Finance Act 2018
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Chapter 4 Income Tax, Corporation Tax and Capital Gains Tax | ||
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Taxation of payments under Magdalen Restorative Justice Ex-Gratia Scheme | ||
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16. (1) Section 205A of the Principal Act is amended— | ||
(a) in subsection (1) by substituting the following for the definition of “relevant payment”: | ||
“ ‘relevant payment’ means— | ||
(a) a payment or payments made, directly or indirectly, to a relevant individual by or on behalf of the Minister for Justice and Equality pursuant to the Magdalen Restorative Justice Ex-Gratia Scheme (that is to say the Scheme administered, under that title, by the Minister for Justice and Equality in furtherance of decisions of the Government of 5 November 2013 and 28 May 2018, respectively), | ||
(b) an amount equal to the State Pension (Contributory) as set out in column 2 of Part 1 of Schedule 2 to the Social Welfare Consolidation Act 2005 paid to a relevant individual, | ||
(c) an amount equal to the State Pension (Non-Contributory) as set out in Part 3 of the Social Welfare Consolidation Act 2005 paid to a relevant individual, and | ||
(d) any payment, other than a payment referred to in paragraphs (a) to (c), made, directly or indirectly, by or on behalf of the Minister for Employment Affairs and Social Protection to a relevant individual, by virtue of that individual being a relevant individual.” , | ||
and | ||
(b) by substituting the following for subsections (2) and (3): | ||
“(2) Income that— | ||
(a) consists of a relevant payment, or | ||
(b) arises to a person to or in respect of whom a relevant payment is made, from the investment in whole or in part of such a payment or of the income derived from such a payment, being income consisting of dividends or other income which but for this section would be chargeable to tax under Schedule C or under Case III, IV (by virtue of section 59, 745 or 747E) or V of Schedule D or under Schedule F, | ||
shall be exempt from income tax and shall not be reckoned in computing total income for the purposes of the Income Tax Acts. | ||
(3) Gains that accrue to a person, to or in respect of whom a relevant payment is made, from the disposal of— | ||
(a) assets acquired with such a payment, | ||
(b) assets acquired with income exempted from income tax under subsection (2), or | ||
(c) assets acquired directly or indirectly with the proceeds from the disposal of assets referred to in paragraph (a) or (b), | ||
shall not be chargeable gains for the purposes of the Capital Gains Tax Acts. | ||
(4) For the purposes of computing whether by virtue of this section a gain is, in whole or in part, a chargeable gain, or whether income is, in whole or in part, exempt from income tax, all such apportionments shall be made as are, in the circumstances, just and reasonable.”. | ||
(2) Part 8 of the Principal Act is amended— | ||
(a) in section 256(1) by inserting the following after the definition of “PRSA provider”— | ||
(i)“ ‘relevant amount’ means any amount of income referred to in section 205A(2) and any amount of gains referred to in section 205A(3);”, and | ||
(ii) by inserting the following after subsection (1B) of section 256— | ||
“(1C) A deposit shall be a deposit to which this subsection refers as respects any year of assessment if— | ||
(a) the deposit is solely in respect of a relevant amount, | ||
(b) a declaration of the kind mentioned in section 263D has been made to the Revenue Commissioners, and | ||
(c) a notification of the kind mentioned in section 263E has been issued by the Revenue Commissioners to the relevant deposit taker that the deposit is not a relevant deposit.”, | ||
(b) in section 261B by substituting “subsection (1A), (1B), or (1C) of section 256” for “subsection (1A) or (1B) of section 256” in each place where it occurs, | ||
(c) by inserting the following after section 263C: | ||
“Declarations to the Revenue Commissioners in relation to relevant amounts | ||
263D. The declaration referred to in section 256(1C) is a declaration in writing to the Revenue Commissioners which— | ||
(a) is made by the person (in this section referred to as the ‘declarer’) to whom any interest on the deposit in respect of which the declaration is made is payable by the relevant deposit taker and is signed by the declarer, | ||
(b) is made in such form as may be prescribed, authorised or approved by the Revenue Commissioners, | ||
(c) declares that at the time the declaration is made that the deposit is solely in respect of a relevant amount, | ||
(d) contains as respects the person— | ||
(i) the name and address of the person, | ||
(ii) the person’s PPS Number (within the meaning of section 891B), | ||
(iii) the name and address of the deposit taker (including the name and address of the branch of the deposit taker, if any) who holds the deposit in respect of which the declaration is made, and | ||
(iv) the account number or membership number, as the case may be, of the deposit in respect of which the declaration is made, | ||
and | ||
(e) contains such other information as the Revenue Commissioners may reasonably require for the purposes of this Chapter. | ||
Notification by the Revenue Commissioners relating to deposits of relevant amounts | ||
263E. (1) The notification referred to in section 256(1C) is a notification— | ||
(a) in writing by the Revenue Commissioners to a relevant deposit taker confirming that the account identified in the notification is to be treated as not being a relevant deposit unless and until the notification is cancelled in accordance with subsection (2), | ||
(b) which contains as respects the person beneficially entitled to the interest in relation to the deposit mentioned in paragraph (a)— | ||
(i) the name and address of the person, | ||
(ii) the person’s PPS Number (within the meaning of section 891B), and | ||
(iii) the account number of the deposit, | ||
and | ||
(c) which contains such information as the Revenue Commissioners may reasonably decide for the purposes of this Chapter. | ||
(2) The Revenue Commissioners may at any time cancel the notification and give notice in writing to that effect to the relevant deposit taker and the person mentioned in subsection (1)(b). Where at any time the Revenue Commissioners have so notified the deposit taker, the deposit shall not be a deposit to which this section applies from that time.”, | ||
and | ||
(d) in section 267(3) by substituting “section 189(2), section 189A(4), section 192(2) or section 205A(2)” for “section 189(2), section 189A(4) or section 192(2)”. | ||
(3) Chapter 5 of Part 26 of the Principal Act is amended in section 730GA by substituting “section 189, 189A, 192 or 205A” for “section 189, 189A or 192”. | ||
(4) Chapter 1A of Part 27 of the Principal Act is amended in section 739G(2)(j) by substituting “section 189, 189A, 192 or 205A” for “section 189, 189A or 192”. | ||
(5) (a) Subsection (1) shall be deemed to have come into operation on 1 August 2013. | ||
(b) As respects income or gains to which subsection (1)(b) applies for the years of assessment 2013 and 2014, section 865(4) of the Principal Act shall apply as if the reference in that subsection to the making of a claim within 4 years after the end of the chargeable period to which the claim relates were a reference to the making of a claim within 4 years after the end of the chargeable period ending on 31 December 2015. |