Finance Act, 1959

Finance 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 Act, 1959 Finance 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 18 of 1959. FINANCE ACT, 1959. ARRANGEMENT OF SECTIONS Part I INCOME TAX Section 1. Income tax and sur-tax for the year 1959–60. 2. Sur-tax for the year 1958–59. 3. Deduction in charging Sur-tax. 4. Amendment of section 21 of Finance Act, 1920. 5. Covenanted subscriptions for teaching of natural sciences. 6. Purchases and sale of securities: application of sections 7 to 9. 7. Purchase and sale of securities: dealers in securities. 8. Purchase and sale of securities: persons entitled to exemptions. 9. Purchase and sale of securities: traders other than dealers in securities. 10. Confirmation of agreement on double taxation. Part II CUSTOMS AND EXCISE 11. Tobacco. 12. Amendment of section 12 of Finance Act, 1932. 13. Exemptions from entertainments duty. 14. Entertainments duty—ball or dance proceeds of which are for educational, philanthropic or charitable purposes. 15. Entertainments duty—rates in the case of ball or dance . 16. Entertainments duty—amendment of section 10 (4) (c) of Finance Act, 1948. 17. Entertainments duty—rates in the case of cinematographic exhibitions. 18. Entertainments duty-rural areas. 19. Hydrocarbon oils-miscellaneous provisions. 20. Confirmation of Order. Part III CORPORATION PROFITS TAX 21. Continuance of certain exemptions from corporation profits tax. Part IV PURCHASED LIFE, ANNUITIES: INCOME TAX AND SUR-TAX 22. Capital element in certain purchased annuities. 23. Supplementary provisions for Part IV. Part V RELIEF FOR CERTAIN CAPITAL EXPENDITURE: INCOME TAX, SUR-TAX AND CORPORATION PROFITS TAX Chapter I Industrial Buildings and Structures 24. Interpretation (Chapter I of Part V). 25. Annual allowances (industrial buildings or structures). 26. Balancing allowances and balancing charges (industrial buildings or structures). 27. Writing off of expenditure and meaning of “residue of expenditure”. 28. Manner of making allowances and charges (industrial buildings or structures). 29. Meaning of “the relevant interest”. 30. Special provisions in regard to leases. 31. Temporary disuse of industrial buildings and structures. 32. Amendment of repairs allowance. Chapter II Machinery and Plant 33. Interpretation (Chapter II of Part V). 34. Balancing allowances and balancing charges (machinery and plant). 35. Option in case of replacement of machinery or plant. 36. Construction of references to amount still unallowed. 37. Application to partnerships. 38. Machinery or plant used partly for non-trading purposes. 39. Calculation of balancing allowances and balancing charge in certain cases. 40. Option in case of succession under will or intestacy. 41. Wear and tear allowance to be deemed to have been made in certain cases. 42. Subsidies towards wear and tear. 43. Application to lessors. 44. Manner of making allowances and charges (machinery and plant). 45. Application to professions, etc., and exception as respects lands. Chapter III Patents 46. Interpretation (Chapter III of Part V). 47. Annual allowances for capital expenditure on purchase of patent rights. 48. Effect of lapse of patent rights, sales, etc. 49. Special provision for certain capital expenditure. 50. Charges on capital sums received for sale of patent rights. 51. Patent rights sold before the operative date. 52. Relief for expenses. 53. Patent income to be earned income certain cases. 54. Spreading of income payments over several years. 55. Manner of making allowances and charges (patents). 56. Effect of deaths, windings up and partnership changes on charges. Chapter IV Allowances for Expenditure on Dredging 57. Allowances for expenditure on dredging. Chapter V Miscellaneous and General 58. Manner of granting allowances and charging tax in certain cases. 59. Manner of granting, and effect of, allowances made by way of discharge or repayment of tax. 60. Meaning of “basis period”. 61. Apportionment of consideration and exchanges and surrenders of leasehold interests. 62. Special provisions as to certain sales. 63. Effect, in certain cases of successions to trades, etc. 64. Procedure on apportionments etc. 65. Property used for purposes of “exempted trading operations”. 66. Interpretation of certain reference to expenditure, etc. 67. Other provisions as to interpretation. 68. Consequential amendments. 69. Allowances and charges in relation to corporation profits tax. Part VI AMENDMENT OF FINANCE (MISCELLANEOUS PROVISIONS) ACT, 1956, AND TRAINING OF LOCAL STAFF BEFORE COMMENCEMENT OF TRADING: INCOME TAX, SUR-TAX AND CORPORATION PROFITS TAX 70. Interpretation (Part VI). 71. Amendment of Part III of the Act (repairs to ships, greeting cards). 72. Amendment of Part III of the Act (adjustment of certain amounts). 73. Amendment of Part IV of the Act. 74. Training of local staff before commencement of trading. Part VII STAMP DUTIES 75. Stamp duty on policies of insurance. 76. Amendment of section 19 (1) (b) of Finance Act, 1952. Part VIII MISCELLANEOUS AND GENERAL 77. Capital Services Redemption Account. 78. Amendment of section 31 (3) of Finance Act, 1940. 79. Amendment of section 2 of Finance (Profits of Certain Mines) (Temporary Relief from Taxation) Act, 1956. 80. Repeals. 81. Care and management of taxes and duties. 82. Short title, construction and commencement. FIRST SCHEDULE PURCHASE AND SALE OF SECURITIES: APPROPRIATE AMOUNT IN RESPECT OF THE INTEREST SECOND SCHEDULE AGREEMENT BETWEEN THE GOVERNMENT OF IRELAND AND THE GOVERNMENT OF THE UNITED KINGDOM WITH RESPECT TO CERTAIN EXEMPTIONS FROM TAX THIRD SCHEDULE DUTIES ON TOBACCO FOURTH SCHEDULE ENACTMENTS REPEALED Acts Referred to Finance Act, 1952 1952, No. 14 Finance Act, 1958 1958, No. 25 Finance Act, 1928 1928, No. 11 Finance Act, 1920 1920, c. 18 Finance Act, 1954 1954, No. 22 Finance Act, 1935 1935, No. 28 Finance Act, 1957 1957, No. 20 Finance Act, 1926 1926, No. 35 Finance Act, 1948 1948, No. 12 Finance Act, 1932 1932, No. 20 Finance Act, 1934 1934. No. 31 Finance Act, 1943 1943, No. 16 Finance Act, 1956 1956, No. 22 Finance (Customs Duties) (No. 4) Act, 1931 1931, No. 43 Finance (Miscellaneous Provisions) Act, 1935 1935, No. 7 Finance Act, 1929 1929, No. 32 Finance Act, 1919 1919, c. 32 Finance Act, 1946 1946, No. 15 Finance (Profits of Certain Mines) (Temporary Relief from Taxation) Act, 1956 1956, No. 8 Finance (Miscellaneous Provisions) Act, 1956 1956, No. 47 Industrial and Commercial Property (Protection) Act, 1927 1927, No. 16 Finance Act, 1937 1937, No. 18 Finance (Miscellaneous Provisions) Act, 1958 1958 No. 28 Marine Insurance Act, 1906 1906, c. 41 Merchant Shipping Act, 1894 1894, c. 60 Finance Act, 1940 1940, No. 14 Stamp Act, 1891 1891, c 39 Number 18 of 1959. FINANCE ACT, 1959. 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. [27th July, 1959.] BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:— PART I Income Tax. Income tax and sur-tax for the year 1959-60. 1.—(1) Income tax shall be charged for the year beginning on the 6th day of April, 1959, at the rate of seven shillings in the pound. (2) Section 4 of Finance Act, 1952 , is hereby amended by the substitution in both subsection (1) and subsection (2) of “eleven twenty-eighths” for “two-fifths” and “eleven-fourteenths” for “four-fifths”. (3) Sur-tax for the year beginning on the 6th day of April, 1959, shall be charged in respect of the income of any individual the total of which from all sources exceeds two thousand pounds and shall be so charged at the following rates, that is to say: In respect of the first two thousand pounds of the income Nil In respect of the excess over two thousand pounds, for every pound of the first one thousand pounds of the excess One shilling and sixpence. for every pound of the next one thousand pounds of the excess Three shillings. for every pound of the next one thousand pounds of the excess Four shillings. for every pound of the next one thousand pounds of the excess Five shillings. for every pound of the next two thousand pounds of the excess Six shillings. for every pound of the next two thousand pounds of the excess Seven shillings and sixpence. for every pound of the next ten thousand pounds of the excess Eight shillings. for every pound of the remainder of the excess Eight shillings and sixpence. (4) The several statutory and other provisions which were in force on the 5th day of April, 1959, in relation to income tax and sur-tax and any such provisions which came into operation on the 6th day of April, 1959, in relation thereto shall, subject to the provisions of this Act, have effect in relation to the income tax and sur-tax to be charged as aforesaid for the year beginning on the 6th day of April, 1959. Sur-tax for the year 1958-59. 2.—(1) Notwithstanding anything to the contrary contained in Section 1 of Finance Act, 1958 , sur-tax for the year beginning on the 6th day of April, 1958, shall not be charged in respect of the income of any individual the total of which from all sources does not exceed two thousand pounds and, in respect of the income of any individual the total of which from all sources exceeds two thousand pounds, sur-tax for the year beginning on the 6th day of April, 1958, shall be charged at the following rates, that is to say:— In respect of the first two thousand pounds of the income Nil In respect of the excess over two thousand pounds, for every pound of the first one thousand pounds of the excess One shilling and sixpence. for every pound of the next one thousand pounds of the excess Three shillings. for every pound of the next one thousand pounds of the excess Four shillings. for every pound of the next one thousand pounds of the excess Five shillings. for every pound of the next two thousand pounds of the excess Six shillings. for every pound of the next two thousand pounds of the excess Seven shillings and sixpence. for every pound of the next ten thousand pounds of the excess Eight shillings. for every pound of the remainder of the excess Eight shillings and sixpence. (2) Section 3 of Finance Act, 1928 , shall, in relation to the sur-tax for the year beginning on the 6th day of April, 1958, have effect subject to the provisions of this section. Deduction in charging sur-tax. 3.—(1) For the purpose of charging sur-tax for the year of assessment beginning on the 6th day of April, 1958, or for any subsequent year of assessment, there shall be deducted from the total income of an individual an amount equal to the deductions which, in ascertaining the amount of the income on which he is to be charged to income tax for that year of assessment, he is entitled to be allowed under the following provisions: (a) subsection (1) of section 18 of the Finance Act, 1920 , (b) sections 19 to 22 of the Finance Act, 1920 , and (c) subsection (2) of section 2 of Finance Act, 1954 . (2) Where an individual not resident in the State is entitled to a deduction for any year under this section, the deduction shall be reduced in the proportion in which subsection (2) of section 8 of Finance Act, 1935 , reduces any relief given him for that year under the provisions specified in paragraphs (a), (b) and (c) of subsection (1) of this section. 8 & 9 Geo. 5, c. 40. (3) In the case of a husband and wife who are for any year of assessment separately assessed to tax by virtue of an application under Rule 17 of the General Rules or under section 8 of the Income Tax Act, 1918, the following provisions shall apply in relation to any deduction to be made under subsection (1) of this section for that year: (a) whether or not they are separately assessed to sur-tax, the deduction to be made from their total income shall be the same as if there were no separate assessment; (b) where they are separately assessed to sur-tax, the resulting relief from sur-tax shall be divided between them by treating their respective incomes as reduced as follows: (i) the amount (if any) included in the deduction in respect of relief under subsection (2) of section 21 or under section 22 of the Finance Act, 1920 , shall be treated as reducing the income of the husband or the wife according as he or she maintains the child, relative, son or daughter, in respect of whom that relief is given, (ii) subject to the foregoing subparagraph, the deduction shall be treated as reducing their respective incomes rateably, but so that, if the amount by which the income of either falls to be reduced under subparagraphs (i) and (ii) of this paragraph exceeds the amount of that income, the income of the other shall be treated as reduced by the amount of the excess. Amendment of section 21 of Finance Act, 1920. 4.— Section 21 of the Finance Act, 1920 , is hereby amended by the insertion after subsection (2) of the following subsection:— “(2A) The references in the preceding provisions of this section to a child receiving full-time instruction at an educational establishment shall include references to a child undergoing training by any person (hereafter in this subsection referred to as the employer) for any trade, profession or vocation in such circumstances that the child is required to devote the whole of his time to the training for a period of not less than two years. For the purpose of a claim in respect of a child undergoing training the inspector of taxes may require the employer to furnish particulars with respect to the training of the child in such form as may be prescribed by the Revenue Commissioners.” Covenanted subscriptions for teaching of natural sciences. 5.—(1) Section 20 of the Finance Act, 1922 , shall have effect as if references to income payable— 12 & 13 Geo. 5, c. 17. (a) to any university, college or school, being a university, college or school in the State for the purpose of assisting such university, college or school to teach the natural sciences or any of them, or (b) to a fund, being a fund within the meaning of this section, were included in the reference, occurring in section 20 of the Finance Act, 1922 , by virtue of the insertion in paragraph (b) of subsection (1) thereof, by section 3 of Finance Act, 1957 , of subparagraph (ia), to income payable to any university or college, being a university or college in the State, for the purpose of enabling such university or college to carry on research. (2) For the purposes of this section “fund” means a fund— (i) held upon irrevocable trusts under the law of the State, (ii) administered in the State, and (iii) having for its sole purpose the granting of financial or other aid to universities, colleges or schools in the State in order to assist such universities, colleges or schools to teach the natural sciences or any of them. Purchases and sale of securities: application of sections 7 to 9. 6.—(1) Subject as hereinafter provided, the three next following sections relate to cases of a purchase by a person (in those sections referred to as the first buyer) after the 22nd day of April, 1959, of any securities and their subsequent sale by him, the result of the transaction being that interest becoming payable in respect of the securities (in those sections referred to as the interest) is receivable by the first buyer. (2) The said sections do not relate to cases where— (a) the time elapsing between the purchase by the first buyer and his taking steps to dispose of the securities exceeded six months, or (b) that time exceeded one month and, in the opinion of the Revenue Commissioners, the purchase and sale were each effected at the current market price and the sale was not effected in pursuance of an agreement or arrangement made before or at the time of the purchase. (3) An appeal shall lie to the Special Commissioners with respect to any opinion of the Revenue Commissioners under paragraph (b) of subsection (2) of this section in like manner as an appeal would lie against an assessment to income tax, and the provisions of the Income Tax Acts relating to appeals shall apply and have effect accordingly. (4) The reference in subsection (2) of this section to the first buyer taking steps to dispose of the securities shall be construed— (a) if he sold them in the exercise of an option he had acquired, as a reference to his acquisition of the option, (b) in any other case, as a reference to his selling them. (5) For the purposes of this and the three next following sections a sale of securities similar to, and of the like nominal amount as, securities previously bought (hereinafter referred to as the original securities) shall be equivalent to a sale of the original securities, and subsection (4) of this section shall apply accordingly; and where the first buyer bought parcels of similar securities at different times, a subsequent sale of any of the securities shall so far as may be be related to the last to be bought of the parcels, and then to the last but one, and so on: Provided that a person shall be under no greater liability to tax by virtue of this subsection than he would have been under if instead of selling the similar securities he had sold the original securities. (6) Where, at the time when a trade is, or is deemed to be, set up and commenced, any securities form part of the trading stock belonging to the trade, those securities shall be treated for the purposes of this section as having been sold at that time in the open market by the person to whom they belonged immediately before that time and as having been purchased at that time in the open market by the person thereafter engaged in carrying on the trade; and subject to the foregoing provisions of this subsection, where there is a change in the persons engaged in carrying on a trade which is not a change on which the trade is deemed to be discontinued, the provisions of this section shall apply in relation to the person so engaged after the change as if anything done to or by his predecessor had been done to or by him. (7) For the purposes of this and the three next following sections— (a) “interest” includes a dividend; (b) “person” includes any body of persons, and references to a person entitled to any exemption from income tax include, in a case of an exemption expressed to apply to income of a trust or fund, references to the persons entitled to make claims for the granting of that exemption; (c) “securities” includes stocks and shares; (d) securities shall be deemed to be similar if they entitle their holders to the same rights against the same persons as to capital and interest and the same remedies for the enforcement of those rights, notwithstanding any difference in the total nominal amounts of the respective securities or in the form in which they are held or the manner in which they can be transferred. Purchase and sale of securities: dealers in securities. 7.—(1) Subject to the provisions of this section, if the first buyer is engaged in carrying on a trade which consists of or comprises dealings in securities, then, in computing for any of the purposes of the Income Tax Acts the profits arising from or loss sustained in the trade, the price paid by him for the securities shall be reduced by the appropriate amount in respect of the interest, as determined in accordance with the First Schedule to this Act. (2) Where, in the opinion of the Revenue Commissioners, the first buyer is bona fide carrying on the business of a discount house in the State, or where the first buyer is a member of a stock exchange in the State who is recognised by the committee of that stock exchange as carrying on the business of a dealer, subsection (1) of this section shall not have effect in relation to securities bought in the ordinary course of his said business. (3) Subsection (1) of this section shall not apply if the interest is to any extent required to be brought into account under section 51 of Finance Act, 1958 , as if it were a trading receipt which had not borne tax or would to any extent be so required to be brought into account but for the provisions of paragraph 2 of the Third Schedule to that Act. Purchase and sale of securities: persons entitled to exemptions. 8.—(1) If the first buyer is entitled under any enactment to an exemption from income tax which, apart from this subsection, would extend to the interest, then, subject to the provisions of this section, the exemption shall not extend to an amount equal to the appropriate amount in respect of the interest, as determined in accordance with the First Schedule to this Act: Provided that if the first buyer is entitled as aforesaid and any annual payment is payable by him out of the interest, the annual payment shall be deemed as to the whole thereof to be paid out of profits or gains not brought into charge to tax, and Rule 21 of the General Rules shall apply accordingly. (2) This section shall not apply where the exemption arises from the residence of the first buyer in Great Britain or Northern Ireland. Purchase and sale of securities: traders other than dealers in securities. 9.—(1) If the first buyer carries on a trade not falling within section 7 of this Act, then, in ascertaining whether any, and, if so, what, repayment of tax is to be made to him under section 34 of the Income Tax Act, 1918, by reference to any loss sustained in the trade and the aggregate amount of his income for the year of assessment his income for which includes the interest, there shall be left out of account— (a) the appropriate amount in respect of the interest, as determined in accordance with the First Schedule to this Act, and (b) any tax paid on that amount. (2) Where the first buyer is a company and carries on a trade not falling within section 7 of this Act or a business consisting mainly in the making of investments then, if any annual payment payable by the company is to any extent payable out of the interest, that annual payment shall be deemed to that extent not to be payable out of profits or gains brought into charge to tax, and Rule 21 of the General Rules shall apply accordingly. (3) In subparagraph (3) of paragraph 5 of the Third Schedule to Finance Act, 1958 , “and” shall be deleted at the end of clause (c), and after clause (d) there shall be inserted the following: “and (e) if the company is not engaged as aforesaid, but were it so engaged any reduction under section 7 of the Finance Act, 1959, would, or would but for subsection (3) of that section, fall to be made as respects the price paid by the company for securities (within the meaning of that section) bought by it in a year of assessment in the period, such amount as would, after deduction of income tax at the rate applicable to the payment, be equal to the amount of the reduction, so however that where the securities are of the description specified in paragraph 4 of the First Schedule to that Act the amount shall be the amount of the reduction,” and in subparagraph (3) of paragraph 4 of that Schedule after “clause (d)” there shall be inserted “or (e) ”. (4) In this section “company” includes any body corporate. Confirmation of agreement on double taxation. 10.—The agreement, set forth in the Second Schedule to this Act, made on the 4th day of April, 1959, between the Government and the United Kingdom Government relating to the agreement set out in Part I of the First Schedule to Finance Act, 1926 (as amended by the agreements set out in the First Schedule to Finance Act, 1928 , and the First Schedule to Finance Act, 1948 ), is hereby confirmed and, subject to confirmation by the United Kingdom Parliament, shall have effect accordingly. PART II. Customs And Excise. Tobacco. 11.—(1) The duty of customs on tobacco imposed by section 20 of Finance Act, 1932 , shall, as on and from the 1st day of May, 1959, be charged, levied and paid as respects unmanufactured tobacco at the several rates specified in Part I of the Third Schedule to this Act in lieu of the several rates at which the said duty is now chargeable on unmanufactured tobacco by virtue of section 7 of Finance Act, 1957 . (2) The duty of excise on tobacco imposed by section 19 of the Finance Act, 1934 , shall, as on and from the 1st day of May, 1959, be charged, levied and paid as respects unmanufactured tobacco at the several rates specified in Part II of the Third Schedule to this Act in lieu of the several rates at which the said duty is now chargeable on unmanufactured tobacco by virtue of section 7 of Finance Act, 1957 . (3) As respects unmanufactured tobacco which, apart from this subsection, would be entitled by virtue of subsection (7) of section 7 of Finance Act, 1957 , to the preferential rates of customs duties specified in Part HI of the Schedule to that Act, the duty of customs chargeable thereon on delivery from bonded warehouse shall, as on and from the 1st day of May, 1959, be charged, levied and paid at the rates for unmanufactured tobacco specified in Part III of the Third Schedule to this Act. (4) As respects unmanufactured tobacco delivered from a bonded warehouse to a licensed manufacturer of tobacco on or after the 1st day of May, 1959, the Revenue Commissioners may, subject to compliance by the manufacturer with such conditions for securing payment of the duty as they may think fit to impose, permit the manufacturer to defer payment of the duty charged on the tobacco to a day not later than— (a) in case the tobacco is so delivered in the month of March in any year, the last day of that month, or (b) in any other case, the last day of the month succeeding the month in which the tobacco is so delivered. (5) As respects unmanufactured tobacco delivered from a bonded warehouse to a licensed manufacturer of tobacco on or after the 1st day of May, 1959, in relation to which there is no deferment of payment of duty pursuant to subsection (4) of this section, the manufacturer shall be entitled to receive a rebate of duty of two pence and one half-penny in respect of every pound of the tobacco. Amendment of section 12 of Finance Act, 1932. 12.— Section 12 of Finance Act, 1932 , is hereby amended by the deletion of “and are not obtainable or likely to be obtainable in Saorstát Éireann” and by the insertion of “and the said Minister for Finance, after such consultation as aforesaid, so thinks proper” before “the Revenue Commissioners may”. Exemptions from entertainments duty. 13.—(1) In this section “entertainments duty” means the excise duty referred to by that name in and chargeable under section 1 of the Finance (New Duties) Act, 1916, as amended by subsequent enactments. (2) On and after the 16th day of April, 1959, entertainments duty shall not be charged or levied on payments for admission to any entertainment which consists solely of one or more greyhound races. (3) During the period beginning on the 16th day of April, 1959, and ending on the 31st day of July, 1959, entertainments duty shall not be charged or levied on payments for admission to any entertainment which consists solely of an exhibition of the sport of boxing. (4) On and after the 1st day of August, 1959, entertainments duty shall not be charged or levied on payments for admission to any entertainment which consists solely of an exhibition of any game or sport which is played or contested by two or more persons or by two or more groups of persons. Entertainments duty—ball or dance proceeds of which are for educational, philanthropic or charitable purposes. 14.—Subsection (4) of section 10 of Finance Act, 1943 , shall, as respects any entertainment which is a ball or dance held on or after the 1st day of August, 1959, have effect as if “sixty per cent.” were substituted for “fifty per cent.”. Entertainments duty—rates in the case of ball or dance. 15.—On and after the 1st day of August, 1959, subsection (2) of section 15 of Finance Act, 1956 , shall have effect as if— (a) for the rates specified in paragraph (i) thereof there were substituted the following rates: Rate of Duty. Where the payment for admission, excluding duty— exceeds  2s.          6d.         but does not exceed   2s.    10½d. 1½d. ” 2s. 10½d ” ” ” ” 3s. 3d. 3d. ” 3s. 3d. ” ” ” ” 3s. 5½d. 3½d. ” 3s. 5½d. ” ” ” ” 3s. 8d. 4d. ” 3s. 8d. ” ” ” ” 4s. 7d. 5d. ” 4s. 7d. 5d. for the first 4s. 7d. and for every additional 1s. or part of 1s. (b) for the rates specified in paragraph (ii) thereof there were substituted the following rates: Rate of Duty. Where the payment for admission, excluding duty— exceeds  2s.        6d.       but does not exceed   2s.        9d. 3d. ” 2s. 9d ” ” ” ” 3s. 0d. 6d. ” 3s. 0d. ” ” ” ” 3s. 2d. 7d. ” 3s. 2d. ” ” ” ” 3s. 4d. 8d. ” 3s. 4d. ” ” ” ” 4s. 2d. 10d. ” 4s. 2d. 10d. for the first 4s. 2d. and 3d. for every additional 1s. or part of 1s. Entertainments duty— amendment of section 10 (4) (c) of Finance Act, 1948. 16.—Paragraph (c) of subsection (4) of section 10 of Finance Act, 1948 , shall, as respects entertainments held on or after the 1st day of August, 1959, have effect as if “seventy-five per cent.”were substituted for “fifty per cent.”. Entertainments duty—rates in the case or cinematographic exhibitions. 17.—On and after the 1st day of August, 1959, section 10 of Finance Act, 1948 , shall have effect as if, for the rates specified in subsection (3) thereof, there were substituted the following rates: Rate of Duty. Where the payment for admission, excluding duty— exceeds              8d.         but does not exceed            8½d. ½d. ”            8½d. ” ” ” ”            9d. 1d. ”            9d. ” ” ” ”            9½d. 1½d. ”            9½d. ” ” ” ”            11d. 2d. ”          11d. ” ” ” ” 1s.     0½d. 3½d. ” 1s.     0½d. ” ” ” ” 1s.     2d. 5d. ” 1s.     2d. ” ” ” ” 1s.     3d. 6d. ” 1s.     3d. ” ” ” ” 1s.     5½d. 7½d. ” 1s.     5½d. ” ” ” ” 1s.     7d. 9d. ” 1s.     7d. ” ” ” ” 1s.     8½d. 10½d. ” 1s.     8½d. ” ” ” ” 1s.   10d. 11d. ” 1s.   10d. ” ” ” ” 1s.   11d. 1s.   1d. ” 1s.   11d. 1s.   1d. for the first 1s. 11d. and ½. for every additional ½d. or part of ½d. Entertainments duty—rural areas. 18.—Subsections (5) and (6) of section 16 of Finance Act, 1954 , shall have effect as if in each subsection “four years” were substituted for “two years”. Hydrocarbon oils.—miscellaneous provisions. 19.—(1) Subject to compliance with such conditions as the Revenue Commissioners may think fit to impose, the duty of customs imposed by section 1 of Finance (Customs Duties) (No. 4) Act, 1931 , or the duty of customs imposed by section 21 of Finance Act, 1935 , shall not be charged or levied on any hydrocarbon oil removed on importation, or delivered from bonded warehouse, to the premises of a refiner of hydrocarbon oil for the purpose of undergoing a process of manufacture therein. (2) Subject to compliance with such conditions as the Revenue Commissioners may think fit to impose, any hydrocarbon oil liable to a duty of excise may be removed for exportation, or for shipment as stores, from the premises of the manufacturer thereof without payment of duty. (3) Whenever the Minister for Finance, after consultation with the Minister for Industry and Commerce, so thinks proper, the Revenue Commissioners may, subject to compliance with such conditions as they may think fit to impose, repay to any particular person any duty charged and levied under section 1 of Finance (Miscellaneous Provisions) Act, 1935 , and paid on any particular articles on delivery from the premises of a refiner of hydrocarbon oil or from bonded warehouse. (4) Whenever the Minister for Finance, after consultation with the Minister for Industry and Commerce, so thinks proper, the Revenue Commissioners may, subject to compliance with such conditions as they may think fit to impose, authorise any person to take delivery from the premises of a refiner of hydrocarbon oil or from a bonded warehouse of any of the articles chargeable with the duty imposed by section 1 of Finance (Miscellaneous Provisions) Act, 1935 , without payment of that duty. (5) (a) Whenever the Revenue Commissioners are satisfied that any hydrocarbon oil, other than lubricating oil, on which either the duty of customs or the duty of excise imposed by section 21 of Finance Act, 1935 , has been paid has been used in, or in connection with, the production of goods for export but has not been used for combustion in the engine of a mechanically propelled vehicle, the Revenue Commissioners may, subject to compliance with such conditions as they may think fit to impose, repay to the person who produced the goods for export any such duty paid on the oil, less any rebate thereof allowed under the said section 21. (b) In this section “production” includes any industrial process or operation. (6) Whenever the Revenue Commissioners are satisfied that any hydrocarbon oil chargeable with the duty of excise imposed by section 21 of Finance Act, 1935 , is intended for the purpose of undergoing a process of manufacture, or for the purpose of being incorporated with other substances as an ingredient of a manufactured product, the Revenue Commissioners may, subject to compliance with such conditions as they may think fit to impose, permit the oil to be delivered from the premises of a refiner of hydrocarbon oil or from a bonded warehouse without payment of that duty. Confirmation of Order. 20.—The Imposition of Duties (No. 60) (Special Import Levies and Miscellaneous Customs Duties) Order, 1959 ( SI. No. 63 of 1959 ), is hereby confirmed. PART III. Corporation Profits Tax. Continuance of certain exemptions from corporation profits tax. 21.—The exemptions from corporation profits tax specified in subsection (1) of section 33 of Finance Act, 1929 , shall be given in respect of the period beginning on the 1st day of January, 1959, and ending on the 31st day of December, 1961. PART IV. Purchased Life Annuities: Income Tax and Sur-tax. Capital element in certain purchased annuities. 22.—(1) A purchased life annuity (not being of a description excepted by subsection (8) of this section) shall, for the purposes of the provisions of the Income Tax Acts relating to tax on annuities and other annual payments, be treated as containing a capital element and, to the extent of the capital element, as not being an annual payment or in the nature of an annual payment; but the capital element in such an annuity shall be taken into account in computing profits or gains or losses for other purposes of those Acts in any circumstances in which a lump sum payment would be taken into account. (2) In the case of any purchased life annuity to which this section applies— (a) the capital element shall be determined by reference to the amount or value of the payments made or other consideration given for the grant of the annuity, (b) the proportion which the capital element in any annuity payment bears to the total amount of that payment shall be constant for all payments on account of the annuity, (c) where neither the term of the annuity nor the amount of any annuity payment depends on any contingency other than the duration of a human life or lives, that proportion shall be the same proportion which the total amount or value of the consideration for the grant of the annuity bears to the actuarial value of the annuity payments as determined in accordance with subsection (3) of this section, and (d) where paragraph (c) of this subsection does not apply, the said proportion shall be such as may be just, having regard to that paragraph and to the contingencies affecting the annuity. (3) For the purposes of subsection (2) of this section— (a) any entire consideration given for the grant of an annuity and for some other matter shall be apportioned as appears just (but so that a right to a return of premiums or other consideration for an annuity shall not be treated for this purpose as a distinct matter from the annuity), (b) where it appears that the amount or value of the consideration purporting to be given for the grant of an annuity has affected, or has been affected by, the consideration given for some other matter, the aggregate amount or value of those considerations shall be treated as one entire consideration given for both and shall be apportioned under paragraph (a) of this subsection accordingly, and (c) the actuarial value of any annuity payments shall be taken to be their value as at the date when the first of those payments begins to accrue, that value being determined by reference to the prescribed tables of mortality and without discounting any payment for the time to elapse between that date and the date it is to be made. (4) Where a person making a payment on account of any life annuity has been notified in the prescribed manner of any decision as to its being or not being a purchased life annuity to which this section applies or as to the amount of the capital element (if any), and has not been notified of any alteration of that decision, the notice shall be conclusive as to those matters for the purpose of determining the amount of tax which he is entitled or required to deduct from the payment, or for which he is liable in respect of it. (5) Where a person making a payment on account of a purchased life annuity to which this section applies has not been notified in the prescribed manner of the amount of the capital element, the amount of tax which he is entitled or required to deduct from the payment, or for which he is liable in respect of it, shall be the same as if the annuity were not a purchased life annuity to which this section applies. (6) Any person carrying on a business of granting annuities on human life shall be entitled to repayment of any tax borne by him by deduction or otherwise for any year of assessment up to the amount of tax which, if this section had not been passed, he would have been entitled to deduct and retain on making payments due in that year of assessment on account of life annuities and which in accordance with this section he has not deducted. (7) For the purposes of this section, “life annuity” means an annuity payable for a term ending with (or at a time ascertainable only by reference to) the end of a human life, whether or not there is provision for the annuity to end during the life on the expiration of a fixed term or on the happening of any event or otherwise, or to continue after the end of the life in particular circumstances, and “purchased life annuity” means a life annuity granted for consideration in money or money's worth in the ordinary course of a business of granting annuities on human life. (8) This section shall not apply— (a) to any annuity which would, apart from this section, be treated for the purposes of the provisions of the Income Tax Acts relating to tax on annuities and other annual payments as consisting to any extent in the payment or repayment of a capital sum, 8 & 9 Geo. 5, c. 40. (b) to any annuity where the whole or part of the consideration for the grant of the annuity consisted of sums satisfying the conditions for relief from tax under section 41 of Finance Act, 1958 , or section 32 of the Income Tax Act, 1918, (c) to any annuity purchased in pursuance of any direction in a will, or to provide for an annuity payable by virtue of a will or settlement out of income of property disposed of by the will or settlement (whether with or without resort to capital), or (d) to any annuity purchased under or for the purposes of any sponsored superannuation scheme as defined in subsection (10) of section 40 of Finance Act, 1958 , or any scheme approved under that section, or in pursuance of any obligation imposed, or offer or invitation made, under or in connection with any such scheme, or to any other annuity purchased by any person in recognition of another's services (or past services) in any office or employment. (9) As respects tax for the year beginning on the 6th day of April, 1959, and subsequent years of assessment, this section shall extend to life annuities whenever purchased or commencing (and the references to section 32 of the Income Tax Act, 1918, and section 41 of Finance Act, 1958 , shall be construed accordingly); but for the purpose of subsections (4) and (5) of this section any notice given before the 6th day of October, 1959, of a decision as to an annuity being or not being a purchased life annuity to which this section applies or as to the amount of the capital element (if any), shall be treated as given on that day. Supplementary provisions for Part IV . 23.—(1) Any question whether an annuity is a purchased life annuity to which section 22 of this Act applies, or what is the capital element in such an annuity, shall be determined by the inspector of taxes, but any person aggrieved by any decision of the said inspector on any such question may appeal within the prescribed time to the Special Commissioners. (2) Save as otherwise provided in this Part of this Act, the procedure to be adopted in giving effect thereto shall be such as may be prescribed. (3) The Revenue Commissioners may make regulations for prescribing anything which is to be prescribed under this Part of this Act; and the regulations may apply for the purposes of this Part of this Act or of the regulations any provision of the Income Tax Acts (with or without modifications), and in particular the provisions 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. (4) Regulations under subsection (3) of this section may in particular make provision as to the time limit for making any claim for relief from or repayment of tax under this Part of this Act and as to all or any of the following matters: (a) the information to be given in connection with the determination of any question whether an annuity is a purchased life annuity to which section 22 of this Act applies, or what is the capital element in an annuity, and the persons who may be required to give any such information; (b) the manner of giving effect to the decision on any such question, and the making of assessments for the purpose on the person entitled to the annuity notwithstanding anything in Rule 19 of the General Rules; (c) the extent to which any decision on any such question is to be binding, and the circumstances in which it may be reviewed. (5) If any person, for the purpose of obtaining for himself or any other person any relief from or repayment of tax under this Part of this Act, knowingly makes any false statement or false representation, he shall be liable to a penalty of five hundred pounds. PART V. Relief for certain Capital Expenditure: Income Tax, Sur-tax and Corporation Profits Tax. Chapter I. Industrial Buildings and Structures. Interpretation (Chapter I of Part V). 24.—(1) In this Chapter— “industrial building allowance” means an allowance made under Part IV of Finance (Miscellaneous Provisions) Act, 1956 ; “industrial building or structure” has the same meaning as, by virtue of section 17 of Finance (Miscellaneous Provisions) Act, 1956 , that expression has in Part IV of that Act. (2) A person who has incurred expenditure on the construction of a building or structure shall be deemed, for the purposes of any provision of this Chapter referring to his interest therein at the time when the expenditure was incurred, to have had the same interest therein as he would have had if the construction thereof had been completed at that time. (3) Without prejudice to any of the other provisions of this Part of this Act relating to the apportionment of sale, insurance, salvage or compensation moneys, the sum paid on the sale of the relevant interest in a building or structure, or any other sale, insurance, salvage or compensation moneys payable in respect of any building or structure, shall, for the purposes of this Chapter, be deemed to be reduced by an amount equal to so much thereof, as, on a just apportionment, is attributable to assets representing expenditure other than expenditure in respect of which an allowance can be made under Part IV of Finance (Miscellaneous Provisions) Act, 1956 , or under this Chapter. (4) Section 19 of Finance (Miscellaneous Provisions) Act, 1956 , and subsection (3) of section 73 of this Act shall apply in relation to allowances and charges under this Chapter as they apply in relation to industrial building allowances for years of assessment beginning on or after the 6th day of April, 1959. Annual allowances (industrial buildings or structures). 25.—(1) Subject to the provisions of this Part of this Act, where— (a) any person is, at the end of his basis period for any year of assessment, entitled to an interest in a building or structure to which this section applies, (b) at the end of the said basis period, the building or structure is an industrial building or structure, and (e) that interest is the relevant interest in relation to the capital expenditure incurred on the construction of that building or structure, an allowance (in this Chapter referred to as an annual allowance) equal to one-fiftieth of that expenditure shall be made to him for that year of assessment. (2) A building or structure is one to which this section applies, if, and only if, the capital expenditure incurred on the construction of it has been incurred on or after the 30th day of September, 1956. (3) Where, at any time on or after the 15th day of April, 1959, the interest in a building or structure which is the relevant interest in relation to any expenditure is sold while the building or structure is an industrial building or structure, the annual allowance in respect of that expenditure shall, in the case of years of assessment the basis periods for which end after the time of that sale,— (a) be computed by reference to the residue (as defined in the provisions of this Chapter relating to the writing off of expenditure) of that expenditure immediately after the sale, and (b) be the fraction of the said residue the numerator of which is one and the denominator of which is the number of years of assessment comprised in the period which— (i) begins with the first year of assessment for which the buyer is entitled to an annual allowance in respect of the expenditure or would be so entitled if the building or structure had at all material times continued to be an industrial building or structure, and (ii) ends with the fiftieth year of assessment after that in which the building or structure was first used, and so on for any subsequent sales. (4) Notwithstanding anything in the preceding provisions of this section— (a) no annual allowance shall be made for a year of assessment beginning before the commencement of this Part of this Act, and (b) in no case shall the amount of an annual allowance made to a person for any year of assessment in respect of any expenditure exceed what, apart from the writing off falling to be made by reason of the making of that allowance, would be the residue of that expenditure at the end of his basis period for that year of assessment. Balancing allowances and balancing charges (industrial buildings or structures). 26.—(1) Where any capital expenditure has been incurred, on or after the 30th day of September, 1956, on the construction of a building or structure, and, on or after the 15th day of April, 1959, any of the following events occurs while the building or structure is an industrial building or structure: (a) the relevant interest in the building or structure is sold, (b) that interest, being a leasehold interest, comes to an end otherwise than on the person entitled thereto acquiring the interest which is reversionary thereon, (c) the building or structure is demolished or destroyed, or, without being demolished or destroyed, ceases altogether to be used, an allowance or charge (in this Chapter referred to as a balancing allowance or a balancing charge) shall, in the circumstances mentioned in this section, be made to, or, as the case may be, on, the person entitled to the relevant interest immediately before that event occurs, for the year of assessment (being a year beginning on or after the commencement of this Part of this Act) in his basis period for which that event occurs: Provided that no balancing allowance or balancing charge shall be made to or on any person for any year of assessment by reason of any event occurring after the end of his basis period for the fiftieth year of assessment after that in which the building or structure was first used. (2) Where there are no sale, insurance, salvage or compensation moneys, or where the residue of the expenditure immediately before the event exceeds those moneys, a balancing allowance shall be made and the amount thereof shall be the amount of the said residue or, as the case may be, of the excess thereof over the said moneys. (3) If the sale, insurance, salvage or compensation moneys exceed the residue, if any, of the expenditure immediately before the event, a balancing charge shall be made and the amount on which it is made shall be an amount equal to the excess, or, where the residue is nil, to the said moneys. (4) If, for any of the relevant years of assessment (as defined for the purposes of this subsection) an annual allowance has not been made, subsections (2) and (3) of this section shall have effect subject to the modification that the amount of the balancing allowance, or, as the case may be, the amount on which the balancing charge is to be made, shall be reduced by applying thereto the fraction, the numerator of which is the number of the relevant years of assessment for which an annual allowance has been made in respect of the expenditure and the denominator of which is the total number of the relevant years of assessment. In this subsection, “the relevant years of assessment” means all years of assessment after that in which the building or structure was first used for any purpose up to and including that in which the event takes place which gives rise to the allowance or charge: Provided that where, before the said event but on or after the 15th day of April, 1959, the building or structure has been sold while an industrial building or structure, the said expression means all years of assessment for which either— (a) an annual allowance is made by reason of the building or structure being an industrial building or structure at any time between the sale and the event, or, where there has been more than one such sale, between the last such sale and the event, or (b) an annual allowance would have fallen to be made if the building or structure had been an industrial building or structure at all times between the sale, or, as the case may be, the last such sale, and the event. (5) Notwithstanding anything in the preceding provisions of this section, in no case shall the amount on which a balancing charge is made on a person in respect of any expenditure on the construction of a building or structure exceed the amount of the industrial building allowance, if any, made to him in respect of that expenditure together with the amount of any annual allowances made to him in respect of that expenditure for years of assessment his basis periods for which end on or before the date of the event which gives rise to the charge. Writing off of expenditure and meaning of “residue of expenditure” . 27.—(1) Any expenditure incurred on the construction of any building or structure shall be treated for the purposes of this Chapter to be written off to the extent and as at the times hereafter specified in this section, and references in this Chapter to the residue of any such expenditure shall be construed accordingly. (2) If an industrial building allowance is made in respect of the expenditure, the amount of that allowance shall be written off as at the time when the building or structure is first used. (3) If, by reason of the building or structure being at any time an industrial building or structure, an annual allowance is made for any year of assessment in respect of the expenditure, the amount of that allowance shall be written off as at the said time; Provided that where at the said time an event occurs which gives rise or may give rise to a balancing allowance or balancing charge, the amount directed to be written off by this subsection as at the said time shall be taken into account in computing the residue of that expenditure immediately before that event for the purpose of determining whether any and if so what balancing allowance or balancing charge is to be made. (4) If, in the case of any year of assessment after that in which the building or structure is first used, no annual allowance falls to be made to any person in respect of the expenditure, then, subject to the provisions of this and the next succeeding subsection, an amount equal to one-fiftieth of the expenditure shall be treated as written off as at the end of the previous year of assessment; Provided that— (a) in the case of a year of assessment beginning on or after the commencement of this Part of this Act, this subsection shall not apply for any purpose if the building or structure was an industrial building or structure on the day preceding the beginning of the year of assessment, and (b) where this subsection does apply in the ease of a year of assessment beginning as aforesaid, the amount to be written off shall, if the building or structure has been sold on or after the 15th day of April, 1959, while an industrial building or structure, be the amount which would have fallen to be written off if— (i) the building or structure had been an industrial building or structure in use on the said preceding day for the purposes of a trade carried on by a person entitled to the relevant interest in the building or structure, (ii) the basis period of that person for the year of assessment had ended on the said preceding day, and (iii) an annual allowance had been made to him for the year of assessment accordingly. (5) If, on the occasion of a sale, a balancing allowance is made in respect of the expenditure, there shall be written off as at the time of the sale the amount by which the residue of the expenditure before the sale exceeds the net proceeds of the sale. (6) If, on the occasion of a sale, a balancing charge is made in respect of the expenditure, the residue of the expenditure shall be deemed for the purposes of this Chapter to be increased as at the time of the sale by the amount on which the charge is made. Manner of making allowances and charges (industrial buildings or structures). 28.—(1) Except in the cases mentioned in the following provisions of this section, any allowance or charge made to or on a person under the preceding provisions of this Chapter shall be made to or on him in charging the profits or gains of his trade. (2) An annual allowance shall be made to a person for a year of assessment by way of discharge or repayment of tax if his interest is subject to any lease at the end of his basis period for that year of assessment. (3) A balancing allowance shall be made to a person by way of discharge or repayment of tax if his interest is subject to any lease immediately before the event giving rise to the allowance. (4) A balancing charge shall be made on a person under Case VI of Schedule D if his interest is subject to any lease immediately before the event giving rise to the charge. (5) Any allowance which, under the preceding provisions of this section, is to be made by way of discharge or repayment of tax shall be available primarily against the following income: (a) income charged to tax under Schedule A in respect of any premises which at any time in the year consist of or include an industrial building or structure, (b) income charged to tax under Case III of Schedule D in respect of any rent payable for any such premises as aforesaid, or (c) income which is the subject of a balancing charge under this Chapter. Meaning of “the relevant interest” . 29.—(1) Subject to the provisions of this section, in this Chapter “the relevant interest” means, in relation to any expenditure incurred on the construction of a building or structure, the interest in that building or structure to which the person who incurred the expenditure was entitled when he incurred it. (2) Where, when he incurs expenditure on the construction of a building or structure, a person is entitled to two or more interests in the building or structure, and one of those interests is an interest which is reversionary on all the others, that interest shall be the relevant interest for the purposes of this Chapter. (3) An interest shall not cease to be the relevant interest for the purposes of this Chapter by reason of the creation of any lease or other interest to which that interest is subject, and where the relevant interest is a leasehold interest and is extinguished by reason of the surrender thereof, or on the person entitled thereto acquiring the interest which is reversionary thereon, the interest into which that leasehold interest merges shall thereupon become the relevant interest. Special provisions in regard to leases. 30.—(1) Where, with the consent of the lessor, a lessee of any building or structure remains in possession thereof after the termination of the lease without a new lease being granted to him, that lease shall be deemed for the purposes of this Chapter to continue so long as he remains in possession as aforesaid. (2) Where, on the termination of a lease, a new lease is granted to the lessee consequent upon his being entitled by statute to a new lease or in pursuance of an option available to him under the terms of the first lease, the provisions of this Chapter shall have effect as if the second lease were a continuation of the first lease. (3) Where, on the termination of a lease, the lessor pays any sum to the lessee in respect of a building or structure comprised in the lease, the provisions of this Chapter shall have effect as if the lease had come to an end by reason of the surrender thereof in consideration of the payment. Temporary disuse cf industrial buildings of structures. 31.—(1) For the purpose of this Chapter, a building or structure shall not be deemed to cease altogether to be used by …