Finance Act, 1974
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Chapter III Restriction of Relief in Respect of Interest | ||
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Restriction on repayment of tax on interest in certain cases. |
29.—The following section is hereby substituted for section 496 of the Income Tax Act, 1967 — | |
“496.—(1) Subject to the provisions of this section— | ||
(a) where interest payable in the State on an advance from a bank carrying on a bona fide banking business in the State is paid to the bank without deduction of tax out of profits or gains brought into charge to tax, the person by whom the interest is paid shall be entitled, on proof of the facts, to repayment of tax on the amount of the interest, | ||
(b) a like repayment shall on the like proof be made in the case of interest payable in the State on an advance from a person who in the opinion of the Revenue Commissioners is bona fide carrying on business as a member of a stock exchange in the State or from any person who in the opinion of the said Commissioners is bona fide carrying on the business of a discount house in the State, | ||
(c) a like repayment shall on the like proof be made in the case of yearly interest (including interest to which section 30 (1) or 50 (2) of the Finance Act, 1974 applies) charged with tax under Schedule D. | ||
(2) In relation to any interest paid in respect of any period beginning on or after the 10th day of January, 1974, notwithstanding the provisions of subsection (1), no repayment of tax shall be made under this section— | ||
(a) for the year of assessment 1973-74, on the excess of the interest over £500, or | ||
(b) for the year of assessment 1974-75, or for any subsequent year of assessment, on the excess of the interest over £2,000: | ||
Provided that paragraph (a) shall not apply to interest wholly and exclusively laid out or expended for the purposes of a trade or profession, or other business whose income consists wholly or mainly of profits or gains chargeable under Case V of Schedule D. | ||
(3) Where, in relation to interest paid in respect of any period beginning on or after the 10th day of January, 1974, relief is claimed by a person by virtue of more than one of the following provisions, that is to say, subsection (2), section 76 (1) (c) or paragraph 1 (2) of Part III of Schedule 6, relief shall not be given to such person in respect of the part (if any) of the aggregate amount of interest paid by him that exceeds the appropriate amount specified in subsection (2). | ||
(4) The provisions of subsection (2) shall not apply to interest on money borrowed to pay death duties. | ||
(5) No repayment of tax shall be made under this section unless the Revenue Commissioners are satisfied that the relevant interest has been or will be brought into account in the statement delivered or to be delivered for the purposes of tax by the person making the advance on which the interest was paid.”. |