by the individual for the tax year, E is the individual’s total receipts from easements for the tax year, D is the total amount of deductions authorised by section 97(2) to which the individual is entitled for the tax year apart from any deduction authorised by section 372AP or section 372AU, and R is the amount determined under this Schedule as the amount of specified relief in respect of section 372AP, but the amount so determined shall not exceed the amount determined by the formula— (G + E) — D where G, E and D have the same meanings as they have in the first formula in this paragraph,”, (d) at reference number 41, in column (3), by substituting “a specified relief” for “capital allowances, being allowances which are specified reliefs”, (e) at reference number 43, in column (3), by substituting the following for the existing material: “To the extent that the excess referred to in section 384 is referable to a specified relief, the amount of the excess or any portion of the excess that is so referable in respect of which the individual is given relief under that section for the tax year less any part of that excess for which relief cannot be given under that section for that year.”, (f) at reference number 51, in column (3), by substituting “deducted from or set off against any income of the individual” for “deducted from the individual’s total income”, and (g) at reference number 52, in column (3), by substituting “deducted from or set off against any income of the individual” for “deducted from the individual’s total income”.

SCHEDULE 25C Determination of Amount of Relief to be Treated as Referable to Specified Reliefs as Respects Relief Carried Forward from Tax Year 2006 to Tax Year 2007 Determination of amount of capital allowances carried forward under section 304 which are referable to specified reliefs.

Determination of amount of losses carried forward under section 382 which are referable to specified reliefs.

(b) which were deemed to be the allowances for any of those years by that section, but the allowances made to the individual in respect of any year shall only be included in the aggregate if a claim was made in respect of those allowances for that year by virtue of the provisions of Chapter 2 of Part 12.

Determination of the amount of capital allowances made in charging income under Case V of Schedule D and carried forward under section 305 that is referable to specified reliefs.

Determination of the amount of the excess carried forward under section 384 which is referable to specified reliefs.

Right to seek a different apportionment basis.

Chapter 3

Income Tax, Corporation Tax and Capital Gains Tax Amendment of Part 16 (income tax relief for investment in corporate trades — business expansion scheme and seed capital scheme) of Principal Act.

19.— (1) Part 16 of the Principal Act is amended— (a) in section 488(1)— (i) in paragraph (d) of the definition of “relevant period” by substituting “one year” for “2 years” in both places where it occurs, and (ii) in the definition of “unquoted company” by substituting “Irish Enterprise Exchange” for “Developing Companies Market” in each place where it occurs, (b) in section 489— (i) by inserting the following after subsection (4B)(inserted by the Finance Act 2004 ): “(4C) Notwithstanding any other provision of this section, where— (a) (i) in accordance with section 508 relief is due in respect of an amount subscribed as nominee for a qualifying individual by the managers of a designated fund, (ii) the amount so subscribed was subscribed to the designated fund in the period beginning on 1 January 2007 and ending on 31 January 2007, and (iii) the eligible shares in respect of which the amount is subscribed by the managers of the designated fund are issued on or before 31 December 2007, or (b) eligible shares are issued by a qualifying company to a qualifying individual in the period beginning on 1 January 2007 and ending on 31 January 2007, then the qualifying individual may elect, by notice in writing to the inspector, to have the relief due given as a deduction from his or her total income for the year of assessment 2006 instead of (as provided for in subsection (3)) as a deduction from his or her total income for the year of assessment 2007 and, where an election is so made, the relief to be given for the year of assessment 2006 shall be in accordance with section 490(2) as it applied for that year.”, and (ii) in subsection (15) by substituting “31 December 2013” for “31 December 2006”, (c) in section 490— (i) in subsection (2) by substituting “€100,000 in the case of a relevant investment, or €150,000 in any other case” for “€31,750”, (ii) in subsection (3)(a) by substituting “, (4B) or (4C)” for “or (4B)”, and (iii) in subsections (3)(b) and (4)(b) by substituting “2013” for “2006”, (d) in section 491— (i) in subsections (2)(a) and (3)(a)— (I) by substituting “1 January 2007” for “1 January 2002”, and (II) by substituting the following for the definition of “A” in the formula: “A is €2,000,000,”, (ii) by deleting subsections (2)(b) and (3)(b), and (iii) in subsection (3A)— (I) by substituting “12 months” for “6 months”, and (II) by substituting “€1,500,000” for “€750,000”, (e) in section 493 in subsection (8)(a)(i) by substituting “€500,000” for “€317,500”, (f) in section 496— (i) in subsection (2)(a)—

(I) in subparagraph (ii)(I) by substituting the following for subclause (A): “(A) the making of a grant towards the employment of persons under section 25 of the Industrial Development Act 1986 (as amended by section 29 of the Industrial Development (Science Foundation Ireland) Act 2003 ), was approved by Forbairt or the Industrial Development Agency (Ireland), or”, (II) by substituting the following for subparagraph (v): “(v) in respect of a relevant investment, the rendering of services 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 a certificate confirming eligibility for the grant of financial support of not less than €2,540 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,”, (III) by deleting “and” at the end of subparagraph (xiii) and inserting “and” at the end of subparagraph (xv), and (IV) by inserting the following after subparagraph (xv): “(xvi) recycling activities in relation to waste material, within the meaning of subsection (9A).”, and deleting “and” where it last occurs in paragraph (a), and (ii) after subsection (9) by inserting the following: “(9A) (a) For the purposes of subsection (2)(a)(xvi) ‘recycling activities in relation to waste material’ means the subjection of the waste material to any process or treatment which results in value-added material that is reusable and, in respect of which activities, a grant or financial assistance has been made available by an industrial development agency. (b) For the purposes of paragraph (a) ‘waste material’ means any of the following: (i) packaging; (ii) construction and demolition waste; (iii) metals, wood, glass and plastics; (iv) electrical and electronic equipment; (v) batteries; (vi) end of life mechanically propelled vehicles.”, and (g) by inserting the following after section 508: “Reporting of relief.

508A.— (1) A person (being a qualifying company or the managers of a designated fund) shall, when required to do so by notice in writing by the Revenue Commissioners, furnish the Revenue Commissioners within such time as may be specified in the notice (not being less than 30 days) with such information, in relation to the relief provided for in this Part, as the Revenue Commissioners may reasonably require from that person for the purpose of the annual reports required in accordance with section 7.1 of the Community Guidelines on State Aid to Promote Risk Capital Investments in Small and Medium-Sized Enterprises 2 .

Amendment of Part 40 (appeals) of Principal Act.

20.— (1) Part 40 of the Principal Act (as amended by the Finance Act 2005 ) is amended— (a) in section 934, by substituting the following for subsection (6): “(6) Where an appeal is determined by the Appeal Commissioners, the inspector or other officer shall, unless either— (a) the person assessed requires that that person’s appeal shall be reheard under section 942, or (b) under the Tax Acts a case is required to be stated for the opinion of the High Court, give effect to the Appeal Commissioners’ determination and thereupon, if the determination is that the assessment is to stand or is to be amended, the assessment or the amended assessment, as the case may be, shall have the same force and effect as if it were an assessment in respect of which no notice of appeal had been given.”, (b) in section 941, by substituting the following for subsection (9): “(9) If the amount of the assessment is altered by the order or judgment of the Supreme Court or the High Court, then— (a) if too much tax has been paid, the amount overpaid shall be refunded with interest in accordance with section 865A, or (b) if too little tax has been paid, the amount unpaid shall be deemed to be arrears of tax (except in so far as any penalty is incurred on account of arrears) and shall be paid and recovered accordingly.”, (c) in section 942, by substituting the following for subsection (6): “(6) Where an appeal is determined by the judge, the inspector or other officer shall, unless under the Tax Acts a case is required to be stated for the opinion of the High Court, give effect to the judge’s determination and thereupon, if the determination is that the assessment is to stand or is to be amended, the assessment or the amended assessment, as the case may be, shall have the same force and effect as if it were an assessment in respect of which no notice of appeal had been given.”, and (d) in section 945(2), by inserting “and” at the end of paragraph (h) and by deleting paragraph (i).

Amendment of section 373 (interpretation (Part 11)) of Principal Act.

21.— Section 373 of the Principal Act is amended in subsection (2)— (a) by substituting “1 January 2006;” for “1 January 2006.” in paragraph (o)(ii), and (b) by inserting the following after paragraph (o): “(p) €24,000, where the expenditure was incurred— (i) in an accounting period ending on or after 1 January 2007, or (ii) in a basis period for a year of assessment, where that basis period ends on or after 1 January 2007.”.

Amendment of section 657A (taxation of certain farm payments) of Principal Act.

22.— Section 657A of the Principal Act is amended— (a) in subsection (1) in the definition of “relevant individual” by substituting “the same year of assessment” for “the year of assessment 2005” in the first place it occurs and by substituting “that year of assessment” in the second place it occurs, (b) by substituting the following for subsection (3): “(3) Notwithstanding any other provision of the Income Tax Acts apart from subsection (4), where an individual elects in accordance with subsection (2), then the relevant payment or relevant payments shall— (a) be disregarded as respects the ‘same year of assessment’ referred to in the definition of ‘relevant individual’ in subsection (1), and (b) instead be treated for the purposes of the Income Tax Acts as arising in equal instalments in the year of assessment that is such same year of assessment and in the 2 immediately succeeding years of assessment.”, and (c) by substituting the following for subsection (5): “(5) An election under subsection (2) by a person to whom this section applies, shall be made by notice in writing on or before 31 October in the year following the ‘same year of assessment’ referred to in the definition of ‘relevant individual’ in subsection (1), and shall be included in the annual statement required to be delivered on or before that date under the Income Tax Acts of the profits or gains from farming for the year of assessment that is such same year of assessment.”.

Restructuring aid for sugar beet growers.

23.— Chapter 1 of Part 23 of the Principal Act is amended by inserting the following after section 657A: “657B.— (1) In this section— ‘ specified individual ’ means an individual who carries on in the year of assessment 2007 or in any subsequent year of assessment the trade of farming in respect of which the individual is within the charge to tax under Case I of Schedule D; ‘ specified payment ’ means a payment to a specified individual under the EU temporary scheme for the restructuring of the sugar industry in the Community, operated by the Department of Agriculture and Food under Article 3(6) first indent, of Council Regulation (EC) No. 320/2006 3 of 20 February 2006, in respect of which the specified individual would, apart from this section, be chargeable to income tax on the profits or gains from farming for the year of assessment 2007 or for any subsequent year of assessment.

Amendment of Chapter 2 (farming: relief for increase in stock values) of Part 23 of Principal Act.

24.— (1) Chapter 2 of Part 23 of the Principal Act is amended— (a) in section 666(4) by substituting “31 December 2008” for “31 December 2006” in paragraph (a) and “year 2008” for “year 2006” in paragraph (b), (b) in section 667A by substituting “31 December 2008” for “31 December 2006” in subsection (6)(b), and (c) by inserting the following new section after section 667A: “New arrangements for qualifying farmers.

667B.— (1) In this section ‘ qualifying farmer ’ means an individual who— (a) in the year 2007 or any subsequent year of assessment first qualifies for grant aid under the scheme of Installation Aid for Young Farmers operated by the Department of Agriculture and Food under Council Regulation (EEC) No. 797/85 of 12 March 1985 4 or that Regulation as may be revised from time to time, or (b) (i) first becomes chargeable to income tax under Case I of Schedule D in respect of profits or gains from the trade of farming for the year 2007 or any subsequent year of assessment, (ii) has not attained the age of 35 years at the commencement of the year of assessment referred to in subparagraph (i), and (iii) at any time in the year of assessment so referred to satisfies the conditions set out in subsection (2) or (3).

TABLE 1. Qualifications awarded by the Further Education and Training Awards Council: (a) Level 6 Advanced Certificate in Farming; (b) Level 6 Advanced Certificate in Agriculture; (c) Level 6 Advanced Certificate in Dairy Herd Management; (d) Level 6 Advanced Certificate in Drystock Management; (e) Level 6 Advanced Certificate in Agricultural Mechanisation; (f) Level 6 Advanced Certificate in Farm Management; (g) Level 6 Advanced Certificate in Machinery and Crop Management; (h) Level 6 Advanced Certificate in Horticulture; (i) Level 6 Advanced Certificate in Forestry; (j) Level 6 Advanced Certificate in Stud Management; (k) Level 6 Advanced Certificate in Horsemanship.

Amendment of section 669A (interpretation) of Principal Act.

25.— Section 669A of the Principal Act is amended in the definition of “ qualifying expenditure ” by substituting the following for paragraph (b)(ii): “(ii) the amount of capital expenditure which would have been incurred on the purchase of that milk quota if the price paid were set otherwise than by the Minister for Agriculture and Food for the purposes of a Milk Quota Restructuring Scheme in the area in which the land, with which that milk quota is associated, is situated;”.

Taxation of stallion profits and gains.

26.— (1) The Principal Act is amended— (a) in section 381 by inserting the following after subsection (2): “(2A) Subsection (2) shall cease to have effect as respects losses arising on or after 1 August 2008 and, as respects the chargeable period in which 1 August 2008 occurs, the amount of such losses will be determined by the formula— A x B C where— A is the total amount of losses arising in the chargeable period, B is the length, in days, of the period beginning on 1 August 2008 and ending on the last day of the chargeable period in which 1 August 2008 occurs, and C is the length, in days, of the chargeable period.”, and (b) by inserting the following Chapter into Part 23 after Chapter 3: “Chapter 4 Taxation of stallion profits and gains Interpretation (Chapter 4).

669G.— In this Chapter— ‘ excess relief ’ has the same meaning as in section 485C; ‘ initial value ’ in relation to a stallion means its market value on— (a) 1 August 2008, or (b) the day it is either acquired for, or appropriated to, stud activities, as the case may be, whichever is later, and any reference to a stallion includes a reference to an interest in a stallion; ‘ market value ’, at any time in relation to a stallion, means the price which the stallion might reasonably be expected to fetch on a sale in the open market and in a case where a person (the ‘purchaser’) acquires the stallion from another person (the ‘vendor’)— (a) at arm’s length, and (b) the purchaser and the vendor are not connected persons (within the meaning of section 10), then the market value is the price paid; ‘ relevant amount ’, in relation to a year of assessment and an individual, means an amount determined by the formula— A — B where— A is the amount of income tax payable by the individual for the year of assessment, and B is the amount of income tax which would be payable by the individual for the year of assessment if— (a) the entry at Reference Number 6 of Schedule 25B had not been enacted, and (b) for the purposes of the entry at Reference Number 1 of Schedule 25B the definition of ‘exempt profits’ in section 140(1) did not include profits or gains which by virtue of section 231 were not charged to tax; ‘ relevant excess relief ’, in relation to a year of assessment and an individual, means an amount determined by the formula— C — D where— C is the amount of excess relief which is carried forward to the next year of assessment and which the individual is entitled to deduct from his or her total income for that year, and D is the amount of excess relief which would be carried forward to the next year of assessment and which the individual would be entitled to deduct from his or her total income for that year if— (a) the entry at Reference Number 6 of Schedule 25B had not been enacted, and (b) for the purposes of the entry at Reference Number 1 of Schedule 25B the definition of ‘exempt profits’ in section 140(1) did not include profits or gains which by virtue of section 231 were not charged to tax; ‘ residual value ’, in relation to a stallion, at any time, means— (a) an amount equal to the initial value of the stallion, or (b) if less, the amount by which the initial value of the stallion exceeds— (i) the amount which has been allowed as a deduction under section 669I for a chargeable period ending before that time, or

(ii) where there is more than one such amount, the aggregate of such amounts.

Charging provisions.

669H.— (1) The profits or gains arising in any chargeable period to the owner or part-owner of a stallion from the sale of services of mares by the stallion or rights to such services shall be chargeable to income tax or corporation tax, as the case may be, in accordance with subsection (2).

Provisions as to deductions.

669I.— (1) Where any person acquires ownership or part-ownership of a stallion, the profits or gains in relation to which are chargeable in accordance with section 669H(2), then that person, in computing the amount of income to be charged to tax under the Tax Acts for any chargeable period, shall not be entitled, other than in accordance with subsection (2), to any deduction in respect of expenditure incurred on such acquisition.

Credit for tax paid.

669J.— (1) Subject to the provisions of this section, any individual, to whom Chapter 2A of Part 15 applies for any year of assessment, who has made a payment which includes a relevant amount in respect of that year of assessment shall, without prejudice to the payment so made, be treated as having made a payment on account of income tax of an amount equal to the relevant amount.

Miscellaneous (Chapter 4).

669K.— (1) For the purposes of determining the market value of a stallion to which this Chapter applies, the Revenue Commissioners may consult with such person or body of persons as, in their opinion, may be of assistance to them.

Amendment of Schedule 26A (donations to approved bodies, etc.) to Principal Act.

27.— (1) Schedule 26A to the Principal Act is amended— (a) in Part 1— (i) by deleting “in the State” in each place it occurs in paragraphs 3 to 7, and (ii) by deleting paragraphs 8 to 16, and paragraph 18, and (b) in Part 2 by substituting the following for the definition of “approved body” in paragraph 1: “ ‘ approved body ’ means any body or institution which may be approved of by the Minister for Finance and which— (a) provides any course one of the conditions of entry to which is related to the results of the Leaving Certificate Examination, a matriculation examination of a recognised university in the State or an equivalent examination held outside the State, or (b) (i) is established on a permanent basis solely for the advancement of one or more approved subjects, (ii) contributes to the advancement of that subject or those subjects on a national or regional basis, and (iii) is prohibited by its constitution from distributing to its members any of its assets or profits;”.

Capital allowances for qualifying residential units associated with registered nursing homes.

28.— (1) Part 9 of the Principal Act is amended― (a) in section 268― (i) in subsection (3A)― (I) by substituting “Subject to subsections (3B) to (3E), in this section” for “In this section”, and (II) by substituting the following for subparagraph (i) of paragraph (d): “(i) is leased to a person and, as the case may be, the spouse of that person― (I) who is or, as the case may be, are not connected (within the meaning of section 10) with the lessor, (II) who has or have been selected as the occupant or occupants of the house by the registered nursing home, and (III) either the person or the spouse of that person has been certified by a person, who is registered in the General Register of Medical Practitioners, as requiring such accommodation by reason of old age or infirmity, or”, (ii) by substituting the following for subsection (3B): “(3B) (a) For the purposes of this section ‘house’, in relation to a qualifying residential unit, has the same meaning as in section 372AK. (b) For the purposes only of the making of allowances and charges under this Part but subject to subsection (3C) and sections 270 and 316 (as amended by the Finance Act 2007), as respects capital expenditure incurred in the period commencing on 25 March 2002 and ending on 30 April 2010, a house in use as a qualifying residential unit shall be deemed to be a building in use for the purposes of a trade referred to in subsection (1)(g).”, and (iii) by inserting the following after subsection (3C): “(3D) Where the relevant interest in relation to capital expenditure incurred on the construction or refurbishment of all qualifying residential units in a development is held by a company (within the meaning of section 4(1)) then subsection (3A) shall apply as if subparagraphs (iv) and (v) of paragraph (c) of that subsection were deleted. (3E) A house shall not be a qualifying residential unit for the purposes of this section unless― (a) the following information has been provided to the Health Service Executive, by the person who is entitled to the relevant interest in relation to the capital expenditure incurred on the construction or refurbishment of the house, for onward transmission to the Minister for Health and Children and the Minister for Finance: (i) the amount of the capital expenditure actually incurred on the construction or refurbishment of the house; (ii) the number and nature of the investors that are investing in the house; (iii) the amount to be invested by each investor; and (iv) the nature of the structures which are being put in place to facilitate the investment in the house,

together with such other information as may be specified by the Minister for Finance, in consultation with the Minister for Health and Children, as being of assistance in evaluating the costs, including but not limited to exchequer costs, and the benefits arising from the operation of tax relief under this Part for qualifying residential units, (b) the Health Service Executive, in consultation with the Minister for Health and Children, gives a certificate in writing after the house is first leased or, where capital expenditure is incurred on the refurbishment of a house, first leased subsequent to the incurring of that expenditure stating that it is satisfied that― (i) the house and the development in which it is comprised complies with all the conditions mentioned in paragraphs (a), (b), (c) and (d) of subsection (3A), and (ii) the information required in accordance with paragraph (a) of this subsection has been provided, and (c) an annual report in writing is provided, by the person who is entitled to the relevant interest in relation to the capital expenditure incurred on the construction or refurbishment of the house, to the Health Service Executive, for onward transmission to the Minister for Health and Children and the Minister for Finance, by the end of each year in the 20 year period referred to in section 272(4)(fa) (inserted by the Finance Act 2007), which― (i) confirms whether the house and the development in which it is comprised continue to comply with all the conditions mentioned in paragraphs (a), (b), (c) and (d) of subsection (3A), and (ii) provides details of the level of occupation of the house for the previous year including the age of and, as the case may be, the nature of the infirmity of the occupants.”, (b) in section 270 by inserting the following subsection after subsection (7): “(8) Where capital expenditure is incurred on or after 1 May 2007 under a contract or agreement which is entered into on or after that date for the construction, refurbishment or development of a qualifying residential unit as is referred to in subsection (4)(i), then― (a) subsection (4) shall apply as if the reference to ‘31 July 2008’ were a reference to ‘30 April 2010’, (b) subsection (5) shall apply as if― (i) the reference to ‘subject to subsections (6) and (7)’ were a reference to ‘subject to subsections (6) to (8)’, and (ii) the following paragraphs were substituted for paragraphs (a) and (b): ‘(a) in the case of expenditure incurred by a company (within the meaning of section 4(1)) in the period from 1 May 2007 to 30 April 2010, to 75 per cent, and

(b) in the case of expenditure incurred by a person other than a company (within the meaning of section 4(1)) in the period from 1 May 2007 to 30 April 2010, to 50 per cent,’,”, (c) in section 272(4)― (i) in paragraph (f), by inserting “subject to paragraph (fa),” before “in relation to”, and (ii) by inserting the following paragraph after paragraph (f): “(fa) where subsection (8) of section 270 applies in relation to a qualifying residential unit as is referred to in subsection (4)(i) of that section― (i) 20 years beginning with the time when the unit was first used, or (ii) where capital expenditure on the refurbishment of the unit is incurred, 20 years beginning with the time when the unit was first used subsequent to the incurring of that expenditure,”, (d) in section 274(1)(b)― (i) in subparagraph (iia), by inserting “subject to subparagraph (iib),” before “in relation to”, and (ii) by inserting the following subparagraph after subparagraph (iia): “(iib) where subsection (8) of section 270 applies in relation to a qualifying residential unit as is referred to in subsection (4)(i) of that section― (I) 20 years after the unit was first used, or (II) where capital expenditure on the refurbishment of the unit is incurred, 20 years after the unit was first used subsequent to the incurring of that expenditure,”, and (e) in section 316(2B)― (i) by deleting “or” at the end of paragraph (b) and by substituting “31 July 2008, or” for “31 July 2008,” in paragraph (c), and (ii) by inserting the following paragraph after paragraph (c): “(d) where subsection (8) of section 270 applies in relation to a qualifying residential unit as is referred to in subsection (4)(i) of that section, the period from 1 May 2007 to 30 April 2010,”.

Mid-Shannon corridor tourism infrastructure investment scheme.

29.— (1) The Principal Act is amended— (a) in Part 10, by inserting the following after Chapter 11: “Chapter 12 Mid-Shannon Corridor Tourism Infrastructure Investment Scheme Interpretation, applications for approval and certification.

372AW.— (1) In this Chapter— ‘ accommodation building ’, in relation to a project, means a building or structure or part of a building or structure which consists of accommodation facilities or which is to be used or is suitable for use for the provision of such facilities; ‘ market value ’, in relation to a building or structure, means the price which the unencumbered fee simple of the building or structure would fetch if sold in the open market in such manner and subject to such conditions as might reasonably be calculated to obtain for the vendor the best price for the building or structure, less the part of that price which would be attributable to the acquisition of, or of rights in or over, the land on which the building or structure is constructed; ‘ mid-Shannon corridor ’ means the corridor of land comprising all qualifying mid-Shannon areas; ‘ mid-Shannon Tourism Infrastructure Board ’ means a board consisting of not more than 5 persons selected for the purposes of this Chapter by the Minister in consultation with the Minister for Finance; ‘ Minister ’ means the Minister for Arts, Sport and Tourism; ‘ project ’ means the construction or refurbishment of buildings and structures comprising— (a) a holiday camp of the type referred to in section 372AX(1)(b), or (b) one or more qualifying tourism infrastructure facilities, the site or sites of which is or are wholly within a qualifying mid-Shannon area; ‘ property developer ’ means a person carrying on a trade which consists wholly or mainly of the construction or refurbishment of buildings or structures with a view to their sale; ‘ qualifying mid-Shannon area ’ means any area described in Schedule 8B; ‘ qualifying period ’ means a period of 3 years commencing on the date on which this Chapter comes into effect; ‘ qualifying tourism infrastructure facilities ’ means such class or classes of facilities, comprising of buildings and structures only, as may be approved for the purposes of this Chapter by the Minister, in consultation with the Minister for Finance, and published in the relevant guidelines; ‘ refurbishment ’, in relation to a building or structure, means any work of construction, reconstruction, repair or renewal, including the provision or improvement of water, sewerage or heating facilities, carried out in the course of— (a) the repair or restoration, or (b) maintenance in the nature of repair or restoration, of the building or structure; ‘ relevant guidelines ’ mean guidelines issued in accordance with subsection (3) of this section or any guidelines issued in accordance with that subsection which amend or replace those guidelines.