Finance Act, 1991

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Number 13 of 1991

FINANCE ACT, 1991

ARRANGEMENT OF SECTIONS

PART I

Income Tax, Corporation Tax and Capital Gains Tax

Chapter I

Income Tax

Chapter II

Income Tax: Relief for Investment in Corporate Trades

Chapter III

Income Tax, Corporation Tax and Capital Gains Tax

Chapter IV

Corporation Tax

Chapter V

Capital Gains Tax

Chapter VI

Extension of Self Assessment to Capital Gains Tax and Certain Other Matters

Chapter VII

Urban Renewal: Temple Bar and Other Areas

Chapter VIII

Taxation of Acquisition by a Company of its Own Shares

PART II

Customs and Excise

PART III

Value-Added Tax

PART IV

Stamp Duties

PART V

Residential Property Tax

PART VI

Capital Acquisitions Tax and Death Duties

PART VII

Miscellaneous

FIRST SCHEDULE

Amendment of Enactments

PART I

Amendments Consequential on Changes in Rates of Tax

PART II

Amendments Consequential on Changes in Personal Reliefs

SECOND SCHEDULE

Urban Renewal: Temple Bar Area

PART I

Interpretation

PART II

Description of Temple Bar Area

THIRD SCHEDULE

Rates of Excise Duty on Tobacco Products

PART I

Charged, levied and paid as on and from the 31st day of January, 1991

PART II

Charged, levied and paid as on and from the 1st day of March, 1991

FOURTH SCHEDULE

Enactments Repealed

FIFTH SCHEDULE

Stamp Duty on Instruments

PART I

Bonds, Covenants, etc.

PART II

Leases

PART III

Mortgages, Bonds, Debentures and certain Covenants and Warrants of Attorney

Number 13 of 1991

FINANCE ACT, 1991

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. [29th May, 1991]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

PART I

Income Tax, Corporation Tax and Capital Gains Tax

Chapter I

Income Tax

Amendment of provisions relating to exemption from income tax.

1.—As respects the year 1991-92 and subsequent years of assessment, the Finance Act, 1980 , is hereby amended—

(a) in section 1—

(i) by the substitution, in paragraph (b) of subsection (1), of “52 per cent.” for “53 per cent.” (inserted by the Finance Act, 1990 ),

(ii) by the substitution, in subsection (2) (inserted by the Finance Act, 1989 ), of “£6,800” for “£6,500” (inserted by the Finance Act, 1990 ), and “£3,400” for “£3,250” (inserted by the Finance Act, 1990 ), and

(iii) by the substitution of the following paragraph for paragraph (a) of subsection (3) (inserted by the Finance Act, 1989 ):

“(a) For the purposes of this section and section 2, where a claimant proves that he has living, at any time during the year of assessment, any qualifying child, then, subject to subsection (4), the specified amount (within the meaning of this section or section 2, as the case may be) shall be increased, for that year of assessment, by £300 in respect of the first such child, £300 in respect of the second such child and £500 in respect of each such child in excess of two.”,

and

(b) in section 2—

(i) by the substitution, in subsection (3), of “52 per cent.” for “53 per cent.” (inserted by the Finance Act, 1990 ), and

(ii) by the substitution, in subsection (6) (inserted by the Finance Act, 1989 )—

(I) of “£7,800” and “£9,000”, respectively, for “£7,500” and “£8,700” (inserted by the Finance Act, 1990 ), in paragraph (a), and

(II) of “£3,900” and “£4,500”, respectively, for “£3,750” and “£4,350” (inserted by the Finance Act, 1990 ), in paragraph (b),

and the said paragraph (b) of subsection (1), and the said subsection (2), of the said section 1 and the said subsections (3) and (6) of the said section 2, as so amended, are set out in the Table to this section.

TABLE

(b) an individual makes a claim for the purpose, makes a return in the prescribed form of his total income for that year and proves that it does not exceed a sum equal to twice the specified amount, he shall be entitled to have the amount of income tax payable in respect of his total income for that year, if that amount would, but for the provisions of this subsection, exceed a sum equal to 52 per cent, of the amount by which his total income exceeds the specified amount, reduced to that sum.

(2) In this section “the specified amount” means, subject to subsection (3)—

(a) in a case where the individual would, apart from this section, be entitled to a deduction specified in section 138 (a) of the Income Tax Act, 1967 , £6,800, and

(b) in any other case, £3,400.

(3) Where an individual to whom this section applies proves that his total income for a year of assessment for which this section applies does not exceed a sum equal to twice the specified amount, he shall be entitled to have the amount of income tax payable in respect of his total income for that year, if that amount would, but for the provisions of this subsection, exceed a sum equal to 52 per cent, of the amount by which his total income exceeds the specified amount, reduced to that sum.

(6) In this section “the specified amount” means, subject to subsection (3) of section 1—

(a) in a case where the individual would, apart from this section, be entitled to a deduction specified in section 138 (a) of the Income Tax Act, 1967 , £7,800:

Provided that, if at any time during the year of assessment either the individual or his spouse was of the age of seventy-five years or upwards, “the specified amount” means £9,000, and

(b) in any other case, £3,900:

Provided that, if at any time during the year of assessment the individual was of the age of seventy-five years or upwards, “the specified amount” means £4,500.

Charge of income tax for 1991-92 and subsequent years.

2.—(1) Income tax shall be charged for the year 1991-92 and for each subsequent year of assessment and shall, subject to subsection (2), be so charged at the rate of tax specified in the Table to this section as the standard rate.

(2) Where a person who is charged to income tax for the year 1991-92 or any subsequent year of assessment is an individual (other than an individual acting in a fiduciary or representative capacity), he shall, notwithstanding anything in the Income Tax Acts but subject to section 5 (3) of the Finance Act, 1974 , be charged to tax on his taxable income—

(a) in a case in which he is assessed to tax otherwise than in accordance with the provisions of section 194 (inserted by the Finance Act, 1980 ) of the Income Tax Act, 1967 , at the rates specified in Part I of the Table to this section, or

(b) in a case in which he is assessed to tax in accordance with the provisions of the said section 194, at the rates specified in Part II of the said Table,

and the rates in each Part of that Table shall be known, respectively, by the description specified in column (3), in each such Part opposite the mention of the rate or rates, as the case may be, in column (2) of that Part.

(3) Paragraph 1 of Part I of the First Schedule shall have effect for the purpose of supplementing subsection (2) and paragraph 2 of the said Part I shall have effect for the purpose of supplementing section 3 of the Finance Act, 1974 .

TABLE

PART I

PART II

Personal reliefs.

3.—(1) Where a deduction falls to be made from the total income of an individual for the year 1991-92 or any subsequent year of assessment in respect of relief to which the individual is entitled under a provision mentioned in column (1) of the Table to this subsection and the amount of the deduction would, but for this section, be an amount specified in column (2) of the said Table, the amount of the deduction shall, in lieu of being the amount specified in the said column (2), be the amount specified in column (3) of the said Table opposite the mention of the amount in the said column (2).

TABLE

(2) Section 3 of the Finance Act, 1988 , shall have effect subject to the provisions of this section.

(3) Part II of the First Schedule shall have effect for the purpose of supplementing subsection (1).

Special allowance for widowed parent following death of spouse.

4.—(1) (a) This section applies to an individual whose spouse dies in a year of assessment, being the year 1988-89 or any subsequent year of assessment (hereafter in this section referred to as “a claimant”).

(b) For the purposes of this section “a qualifying child”, in relation to a claimant and a year of assessment, has the meaning assigned to it by subsection (1) (b) of section 138A (inserted by the Finance Act, 1985 ) of the Income Tax Act, 1967 , and the question of whether a child is a qualifying child shall be determined on the same basis as it would be for the purposes of the said section 138A, and the provisions of subsections (3), (4), (6) and (7) of that section shall apply accordingly.

(2) Subject to the provisions of this section, where a claimant proves, in relation to any of the three years of assessment next immediately following the year of assessment in which his spouse dies, that—

(a) he has not remarried before the commencement of the year, and

(b) a qualifying child is resident with him for the whole or part of the year,

he shall, in respect of each of the years in relation to which he so proves, be entitled, in computing the amount of his taxable income, to have a deduction made from his total income as follows—

(i) for the first of the said three years, £1,500,

(ii) for the second of the said three years, £1,000, and

(iii) for the third of the said three years, £500:

Provided that this section shall not apply for any year of assessment in the case of a man and woman who are living together as man and wife.

(3) All such provisions of the Income Tax Acts as apply in relation to the deductions specified in sections 138 to 143 of the Income Tax Act, 1967 , shall apply in relation to a deduction under this section.

(4) This section shall apply and have effect as respects the year 1991-92 and subsequent years of assessment.

Amendment of provisions relating to relief in respect of premiums on certain insurances, etc.

5.— Section 8 of the Finance Act, 1989 , shall have effect, as respects the year 1991-92 and subsequent years of assessment, as if “25 per cent.” were substituted for “80 per cent.”.

Amendment of section 110 (persons chargeable and extent of charge) of Income Tax Act, 1967.

6.— Section 110 (inserted by the Finance Act, 1990 ) of the Income Tax Act, 1967 , is hereby amended—

(a) by renumbering the existing provision as subsection (1) of that section, and

(b) by the addition of the following subsections:

“(2) Where (apart from this subsection) emoluments from an office or employment would be for a year of assessment in which a person does not hold the office or employment, the following provisions shall apply for the purposes of subsection (1):

(a) if in the year concerned the office or employment has never been held, the emoluments shall be treated as emoluments for the first year of assessment in which the office or employment is held, and

(b) if in the year concerned the office or employment is no longer held, the emoluments shall be treated as emoluments for the last year of assessment in which the office or employment was held.

(3) In this section ‘emoluments’ means anything assessable to income tax under Schedule E.”.

Amendment of section 138B (employee allowance) of Income Tax Act, 1967.

7.—As respects the year 1991-92 and subsequent years of assessment, section 138B (inserted by the Finance Act, 1980 ) of the Income Tax Act, 1967 , is hereby amended by the addition after subsection (2) of the following subsection:

“(3) Where an individual is in receipt of profits or gains from an office or employment held or exercised outside the State, such profits or gains shall be deemed to be emoluments within the meaning of subsection (2) if such profits or gains—

(a) are chargeable to tax in the country in which they arise, and

(b) are, on payment by the person making such payment, subject to a system of tax deduction which is similar in form to that provided for in Chapter IV of Part V, and

(c) are chargeable to tax in the State on the full amount thereof under Schedule D, and

(d) would, if the said office or employment was held or exercised within the State and the said person was resident in the State, be emoluments within the meaning of subsection (2).”.

Amendment of section 142A (allowance for rent paid by certain tenants) of Income Tax Act, 1967.

8.—As respects the year 1991-92 and subsequent years of assessment, section 142A (inserted by the Finance Act, 1982 ) of the Income Tax Act, 1967 , is hereby amended by the substitution, in subsection (2), of the following paragraph for paragraph (b):

“(b) In this subsection ‘the relevant limit’ means—

(i) in the case of a claimant who is entitled to a deduction under section 138 (a), £2,000,

(ii) in the case of a widowed person, £1,500, and

(iii) in any other case, £1,000.”.

Amendment of section 6 (special allowance in respect of P.R.S.I. for 1982-83) of Finance Act, 1982.

9.— Section 6 of the Finance Act, 1982 , shall have effect for the purpose of ascertaining the amount of income on which an individual referred to therein is to be charged to income tax for the year 1991-92, as if in subsection (2)—

(a) “1991-92” were substituted for “1982-83”, and

(b) “£286” were substituted for “£312” in each place where it occurs.

Application of section 10 (exemption of certain income from leasing of farm land) of Finance Act, 1985.

10.—(1) In this section, “qualifying lease”, “qualifying lessor” and “the specified amount” have the meanings respectively assigned to them by section 10 (1) of the Finance Act, 1985 .

(2) As respects a qualifying lease or qualifying leases made on or after the 30th day of January, 1991, the said section 10 (1) shall have effect as if references therein to £2,000 were references to—

(a) where the qualifying lease or qualifying leases is or are for a definite term of seven years or more, £4,000, and

(b) in every other case, £3,000:

Provided that, where the income of a qualifying lessor consists of, or includes, rent or rents from a qualifying lease or qualifying leases made before the 30th day of January, 1991, and from a qualifying lease or qualifying leases made on or after that date, the specified amount shall not exceed £4,000 or, as may be appropriate, £3,000.

Amendment of section 31 (interpretation (Chapter IV)) of Finance Act, 1986.

11.— Section 31 of the Finance Act, 1986 , is hereby amended, in the definition of “relevant deposit” in subsection (1)—

(a) by the insertion in paragraph (a), with effect as on and from the 3rd day of December, 1990, of the following subparagraph after subparagraph (i):

“(ia) the National Treasury Management Agency,”,

and

(b) by the substitution of the following paragraph for paragraph (e):

“(e) which is a deposit denominated in a foreign currency but not including such a deposit made by an individual on or after the 1st day of June, 1991:

Provided that, where on or after that date a deposit denominated in a foreign currency is made by an individual to a relevant deposit taker with whom that individual had a deposit denominated in the same foreign currency immediately prior to that date, such a deposit shall not be regarded as a relevant deposit,”.

General medical services, scheme of superannuation.

12.—(1) Subject to the following provisions of this section, the Revenue Commissioners may, if they think fit, and subject to any undertakings and conditions that they think proper to attach to the approval, approve for the purposes of Chapter II of Part I of the Finance Act, 1972 , a scheme of superannuation provided for under an agreement for the provision of services under section 58 of the Health Act, 1970 (hereafter in this section referred to as “a scheme”), as if it were a retirement benefits scheme within the meaning of that Chapter and notwithstanding that it does not satisfy one or more of the conditions set out in subsections (2) and (3) of section 15 of that Act.

(2) As respects a scheme approved under this section, the provisions of Chapter II of Part I of, and Parts I and VI of the First Schedule to, the Finance Act, 1972 , shall apply subject to any necessary modifications and, in particular, as if in those provisions—

(a) “employee” included a registered medical practitioner providing services under an agreement for the provision of services under section 58 of the Health Act, 1970 (hereafter in this section referred to as “an agreement”),

(b) “service” included services by a registered medical practitioner under an agreement and an “office or employment” included the provision of such services, and

(c) a reference to “Schedule E” were a reference to Case II of Schedule D, except in section 20 of the said Act.

(3) Chapter III of Part XII of the Income Tax Act, 1967 , shall apply as if a member of a scheme were the holder of a pensionable office or employment and his income assessable to tax under Case II of Schedule D arising from an agreement were remuneration from such an office or employment.

The Great Book of Ireland Trust.

13.—(1) In this section “the Trust” means “The Great Book of Ireland Trust” established by trust deed dated the 12th day of December, 1990, for the purposes of—

(a) making and carrying to completion and selling a unique manuscript volume (hereafter in this section referred to as “The Great Book of Ireland”), and

(b) using the proceeds of the sale of The Great Book of Ireland for the benefit of—

(i) a company incorporated on the 5th day of August, 1986, as Clashganna Mills Trust Limited, and

(ii) a company incorporated on the 1st day of March, 1991, as Poetry Ireland Limited.

(2) Notwithstanding any provision of the Income Tax Acts,

(a) income arising to the trustees of the Trust in respect of the sale by it of The Great Book of Ireland, and

(b) payments made to the said companies under the Trust by the trustees of the Trust,

shall be disregarded for all the purposes of those Acts.

Chapter II

Income Tax: Relief for Investment in Corporate Trades

Extension of relief.

14.—Chapter III of Part I of the Finance Act, 1984 , is hereby amended—

(a) in section 12, by the substitution of the following subsection for subsection (11):

“(11) This section applies only where the shares concerned are issued in the year 1984-85 or any of the 8 years of assessment immediately following.”,

and

(b) in section 13, by the substitution, in the provisos to subsections (2A) and (2B) (inserted by the Finance Act, 1987 ), of “the year 1992-93” for “the year 1990-91”,

and the said provisos, as so amended, are set out respectively in the Table to this section.

TABLE

Provided that this subsection shall not apply or have effect for any year of assessment subsequent to the year 1992-93.

Provided that this subsection shall not apply or have effect for any year of assessment subsequent to the year 1992-93.

Restriction of relief as respects eligible shares issued on or after 30th January, 1991.

15.—(1) Subject to section 16 , Chapter III of Part I of the Finance Act, 1984 , is hereby further amended, as respects eligible shares issued on or after the 30th day of January, 1991—

(a) in section 12, by the deletion of the first proviso (inserted by the Finance Act, 1989 ) to paragraph (c) of subsection (1),

(b) in section 13, by the insertion after subsection (2) of the following proviso:

“Provided that, notwithstanding the provisions of subsection (2A), relief shall not be given to the extent to which the relief in respect of the amount, or the total of the amounts, subscribed by an individual for eligible shares issued to him (whether or not by the same company) in all years of assessment (being the year 1984-85 and subsequent years) exceeds £75,000.”,

(c) in section 13A (inserted by the Finance Act, 1989 ), by the substitution of the following subsection for subsection (1)—

“(1) Subject to the following provisions of this section, where a company raises any amount through the issue of eligible shares (hereafter in this section referred to as the ‘relevant issue’) on any day falling on or after the 30th day of January, 1991, relief shall not be given in respect of the excess of the amount over the amount determined by the formula—

where A is—

(a) £500,000, or

(b) an amount equal to the aggregate of all amounts raised by the company through the issue of eligible shares at any time before the relevant issue,

whichever is the lesser amount.”,

(d) in section 15, by the deletion of subsection (13) (inserted by the Finance Act, 1987 ),

(e) in section 16—

(i) by the deletion, in subsection (2), of subparagraph (iii) of paragraph (a) (inserted by the Finance Act, 1987 ),

(ii) by the deletion, in paragraph (I) of the second proviso (inserted by the Finance Act, 1989 ) to subsection (2), of the words “except where it forms part of the carrying on of qualifying shipping activities within the meaning of section 28 of the Finance Act, 1987 ,”, and

(iii) by the substitution, in subsection (2A) (inserted by the Finance Act, 1987 )—

(I) of the following paragraph for paragraph (a) (inserted by the Finance Act, 1989 ):

“(a) the operation of tourist accommodation facilities, for which the Bord maintains a register in accordance with the Tourist Traffic Acts, 1939 to 1987, other than hotels, guest houses and self-catering accommodation,”,

and

(II) of the following paragraph for paragraph (c):

“(c) the promotion outside the State of—

(i) one or more tourist accommodation facilities for which the Bord maintains a register in accordance with the Tourist Traffic Acts, 1939 to 1987, or

(ii) any of the facilities mentioned in paragraph (b).”,

and

(f) in section 26, by the deletion of subsection (1A) (inserted by the Finance Act, 1987 ).

(2) The Second Schedule to the Finance Act, 1984 , is hereby amended, as respects eligible shares issued on or after the 30th day of January, 1991, by the deletion, in paragraph 1 (inserted by the Finance Act, 1987 ), of “(other than a subsidiary which is a qualifying subsidiary by virtue of section 26 (1A) (inserted by the Finance Act, 1987 ))”.

Transitional arrangements in relation to section 15 .

16.—(1) In this section—

“auditor”, in relation to a company, or its qualifying subsidiary, means the person or persons appointed as auditor of the company, or its qualifying subsidiary, as appropriate, for all the purposes of the Companies Acts, 1963 to 1990;

“prospectus”, in relation to a company, means any prospectus, notice, circular, advertisement or other invitation, offering to the public for subscription or purchase any eligible shares (within the meaning of section 12 (2) of the Finance Act, 1984 ) of the company, and in this definition the term “the public” includes any section of the public, whether selected as members of the company or as clients of the person issuing the prospectus or in any other manner;

“qualifying subsidiary”, in relation to a company, has the same meaning as it has for the purposes of section 15 of the Finance Act, 1984 ;

“the specified period” means the period beginning on the 1st day of January, 1990, and ending on the 30th day of January, 1991.

(2) As respects eligible shares issued on or after the 30th day of January, 1991, but on or before the 31st day of August, 1991, by a company to which this section applies—

(a) subject to paragraph (b) of this subsection, section 15 , other than paragraphs (b) and (c) of subsection (1), shall not apply or have effect, and

(b) subsection (1) (as amended by section 15 (1) (c)) of section 13A (inserted by the Finance Act, 1989 ) of the Finance Act, 1984 , shall apply and have effect as if “£1,000,000” were substituted for “£500,000” in both places where it occurs.

(3) Subject to the conditions set out in subsection (4), this section applies to a company which, or whose qualifying subsidiary, either carries on or intends to carry on one or more of the qualifying trading operations mentioned in subparagraph (i) (as amended by the Finance Act, 1990 ), (ii) (inserted by the Finance Act, 1990 ), (iii) or (iv) of paragraph (a) (inserted by the Finance Act, 1987 ) of subsection (2) of section 16 of the Finance Act, 1984 .

(4) The following are the conditions referred to in subsection (3), that is to say:

(a) in the case of a company which, or whose qualifying subsidiary, either carries on or intends to carry on a qualifying trading operation as is mentioned in subparagraph (i) or (ii) of paragraph (a) of subsection (2) of section 16 of the Finance Act, 1984 , that—

(i) in the specified period the company or its qualifying subsidiary, as the case may be, had entered into a binding contract in writing—

(I) to purchase or lease land or a building,

(II) to purchase or lease plant or machinery, or

(III) for the construction or refurbishment of a building,

to be used in the carrying on of its qualifying trading operation, and

(ii) the company proves to the satisfaction of the Revenue Commissioners that—

(I) on or before the 30th day of January, 1991, it had an intention to raise money under the provisions of Chapter III of Part I of the Finance Act, 1984 , and

(II) the contract which it or its qualifying subsidiary, as the case may be, had entered into was integral to, or consistent with, the purpose for which it had intended to raise money as aforesaid:

Provided that, in determining whether they are satisfied that the company has complied with the requirements specified in subparagraph (ii) of this paragraph, the Revenue Commissioners shall have regard to either or both of the following—

(A) an application in writing made by the company to the Revenue Commissioners in the specified period for the opinion of the Revenue Commissioners as to whether the company would be a qualifying company for the purposes of Chapter III of Part I of the Finance Act, 1984 , and

(B) the publication in the specified period of a prospectus by, or on behalf of, the company;

(b) in the case of a company which, or whose qualifying subsidiary, either carries on or intends to carry on a qualifying trading operation as is mentioned in subparagraph (iii) of paragraph (a) of subsection (2) of section 16 of the Finance Act, 1984 , that—

(i) in the specified period the company or its qualifying subsidiary, as the case may be, had entered into a binding contract in writing for the purchase of a ship to be used in the carrying on of its qualifying trading operation, and

(ii) on or before the 30th day of January, 1991, the company or its qualifying subsidiary, as the case may be, had received a certificate from the Minister for the Marine certifying that the purchase of the ship was, is or would be eligible to be grant-aided under a statutory scheme of assistance for the purchase of ships administered by the Department of the Marine;

and

(c) in the case of a company which, or whose qualifying subsidiary, either carries on or intends to carry on a qualifying trading operation as is mentioned in subparagraph (iv) of paragraph (a) of subsection (2) of section 16 of the Finance Act, 1984 , that—

(i) on or before the 30th day of January, 1991, the company or its qualifying subsidiary, as the case may be, had submitted to, and had approved of by, Bord Fáilte Éireann a three-year marketing and development plan as is mentioned in paragraph (a) of subsection (3A) (inserted by the Finance Act, 1987 ) of section 15 of the Finance Act, 1984 , in respect of its qualifying trading operation,

(ii) in the specified period the company or its qualifying subsidiary, as the case may be, had entered into a binding contract in writing—

(I) to purchase or lease land or a building,

(II) to purchase or lease plant or machinery, or

(III) for the construction or refurbishment of a building,

to be used in the carrying on of its qualifying trading operation, and

(iii) the company proves to the satisfaction of the Revenue Commissioners that the contract which it, or its qualifying subsidiary, as the case may be, had entered into was integral to, or consistent with, the three-year marketing and development plan approved of by Bord Fáilte Éireann.

(5) For the purposes of subsection (4)—

(a) the date on which a contract was entered into by a company or, as the case may be, its qualifying subsidiary, and

(b) the date on which a prospectus was published by, or on behalf of, a company,

shall be confirmed in a certificate by the auditor of the company, or its qualifying subsidiary, as appropriate.

Amounts raised by companies acting in concert, or for trade of subsidiary.

17.—(1) Subject to subsection (3), section 13A (inserted by the Finance Act, 1989 ) of the Finance Act, 1984 , is hereby amended—

(a) by the insertion, after subsection (1) (as amended by section 15 (1) (c)), of the following subsections:

“(1A) Where a company raises any amount through a relevant issue on any day falling on or after the 12th day of March, 1991, and—

(a) any agreement, arrangement or understanding exists whereby—

(i) a qualifying trading operation or qualifying trading operations is or are carried on, or is or are to be carried on, by that company, or its qualifying subsidiary, and one or more other companies, or

(ii) different parts of what was formerly a single qualifying trading operation or a single set of qualifying trading operations are, or are to be, carried on by that company, or its qualifying subsidiary, and one or more other companies, or

(iii) separate qualifying trading operations—

(I) which together produce a single product or provide a single service, or

(II) which separately produce products or provide services that closely resemble, or are similar to, or are of the same kind or nature as, each other,

are, or are to be, carried on by that company, or its qualifying subsidiary, and one or more other companies, or

(iv) separate qualifying trading operations are, or are to be, carried on by that company, or its qualifying subsidiary, and one or more other companies acting together in pursuit of a common purpose or, either directly or indirectly, in accordance with the wishes or directions of, or under the control of, any person or any group of persons or groups of persons having a reasonable commonality of identity and who have or had the means or power, either directly or indirectly, to determine the trading operations to be carried on by each company,

and

(b) it could reasonably be considered that the purpose of, or one of the purposes of, the aforesaid agreement, arrangement or understanding is to circumvent the limitation imposed by subsection (1),

then, as respects that company, relief shall not be given in respect of the excess of the amount so raised over the amount determined by the formula—

where—

B  is an amount equal to so much, as does not exceed £500,000, of the aggregate of all amounts raised through the issue of eligible shares at any time before the relevant issue by all of the companies (including that company) which are party to the aforesaid agreement, arrangement or understanding, and

C  is the total number of companies, apart from that company or any of its qualifying subsidiaries, which are party to the aforesaid agreement, arrangement or understanding.

(1B) In subsection (1A), ‘qualifying subsidiary’, in relation to a company, has the same meaning as it has for the purposes of section 15.”,

(b) by the substitution of the following subsection for subsection (2):

“(2) In determining, for the purposes of the formula in subsection (1) or, as the case may be, the formula in subsection (1A), the amount to which paragraph (b) in subsection (1) or, as the case may be, the amount to which B in subsection (1A), relates, account shall not be taken of any amount—

(a) which is subscribed by a person other than an individual who qualifies for relief, or

(b) in respect of which relief is precluded by virtue of section 13.”,

and

(c) by the insertion, in subsection (3), of “or subsection (1A)” after “subsection (1)”,

and the said subsection (3), as so amended, is set out in the Table to this subsection.

TABLE

(3) Where, as a consequence of subsection (1) or subsection (1A), the giving of relief would be precluded on claims in respect of shares issued to two or more individuals, the available relief shall be divided between them respectively in proportion to the amounts which have been subscribed by them for the shares to which their claims relate and which would, apart from this section, be eligible for relief.

(2) Subject to subsection (3), section 15 of the Finance Act, 1984 , is hereby amended, in subsection (2), by the insertion after paragraph (b) of the following proviso to that paragraph:

“Provided that where a company raises any amount through the issue of eligible shares on any day falling on or after the 12th day of March, 1991, for the purposes of raising money for a qualifying trade which is being carried on by a qualifying subsidiary or which such a qualifying subsidiary intends to carry on the amount so raised shall be used for the purpose of acquiring eligible shares in the qualifying subsidiary and for no other purpose.”.

(3) Subsections (1) and (2) shall not apply or have effect in relation to—

(a) eligible shares issued on or before the 31st day of August, 1991, by a company to which section 16 applies, or

(b) eligible shares issued by a company, other than a company referred to in paragraph (a), which, on or before the 11th day of March, 1991—

(i) had made an application in writing to the Revenue Commissioners for the opinion of the Revenue Commissioners as to whether the company would be a qualifying company for the purposes of Chapter III of Part I of the Finance Act, 1984 , or

(ii) had published, or had published on its behalf, a prospectus:

Provided that the date on which the prospectus was published shall be confirmed in a certificate by the auditor of the company.

(4) In subsection (3) “auditor”, in relation to a company, and “prospectus”, in relation to a company, have the same meanings, respectively, as they have in section 16 .

Chapter III

Income Tax, Corporation Tax and Capital Gains Tax

Farming: amendment of provisions relating to relief in respect of increase in stock values.

18.—(1) Section 31A (inserted by the Finance Act, 1976 ) of the Finance Act, 1975 , is hereby amended by the substitution of “1992” for “1990” (inserted by the Finance Act, 1989 )—

(a) in paragraph (iv) (inserted by the Finance Act, 1979 ) of the proviso to subsection (4) (a), and

(b) in each place where it occurs in subsections (7) and (9) (inserted by the Finance Act, 1984 ),

and the said paragraph (iv), the said subsection (7) (apart from the proviso) and the said subsection (9) (apart from the proviso), as so amended, are set out in the Table to this subsection.

TABLE

(iv) a deduction shall not be allowed under the provisions of this section in computing a company's trading income for any accounting period which ends on or after the 6th day of April, 1992.

(7) Where in relation to an accounting period a company's opening stock value exceeds its closing stock value, the amount of the excess (in this section referred to as the company's “decrease in stock value”) shall, if the accounting period ends on a date before the 6th day of April, 1992, be treated in the computation of the company's trading income for the purposes of corporation tax, as a trading receipt of the company's trade for that accounting period:

(9) In the computation of a company's trading income for the purposes of corporation tax for any accounting period which ends on or after the 6th day of April, 1992, in which there is a decrease in stock value, there shall be treated as a trading receipt of the company's trade for that accounting period the amount (if any) by which A exceeds the aggregate of B and C

where—

A  is the aggregate amount of the company's decreases in stock value in all accounting periods which ended on or after the 6th day of April, 1992,

B  is the aggregate amount of the company's increases in stock value in all accounting periods which ended on or after the 6th day of April, 1992, and

C  is the aggregate of the amounts which under this subsection are treated as trading receipts of the company's trade for preceding accounting periods:

(2) Section 12 of the Finance Act, 1976 , is hereby amended—

(a) by the substitution in subsection (3) of “1992-93” for “1990-91” (inserted by the Finance Act, 1989 ), and

(b) by the substitution of “1992” for “1990” (inserted by the Finance Act, 1989 ) in each place where it occurs in subsections (5) and (6) (inserted by the Finance Act, 1984 ),

and the said subsection (3), the said subsection (5) (apart from the proviso) and the said subsection (6) (apart from the proviso), as so amended, are set out in the Table to this subsection.

TABLE

(3) Any deduction allowed by virtue of this section in computing a person's trading profits for an accounting period shall not have effect for any purpose of the Income Tax Acts for any year of assessment prior to the year 1974-75 or later than the year 1992-93.

(5) In the computation of a person's trading profits for an accounting period in which there is a decrease in stock value and which ends on a date in the period from the 6th day of April, 1976, to the 5th day of April, 1992, the amount of that decrease shall be treated as a trading receipt of the trade for that accounting period:

(6) In the computation of a person's trading profits for any accounting period in which there is a decrease in stock value and which ends on or after the 6th day of April, 1992, there shall be treated as a trading receipt of the trade for that accounting period the amount (if any) by which A exceeds the aggregate of B and C

where—

A  is the aggregate amount of the person's decreases in stock value in all accounting periods which ended on or after the 6th day of April, 1992,

B  is the aggregate amount of the person's increases in stock value in all accounting periods which ended on or after the 6th day of April, 1992, and

C  is the aggregate of the amounts which are treated as trading receipts of the person's trade for preceding accounting periods which ended on or after the 6th day of April, 1992:

(3) As respects disposals made on or after the 6th day of April, 1990, section 28 of the Finance Act, 1980 , is hereby amended in paragraph (b) of subsection (3) by the substitution in subparagraph (ii) of the following clause for clause (II) (inserted by the Finance Act, 1990 ):

“(II) the value of the said trading stock at the beginning of the immediately succeeding accounting period or, where appropriate, at the beginning of the immediately succeeding accounting period and at the beginning of the accounting period next after that period,”.

(4) This section shall have effect only as respects a trade of farming.

Amendment of section 18 (taxation of collective investment undertakings) of Finance Act, 1989.

19.—(1) Section 18 of the Finance Act, 1989 , is hereby amended in subsection (1)—

(a) by the substitution for the definition of “collective investment undertaking” of the following:

“‘collective investment undertaking’ means—

(a) a unit trust scheme which is, or is deemed to be, an authorised unit trust scheme within the meaning of the Unit Trusts Act, 1990 , and which has not had its authorisation under that Act revoked,

(b) any other undertaking which is an undertaking for collective investment in transferable securities within the meaning of the relevant Regulations, being an undertaking which holds an authorisation issued pursuant to the relevant Regulations and that authorisation has not been revoked, and

(c) any authorised investment company within the meaning of Part XIII of the Companies Act, 1990 , which—

(i) has not had its authorisation under that Part of the said Act revoked, and

(ii) has been designated in that authorisation as an investment company which may raise capital by promoting the sale of its shares to the public and has not ceased to be so designated;”,

and

(b) by the addition to the definition of “specified collective investment undertaking”, after paragraph (b) of that definition, of the following:

“and shall include any company limited by shares or guarantee which—

(c) is wholly owned by such a collective investment undertaking or its trustees, if any, for the benefit of the holders of units in that undertaking,

(d) is so owned solely for the purpose of limiting the liability of that undertaking or its trustees, as the case may be, in respect of futures contracts, options contracts or other financial instruments with similar risk characteristics, by enabling it or its trustees, as the case may be, to invest or deal in such instruments through the said company, and

(e) would, if references to an undertaking in paragraph (a) were to be construed as including references to a company limited by shares or guarantee, satisfy the condition set out in paragraph (a);”,

and the said definition, as so amended, is set out in the Table to this section.

(2) References to a collective investment undertaking in section 18 (as amended by this section) of the Finance Act, 1989 , apart from such references in the definition of a specified collective investment undertaking in subsection (1) of that section (as so amended), shall include references to a company limited by shares or guarantee which is a specified collective investment undertaking within the meaning of that section (as so amended).

(3) (a) Subject to paragraph (b), subsection (1) (a) shall be deemed to have effect as on and from the 26th day of December, 1990.

(b) The definition of “collective investment undertaking”, as inserted by this section, in section 18 of the Finance Act, 1989 , shall be construed as if until the 1st day of February, 1991, that definition did not include paragraph (c) thereof and, accordingly, that paragraph shall be deemed to have effect as on and from that day.

(c) Subsections (1) (b) and (2) shall be deemed to have effect as on and from the 1st day of April, 1991.

TABLE

“specified collective investment undertaking” means a collective investment undertaking—

(a) most of the business of which, to the extent that it is carried on in the State—

(i) (I) is carried on in the Area by the undertaking or by a qualifying management company of the undertaking or by the undertaking and the qualifying management company of the undertaking, or

(II) is not so carried on in the Area but—

(A) is so carried on in the State,

(B) would be so carried on in the Area but for circumstances outside the control of the person or persons carrying on the business, and

(C) is so carried on in the Area when the aforementioned circumstances cease to exist,

or

(ii) is carried on in the airport by the undertaking or by a qualifying management company of the undertaking or by the undertaking and the qualifying management company of the undertaking,

and

(b) save to the extent that such units are held by the undertaking itself or by the qualifying management company of the undertaking, all the holders of units in the undertaking are persons resident outside the State;

and shall include any company limited by shares or guarantee which—

(c) is wholly owned by such a collective investment undertaking or its trustees, if any, for the benefit of the holders of units in that undertaking,

(d) is so owned solely for the purposes of limiting the liability of that undertaking or its trustees, as the case may be, in respect of futures contracts, options contracts or other financial instruments with similar risk characteristics, by enabling it or its trustees, as the case may be, to invest or deal in such instruments through the said company, and

(e) would, if references to an undertaking in paragraph (a) were to be construed as including references to a company limited by shares or guarantee, satisfy the condition set out in paragraph (a);

Exemption of National Treasury Management Agency from certain tax provisions.

20.—(1) Notwithstanding any provision of the Corporation Tax Acts, profits arising to the National Treasury Management Agency (hereafter in this section referred to as “the Agency”) in any accounting period ending on or after the 3rd day of December, 1990, shall be exempt from corporation tax.

(2) Section 23 of the Capital Gains Tax Act, 1975 , shall apply to a gain accruing to the Agency as it does to a gain accruing to a body specified in that section.

(3) Notwithstanding any provision of the Tax Acts, any interest, annuity or other annual payment paid by the Agency shall be paid without deduction of income tax.

Amendment of section 45 (double rent allowance as a deduction in computing trading income) of Finance Act, 1986.

21.—(1) Section 45 (as amended by section 32 of the Finance Act, 1990 ) of the Finance Act, 1986 , is hereby amended—

(a) in subsection (1)—

(i) by the substitution, in subparagraph (II) of paragraph (i) of the definition of “qualifying premises”, of “falls, or will by virtue of section 23 of the Finance Act, 1991 fall” for “falls”,

(ii) by the deletion of the definition of “relevant rental period”, and

(iii) by the addition of the following paragraph after paragraph (b):

“(c) For the purposes of this section, so much of a period, being a period when rent is payable by a person in relation to a qualifying premises under a qualifying lease, shall be a relevant rental period as does not exceed—

(i) 10 years, or

(ii) the period by which 10 years exceeds—

(I) any preceding period, or

(II) if there is more than one preceding period, the aggregate of preceding periods,

for which rent was payable by that person or any person connected with that person in relation to that premises under a qualifying lease.”,

and

(b) in subsection (2), by the substitution of “for a relevant rental period” for “in the relevant rental period” and the said subsection (2), other than the proviso, as so amended, is set out in the Table to this section.

(2) This section shall take effect as respects rent payable in relation to any qualifying premises under a qualifying lease entered into on or after the 18th day of April, 1991.

TABLE

(2) Where, in the computation of the amount of the profits or gains of a trade or profession, a person is, apart from this section, entitled to any deduction (hereafter in this subsection referred to as “the first-mentioned deduction”) on account of rent in respect of a qualifying premises occupied by him for the purposes of that trade or profession which is payable by him for a relevant rental period in relation to that qualifying premises under a qualifying lease, he shall be entitled in that computation to a further deduction equal to the amount of the first-mentioned deduction.

Continuation of certain allowances, etc.

22.—(1) The provisions (inserted by the Corporation Tax Act, 1976 , and amended by section 50 of the Finance Act, 1988 ) of the Income Tax Act, 1967 , specified in the Table to this section shall have effect as if the references to the 1st day of April, 1991 (as provided for in section 50 of the Finance Act, 1988 ) were references to the 1st day of April, 1996:

Provided that subsection (2A) (a) of section 254 of the Income Tax Act, 1967 , shall have such effect for the purposes only of section 51 (as amended by section 80 of the Finance Act, 1990 ) of the Finance Act, 1988 , section 81 of the Finance Act, 1990 , and Chapter VII of the Finance Act, 1991.

(2) (a) Subsection (3) of section 42 of the Finance Act, 1986 , is hereby repealed.

(b) This subsection shall be deemed to have come into effect on the 1st day of June, 1989.

TABLE

Subsection (2A) (a) of section 254 (industrial building allowance),

Paragraph (ii) of the proviso to subsection (1) and paragraph (ii) of the proviso to subsection (3) of section 264 (annual allowances),

Paragraph (iii) of the proviso to subsection (1) of section 265 (balancing allowances and balancing charges).

Amendment of section 19 (industrial building allowance in relation to buildings and structures bought unused) of Finance Act, 1970.

23.— Section 19 (as amended by section 75 of the Finance Act, 1990 ) of the Finance Act, 1970 , is hereby amended—

(a) in subsection (1), by the substitution for “the relevant interest therein is sold” of “or within a period of one year after it commences to be used, the relevant interest therein is sold, then, provided that an allowance has not been claimed by any other person in respect of the said building or structure under Chapter II of Part XV or Chapter I of Part XVI of the Income Tax Act, 1967 ,”,

(b) in the proviso to subsection (1), by the substitution for “is used” of “is used or within the said period”, and

(c) in subsection (2)—

(i) by the substitution for “used, he” of “used, or within a period of one year after it commences to be used, he”,

(ii) by the deletion of “paragraph (b) of”,

(iii) by the substitution for paragraph (a) of the following:

“(a) if that sale is the only sale of the relevant interest before the building or structure is used or within the said period, the said subsection (1) shall have effect as if, in paragraph (b), ‘the said expenditure or to’ and ‘whichever is the less’ were omitted, and”,

and

(iv) in paragraph (b), by the substitution for “used” of “used or within the said period” and the substitution for “paragraph (b)” of “subsection (1)”,

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

TABLE

(1) Where expenditure is incurred on the construction of a building or structure and, before that building or structure is used, or within a period of one year after it commences to be used, the relevant interest therein is sold, then, provided an allowance has not been claimed by any other person in respect of the said building or structure under either Chapter II of Part XV or Chapter I of Part XVI of the Income Tax Act, 1967 —

(a) the expenditure actually incurred on the construction thereof shall be left out of account for the purposes of sections 254 , 264 , 265 and 266 of the Income Tax Act, 1967 ; but

(b) the person who buys that interest shall be deemed for those purposes to have incurred, on the date when the purchase price becomes payable, expenditure on the construction thereof equal to the said expenditure or to the net price paid by him for the said interest, whichever is the less:

Provided that, where the relevant interest in the building or structure is sold more than once before the building or structure is used or within the said period, the provisions of paragraph (b) shall have effect only in relation to the last of those sales.

(2) Where the expenditure incurred on the construction of a building or structure was incurred by a person carrying on a trade which consists, as to the whole or any part thereof, in the construction of buildings or structures with a view to their sale, and, before the building or structure is used, or within a period of one year after it commences to be used, he sells the relevant interest therein in the course of that trade, or, as the case may be, of that part of that trade, subsection (1) shall have effect subject to the following modifications—

(a) if that sale is the only sale of the relevant interest before the building or structure is used or within the said period, the said subsection (1) shall have effect as if, in paragraph (b), “the said expenditure or to” and “whichever is the less” were omitted, and

(b) if there is more than one sale of the relevant interest before the building or structure is used or within the said period, the said subsection (1) shall have effect as if the reference to the expenditure actually incurred on the construction of the building or structure were a reference to the price paid on the said sale.

Restriction of tax incentives on property investment.

24.—(1) In this section—

“property investment scheme” means any scheme or arrangement made for the purpose, or having the effect, of providing facilities, whether promoted by way of public advertisement or otherwise, for the public or a section of the public to share, either directly or indirectly and whether as beneficiaries under a trust or by any other means, in income or gains arising or deriving from the acquisition, holding or disposal of, or of an interest in, a building or structure or a part thereof, but does not include a scheme or arrangement as respects which the Revenue Commissioners or, on appeal, the Appeal Commissioners, having regard to such information as may be produced to them, are of the opinion that—

(a) the manner in which persons share in the said income or gains, and

(b) the number of persons who so share,

are in accordance with a practice which commonly prevailed in the State during the period of 5 years ending immediately before the 30th day of January, 1991, for the sharing of such income or gains by persons resident in the State and such that the persons so sharing qualified for relief under—

(i) the proviso to subsection (1) of section 296 of the Income Tax Act, 1967 , or

(ii) subsection (6) of section 14 of the Corporation Tax Act, 1976 ;

“specified interest” means an interest in or deriving from a building or structure held by a person pursuant to a property investment scheme.

(2) Where a person holds a specified interest then, as respects expenditure incurred or deemed to be incurred on or after the 30th day of January, 1991, the proviso to subsection (1) of section 296 of the Income Tax Act, 1967 , and subsection (6) of section 14 of the Corporation Tax Act, 1976 , shall not have effect as respects an allowance under section 254 (as amended by section 74 of the Finance Act, 1990 ) or section 264 (as amended by section 50 of the Finance Act, 1988 ) of the said Act of 1967, which falls to be made to the person by reason of the holding by him of the specified interest.

(3) The Appeal Commissioners shall hear and determine an appeal made to them under this section as if it were an appeal against an assessment to income tax and all the provisions of the Income Tax Act, 1967 , relating to the rehearing of an appeal and the statement of a case for the opinion of the High Court on a point of law shall apply accordingly with any necessary modifications.

Amendment of section 22 (farming: allowances for capital expenditure on construction of buildings and other works) of Finance Act, 1974.

25.— Section 22 of the Finance Act, 1974 , is hereby amended—

(a) by the insertion, in the proviso to subsection (2) (inserted by section 16 of the Finance Act, 1982 ), of the following paragraph after paragraph (b) (as amended by section 77 of the Finance Act, 1990 ):

“(c) notwithstanding subparagraph (iii) of paragraph (b), the maximum farm buildings allowances to be made under this section by means of an allowance increased under paragraph (a) in relation to capital expenditure incurred—

(i) on or after the 1st day of April, 1991, and before the 1st day of April, 1993,

(ii) for the purposes of the control of farmyard pollution, and

(iii) on works in respect of which grant-aid has been paid under—

(I) the programme, as amended, known as “the Farm Improvement Programme” which was implemented by the Minister for Agriculture and Food pursuant to Council Regulation (EEC) No. 797/85 of 12 March 1985 ⁽¹⁾ , or

(II) the scheme known as “the Scheme of Investment Aid for the Control of Farmyard Pollution” which was implemented by the Minister for Agriculture and Food pursuant to an operational programme under Council Regulation (EEC) No. 2052/88 of 24 June 1988 ⁽²⁾ ,

whether claimed in one chargeable period or more than one such period, shall not, in the aggregate, exceed one-half of that capital expenditure.”,

and

(b) by the substitution, for subsection (2C) (inserted by section 77 of the Finance Act, 1990 ) of the following subsection:

“(2C) Notwithstanding any other provision of this section other than paragraph (c) of the proviso to subsection (2), no farm buildings allowance made in relation to capital expenditure incurred on or after the 1st day of April, 1992, shall be increased under this section.”.

Application of sections 264 and 265 of Income Tax Act, 1967, in relation to capital expenditure on refurbishment.

26.—(1) Notwithstanding any other provision of the Tax Acts, where, on or after the 6th day of April, 1991, any capital expenditure has been incurred on the refurbishment of a building or structure in respect of which an allowance falls to be made for the purposes of income tax or corporation tax, as the case may be, under Chapter II of Part XV or under Chapter I of Part XVI of the Income Tax Act, 1967 , sections 264 and 265 of the Income Tax Act, 1967 , shall have effect as if—

(a) in subsection (3) of the said section 264, and

(b) in paragraph (i) of the proviso to subsection (1) of the said section 265,

there were substituted “the capital expenditure on refurbishment of the building or structure was incurred” for “the building or structure was first used”.

(2) (a) In this section “refurbishment” means any work of construction, reconstruction, repair or renewal, including the provision or improvement of water, sewerage or heating facilities, carried out in the course of repair or restoration, or maintenance in the nature of repair or restoration, of a building or structure.

(b) For the purposes of giving effect to the provisions of this section insofar as the computation of a balancing allowance or balancing charge (within the meaning of Chapter I of Part XVI of the Income Tax Act, 1967 ), as the case may be, is concerned, there shall be made all such apportionments as are, in the circumstances, just and reasonable.

Amendment of section 29 (taxation of income deemed to arise on certain sales of securities) of Finance Act, 1984.

27.— Section 29 of the Finance Act, 1984 , is hereby amended as respects any sale or transfer of securities (within the meaning of that section) made on or after the 18th day of May, 1991, by the substitution of the following subsections for subsections (2) and (3):

“(2) Subject to subsection (2A), where the owner of a security sells or transfers, or causes or authorises to be sold or transferred, the security and where any interest payable in respect of the security is receivable otherwise than by that owner, then, for the purposes of this section, interest payable in respect of the security shall be deemed to have accrued on a day to day basis from the date on which that owner acquired the security and that owner shall be chargeable under Case IV of Schedule D on interest so deemed to have accrued from that date up to the date of the contract for sale or transfer of the security or the date of payment of the consideration in respect of the sale or transfer, whichever is the later:

Provided that, if during his period of ownership of the security that owner has received interest in respect of the security in respect of which he is chargeable to tax under any other provision of the Tax Acts, then the amount of interest on which he is chargeable under this section shall be reduced by the amount in respect of which he is so chargeable under that other provision:

Provided also that—

(a) if under the terms of the said sale or transfer or an associated agreement, arrangement, understanding, promise or undertaking, whether express or implied, that owner—

(i) agrees to buy back or reacquire the security, or

(ii) acquires an option, which he subsequently exercises, to buy back or reacquire the security,

then the charge to tax imposed under this section shall be based on the interest deemed to have accrued up to the next date after the aforesaid sale or transfer on which interest is payable in respect of the security, and

(b) if that owner subsequently resells or retransfers, or causes or authorises to be resold or retransferred, the security, then any further charge to tax under this section in respect of that subsequent resale or retransfer shall be based on interest deemed to have accrued from a date not earlier than the aforesaid next payment date.

(2A) This section shall not apply—

(a) if the security has been held by the same owner for a continuous period of at least two years immediately before the date of such contract for sale or transfer or the date of such payment of consideration, whichever is the later, as is referred to in subsection (2), the personal representatives of a deceased person whose estate is in the course of administration and the deceased person being regarded, for the purposes of this paragraph, as being the same owner, or

(b) if the owner is a person carrying on a trade which consists wholly or partly of dealing in securities the profits of which are chargeable to income tax or corporation tax under Case I of Schedule D for the year of assessment or, as the case may be, the accounting period in respect of which the consideration for the sale is taken into account in computing for the purposes of assessment to income tax or corporation tax for that year or accounting period the profits of the trade unless the trade consists wholly or partly of a life business the profits of which are not assessed to corporation tax under Case I of Schedule D for that accounting period, or

(c) if the sale or transfer is a sale or transfer by a wife to her husband at a time when she is treated as living with him for income tax purposes as provided in section 192 (inserted by the Finance Act, 1980 ) of the Income Tax Act, 1967 , or a sale or transfer by a husband to a wife at such a time as aforesaid, the husband and the wife being regarded, for the purposes of paragraph (a), in the case of a transaction such as aforesaid or in the case of a sale or transfer by the husband or the wife to any other person after a transaction or transactions such as aforesaid, as being the same owner, or

(d) if the security is a security the interest on which is treated as a distribution for the purposes of the Corporation Tax Acts.

(3) (a) The reference in subsection (2) to buying back or reacquiring the security shall be deemed to include references to buying or acquiring a similar security, and securities shall be so deemed to be similar if they entitle their holders to the same rights against the same persons as to capital and interest and the same remedies for the enforcement of those rights, notwithstanding any difference in the total nominal amounts of the respective securities or in the form in which they are held or the manner in which they can be transferred.

(b) In paragraph (b) of subsection (2A), ‘life business’ shall have the meaning assigned to it by section 50 (2) of the Corporation Tax Act, 1976 .”.

Chapter IV

Corporation Tax

Amendment of section 84A (limitation on meaning of “distribution”) of Corporation Tax Act, 1976.

28.—Section 84A (as amended by the Finance Act, 1990 ) of the Corporation Tax Act, 1976 , is hereby amended—

(a) by the insertion, after subsection (3A), of the following subsection:

“(3B) (a) Notwithstanding subsections (2), (3) and (3A), where at any time on or after the 31st day of December, 1991, the current amounts of relevant principal advanced by a company in respect of relevant securities held, directly or indirectly, by the company at that time is in excess of a limit, being a limit equal to 40 per cent of the total of the amounts of relevant principal advanced by the company in respect of relevant securities held, directly or indirectly, by the company on the 12th day of April, 1989, then any interest paid to the company in respect of relevant principal advanced by the company on or after the 31st day of December, 1991, which relevant principal is included in the current amounts of relevant principal, shall not be treated as a distribution for the purposes of this Act in the hands of the company:

Provided that—

(i) where the total of the amounts of relevant principal advanced by a company in respect of relevant securities held, directly or indirectly, by the company at any time on or after the 31st day of December, 1991, is less than the said limit, this paragraph shall have effect as if the said limit were the total of the amounts of relevant principal so advanced as at that time unless the company proves that it has, as far as possible, at all times on or after the 31st day of December, 1991, advanced to borrowers relevant principal in respect of the interest on which the provisions of paragraph (a) do not, or would not, apply by virtue of the provisions of paragraph (b), and

(ii) where at any time during the period commencing on the 18th day of April, 1991, and ending immediately before the 31st day of December, 1991, an amount of relevant principal which was advanced to a borrower, being a company which carries on one or more trading operations (within the meaning of subsection (1) of section 39A, as amended by the Finance Act, 1991, of the Finance Act, 1980 ) is repaid, this section shall have effect as if—

(I) references in paragraph (a) of this subsection, other than this paragraph of the proviso, to the 31st day of December, 1991, were references to the day on which the amount is repaid, and

(II) during that period—

(A) the reference in paragraph (i) of this proviso to relevant principal in respect of the interest on which the provisions of paragraph (a) do not, or would not, apply by virtue of the provisions of paragraph (b) were a reference to such principal in respect of the interest on which the provisions of paragraph (a) of subsection (3A) do not, or would not, apply by virtue of the provisions of paragraph (b) of that subsection, and

(B) the reference in paragraph (b) of subsection (3A) to paragraph (a) of that subsection were a reference to paragraph (a) of this subsection.

(b) Where, apart from this paragraph, any part of any interest paid to a company in respect of relevant principal advanced by the company on or after the 31st day of December, 1991, would not be treated as a distribution for the purposes of this Act in the hands of the company by virtue only of the provisions of paragraph (a), then the provisions of that paragraph shall not apply in relation to so much of that interest as is paid if—

(i) the specified trade is a trade which the borrower commenced to carry on after the 31st day of January, 1990, or is a specified trade of the borrower in respect of which he is committed, under a business plan approved by the Industrial Development Authority, the Shannon Free Airport Development Company Limited or Údarás na Gaeltachta, to the creation of additional employment,

(ii) the specified trade of the borrower is selected by the Industrial Development Authority for inclusion in a list, approved by the Minister for Industry and Commerce and the Minister for Finance, which list specifies a particular amount of relevant principal in respect of each trade which amount is considered to be essential for the success of that trade, and

(iii) the borrower, or a company connected (within the meaning of section 157 (5)) with the borrower, is not a company which commenced to carry on relevant trading operations (within the meaning of section 39B of the Finance Act, 1980 ) after the 20th day of April, 1990, or intends to commence to carry on such trading operations:

Provided that this paragraph shall not apply to any interest in respect of any relevant principal advanced after the time the total of the amounts of relevant principal to which this paragraph applies, advanced by all lenders who have made such advances, exceeds the aggregate of—

(a) £250,000,000, and

(b) the excess, if any, of the amount specified in the proviso to paragraph (b) of subsection (3A) over the total of the amounts of relevant principal to which that paragraph applies advanced by all lenders who have made such advances.”,

(b) by the insertion, after subsection (4), of the following subsection:

“(4A) (a) Interest paid to a company in respect of—

(i) relevant principal, denominated in a currency other than Irish currency, and

(ii) a relevant period which begins on or after the 30th day of January, 1991,

shall not be a distribution for the purposes of this Act in the hands of the company if at any time during the said period the rate on the basis of which that interest is computed exceeds 80 per cent, of the rate known as the three month Dublin Interbank Offered Rate on Irish pounds (hereafter in this subsection referred to as the ‘three month Dublin Interbank Offered Rate’) a record of which is maintained by the Central Bank of Ireland.

(b) Paragraph (a) shall not apply to any interest which is paid to a company in respect of relevant principal advanced by the company—

(i) before the 30th day of January, 1991, under an agreement entered into before that day if, on that day, the rate on the basis of which interest in respect of the relevant security falls to be computed exceeds 80 per cent of the three month Dublin Interbank Offered Rate,

(ii) on or after the 30th day of January, 1991, for the purposes of a specified trade—

(I) which is included in a list referred to in subparagraph (iv) of paragraph (b) of subsection (3A) or subparagraph (ii) of paragraph (b) of subsection (3B), and

(II) of a borrower who is certified by the Minister for Industry and Commerce as having received an undertaking that the said interest would be treated as a distribution,

(iii) on or after the 18th day of April, 1991, where the rate on the basis of which that interest is computed exceeds 80 per cent of the three month Dublin Interbank Offered Rate by reason only that the relevant principal advanced is denominated in sterling, or

(iv) to a borrower which is a company carrying on one or more trading operations (within the meaning of subsection (1) of section 39A, as amended by the Finance Act, 1991, of the Finance Act, 1980 ).

(c) In paragraph (a) ‘relevant period’ means a period which commences at a time at which, in accordance with the terms of the agreement under which the relevant principal secured by the said relevant security is advanced, an amount representing the interest for the use of the said relevant principal falls to be paid, and ending at a time immediately before the next time at which such an amount falls to be paid.”,

(c) in subsection (3A)—

(i) by the substitution, in paragraph (a), of “in this subsection and in subsection (3B)” for “in this subsection”,

(ii) by the substitution, in paragraph (c), of “this subsection and subsection (3B)” for “this subsection” and of “a day” for “the 31st day of January, 1990,”, and

(iii) by the substitution, in paragraph (d), of “this subsection and subsection (3B)” for “this subsection”,

(d) in subsection (5), by the substitution of “In subsections (2), (3), (3A), (3B), (4) and (4A)” for “In subsections (2), (3), (3A), and (4)”, and

(e) in subsection (6), by the substitution of “in subsections (2), (3A), (3B), (4) and (4A)” for “in subsections (2) and (3A)”.

Amendment of section 87 (distributions: supplemental) of Corporation Tax Act, 1976.

29.— Section 87 of the Corporation Tax Act, 1976 , is hereby amended, as respects any acquisition of shares on or after the 25th day of July, 1990, in subsection (4) by the addition of the following paragraph after paragraph (d):

“(e) Nothing in this subsection shall require a company, which is a subsidiary (being a subsidiary within the meaning of section 155 of the Companies Act, 1963 ) of another company to be treated as making a distribution where it acquires shares in the other company pursuant to section 9 (1) of the Insurance Act, 1990 .”.

Amendment of section 35 (profits of life business) of Corporation Tax Act, 1976.

30.—(1) Section 35 of the Corporation Tax Act, 1976 , is hereby amended as respects any accounting period ending on or after the 31st day of December, 1990:

(a) by the addition after subsection (1) of the following subsection:

“(1A) Where a company's trading operations consist solely of a foreign life assurance business as defined in paragraph (a) of subsection (4) of section 36 of the Finance Act, 1988 , then—

(a) subject to the following provisions of this subsection, the company shall be chargeable to tax in respect of the profits of that business under Case I of Schedule D,

(b) notwithstanding paragraph (b) of subsection (1), where any part of those profits would, apart from this paragraph, be excluded in computing the income chargeable under Case I of Schedule D solely by virtue of that part being reserved for policyholders or annuitants, that part shall not be excluded in computing the income so chargeable,

(c) the charge to tax under Schedule D of income from investments (hereafter in this subsection referred to as ‘shareholders' investments’), which are not investments of any fund representing the amount of the liability of the company in respect of its business with policyholders and annuitants, shall not be under Case I of that Schedule, and

(d) notwithstanding section 33, section 15 shall apply for computing the profits of the company as respects expenses of management, including commissions, to the extent that those expenses—

(i) are disbursed for the purposes of managing shareholders’ investments, and

(ii) would not, apart from this paragraph, be deductible in computing the profits, or any description of profits, of the company for the purposes of corporation tax.”,

and

(b) by the addition after subsection (2) of the following subsection:

“(3) Where, under the provisions of section 25 (1) of the Insurance Act, 1989 , an assurance company amalgamates its industrial assurance and life assurance funds, subsection (2) shall not apply to that company for any accounting period ending on or after the completion of the amalgamation and before the recommencement, if any, of a separate industrial assurance or life assurance fund:

Provided that, for the purposes of applying section 33, in so far as it is affected by—

(a) management expenses or charges on income which, apart from section 15 (2), would be treated as, respectively, incurred for, or paid in, an accounting period ending before the day on which the amalgamation is completed, or

(b) any loss incurred in such a period,

to a company which has amalgamated its industrial assurance and life assurance funds, subsection (2) shall apply as if the company had not amalgamated its funds.”.

(2) For the purposes of subsection (3) (inserted by this section) of section 35 of the Corporation Tax Act, 1976 , and subsection (1), where an accounting period of an assurance company begins before the day (hereafter in this subsection referred to as “the day of amalgamation”) on which the company completes the amalgamation of its industrial assurance and life assurance funds, and ends on or after the day of amalgamation, that period shall be divided into one part beginning on the day on which the accounting period begins and ending on the day before the day of amalgamation and another part beginning on the day of amalgamation and ending on the day on which the accounting period ends, and both parts of the accounting period shall be treated as if they were separate accounting periods.

Securitisation of assets.

31.—(1) In this section—

“qualifying asset” means a loan made by a company (hereafter in this section referred to as “the original lender”) on the security of a mortgage of a freehold or leasehold estate or interest in the ordinary course of a trade carried on by it which consists of or includes the lending of money on such security;

“qualifying company” means a company resident in the State which carries on a business of the management of qualifying assets which it acquired from the original lender or original lenders, as the case may be, and does not carry on any other business:

Provided that a company shall not be a qualifying company if any transaction is carried out by it otherwise than by way of a bargain made at arm's length.

(2) For the purposes of the Tax Acts—

(a) activities carried out in the course of a business carried on by a qualifying company shall be deemed to be activities carried out in the course of a trade, the profits or gains of which are chargeable to tax under Case I of Schedule D,

(b) there shall be deducted as an expense of the trade the amount, in so far as it is not—

(i) otherwise deductible, or

(ii) recoverable from the original lender or under any insurance, contract of indemnity or otherwise howsoever,

of any debt which is proved to the satisfaction of the inspector to be bad and of a doubtful debt to the extent that it is estimated to be bad:

Provided that the amount of the debt shall not be deducted under this paragraph unless it would have been deductible as an expense of the trade of the original lender if that debt had been proved or estimated to be bad before it was acquired by the qualifying company, and

(c) where at any time an amount, or part of an amount, which has been deducted as an expense under paragraph (b) is recovered or is no longer estimated to be bad, the amount which has been so deducted shall, in so far as it is recovered or is no longer estimated to be bad, be treated as trading income of the trade at that time.

Amendment of section 39 (meaning of “goods”) of Finance Act, 1980.

32.—(1) Section 39 (as amended by section 41 of the Finance Act, 1990 ) of the Finance Act, 1980 , is hereby amended by the substitution in paragraph (a) of subsection (3) of “Notwithstanding any other provision of the Tax Acts, the definition” for “The definition”, and the said paragraph (a), as so amended, is set out in the Table to this section.

(2) This section shall be deemed to have come into effect as respects any relevant accounting period (within the meaning of section 38 of the Finance Act, 1980 ) beginning on or after the 1st day of April, 1990.

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(a) Notwithstanding any other provision of the Tax Acts, the definition of “goods” in subsection (1) shall not include goods sold to the intervention agency and, for the purposes of this exclusion, the sale of goods to a person other than the intervention agency shall be deemed to be a sale to the intervention agency if and to the extent that those goods are ultimately sold to the intervention agency.

Amendment of section 39A (relief in relation to income from certain trading operations carried on in Shannon Airport) of Finance Act, 1980.

33.—Section 39A (as amended by section 23 of the Finance Act, 1989 ) of the Finance Act, 1980 , is hereby amended—

(a) in subsection (1), by the substitution of the following definition for the definition of “trading operation”:

“‘trading operation’ means any trading operation which, apart from this section and subsection (1CC4) (inserted by section 41 of the Finance Act, 1990 ) of section 39 of this Act is not the manufacture of goods for the purpose of this Chapter but is carried on by a qualified company.”,

and

(b) in subsection (2), by the substitution of “31st day of December, 2005” for “31st day of December, 2000”.

Amendment of section 39B (relief in relation to income from certain trading operations carried on in Custom House Docks Area) of Finance Act, 1980.

34.—Section 39B (as amended by section 36 of the Finance Act, 1988 ) of the Finance Act, 1980 , is hereby amended by the substitution in subsection (2) of “31st day of December, 2005” for “31st day of December, 2000”.

Amendment of section 41 (amendment of section 39 (meaning of “goods”) of Finance Act, 1980) of Finance Act, 1990.

35.— Section 41 of the Finance Act, 1990 , is hereby amended by the substitution of the following proviso for the proviso to subsection (6):

“Provided that corporation tax payable by a company shall not be reduced by virtue of this section if that corporation tax would not have been so reduced if the provisions of subsection (1CC2) (inserted by the Finance Act, 1987 ) of section 39 of the Finance Act, 1980 , had not been enacted.”.

Implementation of Council Directive No. 90/435/EEC.

36.—(1) (a) In this section—

“arrangements” means arrangements having the force of law by virtue of section 361 of the Income Tax Act, 1967 ;

“bilateral agreement” means any arrangements, protocol or other agreement between the Government and the government of another Member State;

“company” means a company of a Member State;

“company of a Member State” has the meaning assigned to it by Article 2 of the Directive;

“the Directive” means Council Directive No. 90/435/EEC of 23 July 1990 * , on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States;

“distribution” means income from shares or from other rights, not being debt claims, to participate in a company's profits, and includes any amount assimilated to income from shares under the taxation laws of the State of which the company, making the distribution, is resident;

“foreign tax” means any tax which—

(i) is payable under the laws of a Member State other than the State, and

(ii) (I) is specified in paragraph (c) of Article 2 of the Directive, or

(II) is substituted for, and is substantially similar to, a tax so specified;

“Member State” means a Member State of the European Economic Community;

“parent company” means a company resident in the State which owns at least 25 per cent. of the share capital of a company not so resident:

Provided that where a bilateral agreement contains a provision to the effect—

(i) that a company shall only be a parent company during any uninterrupted period of at least two years throughout which at least 25 per cent. of the share capital of the company which is not resident in the State is owned by the first-mentioned company, or

(ii) that—

(I) the requirement (being the requirement for the purposes of this definition) that a company resident in the State own at least 25 per cent. of the share capital of the company which is not so resident shall be treated as a requirement that the company so resident holds at least 25 per cent. of the voting rights in the company which is not so resident, or

(II) the said requirement shall be so treated and a company shall only be a parent company during any uninterrupted period of at least two years throughout which at least 25 per cent. of the voting rights in the company which is not resident in the State is held by the first-mentioned company,

then, in its application to a company to which the provision in the bilateral agreement applies, this definition shall have effect subject to that provision and be construed accordingly.

(b) For the purposes of this section a company shall be a subsidiary of another company which owns shares or holds voting rights in it where the other company's ownership of those shares or holding of those rights is sufficient for that other company to be a parent company.

(c) A word or expression that is used in this section and is also used in the Directive has, unless the contrary intention appears, the same meaning in this section that it has in that Directive.

(2) Subject to subsections (3) and (4), where, on or after the 1st day of January, 1992, a parent company receives a distribution chargeable in the State to corporation tax, other than a distribution in a winding up, from its subsidiary:

(a) credit shall be allowed for—

(i) any withholding tax charged on the distribution by the Federal Republic of Germany, the Hellenic Republic or the Portuguese Republic, pursuant to the derogations provided for in Article 5 of the Directive, and

(ii) any foreign tax, not chargeable directly or by deduction in respect of the distribution, which is borne by the company making the distribution, and is properly attributable to the proportion of its profits which is represented by the distribution, in so far as that foreign tax exceeds so much of any tax credit in respect of the distribution as is payable to the parent company by the Member State in which the company making the distribution is resident,

against corporation tax in respect of the distribution to the extent that credit for such withholding tax and foreign tax would not otherwise be so allowed, and

(b) notwithstanding any provision of Part XXXI of the Income Tax Act, 1967, the distribution shall not be a dividend to which that Part applies.

(3) Where by virtue of paragraph (a) of subsection (2) a company is to be allowed credit for tax payable under the laws of a Member State other than the State, the provisions of Schedule 10 to the Income Tax Act, 1967 , shall have effect for the purposes of that subsection as if—

(a) the provisions of that subsection were arrangements providing that tax so payable shall be allowed as a credit against tax payable in the State, and

(b) references in the said Schedule 10 to a dividend were references to a distribution as defined in this section.

(4) Subsection (2) shall have effect without prejudice to any provision of a bilateral agreement.

Application of section 25 (attribution of distributions to accounting periods) of Finance Act, 1989, to interim dividends.

37.— Section 25 (as amended by section 38 of the Finance Act, 1990 ) of the Finance Act, 1989 , shall have effect as respects dividends paid on or after the 6th day of April, 1991, as if in subsection (3) (a) for “6th day of April, 1991” there was substituted “6th day of April, 1992”:

Provided that a company shall not be entitled, by virtue of this section, to specify, in accordance with subsection (1) of the said section 25, that a distribution, being an interim dividend, or part of it is to be treated as made for the accounting period in which it is made where—

(a) the circumstances of the company are such that, if the distribution or the part of it, as the case may be, were treated as made for the accounting period in which it is made, the company would be unable, at the time when the interim dividend is paid, to determine without recourse to estimation, how much of the distribution or the part of it, as the case may be, would, in accordance with subsection (1) of section 45 (as amended by section 24 of the Finance Act, 1989 ) of the Finance Act, 1980 , be treated as a specified distribution for the purposes of subsection (2) of the said section 45, or

(b) that treatment of the distribution or the part of it, as the case may be, as made for the accounting period in which it is made, would facilitate any arrangement whereby the tax credit in respect of a dividend received by a shareholder could exceed the tax credit, if any, in respect of a dividend received by another shareholder, notwithstanding that the shareholdings of those shareholders carry the same or substantially similar rights in respect of dividends and capital.

Amendment of section 30 (pension funds: extension of tax exemptions to dealings in financial futures and traded options) of Finance Act, 1988.

38.—As respects contracts entered into on or after the 1st day of April, 1991, section 30 of the Finance Act, 1988 , is hereby amended by the substitution of the following subsection for subsection (1):

“(1) In this section ‘financial futures’ and ‘traded options’ mean, respectively, financial futures and traded options which are for the time being dealt in or quoted on any futures exchange or any stock exchange, whether or not that exchange is situated in the State”.

Amendment of section 45 (Trust for Community Initiatives) of Finance Act, 1990 .

39.— Section 45 of the Finance Act, 1990 , is hereby amended by the substitution, in paragraph (a) of subsection (2), of “31st day of March, 1992” for “31st day of March, 1991”.

Amendment of section 41 (relief from corporation tax in respect of certain dividends from a non-resident subsidiary) of Finance Act, 1988.

40.— Section 41 of the Finance Act, 1988 , is hereby amended with effect from the 1st day of January, 1991, in paragraph (a) of subsection (1)—

(a) by the substitution for the definition of “investment plan” of the following:

“‘investment plan’ means a plan of a company resident in the State which is directed towards the creation or maintenance of employment in the State in trading operations carried on, or to be carried on, in the State and which has been submitted—

(i) prior to the commencement of its implementation, or

(ii) where the Minister is satisfied that there was reasonable cause for it to be submitted after the commencement of its implementation, within one year from that commencement,

to the Minister by the company for the purpose of enabling it to claim relief under this section;”,

and

(b) by the substitution for the definition of “relevant dividends” of the following:

“‘relevant dividends’ means dividends, received on or after the 6th day of April, 1988, by a company resident in the State (being the company claiming relief under this section) from a foreign subsidiary of the company, which are—

(i) specified in a certificate given by the Minister under subsection (2), and

(ii) applied, not earlier than the 6th day of April, 1988, and within a period—

(I) which begins one year before the first day on which the dividends so specified are received in the State, or at such earlier time as the Revenue Commissioners may by notice in writing allow, and

(II) which ends two years after the first day on which the dividends so specified are received in the State, or at such later time as the Revenue Commissioners may by notice in writing allow,

for the purposes of an approved investment plan;”.

Exemption from corporation tax of An Bord Pinsean — The Pensions Board.

41.—Notwithstanding any provision of the Corporation Tax Acts, profits arising in any accounting period ending after the 1st day of January, 1991, to An Bord Pinsean — The Pensions Board shall be exempt from corporation tax.

Chapter V

Capital Gains Tax

Amendment of section 26 (disposal of business or farm on retirement) of Capital Gains Tax Act, 1975.

42.— Section 26 of the Capital Gains Tax Act, 1975 , is hereby amended—

(a) by the substitution in subsection (1) of “£200,000” for “£50,000” in each place where it occurs, and

(b) by the substitution in subsection (6) (a) (as amended by the Finance Act, 1990 ) of the following definition for the definition, other than the proviso thereto, of “qualifying assets”:

“‘qualifying assets’, in relation to a disposal, includes the chargeable business assets of the individual which, apart from tangible movable property, he has owned for a period of not less than ten years ending with the disposal and the shares or securities which he has owned for a period of not less than ten years ending with the disposal, being shares or securities of a company which has been a trading or a farming company and his family company or a member of a trading group of which the holding company is that individual's family company during a period of not less than ten years ending with the disposal and of which he has been a working director for a period of not less than ten years during which period he has been a full time working director of the said company for a period of not less than five years:”.

Disposal of work of art, etc., loaned for public display.

43.—(1) This section applies to an object in the following category, that is to say, any picture, print, book, manuscript, sculpture, piece of jewellery or work of art—

(a) which, in the opinion of the Revenue Commissioners, after such consultation (if any) as may seem to them to be necessary with such person or body of persons as in their opinion may be of assistance to them, has a market value of not less than £25,000 at the date when it is loaned to a gallery or museum in the State, being a gallery or museum approved of by the Revenue Commissioners for the purposes of this section, and

(b) which is the subject of or included in a display to which the public is afforded reasonable access in the gallery or museum to which it has been loaned for a period (hereafter in this section referred to as the “qualifying period”) of not less than 6 years from the date it is so loaned.

(2) Where, after the end of the qualifying period, a disposal of an object to which this section applies is made by the person who had loaned it in the circumstances described in subsection (1) the disposal shall be treated for the purposes of the Capital Gains Tax Acts as being made for such consideration as to secure that neither a gain nor a loss accrues on the disposal.

(3) This section shall have effect from the 18th day of April, 1991.

Amendment of section 33 (exemption for Bord Fáilte Éireann and certain other bodies) of Finance Act, 1989.

44.— Section 33 of the Finance Act, 1989 , is hereby amended in subsection (2):

(a) by the substitution of the following paragraph for paragraph (c):

“(c) Dublin City and County Regional Tourism Organisation Limited,”,

(b) by the substitution of the following paragraph for paragraph (e):

“(e) South-West Regional Tourism Organisation Limited,”,

and

(c) by the substitution of the following paragraphs for paragraphs (g) and (h) respectively:

“(g) The North-West Regional Tourism Organisation Limited,

(h) Midlands-East Regional Tourism Organisation Limited, and”.

Chapter VI

Extension of Self Assessment to Capital Gains Tax and Certain Other Matters

Amendment of section 9 (interpretation (Chapter II)) of Finance Act, 1988.

45.— Section 9 (as amended by section 23 of the Finance Act, 1990 ) of the Finance Act, 1988 , is hereby amended—

(a) in subsection (1)—

(i) by the insertion after “ Income Tax Act, 1967 ”, in the definition of “appeal”, of “, or, as respects capital gains tax, an appeal under paragraph 8 of the Fourth Schedule to the Capital Gains Tax Act, 1975 ”, and the said definition, as so amended, is set out in the Table to this section,

(ii) by the insertion after “profits”, in paragraph (a) of the definition of “appropriate inspector”, of “or chargeable gains”, and the said definition, as so amended, is set out in the Table to this section,

(iii) by the insertion after “Corporation Tax Acts”, in the definition of “assessment”, of “or the Capital Gains Tax Acts,”, and the said definition, as so amended, is set out in the Table to this section,

(iv) by the insertion after the definition of “assessment” of the following definition:

“‘chargeable gain’ has the same meaning as in section 11 (2) of the Capital Gains Tax Act, 1975 ;”,

(v) by the insertion after “whether on his own account or on account of some other person, but”, in the definition of “chargeable person”, of “as respects income tax,”, and the said definition, as so amended, is set out in the Table to this section,

(vi) by the substitution of the following definition for the definition of “relevant chargeable period”:

“‘relevant chargeable period’ means—

(a) (i) where the chargeable period is a year of assessment for income tax, the year 1988-89 and any subsequent year of assessment,

(ii) where the chargeable period is a year of assessment for capital gains tax, the year 1990-91 and any subsequent year of assessment, or

(b) where the chargeable period is an accounting period of a company, an accounting period ending on or after the 1st day of October, 1989.”,

(vii) by the insertion of the following proviso after paragraph (b) of the definition of “specified return date for the chargeable period”:

“Provided that where an accounting period of a company ends on or before the date of commencement of the winding up of the company and the specified return date in respect of that accounting period would, but for this proviso, fall on a date after the date of commencement of the said winding up but not within a period of 3 months after that date, the specified return date for that accounting period of the company shall be the date which falls 3 months after the date of commencement of the winding up.”,

(viii) by the substitution for the definition of “tax”, of the following definition:

“‘tax’ means income tax, corporation tax, or capital gains tax, as the case may be.”,

and

(b) by the deletion of subsection (4).

TABLE

“appeal” means an appeal under section 416 of the Income Tax Act, 1967 , or, as respects capital gains tax, an appeal under paragraph 8 of the Fourth Schedule to the Capital Gains Tax Act, 1975 ;

“appropriate inspector” means, in relation to a chargeable person—

(a) the inspector who has last given notice in writing to the chargeable person that he is the inspector to whom the chargeable person is required to deliver a return or statement of income or profits or chargeable gains,

(b) in the absence of such an inspector as is referred to in paragraph (a), the inspector to whom it is customary for the chargeable person to deliver such return or statement, or

(c) in the absence of such an inspector as is referred to in paragraphs (a) and (b), the inspector of returns;

“assessment” means an assessment to tax made under the Income Tax Acts or the Corporation Tax Acts or the Capital Gains Tax Acts, as the case may be;

“chargeable person” means, as respects a chargeable period, a person who is chargeable to tax for that period, whether on his own account or on account of some other person, but, as respects income tax, does not include a person—

(a) whose total income for the chargeable period consists solely of emoluments to which Chapter IV of Part V of the Income Tax Act, 1967 , applies, and for this purpose a person whose total income for the chargeable period, other than emoluments to which the said Chapter IV applies, is deducted in determining the amount of his tax-free allowances for the chargeable period by virtue of Regulation 10 (1) (b) of the Income Tax (Employments) Regulations, 1960 ( S.I. No. 28 of 1960 ), shall be deemed for that chargeable period to be a person whose total income consists solely of emoluments to which the said Chapter IV applies,

(b) who, for the chargeable period, has been exempted by an inspector from the requirements of section 10 by reason of a notice given under subsection (6) of that section, or

(c) who is chargeable to tax for the chargeable period by reason only of the provisions of section 433 or 434 of the Income Tax Act, 1967 , or section 151 of the Corporation Tax Act, 1976 .

Amendment of section 10 (obligation to make a return) of Finance Act, 1988.

46.— Section 10 (as amended by section 23 of the Finance Act, 1990 ) of the Finance Act, 1988 is hereby amended—

(a) by the insertion in paragraph (a) of subsection (1) of “or capital gains tax” after “chargeable to income tax” in both places where it occurs, and the said paragraph (a), as so amended, is set out in the Table to this section,

(b) by the substitution for the proviso to subsection (6) of the following proviso:

“Provided that—

(i) where, before the passing of this Act, a person has been given notice by the inspector that he need not prepare and deliver a return for or until a specified chargeable period or until the happening of any event, he shall be deemed to have been given notice to that effect under this subsection;

(ii) where a person who has been given a notice under this subsection is chargeable to capital gains tax for any chargeable period, this subsection shall not operate to remove his obligation under subsection (1) to make a return of his chargeable gains for that chargeable period.”,

(c) by the substitution of the following subsection for subsection (10):

“(10) A certificate signed by an inspector which certifies that he has examined the relevant records and that it appears from them—

(a) that, as respects a chargeable period, a named person is a chargeable person, and

(b) that, on or before the specified return date for the chargeable period, a return in the prescribed form was not received from that chargeable person,

shall be evidence until the contrary is proved that the person so named is a chargeable person as respects that chargeable period and that that person did not, on or before the specified return date, deliver that return and a certificate certifying as provided by this subsection and purporting to be signed by an inspector may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by such inspector.”.

TABLE

(a) in the case of a chargeable person, who is chargeable to income tax or capital gains tax for a chargeable period which is a year of assessment, all such matters and particulars as would be required to be contained in a statement delivered pursuant to a notice given to the chargeable person by the appropriate inspector under section 169 of the Income Tax Act, 1967 , if the period specified in such notice were the year of assessment which is the relevant chargeable period, and where the chargeable person is an individual who is chargeable to income tax or capital gains tax for a relevant chargeable period, in addition to such matters and particulars as aforesaid, all such matters and particulars as would be required to be contained in a return for the period delivered to the appropriate inspector pursuant to a notice given to the chargeable person by the appropriate inspector under section 172 of the said Act, or

Amendment of section 12 (notices of preliminary tax) of Finance Act, 1988.

47.— Section 12 of the Finance Act, 1988 , is hereby amended—

(a) by the substitution for paragraph (a) of the proviso to subsection (7) of the following paragraph:

“(a) interest shall not be payable under this subsection—

(i) if it amounts to less than £10, or

(ii) to the extent that the said excess arises from relief provided for by subsection (4) of section 98 of the Corporation Tax Act, 1976 ,

and”,

and

(b) by the insertion after subsection (10) of the following subsection:

“(11) This section shall not, except for the provisions of subsection (7), apply as respects capital gains tax.”.

Amendment of section 13 (making of assessments) of Finance Act, 1988.

48.— Section 13 of the Finance Act, 1988 , is hereby amended by the addition of the following subsection after subsection (6):

“(7) Nothing in this section shall prevent an inspector from making an assessment in accordance with the provisions of—

(a) section 5 (3) of the Capital Gains Tax Act, 1975 , and, notwithstanding the provisions of section 11 and section 18, tax specified in such an assessment shall be due and payable in accordance with the provisions of the said section 5 (3), or

(b) subparagraph (3) or (4), as appropriate, of paragraph 11 of the Fourth Schedule to the Capital Gains Tax Act, 1975 , and, notwithstanding the provisions of section 11 and section 18, tax specified in such an assessment shall be due and payable in accordance with the provisions of paragraph 11 (9) of the Fourth Schedule to the Capital Gains Tax Act, 1975 , or

(c) paragraph 17 (2) or subparagraph (1) or (2) of paragraph 18, as appropriate, of the Fourth Schedule to the Capital Gains Tax Act, 1975 , and, notwithstanding the provisions of section 11 and section 18, tax specified in such an assessment shall be due and payable in accordance with the provisions of section 5 (2) of the Capital Gains Tax Act, 1975 .”.

Amendment of section 14 (amendment of and time limit for assessments) of Finance Act, 1988.

49.— Section 14 of the Finance Act, 1988 , is hereby amended by the insertion in subsection (5) of “or, as respects capital gains tax, chargeable gains,” after “income, profits or gains”, and the said subsection (5), as so amended, is set out in the Table to this section.

TABLE

(5) Section 186 of the Income Tax Act, 1967 , and section 144 (5) (a) of the Corporation Tax Act, 1976 , shall not apply in the case of a chargeable person for any relevant chargeable period and all matters which would have been included in an additional first assessment under those sections shall be included in an amendment of the first assessment or first assessments made in accordance with this section and, for this purpose, where any amount of income, profits or gains or, as respects capital gains tax, chargeable gains, was omitted from the first assessment or first assessments or the tax stated in the first assessment or first assessments was less than the tax payable by the chargeable person for that chargeable period, there shall be made such adjustments or additions (including the addition of a further first assessment) to the first assessment or first assessments as are necessary to rectify the omission or to ensure that the tax so stated is equal to the tax so payable by the chargeable person.

Amendment of section 15 (inspector's right to make enquiries and amend assessments) of Finance Act, 1988.

50.— Section 15 of the Finance Act, 1988 , is hereby amended by the insertion in subsection (1) of “or, as respects capital gains tax, chargeable gains,” after “income, profits or gains”, and the said subsection (1), as so amended, is set out in the Table to this section.

TABLE

(1) For the purpose of making an assessment on a chargeable person for a relevant chargeable period or for the purpose of amending such an assessment, the inspector may accept either in whole or in part any statement or other particular contained in a return delivered by the chargeable person for that chargeable period and he may assess any amount of income, profits or gains or, as respects capital gains tax, chargeable gains, or allow any deduction, allowance or relief by reference to such statement or particular; but the making of an assessment or the amendment of an assessment by reference to any such statement or particular contained in the chargeable person's return shall not preclude the inspector from making suchenquiries or taking such actions, within his powers, as he considers necessary to satisfy himself as to the accuracy or otherwise of that statement or particular and, subject to section 14 (2), shall not preclude the inspector from amending or further amending an assessment in such manner as he considers appropriate:

Provided that any such enquiries and any such actions shall not be made in the case of any chargeable person for any relevant chargeable period at any time after the expiry of the period of 6 years commencing at the end of the chargeable period in which the chargeable person has delivered a return for the relevant chargeable period unless at that time the inspector has reasonable grounds for believing that the return is insufficient due to its having been completed in a fraudulent or negligent manner.

Amendment of section 17 (appeals) of Finance Act, 1988.

51.— Section 17 of the Finance Act, 1988 , is hereby amended by the insertion in paragraphs (b) and (c) of subsection (1) of “or, as respects capital gains tax, chargeable gains,” after “income, profits or gains” in each place where it occurs, and the said paragraphs (b) and (c), as so amended, are set out in the Table to this section.

TABLE

(b) the amount of any income, profits or gains or, as respects capital gains tax, chargeable gains, or the amount of any allowance, deduction or relief specified in an assessment or an amended assessment made on a chargeable person for a relevant chargeable period where the inspector has determined that amount by accepting without the alteration of and without departing from the statement or statements or the particular or particulars with regard to income, profits or gains or, as respects capital gains tax, chargeable gains, or allowances, deductions or reliefs specified in the return delivered by the chargeable person for that chargeable period, or

(c) the amount of any income, profits or gains or, as respects capital gains tax, chargeable gains, or the amount of any allowance, deduction or relief specified in an assessment or an amended assessment made on a chargeable person for a relevant chargeable period where that amount had been agreed between the inspector and the chargeable person, or any person authorised by the chargeable person in that behalf, prior to the making of the assessment or the amendment of the assessment, as the case may be.

Amendment of section 18 (date for payment of tax) of Finance Act, 1988.

52.— Section 18 (as amended by section 24 of the Finance Act, 1990 ) of the Finance Act, 1988 , is hereby amended—

(a) by the substitution of the following subsection for subsection (1)—

“(1) Preliminary tax appropriate to a relevant chargeable period shall be due and payable—

(a) where the chargeable period is a year of assessment for income tax, on or before the 1st day of November in that year of assessment,

(b) where the chargeable period is a year of assessment for capital gains tax, on or before the 1st day of November next following that year of assessment, or

(c) where the chargeable period is an accounting period of a company, within the period of 7 months from the end of the accounting period,

and references in this Chapter to the due date for the payment of an amount of preliminary tax shall, accordingly, be construed as references to the 1st day of November in the relevant year of assessment, the 1st day of November next following that year ofassessment or the last day of that period of 7 months, as the case may be.”,

and

(b) in subsection (3), by the insertion of the following additional proviso after paragraph (II) of the proviso to subparagraph (ii) of paragraph (b):

“Provided also that, for the purpose of this subparagraph, where the chargeable person is chargeable to income tax for a chargeable period being the year of assessment 1991-92 or any subsequent year of assessment, the tax payable for the immediately preceding chargeable period shall be determined without regard to any relief to which the chargeable person is, or may become, entitled for that immediately preceding chargeable period under Chapter III of Part I of the Finance Act, 1984 .”.

Amendment of section 21 (miscellaneous) of Finance Act, 1988.

53.— Section 21 of the Finance Act, 1988 , is hereby amended—

(a) by the insertion in subsection (3), after “the inspector causes to issue”, of “manually or”, and the said subsection (3), as so amended, is set out in the Table to this section, and

(b) by the addition of the following subsections after subsection (6):

“(7) The provisions of this Chapter as respects due dates for payment of tax shall apply subject to the provisions of sections 37 (4) (b) (which provides for the postponement, in certain circumstances, of the payment of capital gains tax in the case of certain beneficiaries of a non-resident trust) and 44 (which provides for the payment of tax on certain chargeable gains by instalment, in certain circumstances) of the Capital Gains Tax Act, 1975 .

(8) With effect for the year of assessment 1990-91 and subsequent years of assessment, references in this Chapter to any provision of the Income Tax Acts shall, where appropriate for capital gains tax and unless the contrary intention appears, be construed as a reference to the said provisions as applied in relation to capital gains tax by paragraphs 2 and 3 of the Fourth Schedule to the Capital Gains Tax Act, 1975 .”.

TABLE

(3) Where the inspector or any other officer of the Revenue Commissioners acting with the knowledge of the inspector causes to issue, manually or by any electronic, photographic or other process, a notice of preliminary tax bearing the name of the inspector or a notice of assessment or a notice of an amendment of an assessment bearing the name of the inspector, the said notice of preliminary tax shall, for all the purposes of the Tax Acts, be deemed to have been given by the inspector to the best of his opinion and the said assessment or amended assessment to which the notice of assessment or notice of amended assessment relates, as the case may be, shall, for those purposes, be deemed to have been made by the inspector to the best of his judgement.

Chapter VII

Urban Renewal: Temple Bar and Other Areas

Preliminary and general ( Chapter VII )

54.—(1) In this Chapter—

“the Temple Bar Area” means the area described in Part II of the Second Schedule ;

(2) The Second Schedule shall have effect for the purposes of supplementing this Chapter.

(3) Subject to subsection (4), the provisions of the Finance Act, 1986 , which are specified in section 55 as having effect in relation to the Temple Bar Area shall have such effect, as appropriate, subject to any necessary modifications—

(a) as if the Temple Bar Area were an area described in an order made by the Minister for Finance under section 27 of the Finance Act, 1987 ,

(b) as if the reference in paragraph (a) (ii) of subsection (1) of the said section 27 to the “31st day of May, 1991,” were a reference to the “5th day of April, 1996,”, and

(c) as if the order referred to in paragraph (a) directed that in sections 42 , 44 and 45 of the Finance Act, 1986 , the definition of “qualifying period” is to be construed as a reference to the period from the 6th day of April, 1991, to the 5th day of April, 1996, in relation to the Temple Bar Area.

(4) The provisions which are specified in this Chapter as having effect in relation to capital, or other, expenditure incurred or rent payable in relation to any building or premises however described in this Chapter in the Temple Bar Area shall have such effect only if the relevant building or premises in relation to which the said capital, or other, expenditure was incurred or rent is so payable, is approved for the purposes of this Chapter by the company known as Temple Bar Renewal Limited.

Temple Bar reliefs.

55.—(1) (a) In this subsection—

“multi-storey car-park” means a building or structure consisting of three or more storeys wholly or mainly in use for the purpose of providing, for members of the public generally without preference for any particular class of person, upon payment of an appropriate charge, parking for mechanically propelled vehicles;

“qualifying building” means a dwelling-house or other building or structure—

(i) which is constructed in the Temple Bar Area in the period from the 6th day of April, 1991, to the 5th day of April, 1996, and

(ii) which would be qualifying premises for the purposes of section 42 , 44 or 45 of the Finance Act, 1986 , as the case may be, in the circumstancesdescribed in section 54 (3), if paragraph (a) of the definition of “qualifying premises” in subsection (1) of the said section 42 had not been enacted.

(b) As respects any qualifying building, the following provisions shall have effect, as appropriate, in the following manner, that is to say—

(i) section 42 of the Finance Act, 1986 , other than paragraph (a) of the definition of “qualifying premises” in subsection (1) of that section, shall have effect in its entirety as respects capital expenditure incurred on the construction of any such building and on the basis that subsection (4) of that section has effect as respects any qualifying building to which that section applies other than a multi-storey car-park;

(ii) section 44 of the Finance Act, 1986 , shall have effect as respects any qualifying expenditure (being qualifying expenditure for the purposes of that section) incurred on the construction but not on the refurbishment of any such building;

(iii) section 45 of the Finance Act, 1986 , shall have effect as respects rent payable for any such building.

(2) (a) In this subsection—

“qualifying building” means an existing dwelling-house or other building or structure in the Temple Bar Area as on the 1st day of January, 1991, which would be qualifying premises for the purposes of section 42 , 44 or 45 of the Finance Act, 1986 , as the case may be, in the circumstances described in section 54 (3), if paragraph (a) of the definition of “qualifying premises” in subsection (1) of the said section 42 had not been enacted;

“refurbishment” means any work of construction, reconstruction, repair or renewal, including the provision or improvement of water, sewerage or heating facilities, carried out in the course of repair or restoration, or maintenance in the nature of repair or restoration, of a building, which is consistent with the original character or fabric of the building.

(b) As respects any qualifying building, the following provisions shall have effect, as appropriate, in the following manner, that is to say—

(i) section 42 of the Finance Act, 1986 , other than paragraph (a) of the definition of “qualifying premises” in subsection (1) and subsection (4), shall have effect as respects capital expenditure incurred on the refurbishment of any such building;

(ii) section 44 of the Finance Act, 1986 , shall have effect as respects qualifying expenditure (being qualifying expenditure for the purposes of that section) incurred on the refurbishment of any such building—

(I) as if the definition of “refurbishment” in this subsection were substituted for the definition of“refurbishment” provided for in the said section 44, and

(II) as if the reference in subsection (2) of the said section 44 to “5 per cent.” were a reference to “10 per cent.”,

and

(iii) section 45 of the Finance Act, 1986 , shall have effect as respects rent payable in respect of any such building:

Provided that capital expenditure for the purposes of subparagraph (i) and expenditure for the purposes of subparagraph (ii) of this paragraph shall be deemed to include—

(I) any expenditure incurred on the purchase of the qualifying building which is the subject of the capital expenditure referred to in the said subparagraph (i) or the expenditure on refurbishment referred to in the said subparagraph (ii), as the case may be, other than expenditure incurred on the acquisition of, or of rights in or over, any land, or

(II) an amount which is equal to the amount of the value of the said building as on the 1st day of January, 1991, other than any amount of such value as is attributable to, or to rights in or over, any land,

whichever is the lesser, if the expenditure specified at clause (I) of this proviso or the amount specified at clause (II) of this proviso, as the case may be, is not greater than the amount of the capital expenditure referred to in the said subparagraph (i) or the amount of expenditure on refurbishment referred to in the said subparagraph (ii), as the case may be.

(3) Notwithstanding any other provision of the Tax Acts, where part of a qualifying building, within the meaning of subsection (1) (a) or (2) (a), is used for commercial purposes and part is used for residential purposes, the total amount of the expenditure incurred on the construction or refurbishment of the building shall be apportioned as between the respective parts of the building in such manner as is just and reasonable for the purpose of giving effect to the provisions of this section.

Application of section 23 (deduction for certain expenditure on construction of rented residential accommodation) of Finance Act, 1981.

56.—(1) As respects relevant expenditure to which this section applies, section 23 of the Finance Act, 1981 , shall have effect—

(a) as if for the definition of “qualifying period” (as provided for by section 27 of the Finance Act, 1988 ) in subsection (1) (a), there were substituted—

(i) where relevant expenditure is incurred in the designated area known as the Custom House Docks Area (as provided for by section 41 of the Finance Act, 1986 ), the following definition:

“‘qualifying period’ means the period commencing on the 30th day of January, 1991, and ending on the last day of the specified period (being the specified period within the meaning of section 41 of the Finance Act, 1986 );”,

(ii) where relevant expenditure is incurred in any other designated area (as so provided for and subject to section 27 of the Finance Act, 1987 ), the following definition:

“‘qualifying period’ means the period commencing on the 30th day of January, 1991, and ending on the 31st day of May, 1993;”,

(iii) where relevant expenditure is incurred in the area known as the Temple Bar Area, the following definition:

“‘qualifying period’ means the period commencing on the 30th day of January, 1991, and ending on the 5th day of April, 1996;”, or

(iv) where relevant expenditure is incurred in any other area, the following definition:

“‘qualifying period’ means the period commencing on the 1st day of April, 1991, and ending on the 31st day of March, 1992;”,

(b) as if in the definition of “qualifying premises” in the said subsection (1) (a) “90 square metres” were substituted for “75 square metres”, and

(c) where relevant expenditure is incurred in any area to which subparagraph (i), (ii) or (iii) of paragraph (a) of subsection (1) relates, as if section 30 of the Finance Act, 1983 , were deleted.

(2) In this section “relevant expenditure” means expenditure on the construction of a qualifying premises (being a qualifying premises within the meaning of subsection (1) (a) of section 23 of the Finance Act, 1981 ) incurred in the qualifying period (being the qualifying period within the meaning of subsection (1) (a) of the said section 23, subject to the provisions of subsection (1) (a) of this section):

Provided that expenditure to which section 24 of the Finance Act, 1981 , applies which is incurred in the Temple Bar Area shall be construed as expenditure on refurbishment (being refurbishment within the meaning of paragraph (a) of section 55 (2)) in the course of the conversion into two or more houses of a building which, prior to the conversion, had not been in use as a dwelling or had been in use as a single dwelling.

Application of section 21 (rented residential accommodation: deduction for expenditure on refurbishment) of Finance Act, 1985.

57.—(1) This section applies to—

(a) expenditure incurred on refurbishment (being refurbishment within the meaning of paragraph (a) of section 55 (2)) of a specified building (being a specified building within the meaning of subsection (1) (a) of section 21 of the Finance Act, 1985 ) in the Temple Bar Area;

(b) relevant expenditure within the meaning of subsection (1) (a) of section 21 of the Finance Act, 1985 , incurred—

(i) in the designated area known as the Custom House Docks Area (as provided for by section 41 of the Finance Act, 1986 ) in the period commencing on the 30th day of January, 1991, and ending on the last day of the specified period (being the specified period within the meaning of the said section 41),

(ii) in any other designated area (as so provided for and subject to section 27 of the Finance Act, 1987 ) in the period commencing on the 30th day of January, 1991, and ending on the 31st day of May, 1993, and

(iii) in any other area, in the period commencing on the 1st day of April, 1991, and ending on the 31st day of March, 1992.

(2) As respects expenditure to which subsection (1) (a) applies, section 21 of the Finance Act, 1985 , shall be deemed to have effect—

(a) as if for the definition of “refurbishment” in paragraph (1) (a) of the said section 21, there were substituted the definition of “refurbishment” in paragraph (a) of section 55 (2),

(b) as if for the definition of “qualifying period” (as provided for by section 28 of the Finance Act, 1988 ) in subsection (2) (a) (iii) there were substituted the following definition:

“‘qualifying period’ means the period commencing on the 6th day of April, 1991, and ending on the 5th day of April, 1996;”,

and

(c) as if the proviso to subsection (2) of section 29, and subsections (3) and (4) of that section, of the Finance Act, 1983 , were deleted.

(3) As respects relevant expenditure to which subsection (1) (b) applies, section 21 of the Finance Act, 1985 , shall have effect—

(a) as if for the definition of “qualifying period” (as provided for by section 28 of the Finance Act, 1988 ) in subsection (2) (a) (iii) there were substituted—

(i) in the case of relevant expenditure within the meaning of subparagraph (i) of the said subsection (1) (b), the following definition:

“‘qualifying period’ means the period commencing on the 30th day of January, 1991, and ending on the last day of the specified period (being the specified period within the meaning of section 41 of the Finance Act, 1986 );”,

(ii) in the case of relevant expenditure within the meaning of subparagraph (ii) of the said subsection (1) (b), the following definition:

“‘qualifying period’ means the period commencing on the 30th day of January, 1991, and ending on the 31st day of May, 1993;”,

and

(iii) in the case of relevant expenditure within the meaning of subparagraph (iii) of the said subsection (1) (b), the following definition:

“‘qualifying period’ means the period commencing on the 1st day of April, 1991, and ending on the 31st day of March, 1992;”,

(b) as if the proviso to section 29 (2) of the Finance Act, 1983 , were deleted, and

(c) in the case of relevant expenditure within the meaning of subparagraphs (i) and (ii) of the said subsection (1) (b), as if subsections (3) and (4) of section 29 of the Finance Act, 1983 , were deleted.

Application of section 22 (extension of application of relief for conversion of certain buildings) of Finance Act, 1985.

58.—(1) This section applies to—

(a) expenditure incurred on refurbishment (being refurbishment within the meaning of paragraph (a) of section 55 (2)) in the course of conversion into a house of a building in the Temple Bar Area not previously in use as a dwelling;

(b) expenditure within the meaning of section 22 of the Finance Act, 1985 , incurred—

(i) in the designated area known as the Custom House Docks Area (as provided for by section 41 of the Finance Act, 1986 ) in the period commencing on the 30th day of January, 1991, and ending on the last day of the specified period (being the specified period within the meaning of the said section 41),

(ii) in any other designated area (as so provided and subject to section 27 of the Finance Act, 1987 ) in the period commencing on the 30th day of January, 1991, and ending on the 31st day of May, 1993, and

(iii) in any other area in the period commencing on the 1st day of April, 1991, and ending on the 31st day of March, 1992.

(2) As respects expenditure to which subsection (1) (a) applies, section 22 of the Finance Act, 1985 , shall be deemed to have effect, subject to any necessary modifications—

(a) in subsections (1) and (2) of the said section 22, as if for “commencing on the 27th day of January, 1988, and ending on the 31st day of March, 1991,” (as provided for by section 29 of the Finance Act, 1988 ) there were substituted “commencing on the 6th day of April, 1991, and ending on the 5th day of April, 1996,”,

(b) as if subsection (2) of the said section 22 were deleted,

(c) in subsection (4) of the said section 22, as if for the definition of “qualifying period” (as so provided for) there were substituted the following definition:

“‘qualifying period’ means the period commencing on the 6th day of April, 1991, and ending on the 5th day of April, 1996;”,

(d) as if the proviso to section 29 (2) and section 30 of the Finance Act, 1983 , were deleted, and

(e) as if the said expenditure were expenditure within the meaning of subsection (1) of section 24 of the Finance Act, 1981 .

(3) (a) As respects expenditure to which subsection (1) (b) (i) applies, section 22 of the Finance Act, 1985 , shall have effect—

(i) in subsections (1) and (2) of the said section 22, as if for “commencing on the 27th day of January, 1988, and ending on the 31st day of March, 1991,” (as provided for by section 29 of the Finance Act, 1988 ) there were substituted “commencing on the 30th day of January, 1991, and ending on the last day of the specified period (being the specified period within the meaning of section 41 of the Finance Act, 1986 ),”,

(ii) in subsection (4) of the said section 22, as if for the definition of “qualifying period” (as so provided for) there were substituted the following definition:

“‘qualifying period’ means the period commencing on the 30th day of January, 1991, and ending on the last day of the specified period (being the specified period within the meaning of section 41 of the Finance Act, 1986 );”,

and

(iii) as if the proviso to section 29 (2) and section 30 of the Finance Act, 1983 , were deleted;

(b) as respects expenditure to which subsection (1) (b) (ii) applies, section 22 of the Finance Act, 1985 , shall have effect—

(i) in subsections (1) and (2) of the said section 22, as if for “commencing on the 27th day of January, 1988, and ending on the 31st day of March, 1991,” (as provided for by section 29 of the Finance Act, 1988 ) there were substituted “commencing on the 30th day of January, 1991, and ending on the 31st day of May, 1993,”,

(ii) in subsection (4) of the said section 22, as if for the definition of “qualifying period” (as so provided for) there were substituted the following definition:

“‘qualifying period’ means the period commencing on the 30th day of January, 1991, and ending on the 31st day of May, 1993;”,

and

(iii) as if the proviso to section 29 (2) and section 30 of the Finance Act, 1983 , were deleted;

(c) as respects expenditure to which subsection (1) (b) (iii) applies, section 22 of the Finance Act, 1985 , shall have effect—

(i) in subsections (1) and (2) of the said section 22 , and section 30 (2) of the Finance Act, 1983 , as if for “commencing on the 27th day of January, 1988, and ending on the 31st day of March, 1991,” (as provided for by section 29 of the Finance Act, 1988 ) there were substituted “commencing on the 1st day of April, 1991, and ending on the 31st day of March, 1992,”,

(ii) in subsection (4) of the said section 22, as if for the definition of “qualifying period” (as so provided for) there were substituted the following definition:

“‘qualifying period’ means the period commencing on the 1st day of April, 1991, and ending on the 31st day of March, 1992;”,

and

(iii) as if the proviso to section 29 (2) of the Finance Act, 1983 , were deleted.

Chapter VIII

Taxation of Acquisition by a Company of its Own Shares

Interpretation ( Chapter VIII ).

59.—(1) In this Chapter—

“the Act of 1975” means the Capital Gains Tax Act, 1975 ;

“the Act of 1976” means the Corporation Tax Act, 1976 ;

“chargeable period” means an accounting period of a company or a year of assessment;

“control” has the meaning given by section 158 of the Act of 1976;

“holding company” means a company whose business, disregarding any trade carried on by it, consists wholly or mainly of the holding of shares or securities of one or more companies which are its 51 per cent. subsidiaries;

“inspector”, in relation to any matter, means an inspector of taxes appointed under section 161 of the Income Tax Act, 1967 , and includes such other officer as the Revenue Commissioners shall appoint in that behalf;

“personal representatives” has the meaning assigned to it by section 450 (2) (a) of the Income Tax Act, 1967 ;

“quoted company” means a company whose shares, or any class of whose shares, are listed in the official list of a stock exchange or dealt in on an unlisted securities market;

“relevant day” means the day on which Part XI of the Companies Act, 1990 , comes into operation by order of the Minister for Industry and Commerce under section 2 of that Act;

“shares” includes stock;

“trade” does not include dealing in shares, securities, land, futures or traded options and “trading activities” shall be construed accordingly;

“trading company” means a company whose business consists wholly or mainly of the carrying on of a trade or trades;

“trading group” means a group the business of whose members, taken together, consists wholly or mainly of the carrying on of a trade or trades, and for this purpose “group” means a company which has one or more 51 per cent. subsidiaries together with those subsidiaries.

(2) References in this Chapter to the owner of shares are references to the beneficial owner except where the shares are held on trusts, other than bare trusts, or are comprised in the estate of a deceased person, and in such a case are references to the trustees or, as the case may be, to the deceased's personal representatives.

(3) References in this Chapter to a payment made by a company include references to anything else that is, or would but for section 61 be, a distribution.

(4) References in this Chapter to a company being unquoted shall be treated as references to a company which is neither a quoted company nor a 51 per cent. subsidiary of a quoted company.

Taxation of dealer's receipts on purchase of shares by issuing company or by its subsidiary.

60.—(1) Where on or after the relevant day—

(a) a company purchases its own shares from a dealer, or

(b) a company, which is a subsidiary (within the meaning of section 155 of the Companies Act, 1963 ) of another company, purchases the other company's shares from a dealer,

the purchase price shall be taken into account in computing the profits of the dealer chargeable to tax under Case I or II of Schedule D, and accordingly—

(i) tax shall not be chargeable under Schedule F in respect of any distribution represented by any part of the price,