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Amendment of section 485 (relief for gifts to third-level institutions) of Principal Act.
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50.—As on and from 6 April 2000, section 485 of the Principal Act is amended—
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(a) in subsection (1)—
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(i) by the insertion before the definition of “approved institution” of the following definition:
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“ ‘approved development fund’ means a fund in respect of which the Minister has given a certificate under subsection (2) which certificate has not been revoked under that subsection;”,
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(ii) by the insertion after the definition of “approved project” of the following definition:
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“ ‘development fund’ means a fund established by an approved institution, in accordance with the relevant guidlines, for the purpose of enabling it to carry out one or more projects;”,
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(iii) in the definition of “project”—
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(I) in paragraph (c), by the substitution of “relevant guidelines,” for “guidelines referred to in subsection (2)(a)(i), and”,
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(II) in paragraph (d), by the substitution of “skills needs, and” for “skills needs;”, and
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(III) by the insertion after paragraph (d) of the following paragraph:
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“(e) any other project approved of for the purpose of this section by the Minister with the consent of the Minister for Finance;”,
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(iv) by the substitution of the following for the definition of “relevant gift”:
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“ ‘relevant gift’ means a gift of money—
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(a) to an approved institution for the sole purpose of funding an approved project or an approved development fund, as the case may be,
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(b) that is or will be applied by the approved institution for the purpose of funding the approved project or the approved development fund, as the case may be, and
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(c) that, apart from this section, is not deductible in computing for the purposes of tax the profits or gains of a trade or profession, or is not income to which section 792 applies or is not a gift of money to which section 484 applies; and”,
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and
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(v) by the insertion after the definition of “relevant gift” of the following definition:
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“ ‘relevant guidelines’ has the meaning assigned to it by subsection (14).”,
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(b) in subsection (2)—
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(i) by the substitution of the following for subparagraph (a)(i):
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“(i) The Minister, on the making of an application by an approved institution, may, in accordance with the relevant guidelines, give a certificate to that institution stating that a project or a development fund, as the case may be, may be treated as an approved project or an approved development fund, as the case may be, for the purposes of this section.”,
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(ii) in subparagraph (a)(ii), by the substitution of “relevant guidelines” for “guidelines referred to in subparagraph (i)”,
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(iii) by the deletion of subparagraph (a)(iii), and
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(iv) by the substitution of the following for paragraph (c):
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“(c) Where an approved institution fails to comply with any of the conditions to which a certificate given to it under paragraph (a) is subject by virtue of paragraph (b), the Minister may, by notice in writing given to the institution, revoke the certificate, and the project or the development fund, as the case may be, shall cease to be an approved project or an approved development fund, as the case may be, as respects any gifts made to the institution after the date of the Minister's notice.”,
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(c) by the substitution of the following for subsections (6) and (7):
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“(6) (a) For the purposes of income tax for the year of assessment in which a person makes a relevant gift, the net amount of the gift shall be deducted from or set off against any income of the person chargeable to income tax for that year and tax shall where necessary be discharged or repaid accordingly, and the total income of the person or, where the person's spouse is assessed to income tax in accordance with section 1017, the total income of the spouse shall be calculated accordingly.
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(b) Where, in any year of assessment owing to an insufficiency of total income, relief cannot be given by virtue of paragraph (a) for all or a part of the relevant gift (in this subsection referred to as the ‘unrelieved amount’), the unrelieved amount shall be carried forward to the next year of assessment and shall be treated for the purposes of the relief as a relevant gift made in that next year.
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(c) Where, owing to an insufficiency of total income, relief cannot be given by virtue of paragraph (b) for any part of the unrelieved amount, that part of the unrelieved amount shall be carried forward to the next year of assessment following the year referred to in paragraph (b) and treated as a relevant gift made in that next year.
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(d) Where, owing to an insufficiency of total income, relief cannot be given by virtue of paragraphs (b) and (c) in respect of any part of an unrelieved amount, that part of the unrelieved amount shall be carried forward to the next year of assessment following the year referred to in paragraph (c) and treated as a relevant gift made in that next year.
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(e) Relief under this section shall be given to an individual for any year of assessment in the following order:
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(i) in the first instance, in respect of an amount carried forward from an earlier year of assessment in accordance with paragraph (b), (c) or (d) and, in respect of such an amount so carried forward, for an earlier year of assessment in priority to a later year of assessment; and
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(ii) only thereafter, in respect of any other amount for which relief is to be given in that year of assessment.
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(7) (a) Where a relevant gift is made by a company, the net amount of the gift shall, for the purposes of corporation tax, be deemed to be a loss incurred by the company in a separate trade in the accounting period of the company in which the gift is made.
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(b) Where all or part of the relevant gift which is deemed to be a loss of a separate trade in the accounting period in which the gift is made has not been set off against profits of the company for that accounting period by virtue of section 396(2), or surrendered to another company by virtue of section 420(1), so much of the relevant gift as has not been so set off or surrendered, as the case may be, shall be carried forward and treated as a loss incurred by the company in a separate trade in the next succeeding accounting period and so on until all of the relevant gift has been set off or surrendered, as the case may be, but no such loss shall be so carried forward to an accounting period which ends more than 3 years after the end of the accounting period in which the relevant gift giving rise to the loss was made.”,
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(d) in subsection (8), by the substitution of “£250” for “£1,000”,
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(e) in subsection (9), by the insertion after “each approved project” of “or approved development fund, as the case may be”,
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(f) in subsection (10), by the substitution of the following for paragraph (b):
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“(b) a project is an approved project,
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(bb) a development fund is an approved development fund, or”,
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(g) in subsection (11)—
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(i) by the substitution of the following for subparagraph (a)(iv):
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“(iv) the project or the development fund, as the case may be, in respect of which the relevant gift has been made is an approved project or an approved development fund, as the case may be,”,
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and
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(ii) by the substitution of the following for subparagraph (b)(vi):
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“(v) particulars of the approved project or the approved development fund, as the case may be, in respect of which the relevant gift has been made,”,
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and
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(h) by the insertion after subsection (11) of the following subsections:
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“(12) The Minister may delegate his functions under this section to the Higher Education Authority.
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(13) The Higher Education Authority, when required to do so by notice in writing from the Minister or the Minister for Finance, as the case may be, shall, within the time limited by the notice, prepare and deliver to that Minister a report for such period and containing such particulars as that Minister may specify.
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(14) In this section ‘relevant guidelines’ means guidelines issued for the purposes of this section by the Minister with the consent of the Minister for Finance and, without prejudice to the generality of the foregoing, such guidelines may include provisions in relation to all or any one or more of the following:
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(i) the certification of projects or development funds, as the case may be, to be treated as approved projects or approved development funds, as the case may be;
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(ii) the payment for the benefit of the Exchequer by an approved institution of the value of the tax relief granted in respect of a relevant gift made to it to the extent that that gift has not been used by it for the purposes of an approved project or an approved development fund, as the case may be;
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(iii) the provision of particulars in relation to the amount of relevant gifts received by an approved institution and the application of those gifts; and
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(iv) the provision of such other information as the Minister may reasonably require for the purposes of this section.”.
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