Finance Act 2003

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Amendment of section 598 (disposal of business or farm on “retirement”) of Principal Act.

68.—(1) Section 598 of the Principal Act is amended—

(a)  in subsection (1)(a), by substituting the following for the definition of “the Scheme”:

“ ‘the Scheme’ means the scheme known as—

(i) the Scheme of Early Retirement From Farming introduced by the Minister for Agriculture and Food for the purpose of implementing Council Regulation (EEC) No. 2079/92 of 30 June 1992¹ , or

(ii) the Scheme of Early Retirement From Farming introduced by the Minister for Agriculture, Food and Rural Development for the purpose of implementing Council Regulation (EC) No. 1257/1999 of 17 May 1999² ,”,

(b)  by substituting the following for subsection (1)(d)(i):

“(i) (I) the period of ownership of an asset by a spouse of an individual as if it were a period of ownership of the asset by the individual, and

(II) where a spouse of an individual has died, the period of use of an asset by the spouse as if it were a period of use of the asset by the individual,”,

(c)  by inserting the following after subsection (1)(d)(ii):

“(iia) the period for which an individual was a director or, as the case may be, a full-time working director of the following companies as if it were a period for which the individual was a director of a ‘relevant company’ (which, for the purposes of this subparagraph, means a company referred to in paragraph (ii) of the definition of qualifying assets in subsection (1)(a)):

(I) a company that was treated as being the same company as the relevant company for the purposes of section 586,

(II) a company involved in the same scheme of reconstruction or amalgamation under section 587 with the relevant company,”,

and

(d) by substituting “€500,000” for “€476,250” in each place where it occurs in subparagraphs (i) and (ii) of subsection (2)(a).

(2) Paragraph (a) of subsection (1) is deemed to have applied as respects a disposal of an asset on or after 27 November 2000 and paragraphs (b), (c) and (d) of that subsection apply as respects a disposal of an asset on or after 6 February 2003.

¹OJ No. L.215, of 30.7.92, p.91.

²OJ No. L.160, of 26.6.99, p.80.