Finance Act, 1978


Wealth Tax

Abolition of wealth tax and amendment of sections 18 and 22 (interest on tax) of Wealth Tax Act, 1975.

38.—(1) Wealth tax shall not be charged, levied or paid under the provisions of the Act by reference to any valuation date occurring on or after the 5th day of April, 1978.

(2) Real property, within the meaning of the Act, shall not, as against a bona fide purchaser for full consideration in money or money's worth or a mortgagee, remain charged with or liable to the payment of wealth tax in any case where the purchase was made or the mortgage was created on or after the 5th day of April, 1978.

(3) Sections 18 and 22 of the Act shall have effect, in their application to interest accruing due after the date of the passing of this Act, as if “1.25 per cent.” were substituted for “1.5 per cent.”.

(4) In this section—

“the Act” means the Wealth Tax Act, 1975 ;

“valuation date” has the meaning assigned to it by the Act.