Finance Act, 1964

Allowances from unearned income of persons aged sixty-five or upwards.

2.—(1) An individual who, in the manner prescribed by the Income Tax Acts, makes a claim in that behalf, makes a return in the prescribed form of his total income, and proves that at any time during the year of assessment either he or, in the case of a married man, his wife living with him was of the age of sixty-five years or upwards shall, for the purpose of ascertaining the amount of his assessable income for the purpose of income tax, be allowed a deduction from the amount of his unearned income of a sum equal to one-fourth of the amount of that income:

Provided that—

(a) in case the individual is entitled to a deduction exceeding three hundred and fifty pounds under section 16 of the Finance Act, 1920

(i) in case that deduction is five hundred pounds, there shall be no deduction under this section, and

(ii) in any other case, the deduction under this section shall not be greater than the amount by which the deduction under the said section 16 falls short of five hundred pounds, and

(b) in any other case, the deduction under this section shall not be greater than one hundred and fifty pounds.

(2) For the purpose of subsection (1) of this section the amount of the unearned income of any individual shall be taken to be the amount of his total income diminished by the amount of his earned income.

(3) All such provisions of the Income Tax Acts as apply in relation to allowances or deductions within the meaning of the Third Schedule to the Finance Act, 1920 , shall, with any necessary modifications, apply in relation to deductions under this section.

(4) Section 9 of the Finance Act, 1958 , is hereby amended—

(i) by the substitution for paragraph (d) of subsection (2) of the following paragraph:

“(d) so far as it flows from relief under section 2 of the Finance Act, 1964, in proportion to the amounts of their respective unearned incomes within the meaning of the said section 2,” and

(ii) by the substitution in subsection (6) of “ section 2 of the Finance Act, 1964,” for “ section 4 of the Finance Act, 1951 (No. 15 of 1951), or”.

(5) In this section “earned income” and “total income” mean respectively earned income as estimated in accordance with the provisions of the Income Tax Acts and total income from all sources as so estimated.