Finance (No. 2) Act, 1959

What is this act about?

This law amends the existing income tax legislation, specifically focusing on how income tax is handled for certain types of earnings, and introduces general changes to personal and earned income allowances and life insurance premium relief.

Who it applies to: Individuals receiving certain emoluments (employees); Persons paying emoluments (employers).

At a glance

Country: Ireland
Area of law: Tax law
Articles: 18
Source: irishstatutebook.ie
Text retrieved: 2026-06-17
Explanation updated: 2026-07-07

What does this act regulate?

The method of computing and collecting income tax on specific types of earnings (emoluments).
The process for employers to deduct or repay income tax from emoluments.
The making of regulations by the Revenue Commissioners for the administration of this tax system.
General amendments to personal allowance, earned income allowance, and life insurance premiums.

Who does this act apply to?

Individuals receiving certain emoluments (employees).
Persons paying emoluments (employers).

What are the key points?

Income tax on applicable emoluments for 1960-61 and subsequent years will be computed based on the amount of those emoluments for the year.
Employers must deduct or repay income tax from emolument payments made during 1960-61 and subsequent years, even if tax hasn't been formally imposed or assessed yet.
Regulations will be made by the Revenue Commissioners for the assessment, charge, collection, and recovery of this income tax, including provisions for penalties and interest.
Part III of this Act, which includes general amendments, will come into operation on April 6, 1960.

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Legal text

Contents (18)

Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Section 7
Section 8
Section 9
Section 10
Section 11
Section 12
Section 13
Section 14
Section 15
Section 16
Section 17
Section 18

Finance (No. 2) Act, 1959 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 1959 Finance (No. 2) Act, 1959 Finance (No. 2) Act, 1959 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 42 of 1959.

FINANCE (No. 2) ACT, 1959.

ARRANGEMENT OF SECTIONS

PART I.

Preliminary and General.

Section

Section 1

Short title and construction.

Section 2

Commencement of Part III.

PART II.

Income Tax in respect of certain Emoluments.

Section 3

Interpretation (Part II).

Section 4

Application.

Section 5

Basis of computation and method of collection of income tax on certain emoluments.

Section 6

Regulations.

Section 7

Penalties.

Section 8

Interest.

Section 9

Payment by means of stamps.

Section 10

Charge to tax in the case of certain increases.

Section 11

Recovery.

Section 12

Priority in bankruptcy, etc.

Section 13

Supplemental provisions.

Section 14

Special provisions for the year 1960-61.

PART III.

General Amendments.

Section 15

Personal allowance.

Section 16

Earned income allowance.

Section 17

Life insurance premiums, etc.

Section 18

Repeals.

Acts Referred to Income Tax Act, 1918 1918, c. 40 Finance Act, 1923 1923, No. 21 Finance Act, 1924 1924, No. 27 Finance Act, 1958 1958, No. 25 Preferential Payments in Bankruptcy (Ireland) Act, 1889 1889, c. 60 Companies (Consolidation) Act, 1908 1908, c. 69 Finance Act, 1921 1921, c. 32 Finance Act, 1954 1954, No. 22, Finance Act, 1920 1920, c. 18 Finance Act, 1951 1951, No. 15 Finance Act, 1952 1952, No. 14 Finance Act, 1953 1953, No 21 Finance Act, 1932 1932, No. 20 Finance Act, 1959 1959, No. 18 Number 42 of 1959.

FINANCE (No. 2) ACT, 1959.

AN ACT TO AMEND THE LAW RELATING TO INCOME TAX (INCLUDING SUR-TAX). [22nd December, 1959.] BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:—

PART I.

Preliminary and General.

Short title and construction.

1.—(1) This Act may be cited as the Finance (No. 2) Act, 1959.

(2)The Income Tax Acts and this Act shall be read and con strued together as one Act.

(3)Any reference in this Act to any other enactment shall, except so far as the context otherwise requires, be construed as a reference to that enactment as amended by or under any other enactment, including this Act.

Commencement of Part III.

2.—

Part III

of this Act shall come into operation on the 6th day of April, 1960.

PART II.

Income Tax in respect of certain Emoluments.

Interpretation (Part II).

3.—In this Part of this Act, except where the context otherwise requires— “emoluments” means anything assessable to income tax under Schedule-E and references to payments of emoluments include references to payments on account of emoluments; “employee” means any person in receipt of emoluments; “employer” means any person paying emoluments; “tax deduction card” means a tax deduction card in the form prescribed by the Revenue Commissioners or such other document corresponding to a tax deduction card as may be authorised by the Revenue Commissioners in any particular case; “income tax month” means a month beginning on the 6th day of any of the months of April to March in any year of assessment.

Application.

4.—This Part of this Act applies to all emoluments except emoluments which are— (a) emoluments arising from an office or employment of any class which is such that, in relation to the year 1958-59, tax on emoluments from an office or employment of that class was deductible or treated as deductible from the emoluments under any Rule, other than Rule 7, of the Rules applicable to Schedule E, (b) emoluments in respect of which the employer has been notified by the Revenue Commissioners that they are emoluments which arise from an office or employment and from which, in the opinion of the Revenue Commissioners having regard to the circumstances of the office or employment, the deduction of tax by reference to the provisions of this Act is impracticable, or (c) emoluments in respect of which the employer has been notified by the Revenue Commissioners that they are emoluments which arise from an office or employment held by a person in the course of a trade, profession or vocation and which are or will be taken into account in computing the profits or gains of that trade, profession or vocation for the purposes of income tax.

Basis of computation and method of collection of income tax on certain emoluments.

5.—(1) Income tax for the year 1960-61 or any subsequent year of assessment in respect of emoluments to which this Part of this Act applies shall be computed on the amount of those emoluments for the year and not otherwise.

(2)On the making of any payment of any emoluments to which this Part of this Act applies made during the year 1960-61 or any subsequent year of assessment, income tax shall, subject to this Part of this Act and subject to and in accordance with the regulations thereunder, be deducted or repaid by the person making the payment notwithstanding that— (a) when the payment is made, the tax has not been imposed for the year or no assessment has been made in respect of the emoluments, or (b) the emoluments are, in whole or in part, emoluments for some year of assessment (including a year before the year 1960-61) other than that during which the payment is made.

Regulations.

6.—(1) The Revenue Commissioners shall make regulations with respect to the assessment, charge, collection and recovery of income tax in respect of emoluments to which this Part of this Act applies, being tax for the year 1960-61 or any subsequent year of assessment, or tax for any previous year of assessment remaining unpaid, and those regulations may, in particular and without prejudice to the generality of the foregoing, include provision— (a) for requiring any employer making any payment of emoluments to which this Part of this Act applies, when he makes the payment, to make a deduction or repayment of tax calculated by reference to the rate of income tax for the year and any allowances, deductions and reliefs appropriate in the case of the employee as indicated by the particulars on the tax deduction card supplied in respect of the employee by the Revenue Commissioners, and for rendering persons who are required to make any such deduction or repayment, in the case of a deduction (whether or not made), accountable for the amount of the tax, and liable to pay that amount, to the Revenue Commissioners and, in the case of a repayment, entitled, if it has been made, to be paid it, or given credit for it, by the Revenue Commissioners; (b) for the production to and inspection by persons authorised by the Revenue Commissioners of wages sheets and other documents and records for the purpose of satisfying themselves that tax in respect of emoluments to which this Part of this Act applies has been and is being duly deducted, repaid and accounted for; (c) for the collection and recovery, whether by deduction from emoluments paid in any later year or otherwise, of tax in respect of emoluments to which this Part of this Act applies which has not been deducted or otherwise recovered during the year; (d) for appeals with respect to matters arising under the regulations which would not otherwise be the subject of an appeal; (e) for the deduction of tax at the standard rate in such cases or classes of cases as may be provided for by the regulations; (f) for requiring every employer who pays emoluments to which this Part of this Act applies exceeding the limits specified in subsection (5) of this section to notify the Revenue Commissioners within the period specified in the regulations that he is such an employer; (g) for requiring every employer who pays emoluments to which this Part of this Act applies exceeding the limits specified in subsection (5) of this section to keep and maintain a register of his employees in such manner as may be specified in the regulations, and, on being required so to do by the Revenue Commissioners by notice, to deliver the register to the Revenue Commissioners within the period specified in the notice;

(h) for treating persons who are not employers as employers in such cases or classes of cases as may be provided for by the regulations.

(2)Regulations under, this section shall have effect notwithstanding anything in the Income Tax Acts, but shall not affect any right of appeal which a person would have apart from the regulations.

(3)(a) Tax deduction cards shall be prepared with a view to securing that, so far as may be practicable— (i) the total tax payable for the year of assessment in respect of any emoluments is deducted from the emoluments paid during that year, and (ii) the tax deductible or repayable on the occasion of any payment of emoluments is such that the total net tax deducted since the beginning of the year of assessment bears to the total tax payable for that year the same proportion that the part of the year which ends with the date of the payment bears to the whole year. (b) In paragraph (a) of this subsection— any reference to the total tax payable for a year shall be construed as a reference to the total tax (excluding sur-tax) estimated to be payable for the year in respect of the emoluments, subject to a provisional deduction for allowances and reliefs and subject also, if necessary, to making an addition to the said estimated amount (including a nil amount) for amounts remaining unpaid on account of income tax for any previous year of assessment (including any year previous to the year 1960-61) and making a deduction therefrom for amounts overpaid on account of any such income tax; the reference to the total net tax deducted shall be construed as a reference to the total tax deducted during the year by virtue of regulations made under this section, less any tax repaid by virtue of any such regulations. (c) In making any estimation pursuant to paragraph (b) of this subsection, it may be assumed, in relation to any payment of emoluments, that the emoluments paid in the part of the year of assessment which ends with the making of the payment will bear to the emoluments for the whole of that year the same proportion that that part of the year bears to the whole year.

(4)Notwithstanding any other provision of this section, when stating on a tax deduction card an amount in respect of allowances, deductions and reliefs, the amount may be rounded up to a convenient greater amount and stated accordingly, and, as respects the amount of tax which is not deducted in the year of assessment as a result of such statement, the adjustment appropriate for its recovery shall be made in a subsequent year of assessment.

(5)(a) The limits referred to in paragraphs (f) and (g) of subsection (1) of this section are emoluments at a rate equivalent to a rate of £6 a week, or in the case of an employee with other employment, £1 a week. (b) In the case of employees paid monthly or at longer intervals, the references in paragraph (a) of this subsection to a rate of £6 a week and a rate of £1 a week shall be treated as references to a rate of £26 a month and a rate of £4 10s. a month respectively.

(6)Where a deduction falls to be made in any year of assessment from emoluments to which, this Part of this Act applies on account of income tax for any year of assessment before the year 1960-61, the employer shall not, pursuant to regulations under this section, make in the first-mentioned year any repayment of income tax.

(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 twenty-one 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.

Penalties.

7.—(1) If any person does not comply with any provision of regulations under this Act requiring him to send any return, statement, notification or certificate or to produce any wages sheets or other records or documents, he shall be liable to a penalty of twenty pounds, together with, in the case of a continuing non-compliance, a penalty of the like amount for every day on which the non-compliance is continued.

(2)All penalties under this section may, without prejudice to any other method of recovery, be proceeded for and recovered summarily in the same manner as in summary proceedings for recovery of any fine or penalty under any Act relating to the excise.

(3)Where— (a) a person does not comply with any provision of regulations under this Act requiring him to send any return, statement, notification or certificate, (b) the provision requires compliance within a particular period, and (c) such person continues, during a further period of two or more days, not to send the return, statement, notification or certificate, the non-compliance shall be regarded, for the purposes of subsection (1) of this section, as a non-compliance continuing on every day, other than the first, of the further period.

(4)In proceedings for recovery of a penalty under this section— (a) a certificate signed by an officer of the Revenue Commissioners which certifies that he has inspected the relevant records of the Revenue Commissioners and that it appears from them that, during a stated period, a stated return, statement, notification or certificate was not received from the defendant shall be evidence until the contrary is proved that the defendant did not, during that period, send that return, statement, notification or certificate, (b) a certificate signed by an officer of the Revenue Commissioners which certifies that he has inspected the relevant records of the Revenue Commissioners and that it appears from them that a stated return or other document was duly sent to the defendant on a stated day shall be evidence until the contrary is proved that that person received that return or other document in the ordinary course, (c) a certificate certifying as provided for in paragraph (a) or paragraph (b) of this subsection and purporting to be signed by an officer of the Revenue Commissioners may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by an officer of the Revenue Commissioners.

Interest.

8.—Where any amount of tax which an employer is liable under this Part of this Act and any regulations thereunder to pay to the Revenue Commissioners is not so paid, simple interest on the amount shall be paid by the employer to the Revenue Commissioners and such interest shall be calculated from the expiration of the period specified in the regulations for the payment of the amount and at the rate of one per cent. for each month or part of a month during which the amount remains unpaid.

Payment by means of stamps.

9.—(1) The Revenue Commissioners may make regulations enabling an employer who is required to deduct tax from emoluments to which this Part of this Act applies to make, subject to being authorised for the time being by the Revenue Commissioners so to do, payment of the tax deductible by means of stamps to be affixed, by the employer making the deduction, to stamp books supplied by the Revenue Commissioners.

(2)Where payment by means of stamps is authorised as aforesaid, the employer shall not be required to make a repayment of tax previously deducted from emoluments to which this Part of this Act applies which were earned in his or a former employment.

(3)References in section 6 of this Act to tax deduction cards shall, with respect to cases in which the use of stamp books is authorised as aforesaid, be taken as references to those books.

(4)In any case in which a stamp book, required by regulations under this section to be sent to the Revenue Commissioners during a particular period, is not so sent, or, if sent, is insufficiently stamped, the tax or balance of tax (as the case may be) for which the means of payment is stamps affixed to the book shall be regarded for the purposes of sections 8 and 11 of this Act as tax for which the employer is liable by reference to the relevant income tax month or months, interest under the said section 8 being calculated as from the expiration of the said period.

(5)The provisions (including penal provisions) of the Stamp Duties Management Act, 1891, and section 65 of the Post Office Act, 1908 , shall apply to stamps referred to in this section.

(6)Regulations under this section shall not, except as regards the particular matters for which they make provision, affect the operation of any regulations under section 6 of this Act.

Charge to tax in the case of certain increases.

10.—(1) Where— (a) a person holds an office or employment in the year 1959-60 under such circumstances that the emoluments arising therefrom are assessable by reference to the amount thereof for the year 1958-59, and (b) the emoluments of that office or employment for the year 1959-60 exceed the emoluments thereof for the year 1958-59, then, subject to subsection (2) of this section, the amount of the excess shall be added to the income arising from the office or employment as computed for the purposes of income tax for the year 1959-60 and charged to tax (including sur-tax) accordingly.

(2)Subsection (1) of this section shall not apply to any excess arising from— (a) a promotion in the ordinary course of events, (b) the ordinary application of an incremental scale of emoluments, (c) overtime paid for at ordinary rates, or to any other similar excess of an ordinary character.

Recovery.

11.—(1) (a) The provisions of any enactment relating to the recovery of income tax charged under Schedule E shall apply to the recovery of any amount of tax which an employer is liable under this Part of this Act and any regulations thereunder to pay to the Revenue Commissioners by reference to any income tax month as if the said amount had been charged on the employer under Schedule E. (b) In particular and without prejudice to the generality of paragraph (a) of this subsection, that subsection applies the provisions of section 162 of the Income Tax Act, 1918, section 7 of the Finance Act, 1923 , sections 11 and 38 of the Finance Act, 1924 , and section 54 of the Finance Act, 1958 . (c) Provisions as applied by this subsection shall so apply subject to any modifications specified by regulations under section 6 of this Act.

(2)Proceedings may be brought for the recovery of the total amount which the employer is liable to pay as aforesaid by reference to any income tax month without distinguishing the amounts which he is liable to pay by reference to each employee and without specifying the employees in question, and for the purposes of the proceedings the said total amount shall be one single cause of action or one matter of complaint; but nothing in this subsection shall prevent the bringing of separate proceedings for the recovery of each of the several amounts which the employer is liable to pay as aforesaid by reference to any income tax month and to his several employees.

(3)In proceedings instituted by virtue of this section for the recovery of any amount of tax— (a) a certificate signed by an officer of the Revenue Commissioners which certifies that a stated amount of tax is due and payable by the defendant shall be evidence until the contrary is proved that that amount is so due and payable, and (b) a certificate certifying as aforesaid and purporting to be signed by an officer of the Revenue Commissioners may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by an officer of the Revenue Commissioners.

(4)Any reference in the foregoing subsections of this section to an amount of tax includes a reference to interest payable in the case in question under section 8 of this Act.

Priority in bankruptcy, etc.

12.—(1) There shall be included among the debts which, under section 4 of the Preferential Payments in Bankruptcy (Ireland) Act, 1889, are to be paid in priority to all other debts in the distribution of the property of a bankrupt, arranging debtor, or person dying insolvent, so much as is unpaid of the employer's liability for the period of twelve months next before the date on which the order of adjudication of the bankrupt was made, the petition of arrangement of the debtor was filed, or, as the case may be, the person died insolvent.

(2)There shall be included among the debts which, under section 209 of the Companies (Consolidation) Act, 1908 , are to be paid in priority to all other debts in the winding up of a company, so much as is unpaid of the employer's liability for the period of twelve months next before the date of the commencement of the winding up or the date of the winding-up order, as the case may be.

(3)Where a receiver is appointed on behalf of the holders of any debentures of a company secured by a floating charge, or possession is taken by or on behalf of those debenture holders of any property comprised in or subject to the charge, there shall be included among the debts which under sections 107 and 209 of the Companies (Consolidation) Act, 1908 , are to be paid in priority to any claim for principal or interest in respect of the debentures so much as is unpaid of the employer's liability for the period of twelve months next before the date on which the receiver is appointed or possession is taken as aforesaid, as the case may be.

(4)For the purposes of this section “employer's liability for the period of twelve months” means all sums which an employer was liable under this Act and any regulations thereunder to deduct from emoluments to which this Part of this Act applies paid by him during the period of twelve months mentioned in this section, reduced by any amounts which he was under this Act and any regulations thereunder liable to repay during the same period, and subject to the addition of interest payable under section 8 of this Act.

Supplemental provisions.

13.—(1) No assessment under Schedule E for the year 1960-61 or for any subsequent year of assessment need be made in respect of emoluments to which this Part of this Act applies except where— (a) the person assessable, by notice in writing given to the inspector of taxes within five years from the end of the year of assessment, requires an assessment to be made, (b) the emoluments paid in the year of assessment are not the same in amount as the emoluments which fall to be treated as the emoluments for that year, or (c) there is reason to suppose that the emoluments would, if assessed, fall to be taken into account in computing the total income for sur-tax purposes of a person who is liable to sur-tax or would be so liable if an assessment were made in respect of the emoluments.

(2)Subsection (2) of section 32 of the Finance Act, 1921 , shall, as respects the year 1960-61 and all subsequent years of assessment, have effect as if “Schedule E” were substituted for “Case VI of Schedule D”.

(3)Where an employer pays to the Revenue Commissioners any amount of tax which, pursuant to this Part of this Act and any regulations thereunder, he has deducted from emoluments, he shall be acquitted and discharged of the sum represented by the payment as if he had actually paid that sum to the employee.

(4)Rule 7 of the Rules applicable to Schedule E shall not apply in relation to the year 1960-61 or any subsequent year of assessment.

Special provisions for the year 1960-61.

14.—(1) Regulations under this Part of this Act— (a) shall not require a deduction or repayment of tax to be made on the payment of emoluments which are paid before the 6th day of October, 1960, and (b) in relation to deductions and repayments of tax to be made on the payment of emoluments which are paid during the period commencing on the 6th day of October, 1960, and ending on the 5th day of April, 1961, shall contain provisions for securing that in the estimation, for the purposes of subsection (3) of section 6 of this Act, of the total tax payable in respect of emoluments for the year 1960-61 regard shall be had to the subsequent provisions of this section.

(2)(a) This subsection applies to— (i) any person who is in receipt of emoluments for the whole of the year 1960-61, and (ii) any other person who is in receipt of emoluments for the year 1960-61 provided that the part of that year for which he is in receipt of emoluments (including a part consisting of discontinuous periods) comprises sixty or more days in the first six months of that year and sixty or more days in the last six months thereof. (b) In the case of a person to whom this subsection applies, one-half of the net tax for the year 1960-61 attributable to the emoluments shall not be payable.

(3)Subsection (2) of this section shall not apply to such part, if any, of the emoluments as would, if they were emoluments for the year 1959-60 and the circumstances were such as are mentioned in subsection (1) of section 10 of this Act, fall, under that section, to be added to the income computed for the purpose of tax for the year 1959-60.

(4)(a) For the purposes of subsection (2) of this section the net tax attributable to emoluments shall be taken to be the amount of tax which would have been payable by the person for the year 1960-61 if— (i) the total amount of emoluments from all sources, computed in accordance with paragraph (b) of this subsection, were his only income, (ii) he had been granted all the personal reliefs to which, on due claim, he would have been entitled, and (iii) no deduction fell to be made from the emoluments computed as aforesaid, in computing his total income.

In this paragraph “personal reliefs” has the same meaning as in section 9 of the Finance Act, 1958 , subject to also including any relief under section 2 of the Finance Act, 1954 , any deduction under Rule 9 of the Rules applicable to Schedule E and any deduction in respect of wear and tear or obsolescence of any machinery or plant allowable under Rule 6 or 7 of the Rules applicable to Cases I and II of Schedule D. (b) The total amount of emoluments from all sources having been ascertained, that total shall, for the purposes of paragraph (a) of this subsection, be diminished by the amount of any deductions in respect of payments made by the person or his wife or in respect of losses, being deductions falling to be made from the emoluments in computing the total income of the person for the year 1960-61, and, for this purpose, any deductions which fall to be made in computing total income and which may be treated as made in whole or part from income other than the emoluments shall, as far as may be, be treated as falling to be made from such other income.

(5)Where, by virtue of an application under Rule 17 of the General Rules, a husband and a wife are each chargeable in respect of emoluments, the net tax attributable to the emoluments of the husband and of the wife respectively shall for the purposes of subsection (4) of this section be computed in accordance with subsection (2) of section 9 of the Finance Act, 1958 , but the total relief from tax given to the husband and the wife under this section shall be the same as if the application under the said Rule 17 had not been made and each of the references to relief in subsection (3) of the said section 9 shall be deemed to include a reference to relief under this section.

(6)In this section— any reference to emoluments shall be construed as a reference to emoluments to which this Part of this Act applies; any reference to tax shall be construed as not including a reference to sur-tax.

PART III.

General Amendments.

Personal allowance.

15.—(1) Subsection (1) of section 18 of the Finance Act, 1920 , is hereby amended by the substitution of “a deduction of three hundred and ninety-four pounds” for “a deduction of three hundred and ten pounds” and the substitution of “a deduction of two hundred and thirty-four pounds” for “a deduc tion of one hundred and fifty pounds”.

(2)Where, but for this subsection, the claimant would be entitled to a deduction of two hundred and thirty-four pounds under subsection (1) of section 18 of the Finance Act, 1920 , then, if the claimant proves that in the year of assessment he or she is a widower or a widow, the claimant shall be entitled to a deduction of two hundred and fiftynine pounds in lieu of the said deduction of two hundred and thirty-four pounds.

(3)Subsection (2) of, section 18 of the Finance Act, 1920 , is hereby amended by the substitution of “three-fourths” for “nine-tenths”.

Earned income allowance.

16.—(1) The following provision shall be substituted for section 16 of the Finance Act, 1920 : “An individual who makes, in the manner prescribed by the Income Tax Acts, a claim in that behalf and makes a return in the prescribed form of his total income shall, for the purposes of ascertaining the amount of his assessable income for the purposes of income tax, be allowed a deduction from the amount of his earned income as estimated in accordance with the Income Tax Acts of a sum equal to one-fourth of that income, but not exceeding, in the case of any individual, the sum of four hundred and fifty pounds.”

(2)

Section 4

of the Finance Act, 1951 , shall be construed and have effect as if a reference to subsection (1) of this section were substituted in subsection (2) for the reference to subsection (1) of section 2 of the Finance Act, 1952 .

Life insurance premiums, etc.

17.—(1) This section applies to premiums payable on policies of insurance or contracts for deferred annuities, being policies or contracts made after the 22nd day of June, 1916, and also to sums referred to in paragraph (b) of subsection (1) of section 32 of the Income Tax Act, 1918.

(2)Notwithstanding anything in section 32 of the Income Tax Act, 1918, no relief shall be granted under that section in respect of any premium or other sum to which this section applies.

(3)A person to whom relief under section 32 of the Income Tax Act, 1918, would, but for subsection (2) of this section, have been allowable in respect of a premium or sum, or part of a premium or sum, to which this section applies shall, if he makes a claim in that behalf in the manner prescribed by the Income Tax Acts and makes a return in the prescribed form of his total income, be entitled, for the purpose of ascertaining the amount of the income on which he is to be charged to tax (excluding sur-tax), to have a deduction made from his assessable income equal— (a) in case the policy or contract concerned is a policy or contract, referred to in section 2 of the Finance Act, 1953 , to two-thirds of the amount of premium in respect of which relief would have been allowable as aforesaid after giving effect to any restrictions that may be appropriate in accordance with paragraphs (a), (c) and (d) of subsection (3) of the said section 32, and (b) in any other case, to one-half of the amount of the premium or other sum in respect of which relief would have been so allowable.

(4)The provisions of the Income Tax Acts relating to allowances or deductions within the meaning of the Third Schedule to the Finance Act, 1920 , shall have effect in relation to deductions under subsection (3) of this section.

(5)

Section 9

of the Finance Act, 1958 , is hereby amended as follows: (i) in paragraph (a) of subsection (2) “or section 17 of the Finance (No. 2) Act, 1959,” shall be inserted after “Income Tax Act, 1918,”; (ii) in subsection (6) “under section 17 of the Finance (No. 2) Act, 1959,” shall be inserted after “Income Tax Act, 1918,”.

(6)References in the Income Tax Acts to relief in respect of life assurance premiums shall be construed as including references to deductions under subsection (3) of this section.

Repeals.

18.—

Section 23

of the Finance Act, 1920 , subsection (4) of section 3 of the Finance Act, 1932 , subsections (1) and (2) of section 4 of the Finance Act, 1952 , and subsection (2) of section 1 of the Finance Act, 1959 , are hereby repealed.

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