Finance Act, 1989

Finance Act, 1989 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 1989 Finance Act, 1989 Finance Act, 1989 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 1989 FINANCE ACT, 1989 ARRANGEMENT OF SECTIONS PART I Income Tax, Corporation Tax and Capital Gains Tax Chapter I Income Tax Section 1. Amendment of provisions relating to exemption from income tax. 2. Alteration of rates of income tax. 3. Amendment of section 6 (special allowance in respect of P.R.S.I. for 1982-83) of Finance Act, 1982. 4. Relief for expenditure on certain buildings in designated areas. 5. Amendment of section 2 (exemption of certain earnings of writers, composers and artists) of Finance Act, 1969. 6. Amendment of section 8 (restriction of relief in respect of interest paid on certain loans at a reduced rate) of Finance Act, 1982. 7. Amendment of section 6 (relief in respect of interest) of Finance Act, 1987. 8. Amendment of provisions relating to relief in respect of premiums on certain insurances, etc. 9. Amendment of Chapter III (Income Tax: Relief for Investment in Corporate Trades) of Part I of Finance Act, 1984. 10. Priority in winding up of certain amounts. Chapter II Income Tax, Corporation Tax and Capital Gains Tax 11. Farming: amendment of provisions relating to relief in respect of increase in stock values. 12. Capital allowances for, and deduction in respect of, vehicles. 13. Amendment of section 251 (initial allowances for machinery and plant) of Income Tax Act, 1967. 14. Amendment of section 254 (industrial building allowance) of Income Tax Act, 1967. 15. Amendment of section 22 (farming: allowances for capital expenditure on construction of buildings and other works) of Finance Act, 1974. 16. Amendment of section 25 (increase of writing-down allowances for certain industrial buildings) of Finance Act, 1978. 17. Amendment of section 26 (allowance for certain capital expenditure on roads, bridges, etc.) of Finance Act, 1981. 18. Taxation of collective investment undertakings. 19. Returns by certain intermediaries in relation to UCITS. Chapter III Corporation Tax 20. Amendment of section 36 (investment income reserved for policy holders) of Corporation Tax Act, 1976. 21. Amendment of Part IX (Schedule F and Company Distributions) of Corporation Tax Act, 1976. 22. Amendment of Chapter VI (manufacturing companies) of Part I of Finance Act, 1980. 23. Amendment of section 39A (relief in relation to income from certain trading operations carried on in Shannon Airport) of Finance Act, 1980. 24. Amendment of section 45 (distributions) of Finance Act, 1980. 25. Attribution of distributions to accounting periods. 26. Amendment of section 42 (treatment of dividends on certain preference shares) of Finance Act, 1984. 27. Surcharges: amendment of provisions relating to. 28. Amendment of section 35 (relief for investment in films) of Finance Act, 1987. Chapter IV Capital Gains Tax 29. Amendment of Schedule 4 (administration) to Capital Gains Tax Act, 1975. 30. Amendment of section 61 (disposal of shares on the Smaller Companies Market and certain other shares) of Finance Act, 1986. 31. Amendment of section 70 (securities of Bord Telecom Éireann and Irish Telecommunications Investments p.l.c.) of Finance Act, 1988. 32. Certain futures contracts not to be chargeable assets. 33. Exemption for Bord Fáilte Éireann and certain other bodies. PART II Customs and Excise 34. Interpretation (Part II). 35. Beer. 36. Spirits. 37. Wine and made wine. 38. Cider and perry. 39. Tobacco products. 40. Hydrocarbons. 41. Repayment of duty on wine, made wine, cider or perry used in the production or manufacture of certain beverages. 42. Payments in respect of bets. 43. Increase of duties on certain intoxicating liquor licences. 44. Increase of duties on public dancing licence, occasional licence, special exemption order and authorisation to a club. 45. Excise duties on hydrocarbon vendors' licences and amendment of section 73 (power to search premises in relation to hydrocarbon oil) of Finance Act, 1986. 46. Increase of duties on registration of firearms dealers. 47. Increase of duties on certain other licences, etc. 48. Imposition of duty on registration of clubs and cesser of club duty. 49. Repeal of provisions relating to hawkers' licences. 50. Repeal and amendment of provisions relating to refreshment house licences. 51. Provisions relating to private brewers. 52. Excise duty on driving licences. PART III Value-Added Tax 53. Interpretation (Part III). 54. Amendment of section 5 (supply of services) of Principal Act. 55. Amendment of section 8 (accountable persons) of Principal Act. 56. Amendment of section 11 (rates of tax) of Principal Act. 57. Amendment of section 12A (special provisions for tax invoiced by flat-rate farmers) of Principal Act. 58. Amendment of section 19 (tax due and payable) of Principal Act. 59. Amendment of section 20 (refund of tax) of Principal Act. 60. Amendment of section 32 (regulations) of Principal Act. 61. Amendment of First Schedule to Principal Act. 62. Amendment of Second Schedule to Principal Act. 63. Amendment of Sixth Schedule to Principal Act. PART IV Stamp Duties 64. Levy on banks. 65. Exemption from stamp duty of certain instruments (Custom House Docks Development Authority). 66. Exemption from stamp duty of certain instruments (Housing Finance Agency p.l.c.). 67. Amendment of section 27 of Stamp Duties Management Act, 1891. 68. Amendment of section 122 of Stamp Act, 1891. 69. Amendment of Forgery Act, 1913. 70. Relief from transfer stamp duty in the case of reconstructions or amalgamations of certain companies. 71. Amendment of section 44 (exemption from stamp duty of certain stock) of Finance Act, 1970. 72. Amendment of First Schedule to Stamp Act, 1891. PART V Capital Acquisitions Tax Chapter I General 73. Interpretation (Part V). Chapter II Arrangements with regard to Returns and Assessments 74. Delivery of returns. 75. Application of section 39 (assessment of tax) of Principal Act. 76. Amendment of section 41 (payment of tax and interest on tax) of Principal Act. 77. Amendment of section 63 (penalties) of Principal Act. 78. Amendment of section 107 (application of Principal Act) of Finance Act, 1984. 79. Surcharge for undervaluation of property. Chapter III Miscellaneous 80. Amendment of section 2 (interpretation) of Principal Act. 81. Extension of section 35 (accountable persons) of Principal Act. 82. Amendment of section 37 (signing of returns, etc.) of Principal Act. 83. Amendment of Second Schedule to Principal Act. 84. Amendment of section 60 (relief in respect of certain policies of insurance) of Finance Act, 1985. 85. Exemption of specified collective investment undertakings. PART VI Anti-Avoidance 86. Transactions to avoid liability to tax. 87. Amendment of section 33 (connected persons) of Capital Gains Tax Act, 1975. 88. Schemes to avoid liability to tax under Schedule F. 89. Annual payments for non- taxable consideration. 90. Arrangements reducing value of company shares. PART VII Miscellaneous 91. Capital Services Redemption Account. 92. Tax concessions for disabled drivers, etc. 93. Winding up of Savings Certificates Reserve Fund. 94. Charging of expenses incurred in connection with management of prize bonds. 95. Securities of Radio Telefís Éireann and Industrial Credit Corporation p.l.c. 96. Financial arrangements relating to Bord Telecom Éireann. 97. Post Office Savings Bank Fund. 98. Securities of European Economic Community. 99. Care and management of taxes and duties. 100. Short title, construction and commencement. FIRST SCHEDULE Accounting for and Payment of Tax Deducted from Relevant Payments and Undistributed Relevant Income SECOND SCHEDULE Rates of Excise Duty on Spirits THIRD SCHEDULE Rates of Excise Duty on Wine and Made Wine FOURTH SCHEDULE Rates of Excise Duty on Cider and Perry FIFTH SCHEDULE Rates of Excise Duty on Tobacco Products SIXTH SCHEDULE Rates of Excise Duty on Certain Licences PART I Intoxicating Liquor Licences PART II Firearm Certificates PART III Gaming Licences PART IV Other Licences SEVENTH SCHEDULE PART I Repeal of Provisions relating to Hawkers' Licences PART II Repeal of Provisions relating to Refreshment House Licences Acts Referred to Adoption Acts, 1952 to 1974 Adoption Acts, 1952 to 1988 Capital Acquisitions Tax Act, 1976 1976, No. 8 Capital Gains Tax Act, 1975 1975, No. 20 Central Bank Act, 1971 1971, No. 24 Companies Act, 1963 1963, No. 33 Corporation Tax Act, 1976 1976, No. 7 Customs and Inland Revenue Act, 1881 44 & 45 Vict., c. 12 Customs, Inland Revenue, and Savings Banks Act, 1877 40 & 41 Vict., c. 13 Customs-free Airport Act, 1947 1947, No. 5 European Communities Act, 1972 1972, No. 27 Finance (1909-10) Act, 1910 10 Edw. 7 & 1 Geo. 5, c. 8 Finance Act, 1919 9 & 10 Geo. 5, c. 32 Finance Act, 1925 1925, No. 28 Finance Act, 1926 1926, No. 35 Finance Act, 1929 1929, No. 32 Finance Act, 1930 1930, No. 20 Finance Act, 1931 1931, No. 31 Finance Act, 1938 1938, No. 25 Finance Act, 1940 1940, No. 14 Finance Act, 1943 1943, No. 16 Finance Act, 1946 1946, No. 15 Finance Act, 1950 1950, No. 18 Finance Act, 1956 1956, No. 22 Finance Act, 1958 1958, No. 25 Finance Act, 1960 1960, No. 19 Finance Act, 1961 1961, No. 23 Finance Act, 1964 1964, No. 15 Finance Act, 1965 1965, No. 22 Finance Act, 1968 1968, No. 33 Finance Act, 1969 1969, No. 21 Finance Act, 1970 1970, No. 14 Finance Act, 1971 1971, No. 23 Finance Act, 1973 1973, No. 19 Finance Act, 1974 1974, No. 27 Finance Act, 1975 1975, No. 6 Finance Act, 1976 1976, No. 16 Finance Act, 1978 1978, No. 21 Finance Act, 1979 1979, No. 11 Finance Act, 1980 1980, No. 14 Finance Act, 1981 1981, No. 16 Finance (No. 2) Act, 1981 1981, No. 28 Finance Act, 1982 1982, No. 14 Finance Act, 1983 1983, No. 15 Finance Act, 1984 1984, No. 9 Finance Act, 1985 1985, No. 10 Finance Act, 1986 1986, No. 13 Finance Act, 1987 1987, No. 10 Finance Act, 1988 1988, No. 12 Finance (Excise Duties) (Vehicles) Act, 1952 1952, No. 24 Finance (Excise Duty on Tobacco Products) Act, 1977 1977, No. 32 Finance (Miscellaneous Provisions) Act, 1956 1956, No. 47 Forgery Act, 1913 3 & 4 Geo. 5, c. 27 Gaming and Lotteries Act, 1956 1956, No. 2 Housing Act, 1966 1966, No. 21 Income Tax Act, 1967 1967, No. 6 Industrial Development Act, 1986 1986, No. 9 Inland Revenue Act, 1880 43 & 44 Vict., c. 20 Intoxicating Liquor Act, 1927 1927, No. 15 Intoxicating Liquor Act, 1962 1962, No. 21 Intoxicating Liquor (General) Act, 1924 1924, No. 62 Landlord and Tenant (Ground Rents) (No. 2) Act, 1978 1978, No. 16 Medical Practitioners Act, 1978 1978, No. 4 Mercantile Marine Act, 1955 1955, No. 29 Postal and Telecommunications Services Act, 1983 1983, No. 24 Public Dance Halls Act, 1935 1935, No. 2 Refreshment Houses (Ireland) Act, 1860 23 & 24 Vict., c. 107 Registration of Clubs (Ireland) Act, 1904 4 Edw. 7, c. 9 Stamp Act, 1891 54 & 55 Vict., c. 39 Stamp Duties Management Act, 1891 54 & 55 Vict., c. 38 Succession Duty Act, 1853 16 & 17 Vict., c. 51 Tourist Traffic Acts, 1939 to 1987 Unit Trusts Act, 1972 1972, No. 17 Value-Added Tax Act, 1972 1972, No. 22 Value-Added Tax (Amendment) Act, 1978 1978, No. 34 Number 10 of 1989 FINANCE ACT, 1989 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. [24th May 1989] BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS: PART I Income Tax, Corporation Tax and Capital Gains Tax Chapter I Income Tax Amendment of provisions relating to exemption from income tax. 1.—As respects the year 1989-90 and subsequent years of assessment, the Finance Act, 1980 , is hereby amended— (a) in section 1, by the substitution of the following subsections for subsection (2): “(2) In this section ‘the specified amount’ means, subject to subsection (3)— (a) in a case where the individual would, apart from this section, be entitled to a deduction specified in section 138 (a) of the Income Tax Act, 1967 , £6,000, and (b) in any other case, £3,000. (3) (a) For the purposes of this section and section 2, where a claimant proves that he has living, at any time during a year of assessment, any qualifying child, then subject to subsection (4), the specified amount (within the meaning of this section or section 2, as the case may be) shall be increased, for that year of assessment, by £200 in respect of each such child. (b) Any question as to whether a child is a qualifying child for the purposes of this section or section 2 shall be determined on the same basis as it would be for the purposes of Section 138A of the Income Tax Act, 1967 , but without regard to subsections (1) (a), (2), (3) and (5) of that section. (4) Where, for any year of assessment, two or more individuals are or would, but for the provisions of this subsection, be entitled under subsection (3) to an increase in the specified amount (within the meaning of this section or section 2, as the case may be) in respect of the same child, the following provisions shall have effect, that is to say: (a) only one such increase under subsection (3) shall be allowed in respect of such child; (b) where such child is maintained by one individual only, that individual only shall be entitled to claim the increase; (c) where such child is maintained by more than one individual, each individual shall be entitled to claim such part of the increase as is proportionate to the amount expended on the child by that individual in relation to the total amount paid by all individuals towards the maintenance of the child; (d) in ascertaining for the purposes of this subsection whether an individual maintains a child and, if so, to what extent, any payment made by the individual for or towards the maintenance of the child which that individual is entitled to deduct in computing his total income for the purposes of the Income Tax Acts shall be deemed not to be a payment for or towards the maintenance of the child.”, and (b) in section 2, by the substitution of the following subsection for subsection (6): “(6) In this section ‘the specified amount’ means, subject to subsection (3) of section 1— (a) in a case where the individual would, apart from this section be entitled to a deduction specified in section 138 (a) of the Income Tax Act, 1967 , £6,800: 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 £8,000, and (b) in any other case, £3,400: 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 £4,000.”. Alteration of rates of income tax. 2.— Section 2 of the Finance Act, 1984 , is hereby amended, as respects the year 1989-90 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) (3) The first £6,100 32 per cent. the standard rate The next £3,100 48 per cent. } the higher rates The remainder 56 per cent. PART II Part of taxable income Rate of tax Description of rate (1) (2) (3) The first £12,200 32 per cent. the standard rate The next £6,200 48 per cent. } the higher rates The remainder 56 per cent. ”. Amendment of section 6 (special allowance in respect of P.R.S.I. for 1982-83) of Finance Act, 1982. 3.— 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 1989-90, as if in subsection (2)— (a) “1989-90” were substituted for “1982-83”, and (b) “£286” were substituted for “£312” in each place where it occurs. Relief for expenditure on certain buildings in designated areas. 4.—(1) (a) In this section— “authorised person” means— (i) an inspector or other officer of the Revenue Commissioners authorised by them in writing for the purposes of this section, or (ii) a person nominated by the Commissioners of Public Works in Ireland, authorised by them in writing for the purposes of this section; “designated area” has, subject to section 27 of the Finance Act, 1987 , the meaning assigned by section 41 of the Finance Act, 1986 ; “owner”, in relation to a building, includes an individual entitled to acquire the fee simple in a dwellinghouse under Part II of the Landlord and Tenant (Ground Rents) (No. 2) Act, 1978, and references to “owns” and “owner-occupied”, in relation to a building, shall be construed accordingly; “qualifying building” means a building the site of which is wholly within a designated area and which, on application to the Commissioners of Public Works in Ireland in that behalf by the individual who owns the building, is determined by those Commissioners to be a building which is of significant scientific, historical, architectural or aesthetic interest; “qualifying owner-occupied dwelling”, in relation to an individual, means a qualifying building which is either— (i) used at the time the relevant expenditure is incurred, or (ii) first used after the relevant expenditure has been incurred, by him as his sole or main residence; “qualifying period” means the period commencing on the date of the passing of this Act and ending on the 31st day of May, 1991; “relevant expenditure”, in relation to an individual, means the amount of the expenditure incurred, during the qualifying period, by the individual in respect of any work of repair or restoration, or maintenance in the nature of repair or restoration, which is consistent with the original character or fabric of the building and is carried out on a qualifying owner-occupied dwelling of the individual. (b) For the purposes of this section, so much of any expenditure as is equal to any sum received, or to be received, directly or indirectly in respect of or by reference to that expenditure, or in respect of or by reference to the qualifying building or the work to which it relates, by the individual making a claim in respect of that expenditure under subsection (2) from the state, a public or local authority or any other person or under any contract of insurance or by way of compensation or otherwise shall not be regarded as having been incurred. (c) (i) Where relevant expenditure in relation to a qualifying building in incurred by two or more individuals, each of those individuals shall be treated as having incurred only so much of the expenditure as the inspector, to the best of his knowledge and judgment, considers to be just and reasonable and the expenditure shall be apportioned accordingly. (ii) An apportionment made under subparagraph (i) may be amended by the Appeal Commissioners or by the Circuit Court on the hearing, or the rehearing, of an appeal against any relief granted on the basis of the apportionment. (2) Subject to the provisions of this section, where an individual, having made a claim in that behalf, proves that he has incurred relevant expenditure in a year of assessment, he shall be entitled for that year of assessment to have a deduction made from his total income of an amount equal to 25 per cent. of the amount of the relevant expenditure and, in each of the five immediately subsequent years of assessment, to a like deduction equal to 5 per cent. of such relevant expenditure. (3) No relief shall be allowed under this section for expenditure in respect of which relief may be claimed under any other provision of the Income Tax Acts. (4) (a) Where the Commissioners of Public Works in Ireland have made a determination that a building is a qualifying building and subsequently, by reason of any alteration made or to be made to the building, they consider that the building is, or will be, no longer a building which is of significant scientific, historical, architectural or aesthetic interest, they shall— (i) by notice in writing given to the owner of the building, revoke the determination, and (ii) notify the Revenue Commissioners of the revocation and the date thereof. (b) If relief has been given under this section to an individual in respect of relevant expenditure incurred in relation to a building which has had a determination revoked in accordance with paragraph (a), that relief shall, where that individual has caused the alteration to be made, be withdrawn and there shall be made on the individual all such assessments or additional assessments as are necessary to give effect to the provisions of this subsection. (5) (a) Where an individual makes a claim under subsection (2), an authorised person may, at any reasonable time, enter the qualifying building in respect of which the relevant expenditure has been incurred for the purpose of inspecting the building or the work in respect of which the expenditure to which the claim relates was incurred. (b) Whenever an authorised person exercises any power conferred on him by this subsection, he shall, on request, produce his authorisation for the purposes of this section to any person concerned. (c) Any person who obstructs or interferes with an authorised person in the course of exercising a power conferred on him by this subsection shall be guilty of an offence and shall be liable, on summary conviction, to a fine not exceeding £500. (6) Any claim for relief under this section shall— (a) be made in such form as the Revenue Commissioners may from time to time prescribe, and (b) be accompanied by such statements in writing as regards the expenditure for which the relief is claimed, including statements by persons to whom payments were made, as may be indicated by the prescribed form. (7) All such provisions of the Income Tax Acts as apply in relation to the deductions specified in sections 138 to 143 of the Income Tax Act, 1967, shall, with any necessary modifications, apply in relation to deductions under this section. (8) Section 198 (1) (inserted by the Finance Act, 1980 ) of the Income Tax Act, 1967 , is hereby amended by the addition to paragraph (a) of the following subparagraph after subparagraph (xi) (inserted by the Finance Act, 1986 ): “(xii) so far as it flows from relief under section 4 of the Finance Act, 1989, in the proportions in which they incurred the expenditure giving rise to the relief,”. Amendment of section 2 (exemption of certain earnings of writers, composers and artists) of Finance Act, 1969. 5.— Section 2 of the Finance Act, 1969 , is hereby amended by the insertion after subsection (5) of the following subsections: “(5A) (a) Where— (i) an individual— (I) has made due claim (hereafter in this subsection referred to as a ‘claim’) to the Revenue Commissioners for a determination under clause (I) or (II) of subsection (2) (a) (ii) in relation to a work or works or to a particular work, as the case may be, that he has written, composed or executed, as the case may be, solely or jointly with another individual, and (II) has, as respects the claim, complied with any request made to him under subsection (4) or (5) in the relevant period, and (ii) the Revenue Commissioners fail to make a determination under the said provisions in relation to the claim in the relevant period, the individual may, by notice in writing given to the Revenue Commissioners within 30 days after the end of the relevant period, appeal to the Appeal Commissioners on the grounds that— (A) the work or works is or are generally recognised as having cultural or artistic merit, or (B) the particular work has cultural or artistic merit, as the case may be. (b) In this subsection ‘relevant period’ means, as respects a claim in relation to a work or works or a particular work, the period of 6 months commencing with— (i) the date which is 6 months before the date of the passing of the Finance Act, 1989, or (ii) if later, the date on which a claim is first made in respect of that work or those works or the particular work, as the case may be. (5B) The Appeal Commissioners shall hear and determine an appeal made to them under subsection (5A) as if it were an appeal against an assessment to income tax and, subject to subsection (5C), all the provisions of the Income Tax Act, 1967 , relating to the rehearing of an appeal and the statement of a case for the opinion of the High Court on a point of law shall apply accordingly with any necessary modifications. (5C) (a) On the hearing of an appeal made under subsection (5A) the Appeal Commissioners may— (i) after consideration of— (I) any evidence in relation to the matter submitted to them by or on behalf of the individual concerned and by or on behalf of the Revenue Commissioners, and (II) in relation to a work or works or a particular work, the work or works or the particular work, and (ii) after such consultation (if any) as may seem to them to be necessary with such person or body of persons as in their opinion may be of assistance to them, determine that the individual concerned has written, composed or executed, as the case may be, either solely or jointly with another individual— (A) a work or works generally recognised as having cultural or artistic merit, or (B) a particular work which has cultural or artistic merit, and, where the Appeal Commissioners so determine, the individual shall be entitled to relief under subsection (3) (a) as if the determination had been made by the Revenue Commissioners under clause (I) or (II) of subsection (2) (a) (ii), as the case may be. (b) The provisions of this subsection shall, subject to any necessary modifications, apply to the rehearing of an appeal by a judge of the Circuit Court and, to the extent necessary, to the determination by the High Court of any question or questions of law arising on the statement of a case for the opinion of the High Court. (5D) For the purposes of the hearing or rehearing of an appeal made under subsection (5A), the Revenue Commissioners may nominate any of their officers to act on their behalf.”. Amendment of section 8 (restriction of relief in respect of interest paid on certain loans at a reduced rate) of Finance Act, 1982. 6.— Section 8 of the Finance Act, 1982 , is hereby amended, as respects the year 1989-90 and subsequent years of assessment, by the substitution in subsection (1) (a) of the following definitions, respectively, for the definitions of “preferential loan” and “the specified rate”: “‘preferential loan’ means a loan, in respect of which no interest is payable or interest is payable at a preferential rate, made directly or indirectly to an individual or his spouse by a person who in relation to the individual or his spouse is an employer, but does not include any such loan in respect of which interest is payable at a rate that is not less than the rate of interest at which the employer in the course of his trade makes equivalent loans for similar purposes at arm's length to persons other than employees or their spouses; ‘the specified rate’, in relation to a preferential loan, means— (i) in a case where— (I) the interest which is paid on the preferential loan qualifies for relief under section 76 (1) (c) or 496 of, or paragraph 1 (2) of Part III of Schedule 6 to, the Income Tax Act, 1967 , or (II) if no interest is paid on the preferential loan, the interest which would have been paid on that loan (if interest had been payable) would have so qualified, the rate of 10 per cent. per annum or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, or (ii) in a case where— (I) the preferential loan is made to an employee by an employer, (II) the making of loans for the purposes of purchasing a dwelling-house for occupation by the borrower as a residence, for a stated term of years at a rate of interest which does not vary for the duration of the loan, forms part of the trade of the employer, and (III) the rate of interest at which the employer in the course of his trade at the time the preferential loan is or was made makes or made loans at arm's length to persons, other than employees, for the purposes of purchasing a dwelling-house for occupation by the borrower as a residence is less than 10 per cent. per annum or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, the first-mentioned rate in subparagraph (III), or (iii) in any other case, the rate of 12 per cent. per annum or such other rate (if any) as stands prescribed by the Minister for Finance by regulations.”. Amendment of section 6 (relief in respect of interest) of Finance Act, 1987. 7.—Section 6 of the Finance Act, 1987, shall have effect in respect of any period beginning on or after the 6th day of April, 1989 as if in subsection (1) “80 per cent.”were substituted for “90 per cent.”. Amendment of provisions relating to relief in respect of premiums on certain insurances, etc. 8.—As respects the year 1989-90 and subsequent years of assessment, where an individual is entitled to relief under section 143 of the Income Tax Act, 1967 , the amount of such relief shall be an amount equal to 80 per cent. of the amount of the relief which, apart from this section, would otherwise have been given under that section. Amendment of Chapter III (Income Tax: Relief for Investment in Corporate Trades) of Part I of Finance Act, 1984. 9.—Chapter III of Part I of the Finance Act, 1984, is hereby amended, as respects eligible shares issued on or after the 12th day of April, 1989— (a) in section 12 by the substitution in subsection (1) of the following proviso for the proviso (inserted by the Finance Act, 1987) to paragraph (c): “Provided that, where the money raised was used, is being used, or is intended to be used, by the company for the purpose of purchasing a ship for use by it in the course of a qualifying shipping trade carried on by it, the aforementioned evidence shall include a certificate by the Minister for the Marine certifying that— (i) the purchase of the ship was, is or would be eligible to be grant-aided under a statutory scheme of assistance for the purchase of ships administered by the Department of the Marine, and (ii) the acquisition of the ship by the company represented, represents or would represent a beneficial addition to the shipping fleet registered in the State under Part II of the Mercantile Marine Act, 1955, and (iii) such other conditions, as may be laid down by the Minister for Finance, in consultation with the Minister for the Marine, in relation to the circumstances in which the purchase of the ship may be regarded as advancing the objective mentioned in paragraph (ii), have been met.”, (b) by the insertion, after section 13, of the following section: “Restriction of relief where amounts raised exceed permitted maximum. 13A.—(1) Subject to subsection (2), where a company raises any amount through the issue (hereafter in this section referred to as the ‘relevant issue’) of eligible shares on any day falling on or after the 12th day of April, 1989, relief shall not be given in respect of the excess of the amount over the amount determined by the formula— £2,500,000 − A where A is— (a) £2,500,000, or (b) an amount equal to the aggregate of all amounts raised by the company through the issue of eligible shares at any time before the relevant issue, whichever is the lesser amount. (2) In determining, for the purposes of the formula in subsection (1), the amount to which paragraph (b) in that subsection relates, account shall not be taken of any amount— (a) which is subscribed by a person other than an individual who qualifies for relief, or (b) in respect of which relief is precluded by virtue of section 13. (3) Where, as a consequence of subsection (1), the giving of relief would be precluded on claims in respect of shares issued to two or more individuals, the available relief shall be divided between them respectively in proportion to the amounts which have been subscribed by them for the shares to which their claims relate and which would, apart from this section, be eligible for relief.”, (c) in section 16— (i) by the insertion, after the proviso to subsection (2), of the following additional proviso to that subsection: “Provided also that— (I) except where it forms part of the carrying on of qualifying shipping activities within the meaning of section 28 of the Finance Act, 1987 , the leasing of machinery or plant, (II) the leasing of land or buildings, or (III) the carrying on of financial activities, shall not be regarded as qualifying trading operations for the purposes of this section and, for the purposes of this proviso— ‘financial activities’ means the provision of, and all matters relating to the provision of, financing or refinancing facilities by any means which involves, or has an effect equivalent to, the extension of credit; ‘financing or refinancing facilities’ includes— (A) loans, mortgages, leasing, lease rental and hire-purchase, and all similar arrangements, (B) equity investment, (C) the factoring of debts and the discounting of bills, invoices and promissory notes, and all similar instruments, (D) the underwriting of debt instruments and all other kinds of financial securities, and (E) the purchase or sale of financial assets; ‘financial assets’ includes shares, gilts, bonds, foreign currencies and all kinds of futures, options and currency and interest rate swaps, and similar instruments, including commodity futures and commodity options, invoices and all types of receivables, obligations evidencing debt (including loans and deposits), leases and loan and lease portfolios, bills of exchanges, acceptance credits and all other documents of title relating to the movement of goods, commercial paper, promissory notes and all other kinds of negotiable or transferable instruments.”, and (ii) by the substitution, in subsection (2A) (inserted by the Finance Act, 1987 ), of the following paragraph for paragraph (a): “(a) the operation of tourist accommodation facilities such as hotels, guest houses, caravan and camping sites and self-catering accommodation for which the Bord maintains a register in accordance with the Tourist Traffic Acts, 1939 to 1987, other than such self-catering accommodation in— (i) the county borough of Dublin, (ii) the county borough of Cork, (iii) the county borough of Limerick, (iv) the county borough of Galway, (v) the county borough of Waterford, and (vi) the administrative county of Dublin,”, and (d) in section 17, by the insertion after subsection (2) of the following subsection: “(2A) (a) Where in the relevant period an individual, either directly or indirectly— (i) (I) acquires an option, where the exercise of it, either under the terms of the option or under the terms of any arrangement or understanding subject to which or otherwise in connection with which the option is acquired, would— (A) bind the person from whom the option was acquired or any other person, or (B) cause that person or such other person, to purchase, or otherwise acquire, any eligible shares for a price which, having regard to the terms of the option or the terms of such arrangement or understanding and the net effect of those terms considered as a whole, is other than the market value of the eligible shares at the time the purchase or acquisition is made, or (II) enters into an agreement, where, either under the terms of the agreement or under the terms of any arrangement or understanding subject to which or otherwise in connection with which the agreement is made, it would— (A) bind the person with whom the agreement is made or any other person, or (B) cause that person or such other person, to purchase, or otherwise acquire, any eligible shares in the manner described in clause (I), or (ii) (I) grants to any person an option, where the exercise of it, either under the terms of the option or under the terms of any arrangement or understanding subject to which or otherwise in connection with which the option is granted, would bind the individual to dispose, or cause him to dispose, of any eligible shares to the person to whom he granted the option or any other person for a price which, having regard to the terms of the option or the terms of such arrangement or understanding and the net effect of those terms considered as a whole, is other than the market value of the eligible shares at the time the disposal is made, or (II) enters into an agreement, where, either under the terms of the agreement or under the terms of any arrangement or understanding subject to which or otherwise in connection with which the agreement is made, it would bind the individual to dispose, or cause him to dispose, of any eligible shares to the person with whom the agreement is made or any other person in the manner described in clause (I), he shall not be entitled to any relief in respect of the shares to which the option or the agreement relates. (b) For the purposes of this subsection references to an option or an agreement include references to a right or obligation to acquire or grant an option or enter into an agreement and references to the exercise of an option include references to the exercise of an option which may be acquired or granted by the exercise of such a right or under such an obligation.”. Priority in winding up of certain amounts. 10.—For the purposes of subsection (2) (a) (iii) of section 285 of the Companies Act, 1963 — (a) the amount referred to in that subsection shall be deemed to include any amount— (i) which, apart from the provisions of Regulation 31A (inserted by the Income Tax (Employments) Regulations, 1989 (S.I. No. 58 of 1989)) of the Income Tax (Employments) Regulations, 1960 (S.I. No.28 of 1960), would otherwise have been an amount due at the relevant date in respect of sums which an employer is liable under Chapter IV of Part V of the Income Tax Act, 1967 , and any regulation thereunder (other than the said Regulation 31A) to deduct from emoluments, to which the said Chapter IV applies, paid by him during the period of 12 months next before the relevant date. (ii) reduced by any amount which he was liable under the said Chapter IV and any regulation thereunder to repay during the said period, and (iii) with the addition of any interest payable under section 129 of the Income Tax Act, 1967 , and (b) the relevant date shall, notwithstanding the provisions of subsection (1) of the said section 285, be deemed to be the date which is the ninth day after the end of the income tax month in which the relevant date (within the meaning of the said subsection (1)) occurred. Chapter II Income Tax, Corporation Tax and Capital Gains Tax Farming: amendment of provisions relating to relief in respect of increase in stock values. 11.—(1) Section 31A (inserted by the Finance Act, 1976 ) of the Finance Act, 1975 , is hereby amended by the substitution of “1990” for “1988” (inserted by the Finance Act, 1988 )— (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, 1990. (7) Where in relation to an accounting period a company's opening stock value exceeds its closing stock value, the amount of the excess (in this section referred to as the company's “decrease in stock value”) shall, if the accounting period ends on a date before the 6th day of April, 1990, be treated in the computation of the company's trading income for the purposes of corporation tax, as a trading receipt of the company's trade for that accounting period: (9) In the computation of a company's trading income for the purposes of corporation tax for any accounting period which ends on or after the 6th day of April, 1990, in which there is a decrease in stock value, there shall be treated as a trading receipt of the company's trade for that accounting period the amount (if any) by which A exceeds the aggregate of B and C where— A is the aggregate amount of the company's decreases in stock value in all accounting periods which ended on or after the 6th day of April, 1990, B is the aggregate amount of the company's increases in stock value in all accounting periods which ended on or after the 6th day April, 1990, and C is the aggregate of the amounts which under this subsection are treated as trading receipts of the company's trade for preceding accounting periods: (2) Section 12 of the Finance Act, 1976 , is hereby amended— (a) by the substitution in subsection (3) of “1990-91” for “1988-89” (inserted by the Finance Act, 1988 ), and (b) by the substitution of “1990” for “1988” (inserted by the Finance Act, 1988 ) 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 (3) Any deduction allowed by virtue of this section in computing a person's trading profits for an accounting period shall not have effect for any purpose of the Income Tax Acts for any year of assessment prior to the year 1974-75 or later than the year 1990-91. (5) In the computation of a person's trading profits for an accounting period in which there is a decrease in stock value and which ends on a date in the period from the 6th day of April, 1976, to the 5th day of April, 1990, the amount of that decrease shall be treated as a trading receipt of the trade for that accounting period: (6) In the computation of a person's trading profits for any accounting period in which there is a decrease in stock value and which ends on or after the 6th day of April, 1990, there shall be treated as a trading receipt of the trade for that accounting period the amount (if any) by which A exceeds the aggregate of B and C where— A is the aggregate amount of the person's decreases in stock value in all accounting periods which ended on or after the 6th day of April, 1990, B is the aggregate amount of the person's increases in stock value in all accounting periods which ended on or after the 6th day of April, 1990, and C is the aggregate of the amounts which are treated as trading receipts of the person's trade for preceding accounting periods which ended on or after the 6th day of April, 1990: (3) Where, in relation to an accounting period which ends on or after the 6th day of April, 1989, a person is entitled to a deduction under subsection (2) of Section 31A of the Finance Act, 1975 , or under subsection (2) of section 12 of the Finance Act, 1976 , in respect of an increase in stock value and a decrease in stock value is, in accordance with subsection (7) or (9) of the said section 31A or subsection (5) or (6) of the said section 12, to be treated as a trading receipt of the person's trade for a subsequent accounting period, then the following provisions shall have effect as if the references therein to “10 years” were references to “7 years”, that is to say— (a) in the said section 31A, in the definition of A in the proviso to subsection (7) and in the definition of D in the proviso to subsection (9), (b) in the said section 12, in the definition of A in the proviso to subsection (5) and in the definition of D in the proviso to subsection (6), and (c) in the Finance Act, 1982 , in the definition of A in the proviso (inserted by the Finance Act, 1984 ) to subsection (3) of section 13. (4) This section shall have effect only as respects a trade of farming. Capital allowances for, and deduction in respect of, vehicles. 12.—(1) (a) Sections 25 to 29 of the Finance Act, 1973 , shall have effect, in relation to expenditure incurred on the provision or hiring of a vehicle to which those sections apply, as if for “£2,500”, in each place where it occurs in those sections, there were substituted “£7,000”. (b) The reference in paragraph (a) to expenditure incurred on the provision or hiring of a vehicle does not include— (i) as respects the said sections 25 to 27, a reference to expenditure incurred before the 26th day of January, 1989, or incurred within 12 months after that day under a contract entered into before that day, and (ii) as respects subsections (2) and (3) of the said section 28 and the said section 29, a reference to expenditure under a contract entered into before the said 26th day of January, 1989. (2) Section 32 of the Finance Act, 1976 , shall have effect, in relation to qualifying expenditure (within the meaning of that section) incurred after the 25th day of January, 1989, as if for “£3,500”, in each place where it occurs, there were substituted “£7,000”. Amendment of section 251 (initial allowances for machinery and plant) of Income Tax Act, 1967. 13.— Section 251 of the Income Tax Act, 1967 , is hereby amended by the substitution for subsection (7) (inserted by section 43 of the Finance Act, 1988 ) of the following subsection— “(7) Where an allowance in respect of capital expenditure incurred on or after the 1st day of April, 1989, on the provision of new machinery or plant is made under this section for any chargeable period— (a) no allowance for wear and tear of the said machinery or plant shall be made under section 241 for that chargeable period, and (b) an allowance for wear and tear of the said machinery or plant which falls to be made under the said section 241 for any chargeable period subsequent to that chargeable period shall not be increased under section 11 of the Finance Act, 1967, or under section 26 of the Finance Act, 1971 .” Amendment of section 254 (industrial building allowance) of Income Tax Act, 1967. 14.— Section 254 of the Income Tax Act, 1967 , is hereby amended by the substitution for subsection (7) (inserted by section 44 of the Finance Act, 1988 ) of the following subsection: “(7) Where an allowance in respect of capital expenditure incurred on or after the 1st day of April, 1989, on the construction of a building or structure is made under this section for any chargeable period— (a) no allowance in relation to that capital expenditure shall be made under section 264 for that chargeable period, and (b) an allowance in relation to that capital expenditure which falls to be made under the said section 264 for any chargeable period subsequent to that chargeable period shall not be increased under section 25 of the Finance Act, 1978 .”. Amendment of section 22 (farming: allowances for capital expenditure on construction of buildings and other works) of Finance Act, 1974. 15.— Section 22 (as amended by section 52 of the Finance Act, 1988 ) of the Finance Act, 1974 , is hereby amended by the substitution for paragraph (b) in the proviso to subsection (2) of the following paragraph: “(b) the maximum farm buildings allowance to be made under this section by means of an allowance increased under paragraph (a)— (i) in relation to capital expenditure incurred before the 1st day of April, 1989, shall not, for any chargeable period, exceed three-tenths of that capital expenditure, and (ii) in relation to capital expenditure incurred on or after the 1st day of April, 1989, whether claimed in one chargeable period or more than one such period, shall not, in the aggregate, exceed one-half of that capital expenditure.”. Amendment of section 25 (increase of writing-down allowances for certain industrial buildings) of Finance Act, 1978. 16.— Section 25 of the Finance Act, 1978 , is hereby amended by the addition after subsection (2) of the following subsection: “(3) Where for any chargeable period an allowance under section 264 of the Income Tax Act, 1967 , in respect of qualifying expenditure is increased under this section, no allowance under Chapter II of Part XV of the said Act shall be made in respect of that qualifying expenditure for that or any subsequent chargeable period.”. Amendment of section 26 (allowance for certain capital expenditure on roads, bridges, etc.) of Finance Act, 1981. 17.— Section 26 (as amended by section 39 of the Finance Act, 1984 ) of the Finance Act, 1981 , is hereby amended as respects any relevant agreement (within the meaning of that section) entered into on or after the 6th day of April, 1987— (a) in subsection (1)— (i) by the substitution, in the definition of “qualifying period”, of “1992” for “1989”, and (ii) by the insertion after “agreement”, in the definition of “relevant expenditure”, of “, including interest on money borrowed to meet such capital expenditure”, and the said definitions, as so amended, are set out in the Table to this section, and (b) by the substitution for subsection (2) of the following subsection: “(2) Where a person, having made a claim in that behalf, proves, as respects a chargeable period, that relevant income was receivable and relevant expenditure was incurred by him in the chargeable period or its basis period by virtue of the relevant agreement giving rise to the relevant income, he shall, subject to subsection (3), be entitled, for the purpose only of ascertaining the amount (if any) of that relevant income on which he is to be charged to tax— (a) to an allowance equal to one-half of the relevant expenditure for the said chargeable period, and (b) to an allowance equal to one-tenth of the relevant expenditure for each of the next five chargeable periods in which the said relevant income is receivable by him: Provided that all relevant expenditure so incurred prior to the chargeable period in which relevant income is first receivable shall be deemed to have been incurred on the first day of that chargeable period.” TABLE “qualifying period” means the period commencing on the 29th day of January, 1981, and ending on the 31st day of March, 1992; “relevant expenditure” means capital expenditure incurred by a person during the qualifying period by virtue of a relevant agreement, including interest on money borrowed to meet such capital expenditure, but does not include any expenditure in respect of which any person is entitled to a deduction, relief or allowance under any provision of the Tax Acts other than this section; Taxation of collective investment undertakings. 18.—(1) In this section and the First Schedule — “accounting period” means, in relation to a collective investment undertaking, the chargeable period or its basis period (within the meaning of paragraph 1 (2) of the First Schedule to the Corporation Tax Act, 1976 ) on the income or profits of which the undertaking is chargeable to income tax or corporation tax, as the case may be, for any chargeable period (within the same meaning), or would be so chargeable but for an insufficiency of income or profits: Provided that— (a) where two basis periods overlap, the period common to both shall be deemed to fall into the first basis period only, (b) where there is an interval between the end of the basis period for one chargeable period and the basis period for the next chargeable period, then, the interval shall be deemed to be part of the second basis period, and (c) the reference in paragraph (a) to the overlapping of two periods shall be construed as including a reference to the coincidence of two periods or to the inclusion of one period in another, and the reference to the period common to both shall be construed accordingly; “the Acts” means the Tax Acts and the Capital Gains Tax Acts; “the airport” has the same meaning as it has in the Customs-free Airport Act, 1947 ; “appropriate tax” means, in relation to the amount of any relevant payment made by a collective investment undertaking or in relation to any amount of undistributed relevant income of such an undertaking, as the case may be, a sum representing tax on the amount of the payment or the amount of the undistributed relevant income, as appropriate, at a rate equal to the standard rate of income tax in force at the time of the payment or at the end of the accounting period to which the undistributed relevant income relates, as the case may be, after making a deduction from that sum of an amount equal to, or to the aggregate of— (a) in the case of a relevant payment— (i) in so far as it is made, wholly or partly, out of relevant income which at a previous date had been or formed part of the undistributed relevant income of the undertaking, the amount of any appropriate tax deducted from the relevant income, or, where the payment, or that part of it which is made out of relevant income, is less than the relevant income, from such part of the relevant income as is represented by the payment, or that part of the payment, as the case may be, and (ii) any other amount or amounts of tax deducted from the relevant profits out of which the relevant payment is made, or, where the payment is less than the profits, from such part of the profits as is represented by the payment, under any of the provisions of the Acts apart from this section and which is or are not repayable to the collective investment undertaking, or (b) in the case of an amount of undistributed relevant income, any amount or amounts of tax deducted from the income under any of the provisions of the Acts apart from this section and which is or are not repayable to the collective investment undertaking: Provided that the amount of the deduction shall not exceed the amount of the sum; “the Area” has the same meaning as it has for the purposes of section 39B (inserted by the Finance Act, 1987 ) of the Finance Act, 1980 ; “chargeable gains” has the same meaning as in the Capital Gains Tax Act, 1975 ; “collective investment undertaking” means— (a) a registered unit trust scheme within the meaning of the Unit Trusts Act, 1972 , and (b) any other undertaking which is an undertaking for collective investment in transferable securities within the meaning of the relevant Regulations, being an undertaking which holds an authorisation issued pursuant to the relevant Regulations and that authorisation has not been revoked; “distribution” has the same meaning as it has for the purposes of the Corporation Tax Acts; “qualified company” has, in relation to any business of a collective investment undertaking carried on in— (a) the airport, the same meaning as it has for the purposes of section 39A (inserted by the Finance Act, 1981 ) of the Finance Act, 1980 , or (b) the Area, the same meaning as it has for the purposes of section 39B (inserted by the Finance Act, 1987 ) of the said Finance Act, 1980 ; “qualifying management company” means, in relation to a collective investment undertaking, a qualified company which, in the course of relevant trading operations carried on by the qualified company, manages the whole or any part of the investments and other activities of the business of the undertaking; “relevant gains” means, in relation to a collective investment undertaking, gains accruing to the undertaking being gains which would constitute chargeable gains in the hands of a person resident in the State; “relevant income” means, in relation to a collective investment undertaking, any amounts of income, profits or gains which arise to or are receivable by the collective investment undertaking being amounts of income, profits or gains— (a) which are, or are to be, paid to unit holders as relevant payments, or (b) out of which relevant payments are, or are to be, made to unit holders, or (c) which are, or are to be, accumulated for the benefit of, or invested in transferable securities for the benefit of, unit holders, and which if they arose to an individual resident in the State would, in the hands of the individual, constitute income for the purposes of income tax; “relevant payment” means a payment made to a unit holder by a collective investment undertaking by reason of rights conferred on the unit holder as a result of holding a unit or units in the collective investment undertaking, other than a payment made in respect of the cancellation, redemption or repurchase of a unit; “relevant profits” means, in relation to a collective investment undertaking, the relevant income and relevant gains of the undertaking; “relevant Regulations” means the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 1989 (S.I. No. 78 of 1989); “relevant trading operations” has, in relation to any business of a collective investment undertaking carried on by a qualified company in— (a) the airport, the same meaning as it has for the purposes of section 39A (inserted by the Finance Act, 1981 ) of the Finance Act, 1980 , or (b) the Area, the same meaning as it has for the purposes of section 39B (inserted by the Finance Act, 1987 ) of the said Finance Act, 1980 ; “return” means a return under paragraph 1 (2) of the First Schedule ; “specified collective investment undertaking” means a collective investment undertaking— (a) most of the business of which, to the extent that it is carried on in the State— (i) (I) is carried on in the Area by the undertaking or by a qualifying management company of the undertaking or by the undertaking and the qualifying management company of the undertaking, or (II) is not so carried on in the Area but— (A) is so carried on in the State, (B) would be so carried on in the Area but for circumstances outside the control of the person or persons carrying on the business, and (C) is so carried on in the Area when the aforementioned circumstances cease to exist, or (ii) is carried on in the airport by the undertaking or by a qualifying management company of the undertaking or by the undertaking and the qualifying management company of the undertaking, and (b) save to the extent that such units are held by the undertaking itself or by the qualifying management company of the undertaking, all the holders of units in the undertaking are persons resident outside the State; “tax” means income tax, corporation tax or capital gains tax, as may be appropriate; “transferable securities” has …