Finance Act 2004

Finance Act 2004 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 2004 Finance Act 2004 Finance Act 2004 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 8 of 2004 FINANCE ACT 2004 ARRANGEMENT OF SECTIONS

PART 1

Income Tax, Corporation Tax and Capital Gains Tax

Chapter 1

Interpretation Section

Section 1

Interpretation (Part 1).

Chapter 2

Income Tax

Section 2

Age exemption.

Section 3

Employee tax credit.

Section 4

Amendment of section 472C (relief for trade union subscriptions) of Principal Act.

Section 5

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

Section 6

Amendment of section 189 (payments in respect of personal injuries) of Principal Act.

Section 7

Exemption in respect of certain payments under employment law.

Section 8

Exemption in respect of certain benefits-in-kind.

Section 9

Amendment of Chapter 4 (collection and recovery of income tax on certain emoluments (PAYE system)) of Part 42 of Principal Act.

Section 10

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

Section 11

Amendment of section 470 (relief for insurance against expenses of illness) of Principal Act.

Section 12

Payments under Scéim na bhFoghlaimeoirí Gaeilge.

Section 13

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

Section 14

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

Section 15

Amendment of Schedule 12 (employee share ownership trusts) to Principal Act.

Section 16

Occupational pension schemes.

Chapter 3

Income Tax, Corporation Tax and Capital Gains Tax

Section 17

Exemption from tax on certain income and gains.

Section 18

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

Section 19

Transitional arrangements in relation to section 18(1)(a)(ii).

Section 20

Amendment of section 531 (payments to subcontractors in certain industries) of Principal Act.

Section 21

Amendment of section 659 (farming: allowances for capital expenditure on the construction of farm buildings, etc., for control of pollution) of Principal Act.

Section 22

Restriction of relief to individuals in respect of loans applied in acquiring interest in companies.

Section 23

Qualifying residential units.

Section 24

Qualifying hospitals and qualifying sports injuries clinics.

Section 25

Capital allowances for hotels, holiday camps and holiday cottages.

Section 26

Amendment of Part 10 (income tax and corporation tax: reliefs for renewal and improvement of certain urban areas, certain resort areas and certain islands) of Principal Act.

Section 27

Amendment of section 843 (capital allowances for buildings used for third level education purposes) of Principal Act.

Section 28

Amendment of section 481 (relief for investment in films) of Principal Act.

Section 29

Amendment of Chapter 1A (investment undertakings) of Part 27 of Principal Act.

Section 30

Amendment of Chapter 4 (certain offshore funds — taxation and returns) of Part 27 of Principal Act.

Section 31

Amendment of Schedule 24 (relief from income tax and corporation tax by means of credit in respect of foreign tax) to Principal Act.

Section 32

Amendment of section 817C (restriction on deductibility of certain interest) of Principal Act.

Chapter 4

Corporation Tax

Section 33

Tax credit for research and development expenditure, etc.

Section 34

Amendment of section 831 (implementation of Council Directive No. 90/435/EEC concerning the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States) of Principal Act.

Section 35

Taxation of certain short-term leases of plant and machinery.

Section 36

Amendment of section 434 (distributions to be taken into account and meaning of “distributable income”, “investment income”, “estate income”, etc.) of Principal Act.

Section 37

Amendment of section 396B (relief for certain trading losses on a value basis) of Principal Act.

Section 38

Amendment of section 420B (group relief: relief for certain losses on a value basis) of Principal Act.

Section 39

Amendment of section 486B (relief for investment in renewable energy generation) of Principal Act.

Section 40

Amendment of Schedule 4 (exemption of specified non-commercial State sponsored bodies from certain tax provisions) to Principal Act.

Section 41

Exemption from tax for certain interest and royalties payments.

Section 42

Exemption from tax in the case of gains on certain disposals of shares.

PART 2

Excise

Section 43

Amendment of Chapter 1 (alcohol products tax) of Part 2 of Finance Act 2003, etc.

Section 44

Amendment of section 93 (offences in relation to keeping, selling or delivering of unexcised spirits) of Finance Act 2003.

Section 45

Tobacco products.

Section 46

Amendment of section 104 (reliefs) of Finance Act 2001.

Section 47

Amendment of section 124A (administrative penalties) of Finance Act 2001.

Section 48

Rates of mineral oil tax.

Section 49

Amendment of section 94 (interpretation) of Finance Act 1999.

Section 50

Biofuel pilot projects.

Section 51

Amendment of section 100 (reliefs from mineral oil tax for certain mineral oils) of Finance Act 1999.

Section 52

Amendment of section 6 of Roads Act 1920.

Section 53

Amendment of section 141 (regulations) of Finance Act 1992.

PART 3

Value-Added Tax

Section 54

Interpretation (Part 3).

Section 55

Amendment of section 1 (interpretation) of Principal Act.

Section 56

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

Section 57

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

Section 58

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

Section 59

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

Section 60

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

Section 61

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

Section 62

Amendment of section 15B (goods in transit (additional provisions)) of Principal Act.

Section 63

Amendment of section 17 (invoices) of Principal Act.

Section 64

Amendment of First Schedule to Principal Act.

Section 65

Amendment of Fourth Schedule to Principal Act.

PART 4

Stamp Duties

Section 66

Interpretation (Part 4).

Section 67

Amendment of section 73 (exemptions) of Principal Act.

Section 68

Amendment of section 80 (reconstructions or amalgamations of companies) of Principal Act.

Section 69

Amendment of section 81 (young trained farmers) of Principal Act.

Section 70

Further relief from stamp duty in respect of transfers to young trained farmers.

Section 71

Amendment of section 91 (new dwellinghouses and apartments with floor area certificate) of Principal Act.

Section 72

New dwellinghouses and apartments with floor area compliance certificate.

Section 73

Amendment of section 92 (new dwellinghouses and apartments with no floor area certificate) of Principal Act.

Section 74

Intellectual property.

Section 75

Amendment of section 125 (certain premiums of insurance) of Principal Act.

PART 5

Capital Acquisitions Tax

Section 76

Interpretation (Part 5).

Section 77

Amendment of section 2 (general interpretation) of Principal Act.

Section 78

Amendment of section 93 (relevant business property) of Principal Act.

Section 79

Amendment of section 106 (arrangements for relief from double taxation) of Principal Act.

PART 6

Miscellaneous

Section 80

Interpretation (Part 6).

Section 81

Sale of certain objects to Commissioners of Public Works in Ireland.

Section 82

Amendment of section 912A (information for tax authorities in other territories) of Principal Act.

Section 83

Amendment of Part 22 (provisions relating to dealing in or developing land and disposals of development land) of Principal Act.

Section 84

Amendment of section 962 (recovery by sheriff or county registrar) of Principal Act.

Section 85

Amendment of section 1003 (payment of tax by means of donation of heritage items) of Principal Act.

Section 86

Information in respect of certain tax expenditures.

Section 87

Amendment of Chapter 4 (revenue powers) of Part 38 of Principal Act.

Section 88

Amendment of section 908A (revenue offence: power to obtain information from financial institutions) of Principal Act.

Section 89

Miscellaneous technical amendments in relation to tax.

Section 90

Taxation of savings income in the form of interest payments.

Section 91

Deferred surrender to Central Fund.

Section 92

Capital Services Redemption Account.

Section 93

Care and management of taxes and duties.

Section 94

Short title, construction and commencement.

SCHEDULE 1 Exemption from Tax for Certain Interest and Royalties Payments SCHEDULE 2 Rates of Excise Duty on Tobacco Products SCHEDULE 3 Miscellaneous Technical Amendments in Relation to Tax SCHEDULE 4 Taxation of Savings Income in the Form of Interest Payments Acts Referred to Building Control Act 1990 1990, No. 3 Capital Acquisitions Tax Act 1976 1976, No. 8 Capital Acquisitions Tax Consolidation Act 2003 2003, No. 1 Central Bank Act 1971 1971, No. 24 Central Fund (Permanent Provisions) Act 1965 1965, No. 26 Companies Act 1963 1963, No. 33 Companies Acts 1963 to 2003 Copyright and Related Rights Act 2000 2000, No. 28 Criminal Justice Act 1994 1994, No. 15 Electronic Commerce Act 2000 2000, No. 27 Exchequer and Audit Departments Act 1866 20 & 30 Vic., c. 39 Finance Act 1931 1931, No. 31 Finance Act 1950 1950, No. 18 Finance Act 1970 1970, No. 14 Finance Act 1983 1983, No. 15 Finance Act 1991 1991, No. 13 Finance Act 1992 1992, No. 9 Finance Act 1993 1993, No. 13 Finance Act 1996 1996, No. 9 Finance Act 1997 1997, No. 22 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 (Excise Duty on Tobacco Products) Act 1977 1977, No. 32 Finance (Miscellaneous Provisions) Act 1956 1956, No. 47 Health Insurance Act 1994 1994, No. 16 Industrial Development Act 1995 1995, No. 28 Local Authorities (Higher Education Grants) Acts 1968 to 1992 Local Government Act 2001 2001, No. 37 Local Government (Dublin) Act 1993 1993, No. 31 Local Government (Planning and Development) Act 1963 1963, No. 28 Local Government (Planning and Development) Acts 1963 to 1999 Personal Injuries Assessment Board Act 2003 2003, No. 46 Planning and Development Act 2000 2000, No. 30 Plant Varieties (Proprietary Rights) Act 1980 1980, No. 24 Plant Varieties (Proprietary Rights) (Amendment) Act 1998 1998, No. 41 Roads Act 1920 10 & 11 Geo. 5, c. 72 Road Transport Act 1932 1932, No. 2 Social Welfare (Consolidation) Act 1993 1993, No. 27 Stamp Duties Consolidation Act 1999 1999, No. 31 Taxes Consolidation Act 1997 1997, No. 39 Transport Act 1950 1950, No. 12 Transport (Railway Infrastructure) Act 2001 2001, No. 55 Value-Added Tax Act 1972 1972, No. 22 Value-Added Tax (Amendment) Act 1978 1978, No. 34 Value-Added Tax Acts 1972 to 2003 Number 8 of 2004 FINANCE ACT 2004 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. [25th March 2004]

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 Age exemption.

2.—As respects the year of assessment 2004 and subsequent years of assessment, section 188 of the Principal Act is amended, in subsection (2), by substituting “€31,000” for “€30,000” (inserted by the Finance Act 2003 ) and “€15,500” for “€15,000” (as so inserted).

Employee tax credit.

3.—(1) As respects the year of assessment 2004 and subsequent years of assessment, section 472 of the Principal Act is amended, in subsection (4), by substituting “€1,040” for “€800” (inserted by the Finance Act 2003 ) in both places where it occurs.

(2)

Section 3

of the Finance Act 2002 , shall have effect subject to the provisions of this section.

Amendment of section 472C (relief for trade union subscriptions) of Principal Act.

4.—As respects the year of assessment 2004 and subsequent years of assessment, section 472C (inserted by the Finance Act 2001 ) of the Principal Act is amended, in subsection (1), by substituting “€200” for “€130” in the definition of “specified amount”.

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

5.—(1) Schedule 13 to the Principal Act is amended— (a) by substituting “25. The National Tourism Development Authority.” for paragraph 25, (b) by deleting paragraph 27, (c) by substituting “83. The Commission for Communications Regulation.” for paragraph 83, (d) by substituting “94. The Standards in Public Office Commission.” for paragraph 94, and (e) by inserting the following after paragraph 140 (inserted by the Personal Injuries Assessment Board Act 2003 ): “141. The National Council for Curriculum and Assessment.

Amendment of section 189 (payment in respect of personal injuries) of Principal Act.

6.—Section 189 of the Principal Act is amended in subsection (1) by substituting the following for paragraph (b): “(b) (i) pursuant to the issue of an order to pay under section 38 of the Personal Injuries Assessment Board Act 2003 , or (ii) following the institution by or on behalf of the individual of a civil action for damages, in respect of personal injury giving rise to that mental or physical infirmity.”.

Exemption in respect of certain payments under employment law.

7.—The Principal Act is amended in Chapter 1 of Part 7 by inserting the following after section 192: “192A.—(1) In this section— ‘relevant Act’ means an enactment which contains provisions for the protection of employees' rights and entitlements or for the obligations of employers towards their employees; relevant authority' means any of the following— (a) a right commissioner, (b) the Director of Equality Investigations, (c) the Employment Appeals Tribunal, (d) the Labour Court, (e) the Circuit Court, or (f) the High Court.

Exemption in respect of certain benefits-in-kind.

8.—(1) Part 5 of the Principal Act is amended— (a) in section 116— (i) by inserting the following after the definition of “business premises”: “‘business use’, in relation to the use of an asset by a person, means the use of that asset by the person in the performance of the duties of the person's office or employment;”, and (ii) by inserting the following after the definition of “employment”: “‘private use’, in relation to an asset, means use of the asset other than business use.”, (b) in section 118 by substituting the following for subsection (5A) (inserted by the Finance Act 1999 ): “(5A) (a) Subsection (1) shall not apply to expense incurred by the body corporate in or in connection with the provision for a director or employee of a monthly or annual bus or railway pass issued by or on behalf of one or more approved transport providers for travel on either or both bus and railway. (b) In this subsection— ‘approved transport provider’ means— (a) Coras Iompair Éireann or any of its subsidiaries, (b) a holder of a passenger licence granted under section 7 of the Road Transport Act 1932 , (c) a person who provides a passenger transport service under an arrangement entered into with Coras Iompair Éireann in accordance with section 13

(i) a facsimile machine, and (ii) printers, scanners, modems, discs, disc drives, and other peripheral devices designed to be used by being connected to or inserted in a computer and computer software to be used in such equipment. (5E) (a) Subsection (1) shall not apply to expense incurred by the body corporate, or incurred by a director or employee and reimbursed by the body corporate, in or in connection with the payment on behalf of a director or employee of the annual membership fees of a professional body where membership of that body by the director or employee is relevant to the business of the body corporate. (b) Membership of a professional body by a director or employee of a body corporate may be regarded as relevant to the business of that body corporate where— (i) it is necessary for the performance of the duties of the office or employment of the director or employee, or (ii) it facilitates the acquisition of knowledge which— (I) is necessary for or directly related to the performance of the duties of the office or employment of the director or employee, or (II) would be necessary for or directly related to the performance of prospective duties of the office or employment of the director or employee with that body corporate. (5F) Subsection (1) shall not apply to expense incurred by the body corporate in or in connection with the provision, without any transfer of the property in it, for a director or employee of a mechanically propelled road vehicle which is— (a) designed or constructed solely or mainly for the carriage of goods or other burden, and (b) of a type not commonly used as a private vehicle and unsuitable to be so used.”, and (c) in section 121A (inserted by the Finance Act 2003 )— (i) in subsection (1)— (I) by inserting the following before the definition of “van”: “‘gross vehicle weight’, in relation to a vehicle, means the weight which the vehicle is designed or adapted not to exceed when in normal use and travelling on the road laden.”, and (II) in the definition of “van”— (A) by deleting “and” in paragraph (b), (B) by substituting “areas, and” for “areas.”, in paragraph (c), and (C) by inserting the following after paragraph (c): “(d) has a gross vehicle weight not exceeding 3,500 kilograms.”, and (ii) by inserting the following after subsection (2): “(2A) Subsection (2) shall not apply for a year of assessment in respect of the private use of a van made available to a person (in this subsection referred to as the ‘employee’) as set out in that subsection where the following conditions are met—

(a) the van made available to the employee is necessary for the performance of the duties of the employee's employment, (b) the employee is required by the person who made the van available to keep it, when not in use in the performance of the duties of the employee's employment, at or in the vicinity of the employee's private residence, (c) apart from travel between the employee's private residence and workplace, other private use of the van is prohibited by the person making the van available and there is no such other private use, and (d) in the performance of the duties of his or her employment, the employee spends at least 80 per cent of his or her time engaged on such duties away from the premises of the employer to which the employee is attached.”.

Amendment of Chapter 4 (collection and recovery of income tax on certain emoluments (PAYE system)) of Part 42 of Principal Act.

9.—(1) Chapter 4 of Part 42 of the Principal Act is amended— (a) in section 985A (inserted by the Finance Act 2003 )— (i) in subsection (1)— (I) by substituting “Subject to subsection (1A), this section applies” for “This section applies”, and (II) by deleting “excluding perquisites or profits whatever in the form of shares (including stock) in a company, but” in paragraph (a), (ii) by inserting the following after subsection (1)— “(1A) Subsection (1) shall not apply to emoluments in the form of perquisites or profits whatever received by an employee in the form of shares (including stock) being shares or stock in— (a) the company in which the employee holds his or her office or employment, or (b) a company which has control (within the meaning of section 432) of that company.”, (iii) by inserting the following after subsection (4)— “(4A) Any amount of tax which an employer remits in accordance with subsection (4) and any regulations made under that subsection in respect of a notional payment shall be treated as an amount of tax which, at the time the notional payment is made, is deducted in respect of the employee's liability to income tax.”, and (iv) by inserting the following after subsection (6): “(7) Every regulation 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 regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.”, (b) by inserting the following after section 985A— “PAYE settlement agreements.

985B.—(1) In this section ‘qualifying emoluments’ means emoluments, other than emoluments in the form of a payment of money, which are— (a) minor, as regards the amount or type of emolument involved, and (b) irregular, as to the frequency in which or the times at which, the emoluments are provided.

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

10.—(1) Section 122 of the Principal Act is amended in paragraph (a) of subsection (1)— (a) by substituting the following for paragraph (i) of the definition of “employer”: “(i) a person of whom the individual or the spouse of the individual is or was an employee,”, and (b) by substituting “3.5 per cent” for “4.5 per cent” (inserted by the Finance Act 2003 ) in both places where it occurs in the definition of “the specified rate”.

Amendment of section 470 (relief for insurance against expenses of illness) of Principal Act.

11.—Section 470 of the Principal Act is amended, as on and from the passing of this Act, in subsection (1)— (a) by substituting the following for the definition of “authorised insurer”: “ ‘authorised insurer’ means— (a) any undertaking entered in the Register of Health Benefits Undertakings, lawfully carrying on such business of medical insurance referred to in paragraph (a) of the definition of ‘relevant contract’ but, in relation to an individual, also means any undertaking authorised pursuant to Council Directive No. 73/239/EEC of 24 July 19731 , Council Directive No. 88/357/EEC of 22 June 19882 , and Council Directive No. 92/49/EEC of 18 June 19923 , where such a contract was effected with the individual when the individual was not resident in the State but was resident in another Member State of the European Communities, or (b) (i) any undertaking standing authorised under— (I) the European Communities (Non-Life Insurance) Framework Regulations 1994 ( S.I. No. 359 of 1994 ), (II) the European Communities (Non-Life Insurance) Regulations 1976 ( S.I. No. 115 of 1976 ), or (III) the European Communities (Non-Life Insurance) (Amendment) (No. 2) Regulations 1991 ( S.I. No. 142 of 1991 ), or (ii) any undertaking authorised by the authority charged by law with the duty of supervising the activities of insurance undertakings in a Member State of the European Communities other than the State in accordance with Article 6 of Council Directive No. 73/239/EEC of 24 July 1973 as inserted by Article 4 of Council Directive No. 92/49/EEC of 18 June 1992, lawfully carrying on such business of dental insurance referred to in paragraph (b) of the definition of ‘relevant contract’;”, and (b) by substituting the following for the definition of “relevant contract”: “ ‘relevant contract’ means a contract of insurance which, in relation to an individual, the spouse of the individual, or the children or other dependants of the individual or of the spouse of the individual, provides specifically, whether in conjuction with other benefits or not, for the reimbursement or discharge, in whole or in part, of— (a) actual health expenses (within the meaning of section 469), being a contract of medical insurance, or (b) dental expenses other than expenses in respect of routine dental treatment (within the meaning of section 469), being a contract of dental insurance;”.

Payments under Scéim na bhFoghlaimeoirí Gaeilge.

12.—The Principal Act is amended in Chapter 1 of Part 7 by inserting the following after section 216A (inserted by the Finance Act 2001 ): “Payments under Scéim na bhFoghlaimeoirí Gaeilge.

216B.—(1) This section shall apply, in the case of a qualified applicant under a scheme administered by the Minister for Community, Rural and Gaeltacht Affairs and known as Scéim na bhFoghlaimeoirí Gaeilge, to any income received under that scheme in respect of a person who is temporarily resident with the qualified applicant, together with any other income received in the ordinary course in respect of such temporary resident.

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

13.—(1) Chapter 2 of Part 23 of the Principal Act is amended— (a) in subsection 667(1)— (i) by substituting “In this section, but subject to section 667A,” for “In this section,”, (ii) in paragraph (b)(iii) of the definition of “qualifying farmer”— (I) by inserting “or” after “so set out,” in clause (I), (II) by substituting “180 hours.” for “180 hours,” in clause (II) and by deleting “or” where it last occurs in that clause, and (III) by deleting clause (III), and (b) by inserting the following after section 667: “Further provisions for qualifying farmers.

667A.—(1) In this section ‘qualifying farmer’ means an individual who— (a) in the year 2004 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 19851 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 2004 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), (3) or (4).

TABLE 1. Qualifications awarded by the Further Education and Training Awards Council: (a) Vocational Certificate in Agriculture — Level 3; (b) Advanced Certificate in Agriculture; (c) Vocational Certificate in Horticulture — Level 3; (d) Vocational Certificate in Horse Breeding and Training — Level 3; (e) Vocational Certificate in Forestry — Level 3; (f) Awards other than those referred to in subparagraphs (a) to (e) which are, at least, at a standard equivalent to that of the award referred to in subparagraph (a).

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

14.—(1) Section 664 of the Principal Act is amended— (a) in subsection (1)(a)— (i) in paragraph (i) of the definition of “qualifying lessor” by substituting “40 years” for “55 years”, (ii) in the definition of “the specified amount” by substituting— (I) in paragraph (ii)(IV)(B) “in any other case,” for “in any other case, or”, and (II) the following for paragraph (ii)(V): “(V) in the period beginning on 23 January 1996, and ending on 31 December 2003— (A) €7,618.43, in a case where the qualifying lease or qualifying leases is or are for a definite term of 7 years or more, and (B) €5,078.95, in any other case, or (VI) on or after 1 January 2004— (A) €10,000, in a case where the qualifying lease or qualifying leases is or are for a definite term of 7 years or more, and (B) €7,500, in any other case,”, and (b) in subsection (1)(b) by substituting the following for subparagraph (iii): “(iii) from a qualifying lease or qualifying leases made in the period beginning on 23 January 1996, and ending on 31 December 2003, and from a qualifying lease made before 23 January 1996, the specified amount shall not exceed— (I) €7,618.43, in a case where the qualifying lease or qualifying leases is or are for a definite term of 7 years or more, and (II) €5,078.95, in any other case; (iv) from a qualifying lease or qualifying leases made on or after 1 January 2004, and from a qualifying lease made at any other time, the specified amount shall not exceed— (I) €10,000, in a case where the qualifying lease or qualifying leases is or are for a definite term of 7 years or more, and (II) €7,500, in any other case.”.

Amendment of Schedule 12 (employee share ownership trusts) to Principal Act.

15.—Schedule 12 to the Principal Act is amended— (a) in paragraph 11(2C) by inserting “or (3)” after “subparagraph (2B)”, and (b) in paragraph 11A— (i) in subparagraph (5)(a) by inserting “or, in the case of a company referred to in clause (d) of the definition of ‘relevant company’ in paragraph 1(1), at some time within 9 months prior to that day,” after “established by that relevant company,”, (ii) in subparagraph (6)(a) by inserting “or, in the case of a company referred to in clause (d) of the definition of ‘relevant company’ in paragraph 1(1), at some time within 9 months prior to that day,” after “established by that relevant company,”, and (iii) in subparagraph (7) by inserting “or (6)” after “subparagraph (5)”.

Occupational pension schemes.

16.—(1) Section 772 of the Principal Act is amended by inserting the following after subsection (3D): “(3E) A retirement benefits scheme shall neither cease to be an approved scheme nor shall the Revenue Commissioners be prevented from approving a retirement benefits scheme for the purposes of this Chapter because of any provision in the rules of the scheme which makes provision for borrowing by the scheme.”.

CHAPTER 3

Income Tax, Corporation Tax and Capital Gains Tax Exemption from tax on certain income and gains.

17.—(1) Chapter 1 of Part 7 of the Principal Act is amended— (a) in section 189 by substituting the following for subsection (2): “(2) (a) In this subsection— ‘relevant gains’ means chargeable gains (including allowable losses) within the meaning of the Capital Gains Tax Acts, which accrue to an individual, to or in respect of whom payments to which this section applies are made, from the disposal of— (a) assets acquired with such payments, (b) assets acquired with relevant income, or (c) assets acquired directly or indirectly with the proceeds from the disposal of assets referred to in paragraphs (a) and (b); ‘relevant income’ means income which arises to an individual, to or in respect of whom payments to which this section applies are made, from the investment— (a) in whole or in part of such payments, or (b) of income derived directly or indirectly from such payments, being income consisting of dividends or other income which, but for this section, would be chargeable to tax under Schedule C or under Case III, IV (by virtue of section 59 or section 745) or V of Schedule D or under Schedule F. (b) Where for any year of assessment the aggregate of the relevant income arising to and the relevant gains accruing to an individual exceeds 50 per cent of the aggregate of the total income arising to and the total chargeable gains (including allowable losses) accruing to the individual for that year of assessment— (i) the relevant income shall be exempt from income tax and shall not be reckoned in computing total income for the purposes of the Income Tax Acts, but the provisions of those Acts relating to the making of returns shall apply as if this section had not been enacted, and (ii) the relevant gains shall be exempt from capital gains tax, but the provisions of the Capital Gains Tax Acts relating to the making of returns shall apply as if this section had not been enacted. (c) For the purposes of computing whether a chargeable gain is, in whole or in part, a relevant gain, or whether income is, in whole or in part, relevant income, all such apportionments shall be made as are, in the circumstances, just and reasonable.”, (b) in section 189A by substituting the following for subsections (3) and (4): “(3) Gains accruing to trustees of a qualifying trust in respect of the trust funds shall not be chargeable gains for the purposes of the Capital Gains Tax Acts.

(c) assets acquired directly or indirectly with the proceeds from the disposal of assets referred to in paragraphs (a) and (b), shall not be chargeable gains for the purposes of the Capital Gains Tax Acts.

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

18.—(1) Part 16 of the Principal Act is amended— (a) in section 489— (i) by inserting the following after subsection (4A) (inserted by the Finance Act 2002 ): “(4B) 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 2004 and ending on 4 February 2004, 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 2004, or (b) eligible shares are issued by a qualifying company to a qualifying individual in the period beginning on 1 January 2004 and ending on 4 February 2004, 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 2003 instead of (as provided for in subsection (3)) as a deduction from his or her total income for the year of assessment 2004.”, and (ii) in subsection (15), by substituting “4 February 2004” for “31 December 2003”, and (b) in section 490— (i) in subsection (3)(a), by substituting “subsection (4), (4A) or (4B) of section 489” for “section 489(4) or (4A)”, and (ii) in subsections (3)(b) and (4)(b), by substituting “2006” for “2003”.

Transitional arrangements in relation to section 18

19.—(1) In this section— “auditor” means— (a) in relation to a company or its qualifying subsidiary, the person or persons appointed as auditor of the company or its qualifying subsidiary, as appropriate, for all the purposes of the Companies Acts 1963 to 2003, and (b) in relation to a specified designated fund, the person or persons appointed as auditor of that fund; “certifying agency” has the meaning assigned to it by section 488 of the Principal Act; “certifying Minister” has the meaning assigned to it by section 488 of the Principal Act; “County Enterprise Board” means a board referred to in the Schedule to the Industrial Development Act 1995 ; “eligible shares” has the meaning assigned to it by section 488 of the Principal Act; “industrial development agency” has the meaning assigned to it by section 488 of the Principal Act; “the principal provisions” means Part 16 of the Principal Act; “prospectus”, in relation to a company, means any prospectus, notice, circular or advertisement, offering to the public for subscription or purchase any eligible shares of the company, and in this definition “the public” includes any section of the public, whether selected as members of the company or as clients of the person issuing the prospectus or in any other manner; “qualifying subsidiary”, in relation to a company, has the same meaning as it has for the purposes of section 495 of the Principal Act; “qualifying trading operations” has the meaning assigned to it by section 496 of the Principal Act; “specified designated fund” means an investment fund designated under section 508 of the Principal Act which closed on or before 4 February 2004; “the specified period” means the period beginning on 5 February 2003 and ending on 4 February 2004.

and the company proves to the satisfaction of the Revenue Commissioners that the contract which it or its qualifying subsidiary, as the case may be, had entered into was integral to, or consistent with, the purpose for which it had intended to raise money under the principal provisions and that the consideration of the contract is equal to 25 per cent or more of the money which it is intended to so raise.

Amendment of section 531 (payments to subcontractors in certain industries) of Principal Act.

20.—(1) Section 531 of the Principal Act is amended— (a) by inserting the following after subsection (6)(b): “(ba) (i) the setting up by the Revenue Commissioners and the maintenance by them of a register containing details of every person who is a principal within the meaning of section 530(1), and (ii) requiring every such person as is specified in the regulations, to notify the Revenue Commissioners within the period and in such manner as is provided for in the said regulations, that that person is a principal for the purposes of this Chapter;”, (b) by inserting the following after subsection (11)(b): “(ba) Notwithstanding paragraph (a), where the Revenue Commissioners have issued a certificate of authorisation to a person under the provisions of that paragraph or paragraph (b), the Revenue Commissioners may issue a further certificate of authorisation to that person without a requirement that the person make a further application to them in that behalf, where they are satisfied, in respect of that person, in relation to the matters specified in subparagraphs (i) to (vi) of paragraph (a), or, as the case may be, where the provisions of paragraph (b) apply.”, and (c) in subsection (20), by substituting “subsection (17) or subsection (17A)” for “subsection (17)”.

Amendment of section 659 (farming: allowances for capital expenditure on the construction of farm buildings, etc., for control of pollution) of Principal Act.

21.—Section 659 of the Principal Act is amended in subsection (1)(c) by substituting “1 January 2007” for “1 January 2004” (inserted by the Finance Act 2001 ).

Restriction of relief to individuals in respect of loans applied in acquiring interest in companies.

22.—(1) Chapter 3 of Part 8 of the Principal Act is amended by inserting the following section after section 250: “250A.—(1) In this section— ‘distribution’ has the same meaning as it has for the purposes of the Corporation Tax Acts by virtue of section 4; ‘eligible loan’ in relation to an individual and a company, means a loan, being a loan to which section 248 applies, to the individual to defray money applied for any of the purposes specified in that section; ‘relevant interest’ has the same meaning as in section 269; ‘residue of expenditure’ shall be construed in accordance with section 277; ‘specified amount’ in relation to an eligible loan, means the amount of the eligible loan or so much of the eligible loan where the money or, as the case may be, part of the money which was defrayed by that loan and which was applied by the individual— (a) is used after 1 January 2003 by the company directly or indirectly— (i) in the acquisition (whether by the company or by any other person) of the relevant interest in relation to any capital expenditure incurred or deemed to be incurred on the construction or refurbishment of a specified building, (ii) in replacing money used in such acquisition of such an interest, or (iii) in paying off a loan used in such acquisition of such an interest, (b) pays off another eligible loan or so much of another eligible loan where the money or, as the case may be, part of the money which was defrayed by that other loan (or any previous loan or loans which it replaced) and which was applied by the individual was used after 1 January 2003 by the company directly or indirectly for any of the purposes referred to in paragraph (a), or (c) was applied in acquiring, on or after 20 February 2004, any part of the ordinary share capital of a company at least 75 per cent of whose income consists of profits or gains chargeable under Case V of Schedule D in respect of one or more specified buildings; ‘specified building’ means a building or structure, or a part of a building or structure— (a) (i) which is or is to be an industrial building or structure by reason of its use or deemed use for a purpose specified in section 268(1) and in relation to which an allowance has been, or is to be, made to a company under Chapter 1 of Part 9, or (ii) in relation to which an allowance has been, or is to be, so made to a company by virtue of Part 10 or section 843 or 843A, in respect of— (I) the capital expenditure incurred or deemed to be incurred on the construction or refurbishment of the building or structure or, as the case may be, the part of the building or structure, or

(II) the residue of that expenditure, (b) in relation to which at any time beginning on or after 1 January 2003 the company referred to in paragraph (a) is entitled to the relevant interest in relation to the capital expenditure referred to in that paragraph, and (c) in relation to which any other company (not being the company referred to in paragraph (a)) is entitled, at any time subsequent to the time referred to in paragraph (b), to an allowance under Chapter 1 of Part 9, in respect of the capital expenditure referred to in paragraph (a) or the residue of that expenditure, following the acquisition of the relevant interest or any part of the relevant interest in relation to that capital expenditure, whether or not, subsequent to the time referred to in paragraph (b), any other person or persons had previously become entitled to that relevant interest or that part of that relevant interest; ‘specified provisions’ means section 248 and that section as extended by section 250.

Qualifying residential units.

23.—(1) Section 268(3A) of the Principal Act is amended— (a) in paragraph (b)(ii), by substituting the following for “comprised in a two storey building”: “comprised in a building of one or more storeys in relation to which building a fire safety certificate under Part III of the Building Control Regulations 1997 ( S.I. No. 496 of 1997 ) (as amended from time to time) is required, and prior to the commencement of the construction works on the building, is granted by the building control authority (within the meaning of section 2 of the Building Control Act 1990 , as amended by the Local Government (Dublin) Act 1993 and the Local Government Act 2001 ) in whose functional area the building is situated”, and (b) in paragraph (c) by substituting “not less than 10 qualifying residential units” for “not less than 20 qualifying residential units”.

Qualifying hospitals and qualifying sports injuries clinics.

24.—(1) Section 268 of the Principal Act is amended— (a) in subsection (1A), by substituting “shall not, as regards a claim for any allowance under this Part by any such person, be regarded as an industrial building or structure” for “shall not be regarded as an industrial building or structure”, and (b) in subsection (1B), by substituting “shall not, as regards a claim for any allowance under this Part by any such person, be regarded as an industrial building or structure” for “shall not be regarded as an industrial building or structure”.

Capital allowances for hotels, holiday camps and holiday cottages.

25.—(1) Part 9 of the Principal Act is amended— (a) in section 268(13)(b)— (i) by substituting “31 July 2006” for “31 December 2004”, (ii) in subparagraph (i)(I), by inserting “, in so far as planning permission is required,” after “Development Act 2000)”, (iii) in subparagraph (i)(II), by substituting “31 December 2004” for “31 May 2003”, (iv) by deleting “or” between subparagraphs (i) and (ii), (v) in subparagraph (ii)(I), by substituting “a planning application, in so far as planning permission was required,” for “a planning application”, (vi) in subparagraph (ii)(III), by substituting “regulations,” for “regulations.”, and (vii) by inserting the following after subparagraph (ii): “or (iii) where the construction or refurbishment work on the holiday cottage represented by that expenditure is exempted development for the purposes of the Planning and Development Act 2000 by virtue of section 4 of that Act or by virtue of Part 2 of the Planning and Development Regulations 2001 ( S.I. No. 600 of 2001 ) and— (I) a detailed plan in relation to the development work is prepared, (II) a binding contract in writing, under which the expenditure on the development is incurred, is in existence, and (III) work to the value of 5 per cent of the development costs is carried out, not later than 31 December 2004.”, (b) in section 272(8)— (i) by substituting “31 July 2006” for “31 December 2004”, (ii) in paragraph (a)(i), by inserting “, in so far as planning permission is required,” after “Development Act 2000)”, (iii) in paragraph (a) (ii), by substituting “31 December 2004” for “31 May 2003”, (iv) in paragraph (b)(i), by substituting “a planning application, in so far as planning permission was required,” for “a planning application”, (v) by inserting the following paragraph after paragraph (b): “(ba) where the construction or refurbishment work on the building or structure represented by that expenditure is exempted development for the purposes of the Planning and Development Act 2000 by virtue of section 4 of that Act or by virtue of Part 2 of the Planning and Development Regulations 2001 ( S.I. No. 600 of 2001 ) and— (i) a detailed plan in relation to the development work is prepared, (ii) a binding contract in writing, under which the expenditure on the development is incurred, is in existence, and (iii) work to the value of 5 per cent of the development costs is carried out, not later than 31 December 2004.”, and (vi) in paragraph (c)(ii), by substituting “31 December 2004” for “31 May 2003”, (c) in section 274(1A)—

(i) by substituting “31 July 2006” for “31 December 2004”, (ii) in paragraph (a)(i), by inserting “, in so far as planning permission is required,” after “Development Act 2000)”, (iii) in paragraph (a)(ii), by substituting “31 December 2004” for “31 May 2003”, (iv) in paragraph (b)(i), by substituting “a planning application, in so far as planning permission was required,” for “a planning application”, (v) by inserting the following paragraph after paragraph (b): “(ba) where the construction or refurbishment work on the building or structure represented by that expenditure is exempted development for the purposes of the Planning and Development Act 2000 by virtue of section 4 of that Act or by virtue of Part 2 of the Planning and Development Regulations 2001 ( S.I. No. 600 of 2001 ) and— (i) a detailed plan in relation to the development work is prepared, (ii) a binding contract in writing, under which the expenditure on the development is incurred, is in existence, and (iii) work to the value of 5 per cent of the development costs is carried out, not later than 31 December 2004.”, and (vi) in paragraph (c)(ii), by substituting “31 December 2004” for “31 May 2003”, and (d) in section 316, by inserting the following subsection after subsection (2): “(2A) For the purposes only of determining, in relation to a claim for an allowance under Chapter 1 of this Part, whether and to what extent capital expenditure incurred on the construction (within the meaning of section 270) of: (a) a building or structure in use for the purposes of the trade of hotel keeping, or (b) a building or structure deemed to be a building or structure in use for such purposes by virtue of section 268(3), is incurred or not incurred on or before 31 July 2006, only such an amount of that capital expenditure as is properly attributable to work on the construction or refurbishment of the building or structure actually carried out on or before 31 July 2006 shall (notwithstanding subsection (2) and any other provision of the Tax Acts as to the time when any capital expenditure is or is to be treated as incurred) be treated as having been incurred on or before that date.”.

Amendment of Part 10 (income tax and corporation tax: reliefs for renewal and improvement of certain urban areas, certain resort areas and certain islands) of Principal Act.

26.—(1) Part 10 of the Principal Act is amended— (a) in section 344(1), in paragraph (c) of the definition of “qualifying period” by substituting “31 July 2006” for “31 December 2004”, (b) in section 372A— (i) in subsection (1), in the definition of “qualifying period”: (I) by substituting in paragraph (a)(ii), “31 July 2006” for “31 December 2004”, and (II) by substituting the following for paragraph (b): “(b) subject to section 372BA and in relation to a qualifying street, the period commencing on 6 April 2001 and ending on— (i) 31 December 2004, or (ii) where subsection (1B) applies, 31 July 2006;”, and (ii) by inserting the following subsection after subsection (1A): “(1B) This subsection shall apply in relation to a qualifying street, as respects capital expenditure incurred on the construction or refurbishment of a building or structure, if— (a) (i) a planning application (not being an application for outline permission within the meaning of section 36 of the Planning and Development Act 2000 ), in so far as planning permission is required, in respect of the construction or refurbishment work on the building or structure represented by that expenditure, is made in accordance with the Planning and Development Regulations 2001 to 2003, (ii) an acknowledgement of the application, which confirms that the application was received on or before 31 December 2004, is issued by the planning authority in accordance with article 26(2) of the Planning and Development Regulations 2001 ( S.I. No. 600 of 2001 ), and (iii) the application is not an invalid application in respect of which a notice is issued by the planning authority in accordance with article 26(5) of those regulations, (b) (i) a planning application, in so far as planning permission was required, in respect of the construction or refurbishment work on the building or structure represented by that expenditure, was made in accordance with the Local Government (Planning and Development) Regulations 1994 ( S.I. No. 86 of 1994 ), not being an application for outline permission within the meaning of article 3 of those regulations, (ii) an acknowledgement of the application, which confirms that the application was received on or before 10 March 2002, was issued by the planning authority in accordance with article 29(2)(a) of the regulations referred to in subparagraph (i), and (iii) the application was not an invalid application in respect of which a notice was issued by the planning authority in accordance with article 29(2)(b)(i) of those regulations,

or (c) where the construction or refurbishment work on the building or structure represented by that expenditure is exempted development for the purposes of the Planning and Development Act 2000 by virtue of section 4 of that Act or by virtue of Part 2 of the Planning and Development Regulations 2001 ( S.I. No. 600 of 2001 ) and— (i) a detailed plan in relation to the development work is prepared, (ii) a binding contract in writing, under which the expenditure on the development is incurred, is in existence, and (iii) work to the value of 5 per cent of the development costs is carried out, not later than 31 December 2004.”, (c) in section 372B— (i) in paragraph (c)(ii), by substituting “31 July 2006” for “31 December 2004”, and (ii) in paragraph (d)(ii), by substituting “31 July 2006” for “31 December 2004”, (d) in section 372BA(1)— (i) in paragraph (ba), by substituting “where such a street is to be a qualifying street for the purposes of section 372AP, that section shall apply in relation to that street” for “where such an area or areas is or are to be a qualifying area for the purposes of section 372AP, that section shall apply in relation to that area or those areas”, (ii) by inserting the following paragraph after paragraph (ba): “(bb) as respects any such street so described in the order and in so far as this Chapter is concerned, the definition of qualifying period in section 372A shall be construed as a reference to such period as shall be specified in the order in relation to that street; but no such period specified in the order shall commence before 6 April 2001 or end after— (i) 31 December 2004, or (ii) where section 372A(1B) applies, 31 July 2006,”, and (iii) by substituting the following for paragraph (c): “(c) as respects any such street so described in the order and in so far as Chapter 11 of this Part is concerned, the definition of qualifying period in section 372A shall be construed as a reference to such period as shall be specified in the order in relation to that street; but no such period specified in the order shall commence before 6 April 2001 or end after— (i) 31 December 2004, or (ii) where section 372AL(1A) applies, 31 July 2006.”, (e) in section 372L— (i) by numbering the existing provisions in that section as subsection (1), (ii) in paragraph (a) of the definition of “qualifying period” in the said subsection (1), by substituting the following for “and ending on 31 December 2004”: “and ending on— (i) 31 December 2004, or (ii) where subsection (2) applies, 31 July 2006”,

and (iii) by inserting the following subsection after the said subsection (1): “(2) This subsection shall apply, as respects capital expenditure incurred on the construction or refurbishment of a building or structure, if— (a) (i) a planning application (not being an application for outline permission within the meaning of section 36 of the Planning and Development Act 2000 ), in so far as planning permission is required, in respect of the construction or refurbishment work on the building or structure represented by that expenditure, is made in accordance with the Planning and Development Regulations 2001 to 2003, (ii) an acknowledgement of the application, which confirms that the application was received on or before 31 December 2004, is issued by the planning authority in accordance with article 26(2) of the Planning and Development Regulations 2001 ( S.I. No. 600 of 2001 ), and (iii) the application is not an invalid application in respect of which a notice is issued by the planning authority in accordance with article 26(5) of those regulations, (b) (i) a planning application, in so far as planning permission was required, in respect of the construction or refurbishment work on the building or structure represented by that expenditure, was made in accordance with the Local Government (Planning and Development) Regulations 1994 ( S.I. No. 86 of 1994 ), not being an application for outline permission within the meaning of article 3 of those regulations, (ii) an acknowledgement of the application, which confirms that the application was received on or before 10 March 2002, was issued by the planning authority in accordance with article 29(2)(a) of the regulations referred to in subparagraph (i), and (iii) the application was not an invalid application in respect of which a notice was issued by the planning authority in accordance with article 29(2)(b)(i) of those regulations, or (c) where the construction or refurbishment work on the building or structure represented by that expenditure is exempted development for the purposes of the Planning and Development Act 2000 by virtue of section 4 of that Act or by virtue of Part 2 of the Planning and Development Regulations 2001 ( S.I. No. 600 of 2001 ) and— (i) a detailed plan in relation to the development work is prepared, (ii) a binding contract in writing, under which the expenditure on the development is incurred, is in existence, and (iii) work to the value of 5 per cent of the development costs is carried out, not later than 31 December 2004.”,

(f) in section 372U— (i) in subsection (1), by substituting the following for the definition of “qualifying period”: “ ‘qualifying period’ means the period commencing on 1 July 1999 and ending on— (a) 31 December 2004, or (b) where subsection (1A) applies, 31 July 2006;”, and (ii) by inserting the following subsection after subsection (1): “(1A) This subsection shall apply, as respects capital expenditure incurred on the construction or refurbishment of a building or structure, if— (a) (i) a planning application (not being an application for outline permission within the meaning of section 36 of the Planning and Development Act 2000 ), in so far as planning permission is required, in respect of the construction or refurbishment work on the building or structure represented by that expenditure, is made in accordance with the Planning and Development Regulations 2001 to 2003, (ii) an acknowledgement of the application, which confirms that the application was received on or before 31 December 2004, is issued by the planning authority in accordance with article 26(2) of the Planning and Development Regulations 2001 ( S.I. No. 600 of 2001 ), and (iii) the application is not an invalid application in respect of which a notice is issued by the planning authority in accordance with article 26(5) of those regulations, (b) (i) a planning application, in so far as planning permission was required, in respect of the construction or refurbishment work on the building or structure represented by that expenditure, was made in accordance with the Local Government (Planning and Development) Regulations 1994 ( S.I. No. 86 of 1994 ), not being an application for outline permission within the meaning of article 3 of those regulations, (ii) an acknowledgement of the application, which confirms that the application was received on or before 10 March 2002, was issued by the planning authority in accordance with article 29(2)(a) of the regulations referred to in subparagraph (i), and (iii) the application was not an invalid application in respect of which a notice was issued by the planning authority in accordance with article 29(2)(b)(i) of those regulations, or (c) where the construction or refurbishment work on the building or structure represented by that expenditure is exempted development for the purposes of the Planning and Development Act 2000 by virtue of section 4 of that Act or by virtue of Part 2 of the Planning and Development Regulations 2001 ( S.I. No. 600 of 2001 ) and— (i) a detailed plan in relation to the development work is prepared,

(ii) a binding contract in writing, under which the expenditure on the development is incurred, is in existence, and (iii) work to the value of 5 per cent of the development costs is carried out, not later than 31 December 2004.”, (g) in section 372W(2)(c)(i), by substituting “this Chapter or Chapter 11” for “this Chapter”, (h) in section 372AA— (i) in subsection (1), by substituting the following for the definition of “qualifying period”: “ ‘qualifying period’ means, subject to section 372AB, the period commencing on 6 April 2001 and ending on— (a) 31 December 2004, or (b) where subsection (1A) applies, 31 July 2006;”, and (ii) by inserting the following subsection after subsection (1): “(1A) This subsection shall apply, as respects capital expenditure incurred on the construction or refurbishment of a building or structure, if— (a) (i) a planning application (not being an application for outline permission within the meaning of section 36 of the Planning and Development Act 2000 ), in so far as planning permission is required, in respect of the construction or refurbishment work on the building or structure represented by that expenditure, is made in accordance with the Planning and Development Regulations 2001 to 2003, (ii) an acknowledgement of the application, which confirms that the application was received on or before 31 December 2004, is issued by the planning authority in accordance with article 26(2) of the Planning and Development Regulations 2001 ( S.I. No. 600 of 2001 ), and (iii) the application is not an invalid application in respect of which a notice is issued by the planning authority in accordance with article 26(5) of those regulations, (b) (i) a planning application, in so far as planning permission was required, in respect of the construction or refurbishment work on the building or structure represented by that expenditure, was made in accordance with the Local Government (Planning and Development) Regulations 1994 ( S.I. No. 86 of 1994 ), not being an application for outline permission within the meaning of article 3 of those regulations, (ii) an acknowledgement of the application, which confirms that the application was received on or before 10 March 2002, was issued by the planning authority in accordance with article 29(2)(a) of the regulations referred to in subparagraph (i), and (iii) the application was not an invalid application in respect of which a notice was issued by the planning authority in accordance with article 29(2)(b)(i) of those regulations,

or (c) where the construction or refurbishment work on the building or structure represented by that expenditure is exempted development for the purposes of the Planning and Development Act 2000 by virtue of section 4 of that Act or by virtue of Part 2 of the Planning and Development Regulations 2001 ( S.I. No. 600 of 2001 ) and— (i) a detailed plan in relation to the development work is prepared, (ii) a binding contract in writing, under which the expenditure on the development is incurred, is in existence, and (iii) work to the value of 5 per cent of the development costs is carried out, not later than 31 December 2004.”, (i) in section 372AB(1)(c)— (i) in subparagraph (i), by substituting “6 April 2001” for “the day referred to in paragraph (a) of the definition of ‘qualifying period’ in section 372AA”, and (ii) by substituting the following for “or end after 31 December 2003”: “or end after 31 December 2004, or— (I) in the case of sections 372AC and 372AD where section 372AA(1A) applies, end after 31 July 2006, and (II) in the case of any provision of Chapter 11 of this Part where section 372AL(1A) applies, end after 31 July 2006.”, and (j) in section 372AL— (i) in subsection (1)— (I) in paragraph (a)(ii) by substituting “31 July 2006” for “31 December 2004”, (II) in paragraph (b) by substituting “and ending on 31 December 2004 or, where subsection (1A) applies, ending on 31 July 2006” for “and ending on 31 December 2004”, (III) in paragraphs (c)(i) and (c)(ii) by substituting “and ending on 31 December 2004 or, where subsection (1A) applies, ending on 31 July 2006” for “and ending on 31 December 2004”, (IV) in paragraph (d) by substituting “and ending on 31 December 2004 or, where subsection (1A) applies, ending on 31 July 2006” for “and ending on 31 December 2004”, (V) in paragraph (e) by substituting “and ending on 31 December 2004 or, where subsection (1A) applies, ending on 31 July 2006” for “and ending on 31 December 2004”, and (VI) in paragraph (f) by substituting the following for subparagraph (ii): “(ii) where subsection (1A) applies, 31 July 2006.”, and (ii) by inserting the following subsection after subsection (1): “(1A) This subsection shall apply, as respects expenditure incurred on the construction, conversion or, as the case may be, refurbishment of a building or structure, if— (a) (i) a planning application (not being an application for outline permission within the meaning of section 36 of the Planning and Development Act 2000 ), in so far as planning permission is required, in respect of the construction, conversion or refurbishment work on the building or structure represented by that expenditure, is made in accordance with the Planning and Development Regulations 2001 to 2003,

(ii) an acknowledgement of the application, which confirms that the application was received on or before 31 December 2004, is issued by the planning authority in accordance with article 26(2) of the Planning and Development Regulations 2001 ( S.I. No. 600 of 2001 ), and (iii) the application is not an invalid application in respect of which a notice is issued by the planning authority in accordance with article 26(5) of those regulations, (b) (i) a planning application, in so far as planning permission was required, in respect of the construction, conversion or refurbishment work on the building or structure represented by that expenditure, was made in accordance with the Local Government (Planning and Development) Regulations 1994 ( S.I. No. 86 of 1994 ), not being an application for outline permission within the meaning of article 3 of those regulations, (ii) an acknowledgement of the application, which confirms that the application was received on or before 10 March 2002, was issued by the planning authority in accordance with article 29(2)(a) of the regulations referred to in subparagraph (i), and (iii) the application was not an invalid application in respect of which a notice was issued by the planning authority in accordance with article 29(2)(b)(i) of those regulations, or (c) where the construction, conversion or refurbishment work on the building or structure represented by that expenditure is exempted development for the purposes of the Planning and Development Act 2000 by virtue of section 4 of that Act or by virtue of Part 2 of the Planning and Development Regulations 2001 ( S.I. No. 600 of 2001 ) and— (i) a detailed plan in relation to the development work is prepared, (ii) a binding contract in writing, under which the expenditure on the development is incurred, is in existence, and (iii) work to the value of 5 per cent of the development costs is carried out, not later than 31 December 2004.”,

Amendment of section 843 (capital allowances for buildings used for third level education purposes) of Principal Act.

27.—Section 843 of the Principal Act is amended— (a) in subsection (1), by inserting the following after the definition of “qualifying expenditure”: “ ‘qualifying period’ means the period commencing on 1 July 1997 and ending on 31 July 2006;”, (b) in subsection (2), by substituting “Subject to subsections (2A) to (7)” for “Subject to subsections (3) to (7)”, (c) by inserting the following subsection after subsection (2): “(2A) An allowance shall be given by virtue of subsection (2) in relation to any qualifying expenditure on a qualifying premises only in so far as that expenditure is incurred in the qualifying period.”, (d) in subsection (3), by inserting “incurred in the qualifying period” after “qualifying expenditure”, and (e) by inserting the following subsection after subsection (8): “(9) For the purposes only of determining, in relation to a claim for an allowance by virtue of subsection (2), whether and to what extent capital expenditure incurred on the construction of a qualifying premises is incurred or not incurred in the qualifying period, only such an amount of that capital expenditure as is properly attributable to work on the construction of the premises actually carried out during the qualifying period shall (notwithstanding any other provision of the Tax Acts as to the time when any capital expenditure is or is to be treated as incurred) be treated as having been incurred in that period.”.

Amendment of section 481 (relief for investment in films) of Principal Act.

28.—(1) Section 481 of the Principal Act is amended— (a) in subsection (1)— (i) by inserting the following after the definition of “authorised officer”: “ ‘eligible individual’ means an individual who is a citizen of Ireland or of another Member State of the European Communities, or an individual domiciled, resident or ordinarily resident in the State or in another Member State of the European Communities;”, (ii) in the definition of “film”, by substituting the following for paragraph (a): “(a) a film of a kind which is included within the categories of films eligible for certification by the Revenue Commissioners under subsection (2A), as specified in regulations made under subsection (2E), and”, (iii) in the definition of “Minister” by substituting “Arts, Sport and Tourism” for “Arts, Heritage, Gaeltacht and the Islands”, (iv) by substituting the following for the definition of “qualifying film”: “ ‘qualifying film’ means a film in respect of which the Revenue Commissioners have issued a certificate under subsection (2A), which has not been revoked under subsection (2D);”, (v) in the definition of “qualifying period” by substituting “31 December 2008” for “31 December 2004”, and (vi) in the definition of “relevant investment”— (I) by substituting the following for paragraph (b): “(b) paid by the allowable investor company or the qualifying individual, as the case may be, for the purpose of enabling the qualifying company to produce a film in respect of which, at the time such sum of money is paid, the authorised officer has given notice in writing to the qualifying company that the Revenue Commissioners are satisfied for the time being that an application in writing, in the form prescribed by the Revenue Commissioners and containing such information as may be specified in regulations made under subsection (2E), has been made to enable the Revenue Commissioners to consider whether a certificate should be issued to that company under subsection (2A), and”, and (II) by substituting “other than a provision for its repayment in the event of the Revenue Commissioners not giving a certificate under subsection (2A)” for “other than a provision for its repayment in the event of the Minister not giving a certificate under subsection (2)”, (b) in subsection (2)— (i) by substituting the following for paragraphs (a) and (b): “(a) The Minister, on request from the Revenue Commissioners following an application to them by a qualifying company for a certificate under subsection (2A) in relation to a film to be produced by the company, may subject to paragraph (b) and in accordance with regulations made under subsection (2E), give authorisation to the Revenue Commissioners that they may, subject to subsection (2A), issue a certificate under that subsection to the qualifying company in relation to that film.

(b) In considering whether to give the authorisation referred to in paragraph (a), the Minister, in accordance with regulations made under subsection (2E), shall have regard to— (i) the categories of films eligible for certification by the Revenue Commissioners under subsection (2A), as specified in those regulations, and (ii) any contribution which the production of the film is expected to make to either or both the development of the film industry in the State and the promotion and expression of Irish culture, and where such authorisation is given, the Minister, having regard to those matters, shall specify in the authorisation such conditions, as the Minister may consider proper, including a condition— (I) that not less than— (A) 75 per cent, or (B) in the case of a co-production (as specified in regulations made under subsection (2E)), such lower percentage, not being less than 10 per cent, which, the Minister specifies in the authorisation, of the work on the production of the film shall be carried out in the State, (II) in relation to— (A) the employment and responsibilities of the producer, and the producer company, of a film for the production of that film, and (B) the employment of personnel, including trainees, (other than the producer) for the production of that film.”, (ii) in paragraph (c), by substituting “€15,000,000” for “€10,480,000”, and (iii) by deleting paragraphs (d) and (e), (c) by inserting the following after subsection (2): “(2A) (a) Subject to the provisions of this subsection, the Revenue Commissioners, on the making of an application by a qualifying company, may, in accordance with regulations made under subsection (2E), issue a certificate to a qualifying company stating, in relation to a film to be produced by the company, that the film may be treated as a qualifying film for the purpose of this section. (b) The Revenue Commissioners shall not issue a certificate under paragraph (a) unless given authorisation that they may do so by the Minister under subsection (2)(a). (c) Nothing in this section shall be construed as obliging the Revenue Commissioners to issue a certificate under paragraph (a) and in any case where, in relation to a film, the principal photography has commenced, the first animation drawings have commenced or the first model movement has commenced, as the case may be, before application is made by a qualifying company, the Revenue Commissioners shall not issue a certificate under that paragraph. (d) An application for a certificate under paragraph (a) shall be in the form prescribed by the Revenue Commissioners and shall contain such information as may be specified in regulations made under subsection (2E).

(e) In considering whether to issue a certificate under paragraph (a) the Revenue Commissioners shall, in respect of the proposed production of the film, examine all aspects of the qualifying company's proposal. (f) The Revenue Commissioners may refuse to issue a certificate under paragraph (a) if they are not satisfied with any aspect of the qualifying company's application and, in particular, the Revenue Commissioners may refuse to issue a certificate— (i) if they have reason to believe that the budget or any particular item of proposed expenditure in the budget is inflated, or (ii) where— (I) they are not satisfied that there is a commercial rationale for the corporate structure proposed— (A) for the production, financing, distribution or sale of the film, or (B) for all of those purposes, or (II) they are of the opinion that the corporate structure proposed would hinder the Revenue Commissioners in verifying compliance with any of the provisions governing the relief. (g) A certificate issued by the Revenue Commissioners under paragraph (a) shall be subject to such conditions specified in the certificate as the Revenue Commissioners may consider proper, having regard, in particular, to the examination referred to in paragraph (e) and any conditions specified in the authorisation given by the Minister under subsection (2)(a), and in particular the Revenue Commissioners shall specify in the certificate a condition— (i) in relation to the percentage of the work on the production of the film which shall be carried out in the State, as specified by the Minister in the authorisation, (ii) in relation to the matters specified by the Minister in the authorisation by virtue of subsection (2)(b)(II), (iii) subject to subsection (2)(c), that the amount per cent of the total cost of production of the film which may be met by relevant investments shall not exceed the specified percentage, as referred to in that subsection, (iv) in relation to the minimum amount of money to be expended directly— (I) on the employment of eligible individuals, and (II) on the provision of certain goods, services and facilities, as set out in regulations made under subsection (2E), on the production of the qualifying film. (h) The Revenue Commissioners, having consulted with the Minister as appropriate, may amend or revoke any condition (including a condition added by virtue of this paragraph) specified in the certificate, or add to such conditions, by giving notice in writing to the qualifying company concerned of the amendment, revocation or addition, and this section shall apply as if—

(i) a condition so amended or added by the notice was specified in the certificate, and (ii) a condition so revoked was not specified in the certificate. (2B) In carrying out their functions under this section the Revenue Commissioners may— (a) consult with any person, agency or body of persons, as in their opinion may be of assistance to them, and (b) notwithstanding any obligation as to secrecy or other restriction on the disclosure of information imposed by, or under, the Tax Acts or any other statute or otherwise, disclose any detail in a qualifying company's application which they consider necessary for the purposes of such consultation. (2C) A company shall not be regarded as a qualifying company for the purposes of this section— (a) unless the company, in relation to a qualifying film, notifies the Revenue Commissioners in writing immediately when the principal photography has commenced, the first animation drawings have commenced or the first model movement has commenced, as appropriate, (b) if the financial arrangements which the company enters into in relation to the qualifying film are— (i) financial arrangements of any type with a person resident, registered or operating in a territory other than— (I) a Member State of the European Communities, or (II) a territory with the government of which, arrangements having the force of law by virtue of section 826(1)(a), have been made, or (ii) financial arrangements under which funds are channelled, directly or indirectly, to, or through, a territory other than a territory referred to in clause (I) or (II) of subparagraph (i), (c) unless the company provides, when requested to do so by the Revenue Commissioners, for the purpose of verifying compliance with the provisions governing the relief or with any condition specified in a certificate issued by them under subsection (2A)(a), evidence to vouch each item of expenditure in the State or elsewhere on the production and distribution of the qualifying film, whether expended by the qualifying company or by any other person engaged, directly or indirectly, by the qualifying company to provide goods, services or facilities in relation to such production or distribution and, in particular, such evidence shall include— (i) records required to be kept or retained by the company by virtue of section 886, and (ii) records, in relation to the production and distribution of the qualifying film, required to be kept or retained by that other person by virtue of section 886, or which would be so required if that other person were subject to the provisions of that section,

and (d) unless the company, within such time as is specified in the regulations made under subsection (2E)— (i) notifies the Revenue Commissioners in writing of the date of completion of the production of the qualifying film, (ii) provides to the Revenue Commissioners and to the Minister, such number of copies of the film in such format and manner as may be specified in those regulations, and (iii) provides to the Revenue Commissioners, a compliance report, in such format and manner specified in those regulations, which proves to the satisfaction of the Revenue Commissioners that— (I) the provisions of this section in so far as they apply in relation to the company and a qualifying film have been met, and (II) any conditions attaching to a certificate issued to the company in relation to a qualifying film under subsection (2A)(a) have been fulfilled. (2D) Where a company fails— (a) to comply with any of the provisions of subsection (2C) or any other provision governing the relief, or (b) to fulfil any of the conditions to which a certificate issued to it under paragraph (a) of subsection (2A) is subject, by virtue of paragraph (g) or (h) of that subsection, that failure shall constitute the failure of an event to happen by reason of which relief may be withdrawn under subsection (11) and the Revenue Commissioners may, by notice in writing served by registered post on the company, revoke the certificate. (2E) The Revenue Commissioners with the consent of the Minister for Finance, and with the consent of the Minister in relation to the matters to be considered regarding the issue of an authorisation under subsection (2), shall make regulations with respect to the administration by them of the relief under this section and with respect to the matters to be considered by the Minister for the purposes of that subsection and, without prejudice to the generality of the foregoing, regulations under this subsection may include provision— (a) governing the application for certification pursuant to subsection (2A) and the information and documents to be provided in or with such application, (b) specifying the categories of films eligible for certification by the Revenue Commissioners under subsection (2A), (c) prescribing the form of such application, (d) governing the records that a qualifying company shall maintain or provide to the Revenue Commissioners, (e) governing the period for which, and the place at which, such records shall be maintained, (f) specifying the time within which a qualifying company shall notify the Revenue Commissioners of the completion of the production of a qualifying film,

(g) specifying the time within which, and the format, number and manner in which, copies of a qualifying film shall be provided to the Revenue Commissioners and to the Minister, (h) specifying the form and content of the compliance report to be provided to the Revenue Commissioners, the manner in which such report shall be made and verified, the documents to accompany the report and the time within which such report shall be provided, (i) governing the type of expenditure which may be accepted by the Revenue Commissioners as expenditure on the production of a qualifying film, (j) governing the provision of the goods, services and facilities referred to in subsection (2A)(g)(iv)(II), including the place of origin of those goods, services and facilities, the place in which they are provided and the location of the supplier, (k) specifying the currency exchange rate to be applied to expenditure on the production of a qualifying film, and (l) specifying the criteria to be considered by the Minister, in relation to the matters referred to in subsections (2)(b)(i) and (ii)— (i) in deciding whether to give authorisation to the Revenue Commissioners under subsection (2)(a), and (ii) in specifying conditions in such authorisation, as provided for in subsection (2)(b),