Finance Act, 1983

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Amendment of section 344 (exemption of interest on certain deposits) of Income Tax Act, 1967.

8.— Section 344 of the Income Tax Act, 1967 , is hereby amended, as respects the year 1983-84 and subsequent years of assessment—

(a) by the substitution in subsection (1) (inserted by the Finance Act, 1980 ) of “£120” for “£150”, in each place where it occurs, and of “£50” for “£70”,

(b) by the substitution in subsection (2) (inserted by the Finance Act, 1980 ) of “£120” for “£150” and of “£50” for “£70”, and

(c) by the substitution in subsection (4) of the following definition for the definition of “the commercial banks”:

“‘the commercial banks’ means Allied Irish Banks Limited, the Bank of Ireland, the Northern Bank Limited, the Ulster Bank Limited, Ansbacher & Company Limited, Barclays Commercial Bank Limited, Guinness & Mahon Limited, Chase Bank (Ireland) Limited and the Agricultural Credit Corporation, Limited;”,

and the said subsections (1) and (2), as so amended, are set out in the Table to this section.

TABLE

(1) Where the total income of an individual for the year of assessment includes, or would but for this section include, any sums (in this section referred to as “the said sums”) paid or credited in respect of interest on—

(a) deposits with a trustee savings bank or with the Post Office Savings Bank, or

(b) deposits with any of the commercial banks,

the said sums shall be disregarded for all the purposes of the Income Tax Acts if or in so far as the said sums do not exceed—

(i) in the case of sums representing interest on deposits mentioned in paragraph (a), £120, or

(ii) in the case of sums representing interest on deposits mentioned in paragraph (b), £50:

Provided that the total sums to be so disregarded shall not exceed £120:

Provided also that the provisions of this Act as regards the making by the individual of a return of his total income shall apply as if this section had not been enacted.

(2) For the purposes of subsection (1) the question whether or how far the said sums exceed £120 or £50, as the case may be, shall, where by virtue of section 194, a woman's income is deemed to be her husband's, be determined separately as regards the part of his income which is his by virtue of that section and the part which is his apart from that section.