Finance Act, 1995

Payment of tax on certain assets by instalments.

164.—(1) In this section—

“agricultural property” has the meaning assigned to it by section 19 of the Principal Act (as amended by the Finance Act, 1994 );

“relevant business property” has the same meaning as it has in section 127 of the Finance Act, 1994 , other than shares in or securities of a company (being shares or securities quoted on a recognised stock exchange) and without regard to sections 128 and 134 (3) of that Act.

(2) Where the whole or part of the tax which is due and payable in respect of a taxable gift or taxable inheritance is attributable to either or both agricultural property and relevant business property—

(a) section 43 of the Principal Act shall apply to that whole or part of the tax notwithstanding subsection (4) of that section, and

(b) notwithstanding subsection (2) of section 41 of the Principal Act the rate at which interest is payable upon that whole or part of the tax shall be 0.75 per cent., or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, for each month or part of a month instead of at the rate specified in that section and that section shall have effect as regards that whole or part of the tax as if the rate so payable were substituted for the rate specified in that section:

Provided that the rate at which interest is payable upon any overdue instalment of that whole or part of the tax, or upon such part of the tax as would represent any such overdue instalment if that whole or part of the tax were being paid by instalments, shall continue to be at the rate specified in section 41 of the Principal Act.

(3) For the purposes of this section the value of a business or of an interest in a business shall be taken to be its net value ascertained in accordance with section 132 of the Finance Act, 1994 .

(4) This section shall have effect in relation to gifts and inheritances taken on or after the 8th day of February, 1995, but shall not have effect in relation to an inheritance taken by a relevant trust by virtue of section 110 (1) of the Finance Act, 1993 , or to an inheritance taken by a discretionary trust by virtue of section 106 (1) of the Finance Act, 1984 , or section 103 (1) of the Finance Act, 1986 .

(5) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next twenty-one days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.