Finance Act, 1969

Additional deductions in certain cases.

23.—The following section is hereby substituted for section 82 of the Income Tax Act, 1967 :

“82.—(1) In this section—

‘excepted profits or gains’ means profits or gains arising from rent under a lease in respect of premises where, for the year on the profits or gains of which tax under Case V of Schedule D is finally computed for the year of assessment, all the following conditions are satisfied that is to say:

(a) the premises are premises to which subsection (2) applies;

(b) the lease was granted for a term not exceeding fifty years and imposes no obligation on the lessee to maintain or repair the fabric or exterior of any building or to contribute to the cost of such maintenance or repairs, and

(c) the rent to which the lessor is entitled or, in a case in which a deduction is allowable under section 81 (5) (b) in arriving at the amount of the profits or gains for the purpose of assessment under Case V of Schedule D, the said rent reduced by the deduction allowable as aforesaid does not exceed £52 per annum;

‘profit rent’ means, in relation to any premises in respect of which the person chargeable is, in the year on the profits or gains of which tax under Case V of Schedule D is finally computed for the year of assessment, entitled to a rent under a lease, the amount of the rent receivable in that year reduced by the deductions authorised by section 81 (5).

(2) (a) This subsection applies to any premises which are shown to be, in the year on the profits or gains of which tax is finally computed for the year of assessment, a controlled dwelling within the meaning of the Rent Restrictions Acts, 1960 and 1967.

(b) Where, in computing the profits or gains on which tax under Case V of Schedule D is finally computed for any year of assessment, a rent under a lease of any premises to which this subsection applies falls to be taken into account, the amount which would, apart from this subsection, be required to be taken into account shall be reduced by an amount equal to two-fifths of the profit rent:

Provided that, for any year of assessment, the aggregate of all amounts by which profits or gains, other than excepted profits or gains, arising to any person are reduced by virtue of this paragraph shall not exceed £200

(3) The reference, in the proviso to subsection (2) (b), to profits or gains arising to any person shall be deemed to include, in the case of an individual, a reference to profits or gains arising to the wife or husband of the individual.

In this subsection and subsection (4) ‘wife’ means a married woman who under section 196 (1) is to be treated as living with her husband, and ‘husband’ has a corresponding meaning.

(4) (a) Where in any year of assessment profits or gains chargeable under Case V of Schedule D arise to both a husband and a wife from rents in respect of premises to which subsection (2) applies and the aggregate (hereafter in this subsection referred to as the gross aggregate) of all amounts by which the said profits or gains would have fallen to be reduced under this section, if the proviso to subsection (2) (b) (hereafter in this subsection referred to as the limiting provision) had been omitted from this section, exceeds what in consequence of the operation of the limiting provision is the aggregate (hereinafter in this subsection referred to as the net aggregate) of all amounts by which the said profits or gains may be reduced, the aggregate of all amounts by which the profits or gains arising to either spouse are reduced shall not exceed the sum which bears to the net aggregate the same proportion as the aggregate of all amounts by which, but for the limiting provision, the profits or gains arising to that spouse would have fallen to be reduced bears to the gross aggregate.

(b) Any reference in this subsection to profits or gains does not include a reference to excepted profits or gains.”.