Finance Act, 1970
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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. |