Finance Act, 1978

Payments in respect of thalidomide children.

7.—The following section shall be substituted for section 19 of the Finance Act, 1973:

“19.—(1) This section applies to any payment made by the Minister for Health or by the foundation known as Hilfswerk für behinderte Kinder to or in respect of any individual handicapped by reason of infirmity which can be linked with the taking by the individual's mother during her pregnancy of preparations containing thalidomide.

(2) Income which—

(a) consists of a payment to which this section applies, or

(b) arises to a person to or in respect of whom payments to which this section applies are made, from the investment, in whole or in part, of such payments or of the income derived therefrom, being income consisting of dividends or other income which would, but for this section, be chargeable to tax under Schedule C or under Case III, IV (by virtue of section 4 of the Finance Act, 1974 ) or V of Schedule D or under Schedule F,

shall be exempt from tax and shall not be reckoned in computing total income for the purposes of the Income Tax Acts but the provisions of those Acts in relation to the making of returns of total income shall apply as if this section had not been enacted.

(3) This section shall have effect in relation to any income of the kind specified in subsection (2) whether that income has arisen before or arises after the passing of this Act.”.