Finance Act, 1995
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Amendment of provisions relating to the taxation of certain benefits payable under Social Welfare Acts. |
10.—(1) Section 15 of the Finance Act, 1992 , is hereby amended, as respects the year of assessment 1995-96 and subsequent years of assessment, by the substitution of the following subsection for subsection (2): | |
“(2) All amounts falling to be paid on foot of the benefits to which this section applies (other than amounts so payable in respect of a qualified child within the meaning of section 2 (3) (a) of the Social Welfare (Consolidation) Act, 1993 ) shall be deemed— | ||
(a) to be profits or gains arising or accruing from an employment and, accordingly— | ||
(i) tax under Schedule E shall be charged on every person, to whom any such benefit is payable, in respect of all amounts falling to be paid on foot of such benefits, and | ||
(ii) the tax so chargeable shall be computed under section 110 (1) (inserted by the Finance Act, 1991 ) of the Income Tax Act, 1967 , | ||
and | ||
(b) to be emoluments to which the provisions of Chapter IV of Part V of the Income Tax Act, 1967 , are applied by section 125 of that Act: | ||
Provided that— | ||
(I) the first £10 of the aggregate of the amounts of unemployment benefit payable to a person in respect of one or more days of unemployment comprised in any income tax week (other than an amount so payable in respect of a qualified child within the meaning as aforesaid) shall be disregarded for all the purposes of the Income Tax Acts, and | ||
(II) for the purposes of this proviso, ‘income tax week’ means one of the successive periods of 7 days in a year of assessment beginning on the 1st day of that year, or on any 7th day after that day, the last day of a year of assessment (or the last 2 days of a year of assessment ending in a leap year) being taken as included in the last income tax week of that year of assessment.”. | ||
(2) Section 10 of the Finance Act, 1994 , shall apply and have effect, as respects the year of assessment 1995-96, as if— | ||
(a) in subsection (1), the definitions of “day of unemployment” and “period of interruption of employment” were deleted, and | ||
(b) the following subsection were substituted for subsection (2): | ||
“(2) Notwithstanding the provisions of section 15 (as amended by the Finance Act, 1995) of the Finance Act, 1992 , and the Finance Act, 1992 (Commencement of Section 15) (Unemployment Benefit and Pay-Related Benefit) Order, 1994 (S.L No. 19 of 1994), the said section 15 shall not apply or have effect, as respects the year of assessment 1995-96, in relation to unemployment benefit paid or payable to a person employed in short-time employment.”. |