Finance Act, 1997

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Number 22 of 1997

FINANCE ACT, 1997

ARRANGEMENT OF SECTIONS

Income Tax, Corporation Tax and Capital Gains Tax

Income Tax

Section
1.	Amendment of provisions relating to exemption from income tax.
2.	Alteration of rates of income tax.
3.	Personal reliefs.
4.	Amendment of provisions relating to the taxation of certain social welfare benefits.
5.	Amendment of section 4 (separated spouses: adaptation of special provisions as to married persons) of Finance Act, 1983.
6.	Amendment of section 127 (regulations) of Income Tax Act, 1967.
7.	Amendment of section 15 (relief for fees paid for part-time third level education) of Finance Act, 1996.
8.	Relief for fees paid for training courses.
9.	Amendment of Chapter III (Income Tax: Relief for Investment in Corporate Trades) of Part I of Finance Act, 1984.
10.	Amendment of section 14 (relief to individuals on loans applied in acquiring interest in companies) of Finance Act, 1992.
11.	Income from scholarships.
12.	Amendment of section 115 (exemptions and reliefs in respect of tax under section 114) of Income Tax Act, 1967 .

13.	Tax deductions from payments made to sub-contractors.
14.	Tax relief for agreed pay restructuring.
15.	Amendment of section 4 (charge of tax on sums applied outside the State in repaying certain loans) of Finance Act, 1971.

Chapter II

Income Tax, Corporation Tax and Capital Gains Tax

16.	Relief for gifts made to third level institutions.
17.	Amendment of provisions relating to relief for expenditure on significant buildings, etc.
18.	Amendment of section 134 (deduction for increase in stock values) of Finance Act, 1996.
19.	Amendment of section 135 (special provision for qualifying farmers) of Finance Act, 1996.
20.	Farming: allowances for capital expenditure on the construction of farm buildings etc. for control of pollution.
21.	Capital allowances for, and deduction in respect of, vehicles.
22.	Amendment of section 241 (wear and tear of machinery, plant, etc.) of Income Tax Act, 1967.
23.	Amendment of Chapter I (Industrial Buildings and Structures: Annual Allowances and Balancing Allowances and Charges) of Part XVI of Income Tax Act, 1967.
24.	Capital allowances: room ownership schemes.
25.	Capital allowances for buildings used for third level educational purposes.
26.	Amendment of Chapter IV (Urban Renewal Reliefs: Introduction of New Scheme in Certain Areas) of Part I of Finance Act, 1994.
27.	Amendment of provisions relating to double rent allowance.
28.	Amendment of section 39B (relief in relation to income from certain trading operations carried on in Custom House Docks Area) of Finance Act, 1980.
29.	Relief for pre-trading expenditure.
30.	Amendment of section 35 (relief for investment in films) of Finance Act, 1987.
31.	Amendment of section 14 (special portfolio investment accounts) of Finance Act, 1993.
32.	Amendment of section 18 (taxation of collective investment undertakings) of Finance Act, 1989.
33.	Taxation of strips of securities.

34.	Amendment of section 138 (tax treatment of securities issued at a discount) of Finance Act, 1990.
35.	Amendment of section 17 (undertakings for collective investment) of Finance Act, 1993.
36.	Amendment of section 31 (interest payments by companies and to non-residents) of Finance Act, 1974.
37.	Tax credits in respect of distributions.
38.	Amendment of section 37 (application of section 25 (attribution of distributions to accounting periods) of Finance Act, 1989, to interim dividends) of Finance Act, 1992.
39.	Amendment of Chapter VIII (taxation of acquisition by a company of its own shares) of Part I of Finance Act, 1991.
40.	Amendment of section 40 (treatment under Tax Acts of certain employment grants and recruitment subsidies) of Finance Act, 1996.
41.	Employers' pension contributions.
42.	Deemed disposal of assets on company ceasing to be resident in the State.
43.	Postponement of charge on deemed disposal under section 42.
44.	Tax on non-resident company recoverable from another member of group or from controlling director.
45.	Amendment of section 464 (issue of securities with exemption from tax) of Income Tax Act, 1967.
46.	Amendment of section 470 (securities of Irish local authorities issued abroad) of Income Tax Act, 1967.
47.	Amendment of section 474 (exemption of certain securities from tax) of Income Tax Act, 1967.
48.	Replacement of harbour authorities by port companies.
49.	Treatment of certain profits and gains for tax purposes.
50.	Amendment of Chapter IX (profit sharing schemes) of Part 1 of, and Third Schedule (profit sharing schemes) to, Finance Act, 1982.
51.	Employee share ownership trusts.

Chapter III

Urban Renewal Reliefs: Introduction of New Scheme in the Dublin Docklands Area

52.	Interpretation (Chapter III).

53.	Qualifying area.
54.	Accelerated capital allowances in relation to construction or refurbishment of certain industrial buildings or structures.
55.	Capital allowances in relation to construction or refurbishment of certain commercial premises.
56.	Double rent allowance in respect of rent paid for certain business premises.
57.	Residential accommodation: allowance to owner-occupiers in respect of expenditure on construction or refurbishment.
58.	Provisions supplementary to section 57.

Chapter IV

Corporation Tax

59.	Rate of corporation tax.
60.	Amendment of section 28A (reduced rate of corporation tax for certain income) of Corporation Tax Act, 1976.
61.	Repeal of section 80 (exemption of income from carrying out of voluntary health insurance schemes) of Corporation Tax Act, 1976.
62.	Exemption of harbour authorities and port companies.
63.	Exemption of income of body designated under Irish Take-over Panel Act, 1997.
64.	Amendment of section 56 (relief for gifts to The Enterprise Trust Ltd.) of Finance Act, 1992.
65.	Amendment of section 51 (relief for gifts made to First Step) of Finance Act, 1993.
66.	Amendment of section 36 (amendment of section 39B (relief in relation to income from certain trading operations carried on in Custom House Docks Area) of Finance Act, 1980) of Finance Act, 1988.
67.	Amendment of section 35 (profits of life business) of Corporation Tax Act, 1976.
68.	Amendment of section 36 (investment income reserved for policy holders) of Corporation Tax Act, 1976.
69.	Amendment of section 46A (deemed disposal and reacquisition of certain assets) of Corporation Tax Act, 1976.

Chapter V

Capital Gains Tax

70.	Amendment of Schedule 2 to Capital Gains Tax Act, 1975.

71.	Divorced persons: transfers of assets.
72.	Separated spouses: transfers of assets.
73.	Amendment of section 15 (settled property) of Capital Gains Tax Act, 1975.
74.	Amendment of section 20A (foreign life assurance and deferred annuities: taxation and returns) of Capital Gains Tax Act, 1975.
75.	Amendment of section 27 (relief for individuals on certain reinvestment) of Finance Act, 1993.
76.	Amendment of section 66 (reduced rate of capital gains tax on certain disposals of shares by individuals) of Finance Act, 1994.
77.	Amendment of section 39 (amendment of provisions regarding replacement of assets) of Finance Act, 1982.
78.	Amendment of section 46 (debts) of Capital Gains Tax Act, 1975.

PART II

Customs and Excise

Chapter I

Vehicle Registration Tax

79.	Interpretation (Chapter I).
80.	Vehicle built up from chassis or monocoque or assembly.
81.	Evidence of computer stored records in court proceedings.

Chapter II

Miscellaneous

82.	Hydrocarbons and substitute motor fuel.
83.	Amendment of section 56 (hydrocarbons) of Finance Act, 1988.
84.	Recycled hydrocarbon oil used as a motor fuel.
85.	Tobacco products.
86.	Amendment of section 1 (interpretation) of Finance (Excise Duty on Tobacco Products) Act, 1977.
87.	Amendment of section 10A (offences in relation to tax stamps) of Finance (Excise Duty on Tobacco Products) Act, 1977.
88.	Amendment of section 106 (treatment of excisable products released for consumption in another Member State) of Finance Act, 1992.

89.	Amendment of penalties under section 186 (illegally importing) of Customs Consolidation Act, 1876.
90.	Amendment of section 34 (amendments relative to penalties) of Finance Act, 1963.
91.	Amendment of section 89 (seizure of goods and vehicles) of Finance Act, 1995.
92.	Obligation to answer certain questions, detention and arrest in respect of certain tobacco products.
93.	Amendment of section 94 (power to deal with seizures before condemnation) of Finance Act, 1995.
94.	Ships stores.

PART III

Value-Added Tax

95.	Interpretation (Part III).
96.	Amendment of section 1 (interpretation) of Principal Act.
97.	Amendment of section 3A (intra-Community acquisition of goods) of Principal Act.
98.	Amendment of section 4 (special provisions in relation to the supply of immovable goods) of Principal Act.
99.	Amendment of section 5 (supply of services) of Principal Act.
100.	Amendment of section 7 (waiver of exemption) of Principal Act.
101.	Amendment of section 8 (taxable persons) of Principal Act.
102.	Amendment of section 10 (amount on which tax is chargeable) of Principal Act.
103.	Amendment of section 11 (rates of tax) of Principal Act.
104.	Amendment of section 12 (deduction for tax borne or paid) of Principal Act.
105.	Amendment of section 12A (special provisions for tax invoiced by flat-rate farmers) of Principal Act.
106.	Amendment of section 13 (remission of tax on goods exported, etc.) of Principal Act.
107.	Amendment of section 19 (tax due and payable) of Principal Act.
108.	Amendment of section 20 (refund of tax) of Principal Act.
109.	Amendment of section 25 (appeals) of Principal Act.
110.	Amendment of First Schedule to Principal Act.

111.	Amendment of Second Schedule to Principal Act.
112.	Amendment of Fourth Schedule to Principal Act.
113.	Amendment of Sixth Schedule to Principal Act.
114.	Revocation (Part III).

PART IV

Stamp Duties

Chapter I

Special provisions relating to residential property

115.	Interpretation (Chapter I).
116.	Commencement (Chapter I).
117.	Amendment of the First Schedule.
118.	Amendment of section 122 (definitions) of the Act of 1891.
119.	Amendment of section 58 (conveyances on sale: direction as to duty in certain cases) of the Act of 1891.
120.	Amendment of section 77 (leases: directions as to duty in certain cases) of the Act of 1891.
121.	Surcharges.
122.	Furnishing of an incorrect certificate.

Chapter II

Miscellaneous

123.	Amount chargeable to duty where chargeable on new dwellinghouse or apartment.
124.	Provision relating to section 112 (stamp duty on transfers of building land) of Finance Act, 1990.
125.	Amendment of section 207 (exemption from stamp duty of certain financial services instruments) of Finance Act, 1992.
126.	Amendment of section 112 (relief from stamp duty in respect of transfers to young trained farmers) of Finance Act, 1994.
127.	Exemption of certain transfers from stamp duty following the dissolution of a marriage.
128.	Exemption from stamp duty of certain instruments (Dublin Docklands Development Authority).
129.	Exemption from stamp duty of certain policies of health insurance.
130.	Repeal (Part IV).

PART V

Residential Property Tax

131.	Abolition of residential property tax.
132.	Amendment of section 110A (clearance on sale of certain residential property) of Finance Act, 1983.

PART VI

Capital Acquisitions Tax

133.	Interpretation (Part VI).
134.	Amendment of section 19 (value of agricultural property) of Principal Act.
135.	Amendment of section 57 (exemption of certain securities) of Principal Act.
136.	Second Schedule (computation of tax) to Principal Act, declaratory provision.
137.	Amendment of section 39 (extension of section 55 (exemption of certain objects) of Capital Acquisitions Tax Act, 1976) of Finance Act, 1978.
138.	Amendment of section 117 (reduction of market value of certain dwellings) of Finance Act, 1991.
139.	Amendment of section 126 (business relief) of Finance Act, 1994.
140.	Amendment of section 127 (relevant business property) of Finance Act, 1994.
141.	Amendment of section 135 (withdrawal of relief) of Finance Act, 1994.
142.	Exemption of certain transfers from capital acquisitions tax following the dissolution of a marriage.
143.	Abatement and postponement of probate tax on certain property.

PART VII

Miscellaneous Pre-Consolidation Provisions

Chapter I

Income Tax, Corporation Tax and Capital Gains Tax

144.	Securities of certain State-owned companies.
145.	Relief for interest paid on certain home loans.
146.	Pre-consolidation amendments and repeals.

Chapter II

Urban Renewal: Temple Bar Area

147.	Preliminary and general.
148.	Accelerated capital allowances in relation to construction or refurbishment of certain industrial buildings or structures.
149.	Capital allowances in relation to construction or refurbishment of certain commercial premises.
150.	Double rent allowance in respect of rent paid for certain business premises.
151.	Rented residential accommodation: deduction for certain expenditure on construction.
152.	Rented residential accommodation: deduction for certain expenditure on conversion.
153.	Rented residential accommodation: deduction for certain expenditure on refurbishment.
154.	Residential accommodation: allowance to owner-occupiers in respect of expenditure on construction or refurbishment.
155.	Provisions supplementary to sections 151 to 154.
156.	Repeals and consequential amendments.

PART VIII

Miscellaneous

157.	Amendment of section 162 (Collector-General) of Income Tax Act, 1967.
158.	Amendment of section 23 (publication of names of defaulters) of Finance Act, 1983.
159.	Evidence of authorisation.
160.	Tax clearance for moneylenders, mortgage intermediaries and credit intermediaries.
161.	Amendment of section 54 (creation and issue of securities by Minister for Finance) of Finance Act, 1970, etc.
162.	Advance of moneys to Post Office Savings Bank Fund by the Minister for Finance.
163.	Amendment of National Treasury Management Agency Act, 1990.
164.	Capital Services Redemption Account.
165.	Care and management of taxes and duties.
166.	Short title, construction and commencement.

FIRST SCHEDULE

Amendments Consequential on Changes in Personal Reliefs

SECOND SCHEDULE

Amendments Consequential on Changes in Amounts of Tax Credits in Respect of Distributions

THIRD SCHEDULE

Employee Share Ownership Trusts

FOURTH SCHEDULE

Farm Buildings and Structures to Which Allowances for the Control of Pollution Apply

FIFTH SCHEDULE

Replacement of Harbour Authorities by Port Companies

SIXTH SCHEDULE

Change in Rate of Corporation Tax: Consequential Provisions

SEVENTH SCHEDULE

Rates of Excise Duty on Tobacco Products

EIGHTH SCHEDULE

Stamp Duty on Instruments

NINTH SCHEDULE

PART I

Pre-Consolidation Amendments

PART II

Pre-Consolidation Repeals

TENTH SCHEDULE

Income Tax and Corporation Tax: Reliefs for Certain Enterprise Areas

PART I

Interpretation

PART II

Description of Cherry Orchard/Gallanstown Enterprise Area

PART III

Description of Finglas Enterprise Area

PART IV

Description of Rosslare Harbour Enterprise Area

Acts Referred to
Capital Acquisitions Tax Act, 1976	1976, No. 8
Capital Gains Tax Act, 1975	1975, No. 20
Child Care Act, 1991	1991, No. 17
Companies Acts 1963 to 1990
Consumer Credit Act, 1995	1995, No. 24
Corporation Tax Act, 1976	1976, No. 7
Criminal Procedure Act, 1967	1967, No. 12
Customs Act, 1956	1956, No. 7
Customs and Inland Revenue Act, 1879	42 & 43 Vict., c. 21
Customs Consolidation Act, 1876	39 & 40 Vict., c. 36
Dentists Act, 1985	1985, No. 9
Dublin Docklands Development Authority Act, 1997	1997, No. 7
Family Law Act, 1995	1995, No. 26
Family Law (Divorce) Act, 1996	1996, No. 33
Finance (1909-10) Act, 1910	10 Edw. 7 & 1 Geo. 5, c. 8
Finance Act, 1950	1950, No. 18
Finance Act, 1963	1963, No. 23
Finance Act, 1967	1967, No. 17
Finance Act, 1968	1968, No. 33
Finance Act, 1969	1969, No. 21
Finance Act, 1970	1970, No. 14
Finance Act, 1971	1971, No. 23
Finance Act, 1972	1972, No. 19
Finance Act, 1973	1973, No. 19
Finance Act, 1974	1974, No. 27
Finance Act, 1975	1975, No. 6
Finance Act, 1976	1976, No. 16
Finance Act, 1977	1977, No. 18
Finance Act, 1978	1978, No. 21
Finance Act, 1979	1979, No. 11
Finance Act, 1980	1980, No. 14
Finance Act, 1981	1981, No. 16
Finance Act, 1982	1982, No. 14
Finance Act, 1983	1983, No. 15
Finance Act, 1984	1984, No. 9
Finance Act, 1985	1985, No. 10
Finance Act, 1986	1986, No. 13
Finance Act, 1987	1987, No. 10
Finance Act, 1988	1988, No. 12
Finance Act, 1989	1989, No. 10
Finance Act, 1990	1990, No. 10
Finance Act, 1991	1991, No. 13
Finance Act, 1992	1992, No. 9
Finance (No. 2) Act, 1992	1992, No. 28
Finance Act, 1993	1993, No. 13
Finance Act, 1994	1994, No. 13
Finance Act, 1995	1995, No. 8
Finance Act, 1996	1996, No. 9
Finance (Excise Duty on Tobacco Products) Act, 1977	1977, No. 32
Finance (Miscellaneous Provisions) Act, 1968	1968, No. 7
Finance (Taxation of Profits of Certain Mines) Act, 1974	1974, No. 17
Harbours Act, 1946	1946, No. 9
Harbours Act, 1996	1996, No. 11
Health Acts, 1947 to 1996
Health Contributions Act, 1979	1979, No. 4
Health Insurance Act, 1994	1994, No. 16
Higher Education Authority Act, 1971	1971, No. 22
Housing (Miscellaneous Provisions) Act, 1979	1979, No. 27
Income Tax Act, 1967	1967, No. 6
Industrial and Commercial Property (Protection) Act, 1927	1927, No. 16
Industrial and Provident Societies Acts, 1893 to 1978
Industrial Development Act, 1986	1986, No. 9
Industrial Development Act, 1993	1993, No. 19
Industrial Development Act, 1995	1995, No. 28
Irish Horseracing Industry Act, 1994	1994, No. 18
Irish Takeover Panel Act, 1997	1997, No. 5
Judicial Separation and Family Law Reform Act, 1989	1989, No. 6
Labour Services Act, 1987	1987, No. 15
Local Authorities (Higher Education Grants) Acts, 1968 to 1992
Local Government (Financial Provisions) Act, 1978	1978, No. 35
Local Government (Planning and Development) Acts, 1963 to 1993
Medical Practitioners Act, 1978	1978, No. 4
National Archives Act, 1986	1986, No. 11
National Treasury Management Agency Act, 1990	1990, No. 18
Official Secrets Act, 1963	1963, No. 1
Patents Act, 1964	1964, No. 12
Patents Act, 1992	1992, No. 1
Registration of Business Names Act, 1963	1963, No. 30
Social Welfare (Consolidation) Act, 1993	1993, No. 27
Stamp Act, 1891	54 & 55 Vict., c. 39
Succession Act, 1965	1965, No. 27
Trade Union Act, 1941	1941, No. 22
Trade Union Act, 1942	1942, No. 23
Urban Renewal Act, 1986	1986, No. 19
Value-Added Tax Act, 1972	1972, No. 22
Value-Added Tax Acts, 1972 to 1996
Value-Added Tax (Amendment) Act, 1978	1978, No. 34
Youth Employment Agency Act, 1981	1981, No. 32

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Number 22 of 1997

FINANCE ACT, 1997

AN ACT TO CHARGE AND IMPOSE CERTAIN DUTIES OF CUSTOMS AND INLAND REVENUE (INCLUDING EXCISE), TO AMEND THE LAW RELATING TO CUSTOMS AND INLAND REVENUE (INCLUDING EXCISE) AND TO MAKE FURTHER PROVISIONS IN CONNECTION WITH FINANCE. [10th May, 1997]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

Finance Act, 1997 Permanent Page URL

Finance Act, 1997

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