Finance Act, 1985

Finance Act, 1985 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 1985 Finance Act, 1985 Finance Act, 1985 Permanent Page URL View by SectionAmharc de réir Ailt View Full ActAmharc ar an Acht Iomlán Bill History Stair Bille Commencement, Amendments, SIs made under the Act Tosach Feidhme, Leasuithe, IRí arna ndéanamh faoin Acht Print Full ActPriontáil an tAcht Iomlán Number 10 of 1985 FINANCE ACT, 1985 ARRANGEMENT OF SECTIONS

PART I

Income Tax, Income Levy, Corporation Tax and Capital Gains Tax

Chapter I

Income Tax Section

Section 1

Amendment of provisions relating to exemption from income tax.

Section 2

Alteration of rates of income tax.

Section 3

Personal reliefs.

Section 4

Amendment of section 138A (additional allowance for widows and others in respect of children) of Income Tax Act, 1967.

Section 5

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

Section 6

Amendment of section 125 (application of PAYE) of Income Tax Act, 1967.

Section 7

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

Section 8

Amendment of section 344 (exemption of interest on certain deposits) of Income Tax Act, 1967.

Section 9

Amendment of provisions relating to estimation of tax due.

Section 10

Exemption of certain income from leasing of farm land.

Chapter II

Income Levy

Section 11

Application of section 16 (income levy) of Finance Act, 1983, for 1985-86.

Chapter III

Income Tax, Corporation Tax and Capital Gains Tax

Section 12

Amendment of section 550 (interest on overdue tax) of Income Tax Act, 1967.

Section 13

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

Section 14

Amendment of section 18 (profits from the occupation of certain lands) of Finance Act, 1969.

Section 15

Amendment of section 21 (payments to universities) of Finance Act, 1973.

Section 16

Gifts to the President's Award Scheme.

Section 17

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

Section 18

Amendment of Chapter VIII (stock relief) of Part I of Finance Act, 1984.

Section 19

Application of section 31 (building societies) of Corporation Tax Act, 1976.

Section 20

Continuation of certain capital allowances.

Section 21

Rented residential accommodation: deduction for expenditure on refurbishment.

Section 22

Extension of application of relief for conversion of certain buildings.

Chapter IV

Corporation Tax

Section 23

Time for payment of corporation tax.

Section 24

Exemption of certain income of Housing Finance Agency, p.l.c.

Chapter V

Advance Corporation Tax

Section 25

Extension of section 52 (transitional reduction of advance corporation tax) of Finance Act, 1983.

PART II

Customs and Excise

Section 26

Interpretation (Part II).

Section 27

Tobacco products.

Section 28

Cider and perry.

Section 29

Hydrocarbons.

Section 30

Mechanical lighters.

Section 31

Bets.

Section 32

Excise duty on mechanically propelled vehicles (new rates).

Section 33

Excise duties on mechanically propelled vehicles (conversion from horse-power to cubic centimetres).

Section 34

Reduction of duty on motor vehicle parts and accessories.

Section 35

Provisions relating to excise duty on table waters.

Section 36

Amendment of Finance (New Duties) Act, 1916.

Section 37

Amendment of section 26 (powers of entry and search for documents) of Finance Act, 1926.

Section 38

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

Section 39

Proceedings in excise cases in the District Court.

Section 40

Confirmation of Orders.

PART III

Value-Added Tax

Section 41

Interpretation (Part III).

Section 42

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

Section 43

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

Section 44

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

Section 45

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

Section 46

Amendment of section 15 (charge of tax on imported goods) of Principal Act.

Section 47

Amendment of section 23 (determination of tax due) of Principal Act.

Section 48

Amendment of section 32 (regulations) of Principal Act.

Section 49

Amendment of First Schedule to Principal Act.

Section 50

Amendment of Second Schedule to Principal Act.

Section 51

Miscellaneous amendments (Third, Sixth and Seventh Schedules) to Principal Act.

Section 52

Amendment of Fourth Schedule to Principal Act.

Section 53

Repeals.

Section 54

Deferment of increase in rate of tax (private dwellings).

PART IV

Stamp Duties

Section 55

Levy on banks.

Section 56

Cesser of section 86 (stamp duty on course bets) of Finance Act, 1980.

Section 57

Amendment of section 93 (exemption of certain instruments from stamp duty) of Finance Act, 1982.

PART V

Capital Acquisitions Tax

Section 58

Interpretation (Part V).

Section 59

Exemption for spouses.

Section 60

Relief in respect of certain policies of insurance.

Section 61

Relief from double aggregation.

Section 62

Allowance for prior tax on the same event.

Section 63

Allowance for capital gains tax on the same event.

Section 64

Amendment of section 106 (acquisitions by discretionary trusts) of Finance Act, 1984.

Section 65

Amendment of section 108 (exemptions) of Finance Act, 1984.

PART VI

Miscellaneous

Section 66

Capital Services Redemption Account.

Section 67

Payment of certain interest under State Financial Transactions (Special Provisions) Act, 1984.

Section 68

Financial arrangements relating to Bord Telecom Éireann.

Section 69

Securities issued by the Minister for Finance.

Section 70

Care and management of taxes and duties.

Section 71

Short title, construction and commencement.

FIRST SCHEDULE Amendment of Enactments SECOND SCHEDULE Rates of Excise Duty on Tobacco Products Acts Referred to Adoption Acts, 1952 to 1976 Capital Acquisitions Tax Act, 1976 1976, No. 8 Central Bank Act, 1971 1971, No. 24 Companies Act, 1963 1963, No. 33 Corporation Tax Act, 1976 1976, No. 7 Excise Act, 1848 1848, c. 118 Finance Act, 1926 1926, No. 35 Finance Act, 1931 1931, No. 31 Finance Act, 1950 1950, No. 18 Finance Act, 1960 1960, No. 19 Finance Act, 1961 1961, No. 23 Finance Act, 1968 1968, No. 33 Finance Act, 1969 1969, No. 21 Finance Act, 1971 1971, No. 23 Finance Act, 1973 1973, No. 19 Finance Act, 1975 1975, No. 6 Finance Act, 1976 1976, No. 16 Finance Act, 1977 1977, No. 18 Finance Act, 1979 1979, No. 11 Finance Act, 1980 1980, No. 14 Finance Act, 1981 1981, No. 16 Finance Act, 1982 1982, No. 14 Finance Act, 1983 1983, No. 15 Finance Act, 1984 1984, No. 9 Finance (Excise Duties) (Vehicles) Act, 1952 1952, No. 24 Finance (Excise Duty on Tobacco Products) Act, 1977 1977, No. 32 Finance (Miscellaneous Provisions) Act, 1968 1968, No. 7 Finance (New Duties) Act, 1916 1916, c. 11 Housing Finance Agency Act, 1981 1981, No. 37 Income Tax Act, 1967 1967, No. 6 Insurance Act, 1936 1936, No. 45 Local Government (Planning and Development) Acts, 1963 to 1983 Postal and Telecommunications Services Act, 1983 1983, No. 24 Preferential Payments in Bankruptcy (Ireland) Act, 1889 1889, c. 60 Road Traffic Act, 1961 1961, No. 24 Stamp Act, 1891 1891, c. 39 State Financial Transactions (Special Provisions) Act, 1984 1984, No. 23 Succession Duty Act, 1853 1853, c. 51 Value-Added Tax Act, 1972 1972, No. 22 Value-Added Tax (Amendment) Act, 1978 1978, No. 34 Vocational Education Act, 1930 1930, No. 29 Number 10 of 1985 FINANCE ACT, 1985 AN ACT TO CHARGE AND IMPOSE CERTAIN DUTIES OF CUSTOMS AND INLAND REVENUE (INCLUDING EXCISE), TO AMEND THE LAW RELATING TO CUSTOMS AND INLAND REVENUE (INCLUDING EXCISE) AND TO MAKE FURTHER PROVISIONS IN CONNECTION WITH FINANCE. [30th May, 1985] BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

PART I

Income Tax, Income Levy, Corporation Tax and Capital Gains Tax

Chapter I

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

1.—As respects the year 1985-86 and subsequent years of assessment, the Finance Act, 1980 , is hereby amended— (a) in subsection (2) of section 1, by the substitution of “£5,300” for “£5,000” (inserted by the Finance Act, 1984 ) and of “£2,650” for “£2,500” (inserted by the Finance Act, 1984 ), and (b) in subsection (6) of section 2, by the substitution of “£6,000” for “£5,600” (inserted by the Finance Act, 1984 ), of “£7,000” for “£6,600” (inserted by the Finance Act, 1984 ), of “£3,000” for “£2,800” (inserted by the Finance Act, 1984 ) and of “£3,500” for “£3,300” (inserted by the Finance Act, 1984 ), and the said subsections (2) and (6), as so amended, are set out in the Table to this section.

TABLE

Provided that, if at any time during the year of assessment either the individual or his spouse was of the age of seventy-five years or upwards, “the specified amount” means £7,000; (b) in any other case, £3,000:

Provided that, if at any time during the year of assessment the individual was of the age of seventy-five years or upwards, “the specified amount” means £3,500.

Alteration of rates of income tax.

2.—

Section 2

of the Finance Act, 1984 , is hereby amended, as respects the year 1985-86 and subsequent years of assessment, by the substitution of the following Table for the Table to the said section: “TABLE

PART I

Part of taxable income Rate of tax Description of rate

(1)

(2)

PART II

Part of taxable income Rate of tax Description of rate

(1)

(2)

Personal reliefs.

3.—(1) Where a deduction falls to be made from the total income of an individual for the year 1985-86 or any subsequent year of assessment in respect of relief to which the individual is entitled under a provision mentioned in column (1) of the Table to this subsection and the amount of the deduction would, but for this section, be an amount specified in column (2) of the said Table, the amount of the deduction shall, in lieu of being the amount specified in the said column (2), be the amount specified in column (3) of the said Table opposite the mention of the amount in the said column (2).

TABLE Statutory provision Amount to be deducted from total income for 1984-85 Amount to be deducted from total income for 1985-86 and subsequent years

(1)

(2)

(2)

Section 2

of the Finance Act, 1982 , section 3 of the Finance Act, 1984 , and section 8 of the Finance Act, 1984 , shall have effect subject to the provisions of this section.

Amendment of section 138A (additional allowance for widows and others in respect of children) of Income Tax Act, 1967.

4.—The Income Tax Act, 1967 , is hereby amended, as respects the year 1985-86 and subsequent years of assessment, by the substitution of the following section for section 138A (inserted by the Finance Act, 1980 )— “138A.—(1) (a) This section applies to an individual who is not entitled to a deduction mentioned in paragraph (a) or paragraph (b) (ii) of section 138. (b) In this section ‘a qualifying child’ means, in relation to any claimant and year of assessment— (i) a child— (I) who is born in the year of assessment, or (II) who, at the commencement of the year of assessment, is under the age of 16 years, or (III) who, if over the age of 16 years at the commencement of the year of assessment— (A) is receiving full-time instruction at any university, college, school or other educational establishment, or (B) is permanently incapacitated by reason of mental or physical infirmity from maintaining himself and had become so permanently incapacitated before he had attained the age of 21 years or had become so permanently incapacitated after attaining the age of 21 years but while he had been in receipt of full-time instruction as aforesaid, and (ii) a child who is a child of the claimant or, not being such a child, is in the custody of the claimant and is maintained by the claimant at his own expense for the whole or part of the year of assessment.

Provided that this section shall not apply for any year of assessment in the case of a husband or a wife where the wife is living with her husband, or in the case of a man and woman who are living together as man and wife.

Provided that in calculating the income of the child for the purposes of the foregoing provision no account shall be taken of any income to which the child is entitled as the holder of a scholarship, bursary or other similar educational endowment.

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

5.—

Section 6

of the Finance Act, 1982 , shall have effect for the purpose of ascertaining the amount of income on which an individual referred to therein is to be charged to income tax for the year 1985-86, as if in subsection (2)— (a) “1985-86” were substituted for “1982-83”, and (b) “£286” were substituted for “£312”, in each place where it occurs.

Amendment of section 125 (application of PAYE) of Income Tax Act, 1967.

6.—(1) The Income Tax Act, 1967 , is hereby amended, as respects emoluments arising in the year 1986-87 and subsequent years of assessment, by the substitution of the following section for section 125: “125.—This Chapter applies to all emoluments except emoluments which are emoluments in respect of which the employer has been notified by the inspector that they are emoluments which arise from an office or employment and from which, in the opinion of the inspector having regard to the circumstances of the office or employment or to the amount of the emoluments, the deduction of tax by reference to the provisions of this Chapter is impracticable:

Provided that the inspector may, if a change in the circumstances of the office or employment or in the amount of the emoluments so warrants, cancel such notification by notice in writing given to the employer and this Chapter shall then apply to payments of emoluments arising from the office or employment made after the date of such notice.”.

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

7.—Section 142A (inserted by the Finance Act, 1982 ) of the Income Tax Act, 1967 , is hereby amended in subsection (2), as respects the year 1985-86 and subsequent years of assessment— (a) by the substitution in paragraph (a) (i) of “fifty-five years” for “sixty years” (inserted by the Finance Act, 1984 ), and (b) by the substitution in paragraph (b) of “£1,500” for “£1,000” and of “£750” for “£500”, and the said paragraphs (a) (i) and (b), as so amended, are set out in the Table to this section.

TABLE (i) at any time during the year of assessment he was of the age of fifty-five years or upwards, and (b) In this subsection “the relevant limit” means— (i) in the case of a claimant who is entitled to a deduction under section 138(a), £1,500, and (ii) in any other case, £750.

Amendment of section 344 (exemption of interest on certain deposits) of Income Tax Act, 1967.

8.—

Section 344

of the Income Tax Act, 1967 , is hereby amended, as respects the year 1985-86 and subsequent years of assessment, by the substitution for subsections (1) and (2) (inserted by the Finance Act, 1980 ) of the following subsections: “(1) Where the total income of an individual for the year of assessment includes, or would but for this section include, any sums (in this section referred to as ‘the said sums’) paid or credited in respect of interest on— (a) deposits with a trustee savings bank or with the Post Office Savings Bank, or (b) deposits with any of the commercial banks, the said sums shall be disregarded for all the purposes of the Income Tax Acts if or in so far as the said sums do not exceed the specified amount:

Provided that the provisions of this Act as regards the making by the individual of a return of his total income shall apply as if this section had not been enacted. (1A) (a) Subject to paragraph (b), in this section ‘specified amount’ means— (i) in the case of sums representing interest on deposits mentioned in paragraph (a) of subsection (1), £120:

Provided that, if at any time during the year of assessment the individual was of the age of sixty-five years or upwards, ‘specified amount’, in the case of such sums, means £240; (ii) in the case of sums representing interest on deposits mentioned in paragraph (b) of subsection (1), £50:

Provided that, if at any time during the year of assessment the individual was of the age of sixty-five years or upwards, ‘specified amount’, in the case of such sums, means £100. (b) The total sums to be disregarded under this section in the case of an individual shall not exceed the appropriate specified amount mentioned in paragraph (a) (i).

Amendment of provisions relating to estimation of tax due.

9.—The Finance Act, 1968 , is hereby amended, as respects estimates of tax due made on or after the passing of this Act— (a) in section 7 (5), by the deletion of “or section 8”, and (b) in section 8— (i) in subsection (1)— (I) by the substitution for “Where the Revenue Commissioners have reason to believe” of “Where the inspector, or such other officer as the Revenue Commissioners may nominate to exercise the powers conferred by this section (hereafter in this section referred to as ‘other officer’), has reason to believe”, (II) by the substitution for “they may make an estimate” of “the inspector or other officer may make an estimate”, and (III) by the substitution of “his” for “their”, (ii) in paragraph (a) of subsection (2)— (I) by the substitution for “the Revenue Commissioners” of “the inspector or other officer”, and (II) by the substitution for “fourteen days” of “thirty days”, and (iii) in subsection (4), by the substitution for “the Revenue Commissioners” of “the inspector or other officer”, and the said section 7 (5), the said subsection (1) (apart from paragraphs (a), (b) and (c) thereof), the said paragraph (a) of subsection (2) and the said subsection (4), as so amended, are set out in the Table to this section.

TABLE

Exemption of certain income from leasing of farm land.

10.—(1) (a) In this section— “farm land” means land in the State wholly or mainly occupied for the purposes of husbandry and includes a building (other than a building or part of a building used as a dwelling) situated on the land and used for the purposes of farming that land; “lease”, “lessee”, “lessor” and “rent” have the meanings respectively assigned to them by Chapter VI of

Part IV

of the Income Tax Act, 1967 ; “qualifying lease” means a lease of farm land which— (i) is in writing or is evidenced in writing, and (ii) is for a definite term of five years or more, and (iii) is made on an arm's length basis between a qualifying lessor or qualifying lessors and a lessee or lessees who is, or each of whom is, a qualifying lessee in relation to the qualifying lessor or the qualifying lessors; “qualifying lessee”, in relation to a qualifying lessor or to qualifying lessors, means an individual— (i) who is not connected with the qualifying lessor or with any of the qualifying lessors, and (ii) who uses any farm land leased by him from the qualifying lessor or the qualifying lessors for the purposes of a trade of farming carried on by him solely or in partnership; “qualifying lessor” means an individual who— (i) is of the age of 55 years or upwards or who is permanently incapacitated by reason of mental or physical infirmity from carrying on a trade of farming, and (ii) has not, after the 30th day of January, 1985, leased the farm land which is the subject of the qualifying lease from a person or persons, who is, or one of whom is, connected with him, on terms which are not such as might have been expected to be included in a lease if the negotiations for the lease had been at arm's length; “the specified amount”, in relation to any surplus or surpluses (within the meaning of section 81

Chapter II

Income Levy Application of section 16 (income levy) of Finance Act, 1983, for 1985-86.

11.—

Section 16

of the Finance Act, 1983 , as amended by section 10 of the Finance Act, 1984 , shall apply and have effect for the year beginning on the 6th day of April, 1985, and ending on the 5th day of April, 1986 (in this section referred to as “the contribution year 1985-86”), as it applies and has effect for the contribution year 1984-85 (within the meaning of the said section 16), subject to the modification that, for the contribution year 1985-86, the references to “£96” and “£5,000” in the proviso (inserted by the Finance Act, 1984 ) to subsection (2) shall be construed as references to “£102” and “£5,300”, respectively.

Chapter III

Income Tax, Corporation Tax and Capital Gains Tax Amendment of section 550 (interest on overdue tax) of Income Tax Act, 1967.

12.—

Section 550

of the Income Tax Act, 1967 , shall have effect, and shall be deemed always to have had effect, as if in subsection (4) “and the provisions of section 4 of the Preferential Payments in Bankruptcy (Ireland) Act, 1889, and sections 98 and 285 of the Companies Act, 1963 ,” were inserted before “shall apply”.

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

13.—

Chapter III

of

Part I

of the Finance Act, 1984 , is hereby amended— (a) in section 11 (1), in the definition of “associate”, by the insertion after “participator” of “, except that the reference in paragraph (a) of that section to a relative of a participator shall be excluded from such meaning”, (b) in section 12 (4), by the substitution of the following paragraph for paragraph (b): “(b) if the company is not carrying on that trade at the time when the shares are issued, unless the company— (i) expends not less than 80 per cent. of the money subscribed for the shares on research and development work which is connected with and undertaken with a view to the carrying on of the trade, and begins to carry on the trade within three years after that time, or (ii) otherwise begins to carry on the trade within two years after that time.”, (c) in section 15, by the insertion in paragraph (b) of subsection (7) of “and section 26 (2),” after “subsection”, (d) in section 26— (i) by the deletion in paragraph (b) of subsection (1)— (I) of “was incorporated in the State and”, and (II) in subparagraph (ii), of “wholly or mainly in the State”, and (ii) by the substitution, in subsection (2), of the following paragraph for paragraph (a): “(a) that the subsidiary is a 51 per cent. subsidiary of the qualifying company;”, and (e) in section 27 (8), by the substitution of the following paragraphs for paragraphs (d) and (e): “(d) that any amounts received by way of dividends or interest are, subject to a commission in respect of management expenses at a rate not exceeding a rate which shall be specified in the deed of trust under which the fund has been established, to be paid without undue delay to the participants, (e) that any charges to be made by way of management or other expenses in connection with the establishment, the running, the winding down or the terminating of the fund shall be at a rate not exceeding a rate which shall be specified in the deed of trust under which the fund is established,”, and the said definition of “associate”, the said paragraph (b) of subsection (7) of section 15, and the said paragraph (b) of subsection (1) of section 26, as so amended, are set out in the Table to this section.

TABLE “associate” has the same meaning in relation to a person as it has by virtue of section 103

Amendment of section 18 (profits from the occupation of certain lands) of Finance Act, 1969.

14.—(1)

Section 18

of the Finance Act, 1969 , is hereby amended— (a) as respects income tax for the year 1985-86 and subsequent years of assessment, and (b) as respects corporation tax for an accounting period ending on or after the 6th day of April, 1985— by the substitution in subsection (2) of the following paragraph for paragraph (b): “(b) (i) to the owner of a stallion which is ordinarily kept on land in the State from the sale of services of mares within the State by the stallion or to the part-owner of such a stallion from the sale of such services or of rights to such services, or (ii) to the part-owner of a stallion which is ordinarily kept on land outside the State from the sale of services of mares by the stallion or of rights to such services where the part-owner carries on in the State a trade which consists of or includes bloodstock breeding, and it is shown to the satisfaction of the inspector or, on appeal, to the satisfaction of the Appeal Commissioners, that the part-ownership of the stallion was acquired and is held primarily for the purposes of the service by the stallion of mares owned or partly owned by the part-owner of the stallion in the course of that trade, or”.

Amendment of section 21 (payments to universities) of Finance Act, 1973.

15.—The Finance Act, 1973 , is hereby amended, as respects the year 1985-86 and subsequent years of assessment, by the substitution of the following section for section 21: “Payments to universities and other approved bodies.

21.—(1) Where a person carrying on a trade or profession— (a) pays any sum— (i) on or after the 6th day of April, 1973, to an Irish university, or (ii) on or after the 6th day of April, 1985, to an approved body, for the purpose of enabling the university or the approved body to undertake research in, or engage in the teaching of, approved subjects, and (b) the sum so paid is not income to which section 439 of the Income Tax Act, 1967 , applies, the sum so paid shall, if not otherwise so deductible, be deducted as an expense in computing the profits or gains of the person's trade or profession.

Gifts to the President's Award Scheme.

16.—(1) (a) In this section— “tax” means income tax or corporation tax, as the case may be; “the President's Award Scheme” means the award scheme known as “‘Gaisce’—The President's Award” established under the patronage of Uachtarán na hÉireann by trust deed dated the 28th day of March, 1985. (b) This section applies to a gift of money which— (i) is made on or before the 5th day of April, 1986, to the trustees of the President's Award Scheme to be applied by them for the purposes of that scheme, and (ii) is not deductible in computing for the purposes of tax the profits or gains of a trade or profession or is not income to which the provisions of section 439 of the Income Tax Act, 1967 , apply.

Provided that relief under this section shall not be given to a person for a year of assessment— (a) if the amount of the gift (or the aggregate of the amounts of gifts) made by him in that year, being a gift or gifts, as the case may be, to which this section applies, does not exceed £100, or (b) to the extent to which the amount of the gift (or the aggregate of the amounts of gifts) made by him in that year, being a gift or gifts, as the case may be, to which this section applies, exceeds £10,000.

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

17.—(1) Section 31A (inserted by the Finance Act, 1976 ) of the Finance Act, 1975 , is hereby amended by the substitution of “1985” for“1984” (inserted by the Finance Act, 1984 )— (a) in paragraph (iv) (inserted by the Finance Act, 1979 ) of the proviso to subsection (4) (a), and (b) in each place where it occurs in subsections (7) and (9) (inserted by the Finance Act, 1984 ), and the said paragraph (iv), the said subsection (7) (apart from the proviso) and the said subsection (9) (apart from the proviso), as so amended, are set out in the Table to this subsection.

TABLE (iv) a deduction shall not be allowed under the provisions of this section in computing a company's trading income for any accounting period which ends on or after the 6th day of April, 1985.

(2)

Section 12

of the Finance Act, 1976 , is hereby amended— (a) by the substitution in subsection (3) of “1985-86” for “1984-85” (inserted by the Finance Act, 1984 ), and (b) by the substitution of “1985” for “1984” in each place where it occurs in subsections (5) and (6) (inserted by the Finance Act, 1984 ), and the said subsection (3), the said subsection (5) (apart from the proviso) and the said subsection (6) (apart from the proviso), as so amended, are set out in the Table to this subsection.

TABLE

Amendment of Chapter VIII (stock relief) of Part I of Finance Act, 1984.

18.—Chapter VIII of

Part I

of the Finance Act, 1984 , is hereby amended— (a) in subsection (3) of section 49, by the substitution of “1985” for “1984”, and (b) in the definition of “relevant year” in section 51, by the insertion after “1984-85” of “or 1985-86”, and the said subsection and the said definition, as so amended, are set out in the Table to this section.

TABLE

Application of section 31 (building societies) of Corporation Tax Act, 1976.

19.—(1) Subject to subsections (2) and (3), section 40

Continuation of certain capital allowances.

20.—Each of the provisions of the Income Tax Act, 1967 , which are specified in the Table to this section and which were inserted by the Corporation Tax Act, 1976 , shall have effect as if the reference therein to the 1st day of April, 1985 (as provided for in section 35 of the Finance Act, 1984 ) were a reference to the 1st day of April, 1988.

TABLE Subsection (4) (d) of section 251 (initial allowances) Subsection (2A) (a) of section 254 (industrial building allowance) Paragraph (ii) of the proviso to subsection (1) and paragraph (ii) of the proviso to subsection (3) of section 264 (annual allowances) Paragraph (iii) of the proviso to subsection (1) of section 265 (balancing allowances and balancing charges) Rented residential accommodation: deduction for expenditure on refurbishment.

21.—(1) (a) In this section— “the principal section” means section 23 of the Finance Act, 1981 ; “refurbishment”, in relation to a building, means either or both of the following, that is to say: (i) the carrying out of any works of construction, reconstruction, repair or renewal, and (ii) the provision or improvement of water, sewerage or heating facilities, where the carrying out of such works, or the provision of such facilities, is certificate by the Minister for the Environment, in any certificate of reasonable cost granted by him in relation to any house contained in the building, to have been necessary for the purposes of ensuring the suitability as a dwelling of any house in the building and whether or not the number of houses in the building, or the shape or size of any such house, is altered in the course of such refurbishment; “relevant expenditure” means expenditure incurred in the qualifying period on the refurbishment of a specified building, other than expenditure attributable to any part (hereafter in this section referred to as a “non-residential unit”) of the building which, upon completion of the refurbishment, is not a house; and, for the purposes of this definition, where expenditure is attributable to the specified building in general (and not directly to any particular house or nonresidential unit comprised in the building upon completion of the refurbishment) such an amount of that expenditure shall be deemed to be attributable to a non-residential unit as bears to the whole of that expenditure the same proportion as the total floor area of the non-residential unit bears to the total floor area of the building; “specified building” means a building in which, prior to the refurbishment to which relevant expenditure relates, there are two or more houses and which, upon completion of the refurbishment, contains (whether in addition to any non-residential unit or not) two or more houses. (b) This section shall be construed together with the principal section.

Provided that, in the case of a house which is a part of a building and which is not saleable apart from the building of which it is a part, the market value of the house on that date shall, for the purposes of this paragraph, be taken to be an amount which bears to the market value of the building on that date the same proportion as the total floor area of the house bears to the total floor area of the building, (ii) in the said paragraph (ii) and in the proviso to subsection (2), respectively, the references to a premium or, as the case may be, to a premium or other sum were references to a premium, or a premium or other sum, which is payable on or subsequent to the date of completion of the refurbishment to which the relevant expenditure relates or which, if payable before that date, is so payable by reason of, or otherwise in connection with, the carrying out of the refurbishment, (iii) the following definition were substituted for the definition of “qualifying period”: “‘qualifying period’ means the period commencing on the 1st day of April, 1985, and ending on the 31st day of March, 1987;”, (iv) the following paragraph were substituted for paragraph (iv) of the definition of “qualifying premises”: “(iv) which, on the date of completion of the refurbishment to which the relevant expenditure (within the meaning of section 21 of the Finance Act, 1985) relates, is let (or, if it is not let on that date, is, without having been used after that date, first let) in its entirety under a qualifying lease and thereafter throughout the remainder of the relevant period (save for reasonable periods of temporary disuse between the ending of one qualifying lease and the commencement of another such lease) continues to be let under such a lease;”, (v) the definition of “relevant cost” and subsections (6) (b) and (7) (b) were deleted, (vi) the definition of “relevant period” had effect as if the period mentioned in the definition were a period of ten years beginning with the date of the completion of the refurbishment to which the expenditure relates or, if the premises was not let under a qualifying lease on that date, the period of ten years beginning with the date of the first such letting after the date of such completion, (vii) in subsection (1) (c), the reference to the date of the first letting of the premises under a qualifying lease were a reference to the date of commencement of the relevant period, in relation to the premises, determined as respects the refurbishment to which the relevant expenditure relates,

(viii) the references in subsection (3) to relevant cost were deleted and the references therein to expenditure were references to relevant expenditure, (ix) the references in subsections (6) (a) and (7) (a) to the relevant price paid on the sale were references to— (I) the net price paid on the sale, or (II) in case only a part of the relevant expenditure falls to be treated, for the purposes of subsection (2) of that section, as having been incurred in the qualifying period, the amount which bears to the said net price the same proportion as that part bears to the whole of that expenditure, (x) the references in subsection (7) (a) to a house being used were references to the house being used subsequent to the incurring of the relevant expenditure, (xi) in subsection (9) (a), “section 5” were substituted for “section 4”, and (xii) in subsection (11), “or under section 21 of the Finance Act, 1985” were inserted after “section 24”, and (b) in subsections (2), (3) and (4) of the said section 29, references to expenditure to which that section applies were references to relevant expenditure.

Extension of application of relief for conversion of certain buildings.

22.—(1)

Section 24

of the Finance Act, 1981 , and section 30 of the Finance Act, 1983 , shall apply with any necessary modifications to expenditure incurred in the period commencing on the 1st day of April, 1985, and ending on the 31st day of March, 1987, on the conversion into a house of a building not previously in use as a dwelling as they apply to expenditure incurred on the conversion into two or more houses of a building which, prior to the conversion, had not been in use as a dwelling or had been in use as a single dwelling.

Chapter IV

Corporation Tax Time for payment of corporation tax.

23.—(1) Subject to subsection (2), section 6 of the Corporation Tax Act, 1976 , is hereby amended, as respects accounting periods ending on or after the 28th day of February, 1985, by the substitution for subsection (4) of the following subsection: “(4) Corporation tax assessed for an accounting period shall be paid within six months from the end of the accounting period or, if it is later, within two months from the making of the assessment.”.

Exemption of certain income of Housing Finance Agency, p.l.c.

24.—Notwithstanding any provision of the Corporation Tax Acts, income— (a) arising to the Housing Finance Agency, p.l.c. in any accounting period ending after the 8th day of February, 1982, from the business of making loans and advances under section 5 of the Housing Finance Agency Act, 1981 , and (b) which, but for this section, would have been chargeable to corporation tax under Case I of Schedule D, shall be exempt from corporation tax.

Chapter V

Advance Corporation Tax Extension of section 52 (transitional reduction of advance corporation tax) of Finance Act, 1983.

25.—

Section 52

of the Finance Act, 1983 , is hereby amended— (a) in subsection (1), by the substitution of “1985” for “1984”, and (b) in subsection (2), by the substitution of— (i) “1985” for “1984”, and (ii) “1986” for “1985” (inserted by the Finance Act, 1984 ) in each place where it occurs, and the said section, as so amended, is set out in the Table to this section.

TABLE 52.—(1) Notwithstanding anything in this Chapter, the amount of advance corporation tax which a company shall be liable to pay in respect of distributions made by it in an accounting period ending on or before the 31st day of December, 1985, shall be one-half of the amount of advance corporation tax which, apart from this section, the company would have been liable to pay in respect of those distributions.

PART II

Customs and Excise Interpretation (

Part II

).

26.—In this Part “the Order of 1975” means the Imposition of Duties (No. 221) (Excise Duties) Order, 1975 ( S.I. No. 307 of 1975 ).

Tobacco products.

27.—(1) In this section and in the Second Schedule “cigarettes”, “cigars”, “cavendish or negrohead”, “hard pressed tobacco”, “other pipe tobacco”, “smoking tobacco”, “chewing tobacco” and “tobacco products” have the same meanings as they have in the Finance (Excise Duty on Tobacco Products) Act, 1977 , as amended by the Imposition of Duties (No. 243) (Excise Duty on Tobacco Products) Order, 1979 ( S.I. No. 296 of 1979 ).

Cider and perry.

28.—The second column of the Fifth Schedule to the Finance Act, 1984 , shall be amended, as on and from the 31st day of January, 1985, by the substitution of “£0.69” and “£3.00” for “£0.53” and “£2.60”, respectively.

Hydrocarbons.

29.—(1) The duty of excise on mineral hydrocarbon light oil imposed by paragraph 11 (1) of the Order of 1975 shall be charged, levied and paid, as on and from the 31st day of January, 1985, at the rate of £25.56 per hectolitre in lieu of the rate specified in section 73

Mechanical lighters.

30.—Paragraph (a) of section 75

Bets.

31.—The duty on bets imposed by section 24 of the Finance Act, 1926 , shall (subject and without prejudice to the provisions of section 20 of the Finance Act, 1931 ) be charged, levied and paid on bets entered into on or after the 4th day of February, 1985, at the rate of ten per cent. of the amount of the bet in lieu of the rate of twenty per cent. mentioned in section 41 of the Finance Act, 1975 .

Excise duty on mechanically propelled vehicles (new rates).

32.—(1) In this section “the Act” means the Finance (Excise Duties) (Vehicles) Act, 1952 .

Excise duties on mechanically propelled vehicles (conversion from horse-power to cubic centimetres).

33.—(1) In this section “the Act” means the Finance (Excise Duties) (Vehicles) Act, 1952 , and any reference to cubic centimetres is a reference to the cylinder capacity of an engine as referred to in the Act.

£121.00 exceeding 1,387 cubic centimetres but not exceeding 1,512 cubic centimetres £132.00 exceeding 1,512 cubic centimetres but not exceeding 1,637 cubic centimetres £169.00 exceeding 1,637 cubic centimetres but not exceeding 1,762 cubic centimetres £182.00 exceeding 1,762 cubic centimetres but not exceeding 1,887 cubic centimetres £195.00 exceeding 1,887 cubic centimetres £224.00 electrically propelled £58.00”, (f) by the insertion in subparagraph (b) of paragraph 3 of Part I of the Schedule thereto after “Vehicles” of “(other than those referred to in subparagraph (c) of this paragraph)”, (g) by the insertion of the following subparagraph after subparagraph (b) of paragraph 3 of Part I of the Schedule thereto: “(c) vehicles which are large public service vehicles within the meaning of the Road Traffic Act, 1961 , and which are used only for the carriage of children, or children and teachers, being carried to or from school or to or from school-related physical education activities, and are either licensed under Article 60 of the Road Traffic (Public Service Vehicles) Regulations, 1963 ( S.I. No. 191 of 1963 ), as amended, or owned or operated by a statutory transport undertaking— not exceeding 1,012 cubic centimetres or electrically propelled £22.00 exceeding 1,012 cubic centimetres but not exceeding 1,137 cubic centimetres £25.50 exceeding 1,137 cubic centimetres but not exceeding 1,262 cubic centimetres £29.00 exceeding 1,262 cubic centimetres but not exceeding 1,387 cubic centimetres £33.00 exceeding 1,387 cubic centimetres but not exceeding 1,512 cubic centimetres £37.50 exceeding 1,512 cubic centimetres but not exceeding 1,637 cubic centimetres £42.00 exceeding 1,637 cubic centimetres but not exceeding 1,762 cubic centimetres £46.50 exceeding 1,762 cubic centimetres but not exceeding 1,887 cubic centimetres £51.00 exceeding 1,887 cubic centimetres £55.00”, and (h) by the substitution of the following subparagraph for subparagraph (d) (as amended by section 32 of this Act) of paragraph 6 of Part I of the Schedule thereto: “(d) other vehicles to which this paragraph applies— not exceeding 137 cubic centimetres £8.50 exceeding 137 cubic centimetres but not exceeding 262 cubic centimetres £17.00 exceeding 262 cubic centimetres but not exceeding 387 cubic centimetres £25.50 exceeding 387 cubic centimetres but not exceeding 512 cubic centimetres £34.00 exceeding 512 cubic centimetres but not exceeding 637 cubic centimetres £42.50 exceeding 637 cubic centimetres but not exceeding 762 cubic centimetres £51.00

exceeding 762 cubic centimetres but not exceeding 887 cubic centimetres £59.50 exceeding 887 cubic centimetres but not exceeding 1,012 cubic centimetres £68.00 exceeding 1,012 cubic centimetres but not exceeding 1,137 cubic centimetres £99.00 exceeding 1,137 cubic centimetres but not exceeding 1,262 cubic centimetres £110.00 exceeding 1,262 cubic centimetres but not exceeding 1,387 cubic centimetres £121.00 exceeding 1,387 cubic centimetres but not exceeding 1,512 cubic centimetres £132.00 exceeding 1,512 cubic centimetres but not exceeding 1,637 cubic centimetres £169.00 exceeding 1,637 cubic centimetres but not exceeding 1,762 cubic centimetres £182.00 exceeding 1,762 cubic centimetres but not exceeding 1,887 cubic centimetres £195.00 exceeding 1,887 cubic centimetres but not exceeding 2,012 cubic centimetres £224.00 exceeding 2,012 cubic centimetres but not exceeding 2,137 cubic centimetres £272.00 exceeding 2,137 cubicecentimetres but not exceeding 2,262 cubic centimetres £288.00 exceeding 2,262 cubic centimetres but not exceeding 2,387 cubic centimetres £304.00 exceeding 2,387 cubic centimetres but not exceeding 2,512 cubic centimetres £320.00 For each additional 125 cubic centimetres or part thereof. £17.00 electrically propelled £58.00”.

Reduction of duty on motor vehicle parts and accessories.

34.—The Order of 1975 is hereby amended by the substitution in column (2) of the Fifth Schedule at reference number 2— (a) with effect as on and from the 1st day of June, 1985, of “20 per cent.” for “25 per cent.” (inserted by section 67 of the Finance Act, 1982 ), (b) with effect as on and from the 1st day of October, 1985, of “15 per cent.” for “20 per cent.” (inserted by this section), and (c) with effect as on and from the 1st day of February, 1986, of “10 per cent.” for “15 per cent.” (inserted by this section).

Provisions relating to excise duty on table waters.

35.—(1) An officer of Customs and Excise may, at all reasonable times, enter any premises on which the manufacture of table waters liable to a duty of excise is reasonably believed by the officer to be carried on and may there make such search and investigation and take such samples of such table waters, or of any beverage or liquor reasonably believed by the officer to be such table waters, or of any substance or mixture reasonably believed by the officer to be for use in the manufacture of such table waters, as the officer shall think proper, and may inspect and take copies of or extracts from any books or other documents there found reasonably believed by the officer to relate to any dealing in such table waters.

Amendment of Finance (New Duties) Act, 1916.

36.—

Section 6

of the Finance (New Duties) Act, 1916 , is hereby amended— (a) in the second paragraph of subsection (1), by the substitution of “liable to forfeiture” for “forfeited” and of “£1,000” for “two hundred pounds” (inserted by section 43 of the Finance Act, 1969 ), and (b) in the second paragraph of subsection (2), by the substitution of “an Excise penalty of £500” for “a fine not exceeding twenty pounds”, and the said paragraphs of the said subsections (1) and (2), as so amended, are set out in the Table to this section.

TABLE If any person acts in contravention of or fails to comply with any such regulation, the article in respect of which the offence is committed shall be liable to forfeiture, and the person committing the offence shall be liable in respect of each offence to an Excise penalty of £1,000.

If any person prevents or obstructs the entry of any officer so appointed he shall be liable on summary conviction to an Excise penalty of £500.

Amendment of section 26 (powers of entry and search for documents) of Finance Act, 1926.

37.—Subsection (1) of section 26 of the Finance Act, 1926 , is hereby amended by the substitution of “, whether or not in the possession of such person, relating or believed by such officer to relate to the said business” for “relating to the said business” and the said subsection (1), as so amended, is set out in the Table to this section.

TABLE

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

38.—

Section 43

of the Finance Act, 1975 , is hereby amended by the substitution in subsection (5) of “£1,000” for “£300” in both places where it occurs and the said subsection (5), as so amended, is set out in the Table to this section.

TABLE

Proceedings in excise cases in the District Court.

39.—(1) Notwithstanding the provisions of any other enactment, proceedings instituted in the District Court for the recovery of any fine or penalty imposed under or by virtue of the statutes which relate to the duties of excise or to the management of those duties or under any instrument relating to the duties of excise or the management of those duties made under statute may be so instituted— (a) in case such fine or penalty relates to an offence connected with any of the duties imposed by paragraphs 4 and 5 of the Imposition of Duties (No. 236) (Excise Duties on Motor Vehicles, Televisions and Gramophone Records) Order, 1979 ( S.I. No. 57 of 1979 ), within three years from the date of the commission of the offence, or (b) in any other case, within one year from the date of the commission of the offence in respect of which such fine or penalty was imposed.

(3)

Section 3

of the Excise Act, 1848 , is hereby repealed.

(4)

Section 75

Confirmation of Orders.

40.—The Orders mentioned in the Table to this section are hereby confirmed.

TABLE S.I. No. 252 of 1984 Imposition of Duties (No.270) (Spirits) Order, 1984 S.I. No. 352 of 1984 Imposition of Duties (No. 271) (Beer) Order, 1984 S.I. No. 353 of 1984 Imposition of Duties (No. 272) (Excise Duties on Motor Vehicles) Order, 1984 S.I. No. 354 of 1984 Imposition of Duties (No. 273) (Excise Duty on Motor-cycles) Order, 1984 S.I. No. 41 of 1985 Imposition of Duties (No. 274) (Televisions) Order, 1985

PART III

Value- Added Tax Interpretation (

Part III

).

41.—In this Part— “the Principal Act” means the Value-Added Tax Act, 1972 ; “the Act of 1976” means the Finance Act, 1976 ; “the Act of 1978” means the Value-Added Tax (Amendment) Act, 1978 ; “the Act of 1983” means the Finance Act, 1983 ; “the Act of 1984” means the Finance Act, 1984 .

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

42.—Section 5 (inserted by the Act of 1978) of the Principal Act is hereby amended by the deletion in subsection (6) of paragraph (d).

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

43.—Section 11 of the Principal Act is hereby amended— (a) by the substitution of the following subsection for subsection (1) (inserted by the Act of 1978): “(1) Tax shall be charged at whichever of the following rates is appropriate in any particular case— (a) 23 per cent. of the amount on which tax is chargeable in relation to the supply of taxable goods or services, other than goods or services on which tax is chargeable at any of the rates specified in paragraphs (b), (c) and (d), (b) zero per cent. of the amount on which tax is chargeable in relation to the supply of any goods in the circumstances specified in paragraph (i) of the Second Schedule or the supply of goods of a kind specified in paragraphs (v), (vii), (viii), (x), (xii) to (xva) and (xvii) to (xx) of that Schedule or the supply of services of a kind specified in that Schedule, (c) 10 per cent. of the amount on which tax is chargeable in relation to the supply of goods or services of a kind specified in the Sixth Schedule, and (d) 2.2 per cent. of the amount on which tax is chargeable in relation to the supply of livestock.”, (b) by the deletion of subsection (2) (inserted by the Act of 1978), (c) in subsection (3) (inserted by the Act of 1978), by the deletion of “(apart from subsection (2))” in paragraph (b) (ii), (d) in subsection (7) (inserted by the Act of 1976)— (i) by the substitution in paragraph (e) (i) of “taxable goods” for “any goods to which, but for this subsection, subsection (1) (a), subsection (1) (aa), subsection (1) (aaa) or subsection (1) (b) would apply”, and (ii) by the substitution in paragraph (e) (ii) of “taxable services” for “any services to which, but for this subsection, subsection (1) (a) or subsection (1) (b) would apply”, and (e) in subsection (8), by the substitution in paragraph (a) (inserted by the Finance Act, 1973 ) of “Second or Sixth” for “Second, Third, Sixth or Seventh”.

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

44.—Section 12A (inserted by the Act of 1978) of the Principal Act is hereby amended by the substitution in subsection (1) of “2.2 per cent.” for “2 per cent.” (inserted by the Act of 1983).

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

45.—Section 13 (inserted by the Act of 1978) of the Principal Act is hereby amended by the deletion in subsection (3) (c) of “or for hiring out for utilisation within the State”.

Amendment of section 15 (charge of tax on imported goods) of Principal Act.

46.—Section 15 (inserted by the Act of 1978) of the Principal Act is hereby amended— (a) by the substitution of the following subsection for subsection (1): “(1) Section 14 shall not apply to tax provided for by section 2 (1) (b) and that tax shall, subject to subsection (2), be charged— (a) on goods of a kind specified in the Sixth Schedule at the rate specified in section 11 (1) (c) of the value of the goods, (b) on livestock at the rate specified in section 11 (1) (d) of the value of the goods, and (c) on all other goods at the rate specified in section 11 (1) (a) of the value of the goods”, and (b) by the deletion of subsection (4).

Amendment of section 23 (determination of tax due) of Principal Act.

47.—Section 23 (inserted by the Act of 1978) of the Principal Act is hereby amended— (a) in subsection (1)— (i) by the substitution of “the inspector of taxes, or such other officer as the Revenue Commissioners may authorise to exercise the powers conferred by this section (hereafter referred to in this section as ‘other officer’), has reason to believe” for “the Revenue Commissioners have reason to believe”, (ii) by the substitution of “the Revenue Commissioners” for “them”, (iii) by the substitution of “the inspector or other officer may” for “they may”, and (iv) by the substitution of “his” for “their”, and (b) in subsection (2) (a), by the substitution of “the inspector or other officer” for “the Revenue Commissioners”.

Amendment of section 32 (regulations) of Principal Act.

48.—Section 32 of the Principal Act is hereby amended— (a) by the insertion in subsection (1) after paragraph (w) of the following paragraph: “(ww) the determination of average foot size for the purposes of paragraph (xix) of the Second Schedule;”, and (b) by the substitution in subsection (2A) of “matters specified in subsection (1) (w) or (1) (ww)” for “matter specified in subsection (1) (w)”.

Amendment of First Schedule to Principal Act.

49.—The First Schedule (inserted by the Act of 1978) to the Principal Act is hereby amended by the insertion, after paragraph (vii), of the following paragraph: “(viii) promotion of and admissions to live theatrical or musical performances, including circuses, but not including— (a) dances to which section 11 (7) relates, or (b) performances in conjunction with which facilities are available for the consumption of food or drink during all or part of the performance by persons attending the performance;”.

Amendment of Second Schedule to Principal Act.

50.—The Second Schedule (inserted by the Act of 1976) to the Principal Act is hereby amended— (a) by the substitution of the following paragraph for paragraph (xii): “(xii) food and drink of a kind used for human consumption, excluding— (a) beverages chargeable with any duty of excise specifically charged on spirits, beer, wine, cider, perry or Irish wine, and preparations thereof, (b) other manufactured beverages, including fruit juices and bottled waters, and syrups, concentrates, essences, powders, crystals or other products for the preparation of beverages, but excluding— (I) tea and preparations thereof, (II) cocoa, coffee and chicory and other roasted coffee substitutes, and preparations and extracts thereof, or (III) preparations and extracts of meat, yeast, egg or milk, (c) ice cream, ice lollipops, water ices and similar frozen products, and prepared mixes and powders for making such products, (d) (I) chocolates, sweets and similar confectionery (including drained, glacé or crystallised fruits), biscuits, crackers and wafers of all kinds, and all other confectionery and bakery products excluding bread, (II) in this subparagraph “bread” means food for human consumption manufactured by baking dough composed exclusively of a mixture of cereal flour and any one or more of the ingredients mentioned in the following subclauses in quantities not exceeding the limitation, if any, specified for each ingredient—

Miscellaneous amendments (Third, Sixth and Seventh Schedules) to Principal Act.

51.—The Principal Act is hereby amended by— (a) the deletion of the Third Schedule (inserted by the Act of 1976), (b) the deletion of the Seventh Schedule (inserted by the Act of 1984), and (c) the substitution of the following Schedule for the Sixth Schedule (inserted by the Act of 1983): “SIXTH SCHEDULE Goods and Services Chargeable at the Rate Specified in Section 11 (1) (c) (i) (a) Coal, peat and other solid substances held out for sale solely as fuel, (b) gas of a kind used for domestic or industrial heating or lighting, whether in gaseous or liquid form, but not including gas of a kind normally used for welding and cutting metals or gas sold as lighter fuel, (c) hydrocarbon oil of a kind used for domestic or industrial heating, excluding gas oil (within the meaning of the Hydrocarbon Oil (Rebated Oil) Regulations, 1961 ( S.I. No. 122 of 1961 )), other than gas oil which has been duly marked in accordance with Regulation 6 (2) of the said Regulations; (ii) immovable goods; (iii) services consisting of the development of immovable goods, and the maintenance and repair of immovable goods including the installation of fixtures, where the value of movable goods (if any) provided in pursuance of an agreement in relation to such services does not exceed two-thirds of the total amount on which tax is chargeable in respect of the agreement; (iv) concrete ready to pour; (v) blocks, of concrete, of a kind which comply with the specification contained in the Standard Specification (Concrete Building Blocks) Declaration, 1974 (Irish Standard 20: 1974); (vi) articles of personal clothing and textile handkerchiefs, excluding— (a) articles of clothing made wholly or partly of fur skin, other than garments merely trimmed with fur skin unless the trimming has an area greater than one-fifth of the area of the outside material, and (b) articles of personal clothing of a kind specified in paragraphs (xvii) and (xviii) of the Second Schedule; (vii) (a) fabrics, yarn, thread and leather, of a kind normally used in the manufacture of clothing, including elastics, tapes and padding materials in the form supplied for the manufacture of clothing, and (b) yarn of a kind normally used in the manufacture of clothing fabrics; (viii) articles of personal footwear, other than articles of personal footwear of a kind specified in paragraph (xix) of the Second Schedule; (ix) sole and upper leather of a kind normally used for the manufacture and repair of footwear, and also soles, heels and insoles of any material;

(x) (a) the national daily newspapers published in the State, (b) other newspapers, normally published at least weekly, the format, and the range and nature of the contents of which are similar to those of any newspaper referred to in subparagraph (a); (xi) letting of the kind to which paragraph (iv) (b) of the First Schedule refers; (xii) the hiring (in this paragraph referred to as ‘the current hiring’) to a person of— (a) a vehicle designed and constructed, or adapted, for the conveyance of persons by road, (b) a ship, boat or other vessel designed and constructed for the conveyance of passengers and not exceeding 15 tons gross, (c) a sports or pleasure craft of any description including a yacht, cabin cruiser, dinghy, canoe, skiff or racing boat, or (d) a caravan, mobile home, tent or trailer tent, under an agreement, other than an agreement of the kind referred to in section 3 (1) (b), for any term or part of a term which, when added to the term of any such hiring (whether of the same goods or of other goods of the same kind) to the same person during the period of 12 months ending on the date of the commencement of the current hiring, does not exceed 5 weeks; (xiii) services consisting of the repair or maintenance of— (a) mechanically propelled land vehicles including self propelled mobile machinery (other than vehicles and machinery designed, constructed or intended for use on rails), (b) machinery, plant or equipment of a kind commonly used by farmers in the State for the purposes of their occupation and not commonly used for any other purpose, or (c) trailers (excluding caravans, mobile homes and trailer tents), including the provision and installation in the course of supplying such services of goods of a kind normally included as parts of such vehicles, machinery, plant, equipment or trailers when supplied new, but excluding— (I) the provision in the course of a repair or maintenance service of— (A) accessories or attachments, (B) tyres, tyre cases, interchangeable tyre treads, inner tubes and tyre flaps, for wheels of all kinds, or (C) batteries, and (II) the repair or maintenance, whether performed separately or in the course of the repair or maintenance of other goods, of articles which are accessories or attachments or goods specified in clause (I) (B) of this paragraph, other than goods to which clauses (b) and (c) and subclause (I) (C) of this paragraph refer, and (III) washing, cleaning and polishing; (xiv) agricultural services consisting of— (a) field work, reaping, mowing, threshing, baling, harvesting, sowing and planting,

(b) disinfecting and ensilage of agricultural products, (c) destruction of weeds and pests and dusting and spraying of crops and land, (d) lopping, tree felling and similar forestry services, and (e) land drainage and reclamation; (xv) services of an auctioneer, solicitor, estate agent or other agent, directly related to the supply of immovable goods used for the purposes of an Annex A activity; (xvi) farm accountancy or farm management services.”.

Amendment of Fourth Schedule to Principal Act.

52.—The Fourth Schedule (inserted by the Act of 1978) to the Principal Act is hereby amended by the insertion, after paragraph (i), of the following paragraph: “(ia) hiring out of movable goods other than means of transport;”.

Repeals.

53.—Section 89 (2) of the Act of 1983 and section 96 of the Act of 1984 are hereby repealed.

Deferment of increase in rate of tax (private dwellings).

54.—(1) For the purposes of this section— “dwelling” means a house, or an apartment, flat, penthouse or similar unit of accommodation; “qualifying supply” means the supply on or before the 30th day of April, 1985, to a person, being an individual acting on his own behalf, of a service consisting of the development of immovable goods, being the construction of a dwelling designed for the private use of, and occupation by, such person, and includes a supply of immovable goods to that person on or before the said date in connection with the supply of the said service.

PART IV

Stamp Duties Levy on banks.

55.—(1) In this section— “assessable amount” means the amount arrived at by dividing the specified amount by twelve and deducting £10,000,000 from the quotient; “bank” means a person who, on the 1st day of January, 1984, was the holder of a licence granted under section 9 of the Central Bank Act, 1971 ; “relevant sum”, in relation to a return, means a sum shown in the return other than a sum shown in respect of foreign currency; “returns”, in relation to a bank, means the returns, entitled “MONTHLY RETURN OF ALL LICENSED BANKS: RESIDENT BRANCHES”, furnished to the Central Bank of Ireland by the bank in respect of the assets and liabilities of the bank as on the 18th day of January, 1984, the 15th day of February, 1984, the 31st day of March, 1984, the 18th day of April, 1984, the 16th day of May, 1984, the 30th day of June, 1984, the 18th day of July, 1984, the 15th day of August, 1984, the 30th day of September, 1984, the 17th day of October, 1984, the 21st day of November, 1984, and the 31st day of December, 1984; “specified amount”, in relation to a bank, means the amount obtained by deducting the aggregate amount of the relevant sums shown in respect of Item 302.2 in supplement 1 of the returns of the bank from the aggregate amount of the relevant sums shown in the returns in respect of Government deposits and Non-Government deposits and shown as liabilities of the bank in such returns.

Provided that in the case where the assessable amount shown in the statement does not exceed £100,000,000 stamp duty of an amount equal to 0.25 per cent. of the assessable amount shown therein shall be charged.

Cesser of section 86 (stamp duty on course bets) of Finance Act, 1980.

56.—(1) The Imposition of Duties (No. 275) (Stamp Duties on Course Bets) Order, 1985 ( S.I. No. 60 of 1985 ), is hereby revoked with effect from the date of the passing of this Act.

(2)

Section 86

of the Finance Act, 1980 , shall cease to have effect in relation to the quarter ending on the 30th day of June, 1985, and each subsequent quarter.

Amendment of section 93 (exemption of certain instruments from stamp duty) of Finance Act, 1982.

57.—Subsection (5) of section 93 of the Finance Act, 1982 (as amended by the Finance Act, 1984 ) is hereby amended by the substitution of “four years” for “three years”, and the said subsection (5), as so amended, is set out in the Table to this section.

TABLE

PART V

Capital Acquisition Tax Interpretation (

Part V

).

58.—In this Part “the Principal Act” means the Capital Acquisitions Tax Act, 1976 .

Exemption for spouses.

59.—(1) Notwithstanding the provisions of the Principal Act, an inheritance taken by a successor, who is at the date of the inheritance the spouse of the disponer, shall be exempt from tax and shall not be taken into account in computing tax.

Relief in respect of certain policies of insurance.

60.—(1) In this section— “qualifying insurance policy” means a policy of insurance— (a) which is in a form approved by the Commissioners for the purposes of this section; (b) in respect of which annual premiums are paid by the insured during his life; and (c) which is expressly effected under this section for the purpose of paying relevant tax; “relevant tax” means inheritance tax payable in respect of an inheritance (excluding, in the computation of such tax, an interest in a qualifying insurance policy) taken under a disposition made by the insured, where the inheritance is taken on or after the date of death of the insured and not later than one year after that death.

(3)

Section 143

of the Income Tax Act, 1967 , is hereby amended by the substitution, in subsection (5), of the following paragraphs for paragraph (b)— “(b) be given in respect of premiums or payments payable during the period of deferment in respect of a policy of deferred assurance; or (c) be given for the year 1985-86 and subsequent years of assessment in respect of premiums payable in respect of a qualifying insurance policy within the meaning of section 60 of the Finance Act, 1985:”.

Relief from double aggregation.

61.—(1) Property in respect of which tax is chargeable more than once on the same event shall not be included more than once in relation to that event in any aggregate referred to in the Second Schedule to the Principal Act.

Allowance for prior tax on the same event.

62.—(1) The Principal Act shall have effect, and shall be deemed always to have had effect, as if the following section were inserted after section 34 of that Act: “34A.—Where tax is charged more than once in respect of the same property on the same event, the net tax payable which is earlier in priority shall not be deducted in ascertaining the taxable value for the purposes of the tax which is later in priority, but shall be deducted from the tax which is later in priority as a credit against the same, up to the net amount of the same.”.

Allowance for capital gains tax on the same event.

63.—(1) Where gift tax or inheritance tax is charged in respect of property on an event happening on or after the 30th day of January, 1985, and the same event constitutes for capital gains tax purposes a disposal of an asset (being the same property or any part of the same property), the capital gains tax, if any, chargeable on the disposal shall not be deducted in ascertaining the taxable value for the purposes of the gift tax or inheritance tax but, in so far as it has been paid, shall be deducted from the net gift tax or inheritance tax as a credit against the same, up to the net amount of the same.

Amendment of section 106 (acquisitions by discretionary trusts) of Finance Act, 1984.

64.—

Section 106

Amendment of section 108 (exemptions) of Finance Act, 1984.

65.—

Section 108

of the Finance Act, 1984 , shall have effect, and shall be deemed always to have had effect, as if the following subsection were added thereto: “(2) Section 106 shall not apply or have effect— (a) in relation to a discretionary trust in respect of the property subject to or becoming subject to the trust which, on the termination of the trust, is comprised in a gift or an inheritance taken by the State; or (b) in respect of an inheritance which, apart from this subsection, would be deemed, by the combined effect of section 31 of the Principal Act and section 106, to be taken by a discretionary trust.”.

PART VI

Miscellaneous Capital Services Redemption Account.

66.—(1) In this section— “the principal section” means section 22 of the Finance Act, 1950 ; “the 1984 amending section” means section 114 of the Finance Act, 1984 ; “the thirty-fifth additional annuity” means the sum charged on the Central Fund under subsection (4); “the Minister”, “the Account” and “capital services” have the same meanings respectively as they have in the principal section.

Payment of certain interest under State Financial Transactions (Special Provisions) Act, 1984.

67.—Payments in respect of interest which arise or have arisen under section 3

Financial arrangements relating to, Bord Telecom Éireann.

68.—(1) Notwithstanding anything in the Postal and Telecommunications Services Act, 1983 , the Minister for Finance may, after consultation with the Minister for Communications and Bord Telecom Éireann (in this section referred to as “the company”), require payments to be made to him by the company, at such times and in such manner as he may appoint, in respect of moneys to be repaid by the company for the benefit of the Exchequer under that Act, and the company may, with the consent of the Minister for Finance and the Minister for Communications, make any arrangements necessary to finance such payments.

Securities issued by the Minister for Finance.

69.—(1) In this section— “control” shall be construed in accordance with subsections (2) to (6) of section 102 of the Corporation Tax Act, 1976 , with the substitution in subsection (6) for “five or fewer participators” of “persons resident in a relevant territory”; “foreign company” means a company— (a) which is not resident in the State, and (b) which is under the control of a person or persons resident in a relevant territory; “relevant territory” means the United States of America or a territory with the government of which arrangements having the force of law by virtue of section 361 of the Income Tax Act, 1967 , have been made; “relevant trade” means a trade carried on wholly or mainly in the State, but does not include a trade consisting wholly or partly of banking within the meaning of the Central Bank Act, 1971 , assurance business within the meaning of section 3 of the Insurance Act, 1936 , selling goods by retail or dealing in securities:

Provided that goods shall be deemed for the purposes of this definition not to be sold by retail if they are sold— (a) to a person who carries on a trade of selling goods of the class to which the goods so sold to him belong, or (b) to a person who uses goods of that class for the purposes of a trade carried on by him, or (c) to a person, other than an individual, who uses goods of that class for the purposes of an undertaking carried on by him; “qualifying company” means a company— (a) (i) which is resident in the State and not resident elsewhere, (ii) whose business consists wholly or mainly of— (I) the carrying on of a relevant trade or relevant trades, or (II) the holding of stocks, shares or securities of a company which exists wholly or mainly for the purpose of the carrying on of a relevant trade or relevant trades, and (iii) of which not less than 90 per cent. of its issued share capital is held by a foreign company or foreign companies, or by a person or persons who are directly or indirectly controlled by a foreign company or foreign companies; or (b) which is a foreign company carrying on a relevant trade through a branch or agency in the State.

Care and management of taxes and duties.

70.—All taxes and duties (except the excise duties on mechanically propelled vehicles imposed by sections 32 and 33 ) imposed by this Act are hereby placed under the care and management of the Revenue Commissioners.

Short title, construction and commencement.

71.—(1) This Act may be cited as the Finance Act, 1985.

(2)

Part I

and section 69 (so far as relating to income tax) shall be construed together with the Income Tax Acts and (so far as relating to corporation tax) shall be construed together with the Corporation Tax Acts and (so far as relating to capital gains tax) shall be construed together with the Capital Gains Tax Acts.

(3)

Part II

(so far as relating to customs) shall be construed together with the Customs Acts and (so far as relating to duties of excise) shall be construed together with the statutes which relate to the duties of excise and to the management of those duties.

(4)

Part III

shall be construed together with the Value-Added Tax Acts, 1972 to 1984, and may be cited together therewith as the Value-Added Tax Acts, 1972 to 1985.

(5)

Part IV

shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act.

(6)

Part V

shall be construed together with the Capital Acquisitions Tax Act, 1976 , and the enactments amending or extending that Act and (so far as relating to income tax) shall be construed together with the Income Tax Acts and (so far as relating to capital gains tax) shall be construed together with the Capital Gains Tax Acts.

(7)

Part I

shall, save as is otherwise expressly provided therein, be deemed to have come into force and shall take effect as on and from the 6th day of April, 1985.

(8)

Part III

(other than sections 42 , 45 , 47 and 52 ) shall be deemed to have come into force and shall take effect as on and from the 1st day of March, 1985.

FIRST SCHEDULE Amendment of Enactments

Section 3

.

Amendments Consequential on Changes in Personal Reliefs 1. The Income Tax Act, 1967 , is hereby amended in accordance with the following provisions: (a) in section 138— (i) in paragraph (a), by the substitution of “£3,800” for “£3,600” (inserted by the Finance Act, 1984 ), (ii) in paragraph (b), by the substitution of “£2,400” for “£2,300” (inserted by the Finance Act, 1984 ) and of “£3,800” for “£3,600” (inserted by the Finance Act, 1984 ), and (iii) in paragraph (c), by the substitution of “£1,900” for “£1,800” (inserted by the Finance Act, 1984 ), and (b) in section 141 (1A), by the substitution, in paragraphs (b) and (c), of “£600” for “£500” (inserted by the Finance Act, 1981 ) in each place where it occurs.

2.

Section 3

of the Finance Act, 1969 , is hereby amended, in subsection (1), by the substitution of “£2,500” for “£2,000” (inserted by the Finance Act, 1984 ) in each place where it occurs.

3.

Section 11

of the Finance Act, 1971 , is hereby amended, in subsection (2), by the substitution of “£600” for “£500” (inserted by the Finance Act, 1982 ) in each place where it occurs and of “£1,400” for “£1,200” (inserted by the Finance Act, 1982 ).

SECOND SCHEDULE Rates of Excise Duty on Tobacco Products

Section 27.

Description of Product Rate of Duty Cigarettes £33.20 per thousand together with an amount equal to 14.89 per cent. of the price at which the cigarettes are sold by retail.

Cigars £50.296 per kilogram