Finance Act, 1984
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Stock relief: income tax. |
51.—(1) In this section— | ||||||||
“relevant year” means the year 1984-85; | |||||||||
“trading profits”, in relation to a trade, means the profits or gains of the trade computed in accordance with the rules applicable to Case I of Schedule D. | |||||||||
(2) Subject to the provisions of this Chapter, where a person (other than a body corporate) who is resident in the State and not resident elsewhere carries on in an accounting period a qualifying trade in respect of which he is chargeable to income tax under Case I of Schedule D for a relevant year on the trading profits of that accounting period he shall, in the computation for the purposes of income tax of the trading profits of the qualifying trade, be entitled to a deduction under this section as if the deduction were a trading expense of the qualifying trade incurred in the accounting period. | |||||||||
(3) In any case where a person is entitled, in relation to an accounting period, to a deduction under this section in respect of a qualifying trade, that deduction shall be an amount determined by the formula | |||||||||
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where A and B have the same meanings as in section 49 (2): | |||||||||
Provided that in no case shall the amount of the deduction as so computed exceed the amount of the trading profits of the qualifying trade for the accounting period before any deduction is allowed under this section. | |||||||||
(4) Where a deduction allowed under this section in computing a person's trading profits of a qualifying trade for an accounting period has effect for a relevant year— | |||||||||
(a) the person shall not be entitled to relief— | |||||||||
(i) under section 309 of the Income Tax Act, 1967 , for any year of assessment later than the relevant year in respect of a loss sustained in the trade before the commencement of the relevant year, or | |||||||||
(ii) under section 311 of that Act for any year of assessment earlier than the relevant year in respect of a loss sustained in the trade, | |||||||||
(b) the provisions of section 241 (3) of that Act or of that section as applied by any other provision of the Income Tax Acts, shall not apply as respects a capital allowance or part of a capital allowance which is, or is deemed to be, all or part of a capital allowance for the relevant year and to which full effect has not been given in that year owing to there being no profits or gains chargeable for that year or an insufficiency of profits or gains chargeable for that year, and | |||||||||
(c) the provisions of section 318 of that Act shall not apply to the capital allowances or any part thereof for the relevant year. | |||||||||
(5) A person shall not be entitled to a deduction under this section in respect of an assessment made for a relevant year unless he makes a claim before— | |||||||||
(a) the date on which the assessment becomes final and conclusive, or | |||||||||
(b) the 31st day of December in the relevant year, | |||||||||
whichever is the later. |