Finance Act, 1973

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Amendment of section 141 of Income Tax Act, 1967.

3.— Section 141 of the Income Tax Act, 1967 , is hereby amended—

(1) by the substitution for subsection (1A) (inserted by the Finance Act, 1969 ) of the following subsection:

“(1A) The deduction referred to in subsection (1) shall be:

(a) (i) in the case of a child to whom paragraph (a) of that subsection applies and who is shown by the claimant to have been over the age of 11 years at the commencement of the year of assessment, £170, and in the case of any other such child, £155, or

(ii) in the case of a child to whom paragraph (aa) of that subsection applies and who is shown by the claimant to have been over the age of 11 years at the commencement of the year of assessment, £220, and in the case of any other such child, £205;

(b) in the case of a child to whom subsection (1) (b) (i) applies, £170;

(c) in the case of a child to whom subsection (1) (b) (ii) applies and who is wholly or partly maintained by the claimant at his own expense, £220 if the amount expended by the claimant in the year of assessment on the maintenance of the child is not less than £220, and, where the amount so expended is less than £220, that amount:

Provided that—

(i) any deduction under subsection (1) (b) (ii) shall be in substitution for, and not in addition to, any deduction to which the claimant might be entitled in respect of the child under section 142; and

(ii) a claimant shall not be entitled to more than one deduction under subsection (1) in respect of the same child.”.

(2) by the insertion after subsection (1A) of the following subsections—

“(1AA) 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 one, be reduced by £23 each.

(1AAA) Where for the year 1973-74 or any subsequent year of assessment a claimant's total income for the relevant year of assessment from all sources, as estimated in accordance with the provisions of the Income Tax Acts, exceeds £2,500 and the claimant is or would on due application be entitled throughout the year of assessment, to a children's allowance in respect of any child, any deduction in respect of that child to be given under this section shall, in addition to any reduction to be made by virtue of subsection (1AA), be reduced by £42 for the year 1973-74 and by £50 for any subsequent year:

Provided that a claimant who in consequence of the provisions of this subsection has the amount of income tax payable by him increased shall be entitled to have that amount reduced to a sum equal to the aggregate of the following amounts, that is to say, the amount of tax which would have been payable if his total income had amounted to, but not exceeded, £2,500 and the amount by which his total income exceeds £2,500.”.

(3) by the substitution in subsection (1B) of the following definition for the definition of “children's allowance”:

“‘children's allowance’ means an allowance under the Social Welfare (Children's Allowances) Acts, 1944 to 1970, and any subsequent Act together with which those Acts may be cited.”.

(4) Section 523 (1) (a) of the Income Tax Act, 1967 , shall have effect as if section 141 (1AAA) (inserted by the Finance Act, 1973) had not been enacted.