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.

Section 3

Deduction in charging Sur-tax.

Section 4

Amendment of section 21 of Finance Act, 1920.

Section 5

Covenanted subscriptions for teaching of natural sciences.

Section 6

Purchases and sale of securities: application of sections 7 to 9.

Section 7

Purchase and sale of securities: dealers in securities.

Section 8

Purchase and sale of securities: persons entitled to exemptions.

Section 9

Purchase and sale of securities: traders other than dealers in securities.

Section 10

Confirmation of agreement on double taxation.

Part II

CUSTOMS AND EXCISE

Section 11

Tobacco.

Section 12

Amendment of section 12 of Finance Act, 1932.

Section 13

Exemptions from entertainments duty.

Section 14

Entertainments duty—ball or dance proceeds of which are for educational, philanthropic or charitable purposes.

Section 15

Entertainments duty—rates in the case of ball or dance .

Section 16

Entertainments duty—amendment of section 10 (4) (c) of Finance Act, 1948.

Section 17

Entertainments duty—rates in the case of cinematographic exhibitions.

Section 18

Entertainments duty-rural areas.

Section 19

Hydrocarbon oils-miscellaneous provisions.

Section 20

Confirmation of Order.

Part III

CORPORATION PROFITS TAX

Section 21

Continuance of certain exemptions from corporation profits tax.

Part IV

PURCHASED LIFE, ANNUITIES: INCOME TAX AND SUR-TAX

Section 22

Capital element in certain purchased annuities.

Section 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

Section 24

Interpretation (Chapter I of Part V).

Section 25

Annual allowances (industrial buildings or structures).

Section 26

Balancing allowances and balancing charges (industrial buildings or structures).

Section 27

Writing off of expenditure and meaning of “residue of expenditure”.

Section 28

Manner of making allowances and charges (industrial buildings or structures).

Section 29

Meaning of “the relevant interest”.

Section 30

Special provisions in regard to leases.

Section 31

Temporary disuse of industrial buildings and structures.

Section 32

Amendment of repairs allowance.

Chapter II

Machinery and Plant

Section 33

Interpretation (Chapter II of Part V).

Section 34

Balancing allowances and balancing charges (machinery and plant).

Section 35

Option in case of replacement of machinery or plant.

Section 36

Construction of references to amount still unallowed.

Section 37

Application to partnerships.

Section 38

Machinery or plant used partly for non-trading purposes.

Section 39

Calculation of balancing allowances and balancing charge in certain cases.

Section 40

Option in case of succession under will or intestacy.

Section 41

Wear and tear allowance to be deemed to have been made in certain cases.

Section 42

Subsidies towards wear and tear.

Section 43

Application to lessors.

Section 44

Manner of making allowances and charges (machinery and plant).

Section 45

Application to professions, etc., and exception as respects lands.

Chapter III

Patents

Section 46

Interpretation (Chapter III of Part V).

Section 47

Annual allowances for capital expenditure on purchase of patent rights.

Section 48

Effect of lapse of patent rights, sales, etc.

Section 49

Special provision for certain capital expenditure.

Section 50

Charges on capital sums received for sale of patent rights.

Section 51

Patent rights sold before the operative date.

Section 52

Relief for expenses.

Section 53

Patent income to be earned income certain cases.

Section 54

Spreading of income payments over several years.

Section 55

Manner of making allowances and charges (patents).

Section 56

Effect of deaths, windings up and partnership changes on charges.

Chapter IV

Allowances for Expenditure on Dredging

Section 57

Allowances for expenditure on dredging.

Chapter V

Miscellaneous and General

Section 58

Manner of granting allowances and charging tax in certain cases.

Section 59

Manner of granting, and effect of, allowances made by way of discharge or repayment of tax.

Section 60

Meaning of “basis period”.

Section 61

Apportionment of consideration and exchanges and surrenders of leasehold interests.

Section 62

Special provisions as to certain sales.

Section 63

Effect, in certain cases of successions to trades, etc.

Section 64

Procedure on apportionments etc.

Section 65

Property used for purposes of “exempted trading operations”.

Section 66

Interpretation of certain reference to expenditure, etc.

Section 67

Other provisions as to interpretation.

Section 68

Consequential amendments.

Section 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

Section 70

Interpretation (Part VI).

Section 71

Amendment of Part III of the Act (repairs to ships, greeting cards).

Section 72

Amendment of Part III of the Act (adjustment of certain amounts).

Section 73

Amendment of Part IV of the Act.

Section 74

Training of local staff before commencement of trading.

Part VII

STAMP DUTIES

Section 75

Stamp duty on policies of insurance.

Section 76

Amendment of section 19 (1) (b) of Finance Act, 1952.

Part VIII

MISCELLANEOUS AND GENERAL

Section 77

Capital Services Redemption Account.

Section 78

Amendment of section 31 (3) of Finance Act, 1940.

Section 79

Amendment of section 2 of Finance (Profits of Certain Mines) (Temporary Relief from Taxation) Act, 1956.

Section 80

Repeals.

Section 81

Care and management of taxes and duties.

Section 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”.

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.

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 .

8 & 9 Geo. 5, c. 40.

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.

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.

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.

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.

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.

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.

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 .

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 .

Part III

of the Third Schedule to this Act.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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 reason that it falls temporarily out of use on or after the 15th day of April, 1959, and where, immediately before any period of temporary disuse beginning on or after that day, a building or structure is an industrial building or structure, it shall be deemed to continue to be an industrial building or structure during the period of temporary disuse.

Amendment of repairs allowance.

32.—(1) Subsection (1) of section 2 of the Finance Act, 1934 , is hereby amended by the deletion of “mills, factories, or other similar premises”and the substitution therefor of “industrial buildings or structures within the meaning of section 17 of Finance (Miscellaneous Provisions) Act, 1956 , as amended by section 73 of the Finance Act, 1959, and, in relation to any such industrial building or structure, the said Rules 7 and 8 shall have effect as if ‘one-third’ were substituted for ‘one-sixth ’ wherever it appears in the said rules ”.

(4)

Section 18

of the Finance Act, 1919 , shall have effect as if— (a) a reference to premises which— (i) is an industrial building or structure, but (ii) is not a building or structure to which section 25 of this Act applies, were substituted for each of the references in subsections (1) and (2) to mills, factories or similar premises and for the reference in subsection (3) to mills, factories and similar premises, and (b) a reference to one-third of the annual value were substituted for each of the references to one-sixth of the annual value.

Chapter II.

Machinery and Plant.

Interpretation (Chapter II of Part V).

33.—In this Chapter— “initial allowance” means an allowance made under

Part V

of Finance Act, 1956 ; “scientific research allowance” means, in relation to any expenditure, the total amount of any allowances made in respect of that expenditure under subsection (3) of section 5 of Finance Act, 1946 , increased by the amount of any allowance made under paragraph (b) of subsection (4) of the said section 5 or, as the case may be, reduced by any amount treated as a trading receipt pursuant to paragraph (c) of the said subsection (4); “wear and tear allowance” means a deduction allowed under Rule 6 of the Rules applicable to Cases I and II of Schedule D.

Balancing allowances and balancing charges (machinery and plant).

34.—(1) Subject to the provisions of this section, where, on or after the 15th day of April, 1959, any of the following events occurs in the case of any machinery or plant in respect of which an initial allowance or a wear and tear allowance has been made for any year of assessment to a person carrying on a trade: (a) any event occurring after the setting up and before the permanent discontinuance of the trade whereby the machinery or plant ceases to belong to the person carrying on the trade (whether on a sale of the machinery or plant or in any other circumstances of any description), (b) any event occurring as aforesaid whereby the machinery or plant (while continuing to belong to the person carrying on the trade) permanently ceases to be used for the purposes of a trade carried on by him, (c) the permanent discontinuance of the trade, the machinery or plant not having previously ceased to belong to the person carrying on the trade, 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, that person 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.

Option in case of replacement of machinery or plant.

35.—(1) Where machinery or plant in the case of which any of the events mentioned in subsection (1) of section 34 of this Act has occurred is replaced by the owner thereof and a balancing charge falls to be made on him by reason of that event, or, but for the provisions of this subsection, would have fallen to be made on him by reason thereof, then, if by notice in writing to the inspector of taxes he so elects, the following provisions shall have effect: (a) if the amount on which the charge would have been made is greater than the capital expenditure on providing the new machinery or plant— (i) the charge shall be made only on an amount equal to the difference, (ii) no initial allowance, no balancing allowance and no wear and tear allowance shall be made in respect of the new machinery or plant or the expenditure on the provision thereof, and (iii) in considering whether any, and if so what, balancing charge falls to be made in respect of the expenditure on the new machinery or plant, there shall be deemed to have been made in respect of that expenditure an initial allowance equal to the full amount of that expenditure; (b) if the capital expenditure on providing the new machinery or plant is equal to or greater than the amount on which the charge would have been made— (i) the charge shall not be made, (ii) the amount of any initial allowance in respect of the said expenditure and the amount of any wear and tear allowance shall be calculated as if the expenditure had been reduced by the amount on which the charge would have been made, and (iii) in considering whether any, and if so what, balancing allowance or balancing charge falls to be made in respect of the new machinery or plant, there shall be deemed to have been granted in respect thereof an initial allowance equal to the amount on which the charge would have been made, in addition to any initial allowance actually granted in respect thereof.

Construction of references to amount still unallowed.

36.—References in this Chapter to the amount still unallowed as at any time of any expenditure on the provision of machinery or plant shall be construed as references to the amount of that expenditure less— (a) any initial allowance made or deemed under this Chapter to have been made in respect thereof to the person who incurred it, (b) any wear and tear allowances made or deemed under this Chapter to have been made to him in respect of the machinery or plant on the provision of which the expenditure was incurred, being allowances for the year of assessment in the basis period for which the time in question falls or for any previous year of assessment, (c) any scientific research allowance made to him in respect of the expenditure, and (d) any balancing allowance made to him in respect of the expenditure.

Application to partnerships.

37.—(1) Where, after the setting up and on or before the permanent discontinuance of a trade which at any time is carried on in partnership, any event occurs which gives rise or may give rise to a balancing allowance or balancing charge in respect of machinery or plant, any balancing allowance or balancing charge which, if the trade had at all times been carried on by one and the same person, would have fallen to be made to or on him in respect of that machinery or plant by reason of that event shall be made to or on the person or persons carrying on the trade in the year of assessment in the basis period for which that event occurs, and the amount of any such allowance or charge shall be computed as if that person or those persons had at all times been carrying on the trade and as if everything done to or by his or their predecessors in the carrying on thereof had been done to or by him or them:

Provided that in applying the provisions of subsection (4) of section 34 of this Act to any such balancing charge, the deductions and allowances allowed or made in respect of the machinery or plant for the year beginning on the 6th day of April, 1959, or for any earlier year of assessment shall not be taken to include deductions or allowances made to, or attributable to the shares of, persons who were not, either alone or in partnership with other persons, carrying on the trade at the beginning of the year beginning on the 6th day of April, 1959.

Machinery or plant used partly for non-trading purposes.

38.—Where an event occurs which gives rise or might give rise to a balancing allowance or balancing charge to or on any person and the machinery or plant concerned is machinery or plant which has been used by that person for the purposes of a trade carried on by him and has also been used for other purposes, then, in determining the amount of the allowance, or, as the case may be, the amount on which the charge is to be made, regard shall be had to all the relevant circumstances and, in particular, to the extent of the use for the said other purposes, and there shall be made to or on him an allowance of such an amount, or, as the case may be, a charge on such an amount, as may be just and reasonable.

Calculation of balancing allowances and balancing charge in certain cases.

39.—(1) Where an event occurs which gives rise or might give rise to a balancing allowance or balancing charge in respect of machinery or plant, the event is the permanent discontinuance of a trade, and at or about the time of the discontinuance there occurs in relation to the machinery or plant any event such as is mentioned in paragraphs (a) to (c) of the definition of “sale, insurance, salvage or compensation moneys” in section 67 of this Act, not being a sale at less than open-market price other than a sale to which section 62 of this Act applies, then, for the purpose of determining— (a) whether the discontinuance gives rise to a balancing allowance or balancing charge, and, if so, (b) the amount of the allowance or, as the case may be, the amount on which the charge is to be made, the amount of the net proceeds, compensation, receipts or insurance moneys mentioned in the said paragraphs (a) to (c) which arise on the last-mentioned event shall be deemed to be an amount of sale, insurance, salvage or compensation moneys arising on the permanent discontinuance of the trade.

Part IV

of Finance Act, 1958 , and paragraph (ii) of that subsection shall not apply by reason of the gift of machinery or plant if the machinery or plant is given away in such circumstances as aforesaid.

Option in cas6 of succession under will or intestacy.

40.—Where a person succeeds to a trade as a beneficiary under the will or on the intestacy of a deceased person who carried on that trade, the following provisions shall, if the beneficiary by notice in writing to the inspector of taxes so elects, have effect in relation to any machinery or plant previously owned by the deceased person and used by him for the purposes thereof: (a) the reference in section 63 of this Act to the price which the machinery or plant would have fetched if sold in the open market shall, in relation to the succession and any previous succession occurring on or after the death of the deceased, be deemed to be a reference to that price or the amount of the expenditure on the provision of the machinery or plant still unallowed immediately before the succession in question, whichever is the lower; and (b) notwithstanding anything in that section, such balancing charge, if any, shall be made on the beneficiary on any event occurring after his succession as would have fallen to be made on the deceased if he had not died and had continued to own the machinery or plant and had done all such things and been allowed all such allowances in connection therewith as were done by or allowed to the beneficiary or the successor on any such previous succession as is mentioned in paragraph (a) of this section.

Wear and tear allowance to be deemed to have been made in certain cases.

41.—(1) In determining whether any, and if so what, balancing allowance or balancing charge falls to be made to or on any person for any year of assessment in charging the profits or gains of a trade, there shall be deemed to have been made to that person, for every previous year of assessment in which the machinery or plant belonged to him and which is a year of assessment to be taken into account for the purpose of this section, such wear and tear allowance or greater wear and tear allowance, if any, in respect of the machinery or plant as would have fallen to be made to him if all the conditions specified in subsection (3) of this section had been fulfilled in relation to every such previous year.

Part II

of Finance (Miscellaneous Provisions) Act, 1958 , the full amount of the profits or gains thereof was not liable to be charged to income tax, (d) for which the whole or a part of the income tax chargeable in respect of the profits of the trade was not payable by virtue of Finance (Profits of Certain Mines) (Temporary Relief from Taxation) Act, 1956 , or (e) for which the income tax payable in respect of the profits of the trade was reduced by virtue of

Part II

or III of Finance (Miscellaneous Provisions) Act, 1956 .

Subsidies towards wear and tear.

42.—(1) Where— (a) an event occurs which gives rise or might give rise to a balancing allowance or balancing charge to or on any person in respect of any machinery or plant provided or used by him for the purposes of a trade; and (b) any sums (hereinafter in this section referred to as the said sums) which— (i) are in respect of, or take account of, the wear and tear to the machinery or plant occasioned by its use for the purposes of the trade, and (ii) do not fall to be taken into account as his income or in computing the profits or gains of any trade carried on by him, have been paid, or are or are to be payable, to him directly or indirectly, then, in determining whether and, if so what, balancing allowance or balancing charge falls to be made to or on that person, there shall be deemed to have been made to him for the years of assessment during which the machinery or plant was used for the purposes of the trade wear and tear allowances in respect thereof the total amount of which is equal to the total amount of the said sums, over and above the wear and tear allowances, if any, which have been made to him in respect of the machinery or plant.

Application to lessors.

43.—(1) Where machinery or plant is let upon such terms that the burden of the wear and tear thereof falls directly upon the lessor, the preceding provisions of this Chapter shall apply in relation to the lessor as if the machinery or plant were, during the term of the letting, in use for the purposes of a trade carried on by him.

Manner of making allowances and charges (machinery and plant).

44.—(1) Any balancing allowance or balancing charge made to or on any person under the preceding provisions of this Chapter shall, unless it is made under or by virtue of section 43 of this Act, be made to or on that person in charging the profits or gains of his trade.

Application to professions, etc., and exception as respects lands.

45.—(1) The preceding provisions of this Chapter shall, with any necessary adaptations, apply in relation to professions, employments, vocations and offices, as they apply in relation to trades.

Chapter III.

Patents.

Interpretation (Chapter III of Part V).

46.—(1) In this Chapter— “income from patents” means— (a) any royalty or other sum paid in respect of the user of a patent, and (b) any amount on which tax is payable for any year of assessment by virtue of any of the provisions of this Chapter; “the commencement of the patent” means, in relation to a patent, the date as from which the patent rights become effective; “patent rights” means the right to do or authorise the doing of anything which would, but for that right, be an infringement of a patent; “Irish patent” means a patent granted under the laws of the State; “the operative date” means the date of the commencement of this Part of this Act.

Provided that if a licence granted by a person entitled to any patent rights is a licence to exercise those rights to the exclusion of the grantor and all other persons for the whole of the remainder of the term for which the rights subsist, the grantor shall be treated for the purposes of this Chapter as thereby selling the whole of the rights.

Provided that nothing in this subsection shall be construed as affecting any reference in this Chapter to the number of complete years comprised in any period or which have elapsed since any date.

Annual allowances for capital expenditure on purchase of patent rights.

47.—(1) Where, on or after the operative date, a person incurs capital expenditure on the purchase of patent rights, there shall, subject to and in accordance with the following provisions of this Chapter, be made to him for each of the relevant years of assessment, as hereinafter denned, an allowance (in this Chapter referred to as an annual allowance) equal to the appropriate fraction, as hereinafter denned, of the amount of that expenditure:

Provided that no annual allowance shall be made to a person in respect of any expenditure unless— (a) the allowance falls to be made to him in charging the profits or gains of his trade, or (b) any income receivable by him in respect of the rights would be liable to income tax.

Provided that— (a) where the rights are purchased for a specified period, the preceding provisions of this subsection shall have effect with the substitution for the reference to seventeen years of a reference to seventeen years or the number of years comprised within that period, whichever is the less, (b) where the rights purchased begin one complete year or more after the commencement of the patent and paragraph (a) of this proviso does not apply, the said-provisions shall have effect with the substitution for the reference to seventeen years of a reference to seventeen years less the number of complete years which, when the rights begin, have elapsed since the commencement of the patent, or, if seventeen complete years have elapsed as aforesaid, of a reference to one year, and (c) any expenditure incurred on or after the operative date for the purposes of a trade by a person about to carry it on shall be treated for the purposes of this subsection as if it had been incurred by that person on the first day on which he does carry it on, unless, before the said first day, he has sold all the rights on the purchase of which the expenditure was incurred.

Effect of lapse of patent rights, sales, etc.

48.—(1) Where, on or after the operative date, a person incurs capital expenditure on the purchase of patent rights and, before the end of the relevant years of assessment, any of the following events occurs: (a) the rights come to an end without being subsequently revived; (b) he sells all those rights or so much thereof as he still owns; (c) he sells part of those rights and the net proceeds of the sale (so far as they consist of capital sums) are not less than the amount of the capital expenditure remaining unallowed; no annual allowance shall be made to that person for the year of assessment in his basis period for which the event takes place or any subsequent year of assessment.

Special provision for certain capital expenditure.

49.—Where within one year before the operative date a person has incurred capital expenditure on the purchase of patent rights for the purposes of a trade carried on or about to be carried on by him and has not sold any part of the said rights before the operative date, he shall be deemed for the purposes of sections 47 and 48 of this Act to have incurred the said expenditure on the operative date.

Charges on capital sums received for sale of patent rights.

50.—(1) Where, on or after the operative date, a person resident in the State sells any patent rights and the net proceeds of the sale consist wholly or partly of a capital sum, he shall, subject to the provisions of this Chapter, be charged to tax under Case VI of Schedule D, for the year of assessment in which the sum is received by him and for each of the five succeeding years of assessment, on an amount equal to one-sixth of that sum:

Provided that— (a) if that person, by notice in writing served on the inspector of taxes not later than twelve months after the end of the year of assessment in which that sum was received, elects that the whole of that sum shall be charged to tax for the said year of assessment, it shall be charged to tax accordingly; (b) if that person, by notice as aforesaid, applies to have the period for which he is to be charged determined as being other than the six years of assessment hereinbefore referred to (that is to say, the year of assessment in which that sum was received and the five succeeding years of assessment), then, if it appears to the Revenue Commissioners that hardship is likely to arise having regard to all the circumstances of the case unless a direction is given under this paragraph, they may direct that the charge shall be spread equally over a number of years of assessment other than six, of which the first shall be the year of assessment in which that sum was received.

Provided that if, not later than twelve months after the end of the year of assessment in which the sum is paid, the person to whom it is paid, by notice in writing to the Revenue Commissioners, elects that the said sum shall be treated for the purpose of income tax for that year and for each of the five succeeding years as if one-sixth thereof, and no more, were included in his income chargeable to tax for all those years respectively, it shall be so treated, and all such repayments and assessments of tax for each of those years shall be made as are necessary to give effect to the election, so, however, that— (i) the election shall not affect the amount of tax falling to be deducted and accounted for under the said Rule 21, (ii) where any sum is deducted under the said Rule 21, any adjustments necessary to give effect to the election shall be made by way of repayment of tax, and (iii) the said adjustments shall be made year by year and as if one-sixth of the sum deducted had been deducted in respect of tax for each year, and no repayment of, or of any part of, that portion of the tax deducted which is to be treated as deducted in respect of tax for any year shall be made unless and until it is ascertained tha the tax (other than sur-tax) ultimately falling to be paid for that year is less than the amount of tax (other than sur-tax) paid for that year.

Provided that— (a) where between the said purchase and the said sale he has sold part of the patent rights acquired by him and the net proceeds of that sale consist wholly or partly of a capital sum, the amount of the reduction falling to be made under this subsection in respect of the subsequent sale shall be itself reduced by the amount of that sum, (b) nothing in this subsection shall effect the amount of tax falling to be deducted and accounted for under Rule 21 of the General Rules by virtue of subsection (2) of this section, and, where any sum is deducted under the said Rule 21, any adjustment necessary to give effect to the provisions of this subsection shall be made by way of repayment of tax.

Patent rights sold before the operative date.

51.—Nothing in the preceding provisions of this Chapter shall apply in relation to any patent rights if those rights, or any rights out of which they were granted, have been the subject of a sale before the operative date and the proceeds of the sale consisted wholly or partly of a capital sum:

Provided that, in relation to any patent rights to which section 49 of this Act applies, this section shall apply as if, for the reference to the operative date, there were substituted a reference to the date on which the said rights were purchased by the person who, by virtue of that section, is deemed to have purchased them on the operative date.

Relief for expense.

52.—(1) In computing the profits or gains of any trade, there shall be allowed to be deducted as expenses any fees paid or expenses incurred on or after the operative date in obtaining, for the purposes of the trade, the grant of a patent or an extension of the term of a patent.

Patent income to be earned income in certain cases.

53.—In considering, in relation to the year of assessment beginning on the operative date or any subsequent year of assessment, whether any, and if so what, relief is to be granted to an individual under section 16 of the Finance Act, 1920 , or under subsection (2) of section 18 of that Act, any income from patent rights arising to an individual shall, where the patent was granted for an invention actually devised by him, whether alone or jointly with any other person, be deemed to be earned income:

Provided that where any part of the rights in question or of any rights out of which they were granted has at any time belonged to any other person, so much only of the said income shall be deemed to be earned income as is not properly attributable to the rights which have belonged to that other person.

Spreading of income payments over several years.

54.—(1) Where a royalty or other sum to which Rule 19 or Rule 21 of the General Rules applies is paid in respect of the user of a patent, and that user extended over a period of six complete years or more, the person receiving the payment may require that the income tax (including sur-tax) payable by him by reason of the receipt of that sum shall be reduced so as not to exceed the total amount of income tax (including sur-tax) which would have been payable by him if that royalty or sum had been paid in six equal instalments at yearly intervals, the last of which was paid on the date on which the payment was in fact made.

Manner of making allowances and charges (patents).

55.—(1) An allowance or charge under any of the provisions of this Chapter shall be made to or on a person in charging the profits or gains of his trade if— (a) he is carrying on a trade the profits or gains of which are, or, if there were any, would be, chargeable to tax under Case I of Schedule D for the year of assessment for which the allowance or charge is made, and (b) at any time in his basis period for that year of assessment, the patent rights in question, or other rights out of which they were granted, were or were to be used for the purposes of that trade:

Provided that nothing in this subsection shall affect any of the preceding provisions of this Chapter allowing a deduction as expenses in computing the profits or gains of a trade or requiring a charge to be made under Case VI of Schedule D.

Effect of deaths, windings up and partnership changes on charges.

56.—(1) Where a person on whom, by reason of the receipt of a capital sum, a charge falls or would otherwise fall to be made under section 50 of this Act dies or, being a body corporate, commences to be wound up— (a) no sums shall be charged under that section on that person for any year of assessment subsequent to that in which the death takes place or the winding up commences, and (b) the amount falling to be charged for the year of assessment in which the death occurs or the winding up commences shall be increased by the total amounts which, but for the death or winding up, would have fallen to be charged for subsequent years:

Provided that, in the case of a death, the personal representatives may, by notice in writing served on the inspector of taxes not later than twenty-one days after notice has been served on them of the charge falling to be made by virtue of this section, require that the income tax (including sur-tax) payable out of the estate of the deceased by reason of the increase provided for by this section shall be reduced so as not to exceed the total amount of income tax (including sur-tax) which would have been payable by him or out of his estate by reason of the operation of the said section 50 in relation to that sum, if, instead of the amount falling to be charged for the year in which the death occurs being increased by the whole amount of the sums charged for subsequent years, the several amounts falling to be charged for the years beginning with that in which the capital sum was received and ending with that in which the death occurred had each been increased by the said whole amount divided by the number of those years.

Provided that-— (a) the additional sum which, under the said subsection, falls to be charged for the year in which the discontinuance occurs shall be apportioned among the members of the partnership immediately before the discontinuance according to their respective interests in the partnership profits before the discontinuance, and each partner (or, if he is dead, his personal representatives) charged separately for his proportion, and (b) each partner (or, if he is dead, his personal representatives) shall have the same right to require a reduction of the total income tax (including sur-tax) payable by him or out of his estate by reason of the increase as would have been exercisable by the personal representatives under the said subsection (1) in the case of a death, and the proviso to that subsection shall have effect accordingly, but as if references to the amount of income tax (including sur-tax) which would have been payable by the deceased or out of his estate in the event therein mentioned were a reference to the amount of income tax (including sur-tax) which would in that event have fallen to be paid or borne by the partner in question or out of his estate.

Chapter IV.

Allowances for Expenditure on Dredging.

Allowances for expenditure on dredging.

57.—(1) Subject to the provisions of this section, where a person for the purposes of any qualifying trade carried on by him incurs on or after the 30th day of September, 1956, capital expenditure on dredging, and either the trade consists of the maintenance or improvement of the navigation of a harbour, estuary or waterway or the dredging is for the benefit of vessels coming to, leaving or using any dock or other premises occupied by him for the purposes of the trade, then, there shall be made in respect of the expenditure to the person for the time being carrying on the trade— (a) for the first relevant year of assessment, an initial allowance equal to one-tenth of the expenditure, and (b) for that and each subsequent year of assessment (until the allowances made under this section in respect of the expenditure equal the amount of the expenditure), an annual allowance equal to one-fiftieth of the expenditure.

Part IV

of Finance (Miscellaneous Provisions) Act, 1956 , or Chapter I of this Part.

Chapter V.

Miscellaneous and General.

Manner of granting allowances and charging tax in certain cases.

58.—(1) Any claim by a person for an allowance falling to be made to him under any of the provisions of this Part of this Act in charging the profits or gains of his trade shall be included in the annual statement required to be delivered under the Income Tax Acts of the profits or gains thereof, and the allowance shall be made as a deduction in charging those profits or gains, and paragraph (3) of Rule 6 of the Rules applicable to Cases I and II of Schedule D and section 4 of