Finance Act, 1978

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Relief from tax for certain individuals resident in the State and employed in the United Kingdom affected by the Convention for the reciprocal avoidance of double taxation in the State and in the United Kingdom of income and capital gains.

9.—(1) In this section and in Part III of the First Schedule—

“capital allowance” has the same meaning as in section 33 of the Finance Act, 1975;

“the Convention” has the same meaning as in section 39 (5) of the Finance Act, 1977;

“deduction in respect of contributions” and “deduction in respect of expenses” have the same meanings as in section 16 of the Finance Act, 1976;

“emoluments” means, in relation to any year, salaries, wages and other similar remuneration derived by an individual in respect of an employment exercised in the United Kingdom which are chargeable to tax under Case III of Schedule D for that year and to which, if they are so derived or had been so derived by the individual in the year 1977-78, Article 15 (1) or 15 (3) of the Convention applies or would have applied;

“the former Agreements” has the same meaning as in section 39 (5) of the Finance Act, 1977;

“net emoluments” means the emoluments referred to as net emoluments in Part III of the First Schedule;

“tax” means income tax;

“tax appropriate to the emoluments” means, in relation to any individual, for any year of assessment, the amount of tax determined in accordance with the formula set out in Part III of the First Schedule.

(2) Where an individual is chargeable to tax in respect of emoluments for the year 1977-78, he shall be entitled to relief for the year 1976-77 in an amount (hereinafter referred to as a “remission”) equal to—

(a) in the case of an individual who was resident in the State and not resident in the United Kingdom for the year 1976-77, one-half of the tax appropriate to the emoluments for the year 1976-77, and

(b) in the case of an individual who was resident both in the State and in the United Kingdom for the year 1976-77, one-half of the tax appropriate to the emoluments for the year 1976-77, reduced by an amount representing tax on one quarter of the net emoluments at his appropriate rate of Irish tax or at his appropriate rate of United Kingdom tax, whichever is the lower, computed in accordance with the former Agreements:

Provided that the remission shall not exceed the tax appropriate to the emoluments for the year 1977-78.

(3) Where the remission is in respect of emoluments of an individual and emoluments of his wife which are deemed to be his income under the provisions of section 192 of the Income Tax Act, 1967 , the remission in respect of the emoluments of each shall be an amount which bears the same proportion to the remission as the net emoluments of each bears to A in the formula referred to in subsection (1):

Provided that the remission in respect of the emoluments of the individual shall not exceed the aggregate of the tax appropriate to the emoluments of the individual for the year 1977-78 and the remission in respect of the emoluments of his wife shall not exceed the aggregate of the tax appropriate to the emoluments of his wife for the year 1977-78.

(4) Where the emoluments of a woman are chargeable to tax for the year 1977-78, she shall be entitled to the remission in respect of her emoluments, if any, in respect of which she is chargeable to tax for the year 1976-77 as an unmarried or widowed woman.

(5) The executors or administrators of the estate of an individual who died in the year 1976-77 shall be entitled, in respect of his wife's emoluments which were deemed to be his income for the year 1976-77 in accordance with the provisions of section 192 of the Income Tax Act, 1967 , to the remission to which he would have been entitled if he had not died.

(6) The remission due to a woman in respect of emoluments in respect of which she is chargeable to tax for the year 1976-77 as an unmarried or widowed woman shall be given in priority to any remission due in respect of her emoluments, if any, which are deemed to be her husband's income in accordance with the provisions of section 192 of the Income Tax Act, 1967:

Provided that the aggregate of the remission due in respect of her emoluments in respect of which she is chargeable to tax as an unmarried or widowed woman and in respect of her emoluments, if any, which are deemed to be her husband's income in accordance with the provisions of section 192 of the Income Tax Act, 1967 , shall not exceed the aggregate of the tax appropriate to the emoluments of the said woman for the year 1977-78 (including any emoluments deemed to be her husband's income in accordance with the provisions of section 192 of the Income Tax Act, 1967 ).

(7) All such adjustments or repayments of tax shall be made as may be necessary to give effect to the provisions of this section.

(8) Section 193 of the Income Tax Act, 1967 , is hereby amended by the insertion after paragraph (dd) in subsection (2) of the following paragraph:

“(ddd) so far as it flows from relief under section 9 of the Finance Act, 1978, in proportion to the net emoluments included in A in the formula referred to in subsection (1) of that section,”.