Finance Act, 1970

Finance Act, 1970 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 1970 Finance Act, 1970 Finance Act, 1970 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 14 of 1970 FINANCE ACT, 1970 ARRANGEMENT OF SECTIONS PART I Income Tax and Corporation Profits Tax Chapter I Income Tax Section 1. Income tax and sur-tax for the year 1970-71. 2. Reduced rate relief. 3. Amendment of section 6 of Income Tax Act, 1967. 4. Amendment of section 11 of Finance Act, 1967, and section 4 of Finance Act, 1969. 5. Amendment of section 127 of Income Tax Act, 1967. 6. Amendment of section 134 of Income Tax Act, 1967. 7. Amendment of section 135 of Income Tax Act, 1967. 8. Amendment of section 136 of Income Tax Act, 1967. 9. Amendment of section 138 of Income Tax Act, 1967. 10. Amendment of section 141 of Income Tax Act, 1967. 11. Amendment of section 142 of Income Tax Act, 1967. 12. Amendment of section 221 of Income Tax Act, 1967. 13. Amendment of section 236 of and Schedule 5 to Income Tax Act, 1967. 14. Amendment of section 241 of Income Tax Act, 1967. 15. Amendment of section 331 of Income Tax Act, 1967. 16. Amendment of section 332 of Income Tax Act, 1967. 17. Tax deductions from payments to sub-contractors in the construction industry. 18. Exemption of bonus or interest paid under instalment savings schemes. 19. Industrial building allowance in relation to buildings and structures bought unused. Chapter II Income Tax, Sur-Tax and Corporation Profits Tax in Relation to Certain Receipts after Discontinuance of Trade or Profession and Related Matters. 20. Receipts accruing after discontinuance of trade or profession. 21. Supplementary provisions as to tax under section 20 or 26. 22. Receipts and losses accruing after change treated as discontinuance. 23. Work in progress at discontinuance. 24. Debts set off against profits and subsequently released. 25. Cash basis, etc.: relief for individuals. 26. Conventional basis: general charge on receipts after change of basis. PART II Customs and Excise 27. Bottling of spirits in warehouses. 28. Deferment of payment of duty of excise on spirits. 29. Mineral hydrocarbon light oil. 30. Amendment of section 10 of Finance Act, 1957. 31. Amendment of section 5 of Finance Act, 1962. 32. Confirmation of Orders. PART III Death Duties 33. Amendment of section 21 of Finance Act, 1956. 34. Amendment of section 20 of Finance Act, 1965. 35. Amendment of section 24 of Finance Act, 1965. 36. Amendment of section 45 of Finance Act, 1969. 37. Relief from double charge of duty in certain cases. 38. Extension of exemption for gifts to the State. 39. Restriction of exemption from duty of certain securities. PART IV Stamp Duties 40. Amendment of First Schedule to Stamp Act, 1891. 41. Stamp duty on bills of exchange and promissory notes. 42. Stamp duty on loan capital. 43. Short-term life insurance policies. 44. Abolition of stamp duty in the case of transfers of certain stock. 45. Amendment of section 50 of Finance Act, 1969. 46. Miscellaneous amendments of Stamp Act, 1891. 47. Amendment of section 7 of Finance Act, 1907. 48. Stamp duty on purchased life annuities. PART V Turnover Tax 49. Rate of turnover tax. 50. Amendment of section 48 of Finance Act, 1963. 51. Additions to certain payments. PART VI Miscellaneous 52. Capital Services Redemption Account. 53. Instalment savings schemes. 54. Creation and issue of securities by Minister for Finance. 55. Postponement of redemption of certain Government loans. 56. Levy on pigs. 57. Treatment for double taxation relief purposes of foreign tax incentive reliefs. 58. Amendment of section 35 of Finance Act, 1968. 59. Payment of interest on State-guaranteed securities without deduction of tax. 60. Repeals. 61. Care and management of taxes and duties. 62. Short title, construction and commencement. FIRST SCHEDULE Stamp Duties on Instruments SECOND SCHEDULE Enactments Repealed Acts Referred to Income Tax Act, 1967 1967, No. 6 Finance Act, 1967 1967, No. 17 Industrial Development Act, 1969 1969, No. 32 Finance Act, 1969 1969, No. 21 Finance Act, 1920 1920, c. 18 Spirits Act, 1880 1880, c. 24 Finance Act, 1926 1926, No. 35 Finance Act, 1929 1929, No. 32 Finance (Customs Duties) (No. 4) Act, 1931 1931, No. 43 Finance (Miscellaneous Provisions) Act, 1935 1935, No. 7 Finance Act, 1957 1957, No. 20 Finance Act, 1962 1962, No. 15 Imposition of Duties (No. 182) (Immature Spirits) Order, 1969 S.I. No. 252 of 1969 Imposition of Duties (No. 183) (Excise Duties) (Vehicles) Order, 1969 S.I. No. 263 of 1969 Finance Act, 1956 1956, No. 22 Finance Act, 1894 1894. c. 30 Finance Act, 1965 1965, No. 22 Finance Act, 1961 1961, No. 23 Stamp Act, 1891 1891, c. 39 Finance Act, 1958 1958, No. 25 Finance Act, 1907 1907, c. 13 Undeveloped Areas Act, 1952 1952, No. 1 Finance Act, 1963 1963, No. 23 Finance Act, 1950 1950, No. 18 Government Loans (Conversion) Act, 1951 1951, No. 12 Pigs and Bacon Act, 1935 1935, No. 24 Agricultural Produce (Fresh Meat) Act, 1930 1930, No. 10 Pigs and Bacon (Amendment) Act, 1939 1939, No. 35 Finance Act, 1968 1968, No. 33 Finance (Miscellaneous Provisions) Act, 1958 1958, No. 28 Number 14 of 1970 FINANCE ACT, 1970. 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. [4th August, 1970.] BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS: PART I Income Tax and Corporation Profits Tax Chapter I Income Tax Income tax and sur-tax for the year 1970-71. 1.—(1) Income tax shall be charged for the year beginning on the 6th day of April, 1970, at the rate of seven shillings in the pound or at the rate (to which it is equivalent) of thirty-five per cent. (2) Sur-tax for the year beginning on the 6th day of April, 1970, shall be charged in respect of the income of any individual the total of which from all sources exceeds two thousand five hundred pounds and shall be so charged at the same rates as those at which it is charged for the year beginning on the 6th day of April, 1969. Reduced rate relief. 2.—(1) An individual who makes, in the manner prescribed by the Income Tax Acts, a claim in that behalf and makes a return in the prescribed form of his total income shall be entitled to be charged at two-thirds of the standard rate of tax on the first £100 of his taxable income. (2) All such provisions of the Income Tax Acts as apply in relation to every deduction specified in sections 138 to 143 of the Income Tax Act, 1967 , shall apply in relation to a reduction of rate allowed under subsection (1). (3) Section 153 (1) of the Income Tax Act, 1967 , is hereby amended by the insertion of the following paragraph after paragraph (d)— “(dd) he shall not be entitled to the benefit of the provision contained in section 2 of the Finance Act, 1970, whereby the first £100 of taxable income is chargeable at a reduced rate of tax in certain circumstances.”. (4) Section 193 (6) of the Income Tax Act, 1967 , is hereby amended by the insertion after “Finance Act, 1969” of “, or section 2 of the Finance Act, 1970”. (5) Section 497 of the Income Tax Act, 1967 , is hereby amended by the insertion after “standard rate of tax for that year” of “, or at two-thirds of that rate, as the case may be, and any repayment of income tax for any year of assessment to which any person may be entitled in respect of the reduction of the rate of tax on the first £100 of taxable income under section 2 of the Finance Act, 1970, shall, save as otherwise provided by this Act, be made at one-third of the standard rate of tax for that year”. Amendment of section 6 of Income Tax Act, 1967. 3.—(1) Section 6 of the Income Tax Act, 1967 , is hereby amended by the substitution of “new penny” for “penny”. (2) This section shall come into operation on the 15th day of February, 1971. Amendment of section 11 of Finance Act, 1967, and section 4 of Finance Act, 1969. 4.—(1) Section 11 (1) of the Finance Act, 1967 , is hereby amended— (a) by the substitution of “any designated area” for “any undeveloped area”, and (b) by the deletion of the definition of “undeveloped area”, and the insertion of the following definition: “‘designated area’ has the same meaning as in the Industrial Development Act, 1969 .”. (2) Section 4 (1) of the Finance Act, 1969 , is hereby amended— (a) by the substitution of “a designated area” for “an undeveloped area”, and (b) by the deletion of the definition of “undeveloped area” and the insertion of the following definition: “‘designated area’ has the same meaning as in the Industrial Development Act, 1969 .”. (3) This section shall have, and be deemed to have had, effect as on and from the 1st day of April, 1970. Amendment of section 127 of Income Tax Act, 1967. 5.— Section 127 (1) of the Income Tax Act, 1967 , is hereby amended by the insertion of the following paragraph after paragraph (f): “(ff) for requiring an employer to notify the Revenue Commissioners— (i) of employees in a specified class or classes whose emoluments to which this Chapter applies are not likely to exceed, for the year of assessment, a specified amount, and (ii) of employees in a specified class or classes the aggregate of whose emoluments to which this Chapter applies have, at any time in a year of assessment, exceeded a specified amount;”. Amendment of section 134 of Income Tax Act, 1967. 6.— Section 134 of the Income Tax Act, 1967 , is hereby amended by the addition of the following proviso: “Provided that— (a) in the case of an individual who is entitled under section 138 (1) to a deduction of £424 or £524, the minimum deduction allowable under this section shall be £225 or the amount of his earned income, whichever is the less, and (b) in the case of an individual who is entitled under section 138 to a deduction of £249 or £274, the minimum deduction allowable under this section shall be £125 or the amount of his earned income, whichever is the less.”. Amendment of section 135 of Income Tax Act, 1967. 7.— Section 135 of the Income Tax Act, 1967 , is hereby amended by the substitution of the following proviso for the proviso to subsection (1): “Provided that— (a) if the individual claims a deduction under this section, section 134 shall have effect in relation to the individual as if the proviso thereto (inserted by section 6 of the Finance Act, 1970) were omitted; (b) in case the deduction of one-fourth of earned income to which the individual is entitled under section 134 is £500, there shall be no deduction under this section; (c) in case the deduction of one-fourth of earned income to which the individual is entitled under section 134 is less than £500, the deduction under this section shall not be greater than the amount by which the deduction under section 134 falls short of £500; (d) in case the individual is entitled under section 138 to a deduction of £249 or £274— (i) in case his total income does not exceed £500, the deduction under this section shall be the amount by which the deduction of one-fourth of earned income under section 134 falls short of £125, and (ii) in case his total income exceeds £500, the deduction under this section shall not be greater than £150 or the amount to which he is entitled under paragraph (c), whichever is the less; (e) in case the individual is entitled under section 138 (1) to a deduction of £424 or £524— (i) in case his total income does not exceed £900, the deduction under this section shall be the amount by which the deduction of one-fourth of earned income under section 134 falls short of £225, and (ii) in case his total income exceeds £900, the deduction under this section shall not be greater than £225 or the amount to which he is entitled under paragraph (c), whichever is the less”. Amendment of section 136 of Income Tax Act, 1967. 8.— Section 136 of the Income Tax Act, 1967 , is hereby amended— (a) by the substitution of “£500” for “£450” in each place where it occurs, and (b) by the addition to subsection (2) of the following proviso— “Provided that where the relevant income is less than £500, the minimum deduction under this subsection shall be £125 or the amount of the relevant income, whichever is the less.”. Amendment of section 138 of Income Tax Act, 1967. 9.— Section 138 (3) of the Income Tax Act, 1967 , is hereby amended by the substitution of “£74” for “£45”. Amendment of section 141 of Income Tax Act, 1967. 10.— Section 141 of the Income Tax Act, 1967 , is hereby amended by the substitution of the following proviso for the proviso to subsection (1A) (a) (inserted by the Finance Act, 1969 ): “Provided that where the claimant is or would on due application be entitled throughout the year of assessment to a children's allowance in respect of more than one child, the deduction to be given under subsections (1) and (2) shall— (i) in the case of one such child be reduced by £15, and (ii) in the case of any such children in excess of two, be reduced by £19 each for the year 1970-71 and by £23 each for any subsequent year.”. Amendment of section 142 of Income Tax Act, 1967. 11.— Section 142 (1) of the Income Tax Act, 1967 , is hereby amended by the substitution of “£282” for “£256” in both places where it occurs and by the substitution of “£222” for “£196”. Amendment of section 221 of Income Tax Act, 1967. 12.— Section 221 (2) (h) (i) of the Income Tax Act, 1967 , is hereby amended by the substitution of “£70” for “£5”. Amendment of section 236 of and Schedule 5 to Income Tax Act, 1967. 13.—(1) Section 236 (1) of the Income Tax Act, 1967 , is hereby amended by the substitution of “£750” for “£500” in each place where it occurs. (2) Schedule 5 to the Income Tax Act, 1967 , is hereby amended— (a) by the substitution of “£750” for “£500” in each place where it occurs, and (b) by the substitution in the Table to paragraph 4 of “£825” for “£550”, “£900” for “£600”, “£975” for “£650”, “£1,050” for “£700” and “£1,125” for “£750”. Amendment of section 241 of Income Tax Act, 1967. 14.—(1) In this section— “wear and tear allowance” means a deduction allowed under section 241 of the Income Tax Act, 1967 , otherwise than by virtue of section 11 of the Finance Act, 1967 , or section 4 of the Finance Act, 1969 ; “normal wear and tear allowance” means such wear and tear allowance or greater wear and tear allowance, if any, as would have fallen to be made to a person in respect of any machinery or plant used by him during any year of assessment if all the conditions specified in subsection (3) had been fulfilled in relation to that year. (2) Where for any year of assessment (including a year of assessment before the year 1970-71) during which any machinery or plant has been used by a person, no wear and tear allowance or a wear and tear allowance less than the normal wear and tear allowance is made to that person in respect of the machinery or plant, the normal wear and tear allowance shall be deemed, for the purposes of subsections (6) and (7) of the said section 241, to have been made to him in respect of the machinery or plant for that year. (3) The conditions referred to in subsection (1) are: (a) that the trade had been carried on by the person in question ever since the date on which he acquired the machinery or plant and had been so carried on by him in such circumstances that the full amount of the profits or gains thereof was liable to be charged to income tax, (b) that the trade had at no time consisted wholly or partly of exempted trading operations within the meaning of Chapter I of Part XXV of the Income Tax Act, 1967 , (c) that the machinery or plant had been used by him solely for the purposes of the trade ever since that date, (d) that a proper claim had been duly made by him for wear and tear allowance in respect of the machinery or plant for every relevant year of assessment, and (e) that no question arose in connection with any year of assessment as to there being payable to him, directly or indirectly, any sums in respect of, or taking account of, the wear and tear of the machinery or plant. (4) The preceding provisions of this section shall, with any necessary modifications, apply in relation to professions, employments and offices as they apply in relation to trades. (5) Section 241 (7) of the Income Tax Act, 1967 , is hereby amended by the substitution of “trade, profession, employment or office” for “trade or profession”. Amendment of section 331 of Income Tax Act, 1967. 15.—(1) Section 331 of the Income Tax Act, 1967 , is hereby amended by the addition to subsection (3) of the following proviso: “Provided that relief or repayment may be granted in respect of such dividend or interest where— (a) the dividend or interest was paid within the period of two years prior to the date of the said certificate, and (b) the dividend or interest was paid on stocks, shares or securities in respect of which the conditions specified in paragraphs (a) to (c) of section 329 (2) and in section 330 (2) were complied with either— (i) throughout the said period of two years, or (ii) if the stocks, shares or securities were issued during the said period, throughout the period from the date of such issue to the date of the said certificate.”. (2) This section shall have, and be deemed to have had, effect in relation to any dividend or interest paid on or after the 6th day of April, 1966, and relief from tax may be given accordingly by repayment or otherwise, as the Revenue Commissioners think proper. Amendment of section 332 of Income Tax Act, 1967. 16.—(1) Section 332 of the Income Tax Act, 1967 , is hereby amended by the addition to subsection (8) of the following proviso: “Provided that relief or repayment may be granted in respect of such dividend or interest where— (a) the dividend or interest was paid within the period of two years prior to the date of the said certificate, and (b) the dividend or interest was paid on stocks, shares or securities in respect of which the conditions specified in paragraphs (a) and (b) of subsection (2) were complied with either— (i) throughout the said period of two years, or (ii) if the stocks, shares or securities were issued during the said period, throughout the period from the date of such issue to the date of the said certificate.”. (2) This section shall have, and be deemed to have had, effect in relation to any dividend or interest paid on or after the 6th day of April, 1966, and relief from tax may be given accordingly by repayment or otherwise as the Revenue Commissioners think proper. Tax deductions from payments to sub-contractors in the construction industry. 17.—(1) In this section— “construction contract” means a contract (not being a contract of employment) whereby a person (in this section referred to as the contractor) is liable to another person (in this section referred to as the principal)— (a) to carry out construction operations; or (b) to be answerable for the carrying out of such operations by others, whether under sub-contract to him or under other arrangements made, or to be made by him; or (c) to furnish his own labour or the labour of others, in the carrying out of such operations; “construction operations” means operations of any of the following descriptions— (a) the construction, alteration, repair, extension, demolition or dismantling of buildings or structures; (b) the construction, alteration, repair, extension or demolition of any works forming, or to form, part of the land, including walls, road-works, power-lines, aircraft runways, docks and harbours, railways, inland waterways, pipelines, wells, sewers, industrial plant and installations for purposes of land drainage; (c) the installation in any building or structure of systems of heating, lighting, air-conditioning, sound-proofing, ventilation, power supply, drainage, sanitation, water supply, burglar or fire protection; (d) the external cleaning of buildings (other than cleaning of any part of a building in the course of normal maintenance); internal cleaning of buildings and structures, so far as carried out in the course of their construction, alteration, extension, repair or restoration; (e) operations which form an integral part of, or are preparatory to, or are for rendering complete such operations as are described above, including site clearance, earth-moving, excavation, tunnelling and boring, laying of foundations, erection of scaffolding, site restoration, landscaping and the provision of roadways and other access works. (2) Subject to the provisions of this section, where in the performance of a construction contract, whether made before or after the commencement of this section, in the case of which the principal is— (a) a person who, in respect of the whole or any part of the construction operations to which the contract relates, is himself the contractor under another construction contract, or (b) a person carrying on a business which includes the erection of buildings, the principal makes a payment to another person (whether the contractor or not and hereinafter referred to as the sub-contractor), the principal shall deduct from the payment and pay to the Collector tax at the rate of 7s. 0d. in the pound (or at the rate, to which it is equivalent, of thirty-five per cent.) on the amount of such payment. (3) In computing, for the purposes of Schedule D, the profits or gains arising or accruing to a sub-contractor who receives a payment from which tax has been deducted in accordance with subsection (2), the payment shall be treated as being of an amount equal to the aggregate of the net amount received after deduction of the tax and the amount of the tax deducted. (4) In so far as a sub-contractor is chargeable to tax in respect of any profits or gains arising or accruing to him from a trade or vocation, he shall be treated as having paid on account of tax so chargeable any tax which was deducted from payments brought into account in the computation of those profits or gains and which has not been repaid or for which a set-off has not been given; and the Revenue Commissioners shall make regulations for giving effect to this subsection and those regulations shall in particular include provision— (a) as to the manner in which, and the periods for which, tax deducted under this section is to be brought into account as a sum paid on account of the liability to tax of a sub-contractor, (b) for repayment, on due claim made for a period (hereinafter referred to as the repayment period) commencing on the 6th day of April in a year of assessment and ending on the 5th day of the month following the date of the payment or, if the payment was made on or before the 5th day of a month, ending on the 5th day of that month, of such portion of the tax deducted from payments received by a sub-contractor during the repayment period (reduced by any amount of such tax repaid or set off) as appears to the Revenue Commissioners to exceed the proportionate part of the amount of tax for which he is liable, or is estimated to be liable, for that year of assessment, and (c) for repayments in cases where the total of the tax deducted from payments received by a sub-contractor and not repaid to him exceeds the amount of tax for which he is liable. (5) The Revenue Commissioners shall make regulations with respect to the assessment (including estimated assessment), charge, collection and recovery of tax deductible under subsection (2) and those regulations may in particular include, in relation to such tax, any provision which is or might be contained in regulations made under section 127 of the Income Tax Act, 1967 . (6) Section 132 of the Income Tax Act, 1967 , shall apply in relation to sums due on account of tax deductible under subsection (2) as it applies in relation to sums for which an employer is liable under that section. (7) Where, in any year of assessment, a sub-contractor satisfies the Revenue Commissioners that he has an established place of business and— (a) had delivered to them accounts of his trade or vocation for the purpose of computing the profits or gains on which he is chargeable to tax for the year preceding the year of assessment, or (b) has delivered, or has undertaken to deliver, to them accounts of his trade or vocation for the purpose of computing the profits or gains on which he is chargeable to tax for the year of assessment, the Revenue Commissioners shall issue to him a certificate in respect of a year of assessment which will, on production thereof by him to a principal, entitle him to receive without deduction of tax any payments which are made to him by the principal in the year of assessment to which the certificate relates and which are made subsequent to the production of the certificate. (8) Schedule 15 to the Income Tax Act, 1967 , is hereby amended by the insertion in column (2) thereof of “Regulations under section 17 of the Finance Act, 1970”. (9) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next twenty-one days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder. (10) A person carrying on a business shall not be deemed to be a person of a kind specified in subsection (2) (b) by reason only of the fact that, in the course of that business, he erects buildings for the use or occupation of himself or employees of his. (11) This section shall come into operation on such day as the Minister for Finance by order appoints. Exemption of bonus or interest paid under instalment savings schemes. 18.—Any bonus or interest payable to an individual under an instalment savings scheme (within the meaning of section 53) shall be disregarded for all the purposes of the Income Tax Acts if, or in so far as, the bonus or interest is payable in respect of an amount not exceeding the amount permitted under the scheme to be paid by him. Industrial building allowance in relation to buildings and structures bought unused. 19.—(1) Where expenditure is incurred on the construction of a building or structure and, before that building or structure is used, the relevant interest therein is sold— (a) the expenditure actually incurred on the construction thereof shall be left out of account for the purposes of sections 254 , 264 , 265 and 266 of the Income Tax Act, 1967 ; but (b) the person who buys that interest shall be deemed for those purposes to have incurred, on the date when the purchase price becomes payable, expenditure on the construction thereof equal to the said expenditure or to the net price paid by him for the said interest, whichever is the less: Provided that, where the relevant interest in the building or structure is sold more than once before the building or structure is used, the provisions of paragraph (b) shall have effect only in relation to the last of those sales. (2) Where the expenditure incurred on the construction of a building or structure was incurred by a person carrying on a trade which consists, as to the whole or any part thereof, in the construction of buildings or structures with a view to their sale, and, before the building or structure is used, he sells the relevant interest therein in the course of that trade, or, as the case may be, of that part of that trade, paragraph (b) of subsection (1) shall have effect subject to the following modifications— (a) if that sale is the only sale of the relevant interest before the building or structure is used, the said paragraph (b) shall have effect as if “the said expenditure or to” and “whichever is the less” were omitted, and (b) if there is more than one sale of the relevant interest before the building or structure is used, the said paragraph (b) shall have effect as if the reference to the expenditure actually incurred on the construction of the building or structure were a reference to the price paid on the said sale. (3) The Income Tax Acts shall have effect, and the preceding provisions of this section shall be construed, as if those provisions were contained in Chapter II of Part XV of the Income Tax Act, 1967. (4) In relation to expenditure actually incurred on the construction of a building or structure on or after the 6th day of April, 1970, this section shall have, and be deemed to have had, effect as on and from the said 6th day of April. (5) In relation to expenditure actually incurred on the construction of a building or structure prior to the 6th day of April, 1970, this section shall have, and be deemed to have had, effect as on and from the 6th day of April, 1964, and all such industrial building allowances and repayments of income tax (including sur-tax) and corporation profits tax shall be made as may be appropriate having regard to the provisions of this section: Provided that this subsection shall not have effect in relation to any such expenditure if an industrial building allowance in respect thereof has been made. Chapter II Income Tax, Sur-Tax and Corporation Profits Tax in Relation to Certain Receipts after Discontinuance of Trade or Profession and Related Matters. Receipts accruing after discontinuance of trade or profession. 20.—(1) Where any trade or profession the profits or gains of which are chargeable to tax under Case I or Case II of Schedule D has been permanently discontinued, tax shall be charged under Case IV of that Schedule in respect of any sums to which this section applies which are received after the discontinuance subject to any such deduction as is authorised by subsection (4). (2) Subject to subsection (3), this section applies to all sums arising from the carrying on of the trade or profession during any period before the discontinuance (not being sums otherwise chargeable to tax), in so far as the amount or value of the sums was not brought into account in computing the profits or gains for any period before the discontinuance and whether or not the profits or gains for the period were computed on an earnings basis or on a conventional basis. (3) This section does not apply to any of the following sums— (a) sums received by a person beneficially entitled thereto who is not resident in the State, or by a person acting on his behalf, which represent income arising directly or indirectly from a country or territory outside the State, or (b) a lump sum paid to the personal representatives of the author of a literary, dramatic, musical or artistic work as a consideration for the assignment by them, wholly or partially, of the copyright in the work, or (c) sums realised by the transfer of trading stock belonging to a trade at the discontinuance thereof, or, in a case in which the profits or gains of a profession were computed on an earnings basis at the discontinuance thereof, sums realised by the transfer of the work of the profession in progress at the discontinuance, or (d) sums arising to an individual from a work which is such that any profits or gains that might have arisen to that individual from its publication, production or sale, as the case might be, would, in accordance with section 2 (3) of the Finance Act, 1969 , have been disregarded for all purposes of the Income Tax Acts if they had arisen before the discontinuance of his profession, or (e) sums received before the date of the passing of this Act. (4) In computing the charge to tax in respect of sums received by any person which are chargeable to tax by virtue of this section (including amounts treated as sums received by him by virtue of section 24), there shall be deducted from the amount which, apart from this subsection, would be chargeable to tax— (a) any loss, expense or debit (not being a loss, expense or debit arising directly or indirectly from the discontinuance itself) which, if the trade or profession had not been discontinued, would have been deducted in computing for tax purposes the profits or gains of the person by whom it was carried on before the discontinuance, or would have been deducted from or set off against those profits or gains as so computed; and (b) any capital allowance to which the person who carried on the trade or profession was entitled immediately before the discontinuance and to which effect has not been given by way of relief before the discontinuance. (5) For the purposes of this Chapter— (a) “capital allowance” means any allowance, other than an allowance falling to be made in computing profits or gains, under section 241 or Part XIV, XV, XVI or XVII of the Income Tax Act, 1967 ; (b) the profits or gains of a trade or profession in any period shall be treated as computed by reference to earnings where all credits and liabilities accruing during that period as a consequence of the carrying on of the trade or profession are brought into account in computing those profits or gains for tax purposes, and not otherwise, and “earnings basis” shall be construed accordingly; (c) the profits or gains of a trade or profession in any period shall be treated as computed on a conventional basis where they are computed otherwise than by reference to earnings, and (d) the value of any sum received in payment of a debt shall be treated as not brought into account in the computation to the extent that a deduction has been allowed in respect of that sum under section 61 (i) of the Income Tax Act, 1967 . Supplementary provisions as to tax under section 20 or 26. 21.—(1) In the case of a transfer for value of the right to receive any such sums as are described in section 20 (2) or 26, any tax chargeable by virtue of those sections shall be charged in respect of the amount or value of the consideration (or, in the case of a transfer otherwise than at arm's length, in respect of the value of the right transferred as between parties at arm's length), and references in those sections to sums received shall be construed accordingly. (2) Where an individual is chargeable to tax by virtue of section 20 in respect of any sums received after the discontinuance of a trade or profession, and the profits or gains of the trade or profession to which he was entitled before the discontinuance fell to be treated as earned income for the purposes of the Income Tax Acts, those sums shall also be treated as earned income for those purposes but after any reduction therein under section 25. (3) Where any sum chargeable to tax by virtue of section 20 or 26 is received, in any year of assessment beginning not later than ten years after the discontinuance or, as the case may be, change of basis by the person by whom the trade or profession was carried on before the discontinuance or change or by his personal representatives, that person or (in either case) his personal representatives may, by notice in writing sent to the inspector within two years after the end of that year of assessment, elect that the tax chargeable as aforesaid shall be charged as if the sum in question were received on the date on which the discontinuance took place or, as the case may be, on the last day of the period at the end of which the change took place; and, in any such case, an additional assessment shall (notwithstanding anything in section 186 (2) of the Income Tax Act, 1967 ) be made accordingly; and in connection with that assessment no further deduction or relief shall be made or given in respect of any loss or allowance deducted in pursuance of section 20 (4). (4) Where work in progress at the discontinuance of a profession, or the responsibility for its completion is transferred, the sums to which section 20 applies include any sums received by way of consideration for the transfer and any sums received by way of realisation by the transferee, on behalf of the transferor, of the work in progress transferred. (5) No amount shall be deducted under section 20 (4) if that amount has been allowed under any other provision of the Income Tax Acts or of Part V of the Finance Act, 1920 , as amended or extended by subsequent enactments. (6) No amount shall be deducted more than once under section 20 (4) and as between sums chargeable for one year of assessment or accounting period and sums chargeable for a subsequent year of assessment or accounting period, any deduction in respect of a loss or capital allowance shall be made against sums chargeable for the earlier year of assessment or accounting period but, in the case of a loss which by virtue of this subsection or the said section 20 (4) is to be allowed after the discontinuance, a deduction shall not be made from any sum chargeable for a year of assessment or accounting period preceding that in which the loss is incurred. Receipts and losses accruing after change treated as discontinuance. 22.—(1) The following provisions of this section shall apply in any case where, as a result of a change in the persons engaged in carrying on a trade or profession, the trade or profession is treated for any of the purposes of the Income Tax Acts as if it had been permanently discontinued and a new trade or profession set up and commenced. (2) Sections 20 and 21 shall apply in the case of any such change as aforesaid as if the trade or profession had been permanently discontinued: Provided that where the right to receive any sums to which section 20 applies is or was transferred, at the time of the change, to the persons carrying on the trade or profession after the change, tax shall not be charged by virtue of that section, but (save where the change took place before the date of the passing of this Act) any sums received by those persons by virtue of the transfer shall be treated for all purposes as receipts to be brought into the computation of profits or gains of the trade or profession in the period in which they are received. (3) In computing for tax purposes the profits or gains of the trade or profession in any period after the change there may be deducted a sum equal to any amount proved during that period to be irrecoverable in respect of any debts credited in computing for tax purposes the profits or gains for any period before the change (being debts the benefit of which was assigned to the persons carrying on the trade or profession after the change), in so far as the total amount proved to be irrecoverable in respect of those debts exceeds any deduction allowed in respect of them under section 61 (i) of the Income Tax Act, 1967 , in a computation for any period before the change. Work in progress at discontinuance. 23.—(1) Where, in computing for any of the purposes of the Income Tax Acts the profits or gains of a profession which has been discontinued, a valuation is taken of the work of the profession in progress at the discontinuance, that work shall be valued as follows— (a) if the work is transferred for money or any other valuable consideration to a person who carries on, or intends to carry on, a profession in the State, and the cost of the work may be deducted by that person as an expense in computing for any such purpose the profits or gains of that profession, the value of the work shall be taken to be the amount paid or other consideration given for the transfer; (b) if the work does not fall to be valued under paragraph (a), its value shall be taken to be the amount which would have been paid for a transfer thereof on the date of the discontinuance as between parties at arm's length. (2) Where a profession is discontinued, and the person by whom it was carried on immediately before the discontinuance so elects, by notice in writing sent to the inspector at any time within twelve months after the discontinuance, the amount, if any, by which the value of the work in progress at the discontinuance (as ascertained under subsection (1)) exceeds the actual cost of the work shall not be brought into account in computing the profits or gains of the period immediately before the discontinuance, but the amount by which any sums received for the transfer of the work exceed the actual cost of the work shall be included in the sums chargeable to tax under section 20 as if it were a sum to which that section applies received after the discontinuance. (3) The foregoing provisions of this section apply where a profession is treated for any of the purposes of the Income Tax Acts as permanently discontinued as they apply in the case of an actual discontinuance, but shall not apply in a case where a profession carried on by a single individual is discontinued by reason of his death. (4) For the purposes of section 62 of the Income Tax Act, 1967 “trading stock”, in relation to a trade, includes any services, article or material which would, if the trade were a profession, be treated as work in progress thereof for the purposes of this section, and references to the sale or transfer of trading stock shall be construed accordingly. (5) References in this section to work in progress at the discontinuance of a profession shall be construed as references to— (a) any services performed in the ordinary course of the profession, the performance of which was wholly or partly completed at the time of the discontinuance and for which it would be reasonable to expect that a charge would have been made on their completion if the profession had not been discontinued, and (b) any article produced, and any such material as is used, in the performance of any such services, and references in this section to the transfer of work in progress shall include references to the transfer of any benefits and rights which accrue, or might reasonably be expected to accrue, from the carrying out of the work. (6) This section applies only to a discontinuance occurring after the date of the passing of this Act. Debts set off against profits and subsequently released. 24.—(1) Where, in computing for tax purposes the profits or gains of a trade or profession, a deduction has been allowed for any debt incurred for the purposes of the trade or profession, then, if the whole or any part of that debt is thereafter released, the amount released shall be treated as a receipt of the trade or profession arising in the period in which the release is effected. (2) (a) If in any such case as aforesaid the trade or profession has been permanently discontinued at or after the end of the period for which the deduction was allowed and before the release was effected, or is treated for tax purposes as if it had been so discontinued, section 20 shall apply as if the amount released were a sum received after the discontinuance. (b) For the purposes of corporation profits tax, where an assessment under Case IV of Schedule D is made by virtue of paragraph (a), or would have been so made if the profits or gains were chargeable to income tax, the amount so assessed or which would have been so assessed shall be treated as income of the company received on the date on which the release was effected. (3) This section applies to a release effected after the date of the passing of this Act. Cash basis, etc.: relief for individuals. 25.—(1) If an individual born before the 6th day of April, 1919, or the personal representative of such an individual, is chargeable to tax under section 20 or 26 and— (a) the individual was engaged in carrying on the trade or profession on the date of the passing of this Act, and (b) the profits or gains of the trade or profession were not computed by reference to earnings in the period in which the date specified in paragraph (a) fell, or in any subsequent period ending before or with the relevant date, the net amount with which he is so chargeable to tax shall be reduced by multiplying that net amount by the fraction given below. (2) Where section 26 applies in relation to a change of basis taking place on a date before the date of the passing of this Act, then, in relation to tax chargeable by reference to that change of basis, subsection (1) shall have effect— (a) as if that earlier date were substituted for the date specified in paragraph (a), and (b) as if paragraph (b) were deleted. (3) The said fraction is— (a) where on the 6th day of April, 1970, the individual had not attained the age of fifty-two, nineteen-twentieths, (b) where on that date he had attained the age of fifty-two, but had not attained the age of fifty-three, eighteen-twentieths, and so on, reducing the fraction by one-twentieth for each year he had attained, up to the age of sixty-four, (c) where on that date he had attained the age of sixty-five or any greater age, five-twentieths. (4) In this section— “the net amount” with which a person is chargeable to tax under section 20 means the amount with which he is so chargeable after making any deduction authorised by section 20 (4) but before giving any relief under this section; “relevant date”— (a) in relation to tax under section 20, means the date of the permanent discontinuance, (b) in relation to tax under section 26, means the date of the change of basis. Conventional basis: general charge on receipts after change of basis. 26.—(1) Where, in the case of any trade or profession the profits or gains of which are chargeable to tax under Case I or Case II of Schedule D, there has been— (a) a change from a conventional basis to the earnings basis, or (b) a change of conventional basis which may result in receipts dropping out of computation, tax shall be charged under Case IV of Schedule D in respect of sums to which this subsection applies which are received after the change, and before the trade or profession is permanently discontinued. This subsection applies to all sums arising from the carrying on of the trade or profession during any period before the change (not being sums otherwise chargeable to tax) in so far as their amount or value was not brought into account in computing the profits or gains for any period. (2) Where, in the case of any profession the profits or gains of which are chargeable to tax under Case II of Schedule D— (a) there has been a change from a conventional basis to the earnings basis, or a change of conventional basis, and (b) the value of work in progress at the time of the change was debited in the accounts and allowed as a deduction in computing profits for tax purposes for a period after the change, then, in so far as no counterbalancing credit was brought into account in computing profits for tax purposes for any period ending before or with the date of the change, tax shall be charged under subsection (1) in respect of that amount for the year of assessment in which the change occurred as if that amount were a sum to which the said subsection (1) applies, and the change of basis were a change of the kind described in that subsection. (3) In this section references to work in progress at the time of a change of basis shall be construed in accordance with section 23 (5) substituting therein for this purpose references to the change of basis for references to the discontinuance. (4) There is a change from a conventional basis to the earnings basis at the end of a period the profits or gains of which were computed on a conventional basis if the profits or gains of the next succeeding period are computed by reference to earnings; and, if the profits or gains of two successive periods are computed on different conventional bases, a change of conventional basis occurs at the end of the earlier period. (5) This section shall not apply where the change took place before the date of the passing of this Act and, before that date— (a) the decision had been taken to prepare accounts reflecting the change, or (b) the trade or profession had been permanently discontinued, but, subject as aforesaid, has effect as respects sums received at any time before or after that date. PART II Customs and Excise Bottling of spirits in warehouses. 27.—(1) Section 68 of the Spirits Act, 1880 , is hereby amended— (a) by the substitution of the following subsection for subsection (3) (inserted by the Finance Act, 1926 ): “(3) If the spirits are for home consumption they shall be drawn off into such bottles or containers and packed in such cases as the Commissioners may from time to time approve.”, and (b) by the substitution of the following subsection for subsection (7) (inserted by the said Finance Act, 1926 ): “(7) Spirits so bottled shall not be removed for home consumption in a quantity less than such quantity as the Commissioners may from time to time prescribe.”. (2) Section 28 of the Finance Act, 1929 , is hereby amended by the deletion of “in imperial or reputed quart or pint bottles” and “in cases containing one or more dozen of such quart bottles or two or more dozen of such pint bottles”. (3) Section 19 of the Finance Act, 1926 , is hereby repealed. Deferment of payment of duty of excise on spirits. 28.—(1) The duty of excise imposed by section 3 (2) of the Finance Act, 1920 , shall, as on and from the 1st day of October, 1970, be charged, levied and paid at the rate of fourteen pounds and five pence the gallon (computed at proof) in lieu of the rate chargeable by virtue of section 35 (4) of the Finance Act, 1969 . (2) (a) This subsection applies to spirits chargeable with the duty of excise imposed by section 3 (2) of the Finance Act, 1920 . (b) Where spirits to which this subsection applies are delivered from a bonded warehouse on or after the 1st day of October, 1970, the Revenue Commissioners may, subject to compliance with such conditions for securing payment of the duty as they may think fit to impose, permit payment of the excise duty charged on the spirits to be deferred to a day not later than— (i) in case the spirits are so delivered in the month of February in any year, the 25th day of March in the same year, or (ii) in any other case, the last day of the month succeeding the month in which the spirits are so delivered. (c) Where spirits to which this subsection applies are delivered from a bonded warehouse in the month of March in any year, no deferment of payment of duty as provided for by this subsection shall be allowed in respect of the spirits. (3) A rebate at the rate of eight pence the gallon (computed at proof) shall be allowed on all spirits delivered from a bonded warehouse on or after the 1st day of October, 1970, and charged with the said excise duty in relation to which there is no deferment of payment of duty pursuant to subsection (2) of this section. (4) Nothing in this section shall operate to relieve from or to prejudice or affect the additional excise duty in respect of immature spirits imposed by section 9 of the Finance Act, 1926 . Mineral hydrocarbon light oil. 29.—For the purposes of section 1 of the Finance (Customs Duties) (No. 4) Act, 1931 , and section 1 of the Finance (Miscellaneous Provisions) Act, 1935 , mineral hydrocarbon light oil shall be deemed not to include white spirit. Amendment of section 10 of Finance Act, 1957. 30.— Section 10 of the Finance Act, 1957 , is hereby amended by the addition at the end of subsection (8) of “or within such longer period as the Revenue Commissioners may in any particular case allow”. Amendment of section 5 of Finance Act, 1962. 31.—(1) Section 5 (5) of the Finance Act, 1962 , is hereby amended by the substitution of “4s. 6d. per lb. for each lb. thereof” for “1s. 6d. per lb. for each lb. thereof”. (2) This section shall have, and be deemed to have had, effect in respect of tobacco received by licensed manufacturers of tobacco on or after the 11th day of April, 1970. Confirmation of Orders. 32.—The Imposition of Duties (No. 182) (Immature Spirits) Order, 1969, and the Imposition of Duties (No. 183) (Excise Duties) (Vehicles) Order, 1969, are hereby confirmed. PART III Death Duties Amendment of section 21 of Finance Act, 1956. 33.—(1) Where— (a) stocks, shares or securities passing on a death occurring after the 5th day of April, 1966, are not at such passing, stocks, shares or securities in respect of which a certificate under section 329 of the Income Tax Act, 1967 , or a certificate under section 332 of that Act has been given but are stocks, shares or securities in respect of which the conditions specified in paragraphs (a) to (c) of subsection (2) of the said section 329 and in section 330 (2) of the Income Tax Act, 1967 , or the conditions specified in paragraphs (a) and (b) of subsection (2) of the said section 332 are complied with at such passing, and (b) a certificate under the said section 329 or a certificate under the said section 332 is given within two years after such passing, the provisions of section 21 of the Finance Act, 1956 , shall apply to such stocks, shares or securities as if the said section 329 or the said section 332, as the case may be, had applied to them at such passing. (2) Where in any such case estate duty has been paid on the full value of any stocks, shares or securities, as estimated in accordance with the provisions of section 7 (5) of the Finance Act, 1894 , the Revenue Commissioners shall make such repayment as is appropriate having regard to the provisions of this section. Amendment of section 20 of Finance Act, 1965. 34.—(1) Section 20 of the Finance Act, 1965 , is hereby amended— (a) by the substitution in subsections (3) (a) and (4) (a) (i) of “company which then was or thereafter became a company controlled by the deceased” for “company controlled by the deceased”, and (b) by the insertion at the end of subsection (4) of the following paragraph: “(d) Where, in a case to which paragraph (a) (i) applies, the company controlled by the deceased was a non-trading company, this subsection shall have effect as if in paragraph (a) (ii) ‘other than dividends or interest on stocks, shares or debentures of the company’ were deleted.” (2) Where, for the purposes of subsection (5) of the said section 20, a non-trading company is deemed to be voluntarily wound up and its assets realised on a particular date, the amount deemed to be so realised shall be estimated to be the price which, in the opinion of the Revenue Commissioners, the assets would fetch if sold in the open market on that date. (3) This section shall have effect only in relation to a death occurring after the passing of this Act. Amendment of section 24 of Finance Act, 1965. 35.—(1) Section 24 (1) of the Finance Act, 1965 , is hereby amended by the substitution of the following definition for the definition of “dependent child”: “‘dependent child’ means— (i) a child (including a step-child and a child adopted under the provisions of the Adoption Acts, 1952 and 1964) who had not attained the age of 16 years at the date of the death of the deceased or who was then receiving full time instruction at any university, college, school or other educational establishment or undergoing training by any person for any trade or profession in such circumstances that the child was required to devote the whole of his time to the training for a period of not less than two years; and (ii) a child (including a step-child and a child adopted under the provisions of the Adoption Acts, 1952 and 1964) who at the date of the death of the deceased was permanently incapacitated by reason of mental or physical infirmity from maintaining himself and had become so permanently incapacitated before he had attained the age of 21 years or while he had been in receipt of full time instruction at any university, college, school or other educational establishment or undergoing training by any person for any trade or profession in such circumstances that the child had been required to devote the whole of his time to the training for a period of not less than two years;”. (2) This section shall have effect only in relation to a death occurring after the passing of this Act. Amendment of section 45 of Finance Act, 1969. 36.—(1) Section 45 (1) of the Finance Act, 1969 , is hereby amended by the substitution of the following definition for the definition of “child”— “‘child’ means— (a) a child (including a step-child and a child adopted under the provisions of the Adoption Acts, 1952 and 1964) of the deceased who was living at his death and who had not then attained the age of 16 years or, who was then receiving full time instruction at any university, college, school or other educational establishment or undergoing training by any person for any trade or profession in such circumstances that the child had been required to devote the whole of his time to the training for a period of not less than two years, and (b) a child (including a step-child and a child adopted under the provisions of the Adoption Acts, 1952 and 1964) who at the death of the deceased was permanently incapacitated by reason of mental or physical infirmity from maintaining himself and had become so permanently incapacitated before he had attained the age of 21 years or while he had been in receipt of full time instruction at any university, college, school or other educational establishment or undergoing training by any person for any trade or profession in such circumstances that the child had been required to devote the whole of his time to the training for a period of not less than two years;”. (2) This section shall have effect only in relation to a death occurring after the passing of this Act. Relief from double charge of duty in certain cases. 37.—(1) Where in connection with a death occurring after the passing of this Act there arises by reason of subsection (4) of section 20 of the Finance Act, 1965 , a claim for estate duty in respect of the assets of a company controlled by the deceased within the meaning of the said section 20, and estate duty is payable in connection with the same death in respect of stock or shares (other than debentures) in the company, then for the purposes of section 7 (10) of the Finance Act, 1894 , the liability for estate duty in respect of the said stock or shares shall be deemed to be a liability in respect of the net assets of the company as if such assets had been held by it in trust for the members of the company taking the interests of such members as they subsisted immediately before the death of the deceased and the said section 7 (10) shall have effect accordingly. (2) For the pur …