Income Tax Act, 1967.

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Additional deductions in certain cases.

82.—(1) In this section—

“excepted profits or gains” means profits or gains arising from rent under a short lease in respect of premises which comprise the whole of what was, on the 6th day of April, 1963, a unit of valuation where, for the year of assessment, all the following conditions are satisfied, that is to say:

(a) the premises are premises to which subsection (2) applies;

(b) the lease imposes no obligation on the lessee to maintain or repair the fabric or exterior of any building or to contribute to the cost of such maintenance or repairs, and

(c) the rent to which the lessor is entitled or, in a case in which a deduction is allowable under section 81 (4) (c) in arriving at the amount of the profits or gains for the purpose of assessment under Case IV of Schedule D, the said rent reduced by the deduction allowable as aforesaid, does not exceed £52 per annum;

“profit rent” means, in relation to any premises in respect of which a lessor is, in a year of assessment, entitled to rent under a short lease, the amount (hereafter in this definition referred to as the assessable amount) on which, but for the provisions of the following subsections of this section, the lessor would have been chargeable for the year of assessment under Case IV of Schedule D, in respect of profits or gains arising from the said rent, increased by any deduction allowed under section 81 (4) (a) in arriving at the assessable amount and reduced by the amount, if any, by which any deduction allowed under section 81 (4) (b) in arriving at the assessable amount falls short of the deduction which would have been so allowable if—

(i) no deduction had been allowable under section 81 (4) (a), and

(ii) section 81 (4) (b) and section 81 (5) applied to any payment to which section 93 applies as they apply to any rent payable under a short lease.

(2) (a) This subsection applies to any premises which are shown to the satisfaction of the Revenue Commissioners (or, on appeal, to the satisfaction of the Special Commissioners) to be in the year of assessment a controlled dwelling within the meaning of the Rent Restrictions Act, 1960.

(b) Where for any year of assessment a person is chargeable under Case IV of Schedule D in respect of profits or gains arising from any rent in respect of any premises to which this subsection applies under a short lease, the amount on which he would, apart from this subsection, be so chargeable shall be reduced by an amount equal to two-fifths of the profit rent:

Provided that, for any year of assessment, the aggregate of all amounts by which profits or gains, other than excepted profits or gains, arising to any person are reduced by virtue of this paragraph shall not exceed £200.

(3) The reference, in the proviso to subsection (2) (b), to profits or gains arising to any person shall be deemed to include, in the case of an individual, a reference to profits or gains arising to the wife or husband of the individual.

In this subsection and subsection (4) “wife” means a married woman who under section 196 (1) is to be treated as living with her husband, and “husband” has a corresponding meaning.

(4) (a) Where in any year of assessment profits or gains arise to both a husband and a wife from rents in respect of premises to which subsection (2) applies and the aggregate (hereafter in this subsection referred to as the gross aggregate) of all amounts by which the said profits or gains would have fallen to be reduced under this section, if the proviso to subsection (2) (b) (hereafter in this subsection referred to as the limiting provision) had been omitted from this section, exceeds what, in consequence of the operation of the limiting provision is the aggregate (hereafter in this subsection referred to as the net aggregate) of all amounts by which the said profits or gains may be reduced, the aggregate of all amounts by which the profits or gains arising to either spouse are reduced shall not exceed the sum which bears to the net aggregate the same proportion as the aggregate of all amounts by which, but for the limiting provision, the profits or gains arising to that spouse would have fallen to be reduced bears to the gross aggregate.

(b) Any reference in this subsection to profits or gains does not include a reference to excepted profits or gains.