Finance Act, 1992

• Permanent Page URL

Number 9 of 1992

FINANCE ACT, 1992

ARRANGEMENT OF SECTIONS

PART I

Income Tax, Corporation Tax and Capital Gains Tax

Chapter I

Income Tax

Chapter II

Income Tax, Corporation Tax and Capital Gains Tax

Chapter III

Corporation Tax

Chapter IV

Capital Gains Tax

Chapter V

Implementation of Council Directive No. 90/434/EEC and other related matters

Chapter VI

Petroleum Taxation

PART II

Customs And Excise

Chapter I

Excise Duty on Beer

Chapter II

Implementation of Council Directive No. 92/12/EEC.

Chapter III

Amusement Machine Licence Duty

Chapter IV

Registration and Taxation of Vehicles

Chapter V

Miscellaneous

PART III

Value-Added Tax

PART IV

Stamp Duties

PART V

Residenhal Property Tax

PART VI

Capital Acquisitions Tax

PART VII

Anti-Avoidance and Anti-Evasion

PART VIII

Miscellaneous

FIRST SCHEDULE

Tables to Section 4 (4) of the Finance Act, 1982

PART I

Table to section 4 (4) of the Finance Act, 1982, as respects the year 1992-93

PART II

Table to section 4 (4) of the Finance Act, 1982, as respects the year 1993-94

PART III

Table to section 4 (4) of the Finance Act, 1982, as respects the year 1994-95

PART IV

Table to section 4 (4) of the Finance Act, 1982, as respects the year 1995-96

PART V

Table to section 4 (4) of the Finance Act, 1982, as respects the year 1996-97 and subsequent years of assessment

SECOND SCHEDULE

Accountable Persons for Purposes of Chapter III Of Part I of the Finance Act, 1987

THIRD SCHEDULE

PART I

Repeal of Provisions relating to Excise Duty on Beer

PART II

Repeal of Provisions relating to Spirits Retailers' On-Licences

FOURTH SCHEDULE

Rates of Excise Duty on Tobacco Products

FIFTH SCHEDULE

Rates of Excise Duty on Cider and Perry

SIXTH SCHEDULE

Rates of Excise Duty on Certain Licences

PART I

Intoxicating Liquor Licences

PART II

Firearm Certificates

PART III

Gaming Licences

PART IV

Other Licences

SEVENTH SCHEDULE

Stamp Duty on Instruments

PART I

Conveyance or Transfer on Sale of any Stocks or Marketable Securities

PART II

Conveyance or Transfer on Sale of Policy of Insurance or Policy of Life Insurance

PART III

Conveyances or Transfers of certain other Kinds

PART IV

Deeds

PART V

Mortgages, Bonds, Debentures and certain Covenants

Number 9 of 1992

Finance Act, 1992

AN ACT TO CHARGE AND IMPOSE CERTAIN DUTIES OF CUSTOMS AND INLAND REVENUE (INCLUDING EXCISE), TO AMEND THE LAW RELATING TO CUSTOMS AND INLAND REVENUE (INCLUDING EXCISE) AND TO MAKE FURTHER PROVISIONS IN CONNECTION WITH FINANCE. [28th May, 1992]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

PART I

Income Tax, Corporation Tax and Capital Gains Tax

Chapter I

Income Tax

Amendment of provisions relating to exemption from income tax.

1.—As respects the year of assessment 1992-93 and subsequent years of assessment, the Finance Act, 1980 , is hereby amended—

(a) in section 1—

(i) by the substitution, in paragraph (b) of subsection (1), of “48 per cent.” for “52 per cent.” (inserted by the Finance Act, 1991 ), and

(ii) by the substitution, in subsection (2) (inserted by the Finance Act, 1989 ), of “£7,000” and “£3,500”, respectively, for “£6,800” and “£3,400” (inserted by the Finance Act, 1991 ),

and

(b) in section 2—

(i) by the substitution, in subsection (3), of “48 per cent.” for “52 per cent.” (inserted by the Finance Act, 1991 ), and

(ii) by the substitution, in subsection (6) (inserted by the Finance Act, 1989 )—

(I) of “£8,000” and “£9,200”, respectively, for “£7,800” and “£9,000” (inserted by the Finance Act, 1991 ), in paragraph (a), and

(II) of “£4,000” and “£4,600”, respectively, for “£3,900” and “£4,500” (inserted by the Finance Act, 1991 ), in paragraph (b),

and the said paragraph (b) of subsection (1), and the said subsection (2), of the said section 1 and the said subsections (3) and (6) of the said section 2, as so amended, are set out in the Table to this section.

TABLE

(b) an individual makes a claim for the purpose, makes a return in the prescribed form of his total income for that year and proves that it does not exceed a sum equal to twice the specified amount, he shall be entitled to have the amount of income tax payable in respect of his total income for that year, if that amount would, but for the provisions of this subsection, exceed a sum equal to 48 per cent. of the amount by which his total income exceeds the specified amount, reduced to that sum.

(2) In this section “the specified amount” means, subject to subsection (3)—

(a) in a case where the individual would, apart from this section, be entitled to a deduction specified in section 138 (a) of the Income Tax Act, 1967 , £7,000, and

(b) in any other case, £3,500.

(3) Where an individual to whom this section applies proves that his total income for a year of assessment for which this section applies does not exceed a sum equal to twice the specified amount, he shall be entitled to have the amount of income tax payable in respect of his total income for that year, if that amount would, but for the provisions of this subsection, exceed a sum equal to 48 per cent. of the amount by which his total income exceeds the specified amount, reduced to that sum.

(6) In this section “the specified amount” means, subject to subsection (3) of section 1—

(a) in a case where the individual would, apart from this section, be entitled to a deduction specified in section 138 (a) of the Income Tax Act, 1967 , £8,000:

Provided that, if at any time during the year of assessment either the individual or his spouse was of the age of seventy-five years or upwards, “the specified amount” means £9,200, and

(b) in any other case, £4,000:

Provided that, if at any time during the year of assessment the individual was of the age of seventy-five years or upwards, “the specified amount” means £4,600.

Alteration of rates of income tax.

2.—(1) As respects the year of assessment 1992-93 and subsequent years of assessment—

(a) section 2 of the Finance Act, 1991 , is hereby amended by 45 the substitution of the following Table for the Table to that section:

“TABLE

PART I

PART II

”,

and

(b) any reference in the Tax Acts to the higher rates shall be construed as a reference to the higher rate.

(2) (a) Section 198 of the Income Tax Act, 1967 , is hereby amended, as respects the year of assessment 1992-93 and subsequent years of assessment, by the substitution in subsections (1) (b) and (3) of “ section 2 of the Finance Act, 1991 ” for “ section 8 of the Finance Act, 1980 ”.

(b) The reference to section 8 of the Finance Act, 1980 , in subsection (1) (b), and in subsection (3), of section 198 of the Income Tax Act, 1967 , shall in each case be construed and be deemed always to have been construed—

(i) as respects the years of assessment 1984-85 to 1990-91, as a reference to section 2 of the Finance Act, 1984 , and

(ii) as respects the year of assessment 1991-92, as a reference to section 2 of the Finance Act, 1991 .

Amendment of section 6 (special allowance in respect of P.R.S.I. for 1982-83) of Finance Act, 1982.

3.— Section 6 of the Finance Act, 1982 , shall have effect for the purpose of ascertaining the amount of income on which an individual referred to therein is to be charged to income tax for the year 1992-93, as if in subsection (2)—

(a) “1992-93” were substituted for “1982-83”, and

(b) “£286” were substituted for “£312” in each place where it occurs.

Cesser of relief in respect of life insurance premiums.

4.—The following provisions shall not apply or have effect in relation to the year of assessment 1992-93 or any subsequent year of assessment, that is to say:

(a) sections 143 , 151 and 152 of the Income Tax Act, 1967 ,

(b) section 23 of, and the First Schedule to, the Finance Act, 1973 , and

(c) section 8 (as amended by the Finance Act, 1991 ) of the Finance Act, 1989 .

Amendment of section 432 (making of claims, etc., and appeals and rehearings) of Income Tax Act, 1967.

5.— Section 432 of the Income Tax Act, 1967 , is hereby amended, in subsection (1), by the insertion after “but any person aggrieved by any determination on any such claim, matter or question may,” of “subject to section 17 of the Finance Act, 1988 , and”, and the said subsection (1), as so amended, is set out in the Table to this section.

TABLE

(1) Notwithstanding any other provision of this Act—

(a) all claims of exemption or for any allowance or deduction under this Act,

(b) all claims for repayment of tax under this Act, and

(c) (i) all claims to relief under this Act where the relief is measured in the provision under which it is given, and

(ii) all matters and questions relating to any relief so measured,

in relation to which a right of appeal from a decision is, otherwise than by this section, not specifically provided,

shall be stated in such manner and form as the Revenue Commissioners may prescribe and shall be submitted to and determined by the Revenue Commissioners or such officer of the Revenue Commissioners (including an inspector) as they may authorise in that behalf, but any person aggrieved by any determination on any such claim, matter or question may, subject to section 17 of the Finance Act, 1988 , and on giving notice in writing to the Revenue Commissioners or the officer within thirty days after notification to the person aggrieved of the determination, appeal to the Appeal Commissioners.

Amendment of Chapter II (occupational pension schemes) of Part I of Finance Act, 1972.

6.—Chapter II of Part I of the Finance Act, 1972 , is hereby amended—

(a) in subsection (3) of section 15, by the deletion in paragraph (a) of “(or if the employee is a woman, 55)”,

(b) in subsection (2) of section 21, as respects any repayment of contributions referred to in the said section 21 which is made on or after the 29th day of January, 1992, by the substitution of “25 per cent.” for “10 per cent.”:

Provided that this paragraph shall not apply where the Revenue Commissioners are satisfied that an application for a repayment was made by or on behalf of an employee before the said 29th day of January, 1992,

and

(c) in section 22, by the substitution of the following subsection for subsection (2):

“(2) Where any amount is chargeable to tax under this section the administrator of the scheme shall be charged to income tax under Case IV of Schedule D on that amount and, subject to subsection (4) of section 21 which shall apply as it applies to tax chargeable under that section, the rate of tax shall be 10 per cent.”,

and the said paragraph (a) of subsection (3) of section 15 and the said subsection (2) (apart from the proviso) of section 21, as so amended, are set out in the Table to this section.

TABLE

(a) that any benefit for an employee is a pension on retirement at a specified age not earlier than 60 and not later than 70, or on earlier retirement through incapacity, which does not exceed one-sixtieth of the employee's final remuneration for each year of service up to a maximum of 40,

(2) Where any payment is chargeable to tax under this section, the administrator of the scheme shall be charged to income tax under Case IV of Schedule D, and subject to subsection (3), the rate of the tax shall be 25 per cent.:

Amendment of section 8 (permanent health benefit schemes) of Finance Act, 1979.

7.—(1) Section 8 of the Finance Act, 1979 , is hereby amended by the insertion after subsection (4) of the following subsection:

“(4A) The Revenue Commissioners may nominate any of their officers, including an inspector, to perform any acts and discharge any functions authorised by this section to be performed or discharged by them.”.

(2) Subsection (1) shall be deemed to have come into operation on the lst day of June, 1979.

Amendment of section 4 (benefit of use of a car) of Finance Act, 1982.

8.—As respects the year 1992-93 and subsequent years of assessment, section 4 of the Finance Act, 1982 , is hereby amended—

(a) in paragraph (a) of subsection (3)—

(i) by the substitution of “30 per cent.” for “20 per cent.”,

(ii) by the substitution of “4 1/2 per cent.” for “3 per cent.” in subparagraph (i),

(iii) by the substitution of “3 per cent.” for “2 per cent.”, in subparagraph (ii) and in subparagraph (iii), and

(iv) by the substitution of “1 per cent.” for “1/2 per cent.” in subparagraph (iv),

and

(b) in subsection (4)—

(i) by the substitution of “15,000” for “10,000” in paragraph (a), and

(ii) by the substitution—

(I) as respects the year 1992-93, of the Table set out in Part I of the First Schedule ,

(II) as respects the year 1993-94, of the Table set out in Part II of the First Schedule ,

(III) as respects the year 1994-95, of the Table set out in Part III of the First Schedule ,

(IV) as respects the year 1995-96, of the Table set out in Part IV of the First Schedule , and

(V) as respects the year 1996-97 and subsequent years of assessment, of the Table set out in Part V of the First Schedule

for the Table to that subsection,

and the said paragraphs (a) of the said subsections (3) and (4), as so amended, are set out, respectively, in the Table to this section.

TABLE

(a) The cash equivalent of the benefit of a car for a year of assessment shall be 30 per cent. of the original market value of the car, but shall be reduced—

(i) where no part of the cost, for that year, of the fuel used in the course of the private use of the car by the employee is borne directly or indirectly by the employer, by 41/2 per cent. of the original market value of the car,

(ii) where no part of the cost, for that year, of the insurance of the car is borne directly or indirectly by the employer, by 3 per cent. of the original market value of the car,

(iii) where no part of the cost, for that year, of repair and servicing of the car is borne directly or indirectly by the employer, by 3 per cent. of the original market value of the car, and

(iv) where no part of the excise duty, for that year, on the licence under section 1 of the Finance (Excise Duties) (Vehicles) Act, 1952 , relating to the car is borne directly or indirectly by the employer, by 1 per cent. of the original market value of the car.

(a) Where, in relation to a person, the business mileage for a year of assessment exceeds 15,000, the cash equivalent of the benefit of the car for that year, instead of being the amount ascertained under subsection (3), shall be the percentage of that amount applicable to that business mileage under the Table to this subsection.

Amendment of section 8 (restriction of relief in respect of interest paid on certain loans at a reduced rate) of Finance Act, 1982.

9.— Section 8 of the Finance Act, 1982 , is hereby amended, as respects the year 1992-93 and subsequent years of assessment, by the substitution in the definition of “the specified rate” (inserted by the Finance Act, 1989 ) in subsection (1) of—

(a) “11 per cent.” for “10 per cent.” in both places where it occurs, and

(b) “15 per cent.” for “12 per cent.”,

and the said definition, as so amended, is set out in the Table to this section.

TABLE

“the specified rate”, in relation to a preferential loan, means—

(i) in a case where—

(I) the interest which is paid on the preferential loan qualifies for relief under section 76 (1) (c) or 496 of, or paragraph 1 (2) of Part III of Schedule 6 to, the Income Tax Act, 1967 , or

(II) if no interest is paid on the preferential loan, the interest which would have been paid on that loan (if interest had been payable) would have so qualified,

the rate of 11 per cent. per annum or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, or

(ii) in a case where—

(I) the preferential loan is made to an employee by an employer,

(II) the making of loans for the purposes of purchasing a dwelling-house for occupation by the borrower as a residence, for a stated term of years at a rate of interest which does not vary for the duration of the loan, forms part of the trade of the employer, and

(III) the rate of interest at which the employer in the course of his trade at the time the preferential loan is or was made makes or made loans at arm's length to persons, other than employees, for the purposes of purchasing a dwelling-house for occupation by the borrower as a residence is less than 11 per cent. per annum or such other rate (if any) as stands prescribed by the Minister for Finance by regulations,

the first-mentioned rate in subparagraph (III), or

(iii) in any other case, the rate of 15 per cent. per annum or such other rate (if any) as stands prescribed by the Minister for Finance by regulations.

Amendment of section 13 (interpretation (Chapter III)) of Finance Act, 1987.

10.— Section 13 (1) of the Finance Act, 1987 , is hereby amended, as respects relevant payments made on or after the 6th day of June, 1992, by the substitution of the following definition for the definition of “relevant payment” (inserted by the Finance Act, 1988 ):

“‘relevant payment’ means a payment made by—

(a) an accountable person in respect of professional services whether or not such services are provided to the accountable person making the payment, or

(b) an authorised insurer to a practitioner in accordance with the provisions of section 14A (inserted by the Finance Act, 1988 ), or otherwise, in the discharge of a claim in respect of relevant medical expenses under a contract of insurance,

but excludes—

(i) emoluments within the scope of Chapter IV of Part V of the Income Tax Act, 1967 , to which that Chapter applies, and

(ii) payments under a construction contract within the meaning of section 17 of the Finance Act, 1970 , and payments under a relevant contract within the meaning of the said section 17 (as amended by the Finance Act, 1992), from which tax has been deducted in accordance with the provisions of subsection (2) of that section, or would have been so deducted but for the provisions of subsection (8) of that section;”.

Amendment of section 14 (accountable persons) of Finance Act, 1987.

11.—(1) Section 14 of the Finance Act, 1987 , is hereby amended by the substitution of the following subsections for subsections (1) and (2):

“(1) In this Chapter ‘accountable person’ means a person specified in the Second Schedule to the Finance Act, 1992.

(1A) Where any of the persons specified in the Second Schedule to the Finance Act, 1992, is a body corporate, ‘accountable person’ shall be deemed to include any subsidiary of that body corporate where such subsidiary is resident in the State and, for the purposes of this subsection, ‘subsidiary’ shall have the meaning assigned to it by section 155 of the Companies Act, 1963 .

(2) For the purposes of this Chapter the Minister for Finance may by Regulations extend or restrict the meaning of accountable person by adding or deleting one or more persons to or from, as the case may be, the list of persons specified in the Second Schedule to the Finance Act, 1992.”.

(2) This section shall apply and have effect from the 6th day of June, 1992.

Cesser of provisions relating to approved share option schemes.

12.—Section 10 of, and the Second Schedule to, the Finance Act, 1986 , shall not apply or have effect in respect of a right (within the meaning of that section) obtained on or after the 29th day of January, 1992, to acquire shares in a body corporate.

Cesser of section 14 (taxation treatment of certain dividends) of Finance Act, 1986.

13.— Section 14 of the Finance Act, 1986 , shall not apply or have effect in relation to any qualifying dividend (within the meaning of that section) that is paid on or after the 29th day of January, 1992.

Relief to individuals on loans applied in acquiring interest in companies.

14.—(1) In this section—

“loan” means a loan applied for any of the purposes specified in the principal section;

“quoted company” means a company whose shares, or any class of whose shares—

(a) are listed in the official list of the Irish Stock Exchange or any other stock exchange, or

(b) are dealt in on the smaller companies market, the unlisted securities market or the exploration securities market of the Irish Stock Exchange or on any similar or corresponding market of any other stock exchange;

“the principal section” means section 34 of the Finance Act, 1974 , as amended by section 8 of the Finance Act, 1978 ;

“the specified date”, in relation to a loan, means—

(a) (i) in a case where the loan was applied on or before the 5th day of April, 1989, the 6th day of April, 1992,

(ii) in a case where the loan was applied on or after the 6th day of April, 1989, but on or before the 5th day of April, 1990, the 6th day of April, 1993, and

(iii) in a case where the loan was applied on or after the 6th day of April, 1990, the 6th day of April, 1994,

or

(b) if later, the 6th day of April in the second year of assessment next after the year of assessment in which the company, part of whose ordinary share capital was acquired or, as the case may be, to which the money was lent, becomes a quoted company.

(2) Subject to subsection (3), as respects the year of assessment 1992-93 and subsequent years of assessment, entitlement to relief under the principal section in respect of interest paid on a loan shall, if the company, part of whose ordinary share capital was acquired or, as the case may be, to which the money was lent, is, at the specified date in relation to the loan, a quoted company, be determined subject to the following provisions, that is to say—

(a) as respects the year of assessment commencing with the said specified date, relief shall not be given in respect of the excess of the amount, or of the aggregate amount, of the interest over 70 per cent. of the amount, or of the aggregate amount, of the interest in respect of which, apart from this paragraph, relief would otherwise have been given under the principal section,

(b) as respects the immediately next following year of assessment, relief shall not be given in respect of the excess of the amount, or of the aggregate amount, of the interest over 40 per cent. of the amount, or of the aggregate amount, of the interest in respect of which, apart from this paragraph, relief would otherwise have been given under the principal section, and

(c) as respects any subsequent year of assessment, no relief shall be given under the principal section.

(3) Notwithstanding anything in subsection (2) or the principal section, the principal section shall not apply or have effect in relation to any payment of interest on a loan applied on or after the 29th day of January, 1992, if, at the time the loan is applied, the company, part of whose ordinary share capital was or is acquired or, as the case may be, to which the money was or is lent, is a quoted company.

(4) The principal section is hereby amended by the addition after subsection (2) of the following subsection:

“(3) Relief shall not be given in respect of any payment of interest by an individual on a loan applied on or after the 24th day of April, 1992, for any of the purposes specified in subsection (1) unless the loan is applied for bona fide commercial purposes and not as part of a scheme or arrangement the main purpose or one of the main purposes of which is the avoidance of tax.”.

Treatment for tax purposes of certain benefits payable under Social Welfare Acts.

15.—(1) This section applies to the following benefits under the Social Welfare (Consolidation) Act, 1981 , and every enactment which is to be construed together as one with that Act, that is to say—

(a) disability benefit,

(b) unemployment benefit,

(c) injury benefit which is comprised in occupational injuries benefit, and

(d) pay-related benefit.

(2) All amounts falling to be paid on foot of the benefits to which this section applies shall be deemed—

(a) to be profits or gains arising or accruing from an employment and, accordingly—

(i) tax under Schedule E shall be charged on every person, to whom any such benefit is payable, in respect of all amounts falling to be paid on foot of such benefits, and

(ii) the tax so chargeable shall be computed under section 110 (1) (inserted by the Finance Act, 1991 ) of the Income Tax Act, 1967 ,

and

(b) to be emoluments to which the provisions of Chapter IV of Part V of the Income Tax Act, 1967 , are applied by section 125 of that Act.

(3) (a) This section shall come into operation on such day or days as may be fixed therefor by order or orders of the Minister for Finance either generally or with reference to any particular benefit or category of person in receipt of any particular benefit, and different days may be so fixed for different benefits or categories of persons in receipt of benefits.

(b) Where an order is proposed to be made under this subsection, a draft thereof shall be laid before Dáil Éireann, and the order shall not be made until a resolution approving of the draft has been passed by Dáil Éireann.

(4) (a) The Revenue Commissioners may, in order to provide for the efficient collection and recovery of any tax due in respect of benefits to which this section applies, make regulations modifying the Income Tax (Employment) Regulations, 1960 ( S.I. No. 28 of 1960 ), in their application to those benefits, the employees in receipt of such benefits, the tax-free allowances appropriate to such employees, employers of such employees or certificates of tax-free allowances or tax deduction cards held by employers of such employees in respect of those employees.

(b) Without prejudice to the generality of paragraph (a), regulations under that paragraph may include provision for the reallocation by the Revenue Commissioners (without the issue of amended notices of determination of tax-free allowances, amended certificates of tax-free allowances or amended tax deduction cards) of the tax-free allowances appropriate to such employees between the said benefits and other emoluments receivable by them.

(c) Every regulation made under this subsection 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 21 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.

Chapter II

Income Tax, Corporation Tax and Capital Gains Tax

Amendment of section 36 (construction of references to child, son and daughter in Tax Acts and Capital Gains Tax Act, 1975) of Finance Act, 1977.

16.— Section 36 of the Finance Act, 1977 , is hereby amended by the substitution of the following subparagraph for subparagraph (ii) of paragraph (a):

“(ii) a child who is—

(I) adopted under the Adoption Acts, 1952 to 1991, or

(II) the subject of a foreign adoption (being a foreign adoption within the meaning of section 1 of the Adoption Act, 1991 ), which is deemed to have been effected by a valid adoption order made under the Adoption Acts, 1952 to 1991,”.

Amendment of Chapter IX (profit sharing schemes) of Part I of and Third Schedule (profit sharing schemes) to Finance Act, 1982.

17.—(1) Subject to subsection (2), Chapter IX of Part I of, and the Third Schedule to, the Finance Act, 1982 , are hereby amended, as respects the year of assessment 1992-93 and subsequent years of assessment, by the substitution in subsections (1) and (2) of section 56 and paragraph 1 (4) of the Third Schedule of “£2,000” for “£5,000”, and the said subsections (1) and (2) and the said paragraph 1 (4), as so amended, are set out in the Table to this section.

(2) (a) Where, in the case of an individual, the total of the initial market values of any shares appropriated to him in the year of assessment 1991-92 (whether under a single approved scheme or under two or more such schemes) is less than £2,000, then, subject to paragraph (b), subsection (1) shall apply and have effect for the year of assessment 1992-93 as if for “£2,000” there were substituted “an amount equal to the sum of £2,000 and the amount by which £2,000 exceeds the total of the initial market values of any shares appropriated to him (whether under a single approved scheme or under two or more such schemes) in the year of assessment 1991-92”.

(b) Where, in the case of an individual, paragraph (a) has effect for the year 1992-93—

(i) the shares represented by the excess shall be deemed, for all the purposes of Chapter IX of Part I of, and the Third Schedule to, the Finance Act, 1982 , to have been appropriated to the individual on the 5th day of April, 1992, and

(ii) if shares have been appropriated to the individual at different times during the year, the excess shall be regarded as represented by those shares issued earlier rather than those issued later.

(c) In this subsection—

“approved scheme”, “initial market value” and “shares” have the same meanings as they have in either or both Chapter IX of Part I of, and the Third Schedule to, the Finance Act, 1982 ;

“excess” means the amount referred to in paragraph (a), being the amount by which £2,000 exceeds the total of the initial market values of any shares appropriated to an individual (whether under a single approved scheme or under two or more such schemes) in the year of assessment 1991-92;

“individual” means a participant in an approved scheme.

TABLE

(1) If the total of the initial market values of all the shares which are appropriated to an individual in any one year of assessment (whether under a single approved scheme or under two or more such schemes) exceeds £2,000, subsections (4) to

(7) shall apply to the excess shares, that is to say, any share which caused that limit to be exceeded and any share appropriated after that limit was exceeded.

(2) For the purposes of subsection (1), if a number of shares is appropriated to an individual at the same time under two or more approved schemes, the same proportion of the shares appropriated at that time under each scheme shall be regarded as being appropriated before the limit of £2,000 is exceeded.

(4) The scheme must provide that the total of the initial market values of the shares appropriated to any one participant in a year of assessment will not exceed £2,000.

Taxation of consideration for certaion restrictive covenants, etc.

18.—(1) Chapter I of Part XXXVI of the Income Tax Act, 1967 , is hereby amended by the substitution of the following section for section 525:

“525.—(1) Where—

(a) an individual who holds, has held or is about to hold an office or employment gives, in connection with his holding thereof, an undertaking (whether absolute or qualified and whether legally valid or not) the tenor or effect of which is to restrict him as to his conduct or activities; and

(b) in respect of the giving of that undertaking by him, or f the total or partial fulfilment of that undertaking by him, any sum is paid, either to him or to any other person; and

(c) apart from this section, the sum paid would not fall to be treated as profits or gains from the office or employment,

the said sum shall be deemed—

(i) to be profits or gains arising or accruing from the office or employment and, accordingly—

(I) in a case where the profits or gains from the office or employment are or would be chargeable to tax under Schedule E—

(A) tax under Schedule E shall be charged thereon, and

(B) the tax so chargeable shall be computed under section 110 (1) (inserted by the Finance Act, 1991 ), or

(II) in a case where the profits or gains from the office or employment are or would be chargeable to tax under Case III of Schedule D, tax under the said Case III shall be charged thereon,

and

(ii) in a case within paragraph (i) (I), to be emoluments to which the provisions of Chapter IV of Part V are applied by section 125 of the said Chapter,

for the year of assessment in which it is paid;

Provided that where the individual has died before the payment of the said sum this subsection shall have effect as if the said sum had been paid immediately before his death.

(2) Where valuable consideration otherwise than in the form of money is given in respect of the giving of, or of the total or partial fulfilment of, any undertaking, the preceding provisions of this section shall apply as if a sum had instead been paid equal to the value of that consideration.

(3) Notwithstanding the provisions of section 61, where any sum paid or valuable consideration given by a person carrying on a trade or profession is chargeable to tax in accordance with the provisions of subsection (1), the sum paid or the value of the consideration given, as the case may be, may be deducted as an expense in computing, for the purposes of Schedule D, the profits or gains of that person's trade or profession, as the case may

be—

(a) in the case of a person chargeable to income tax, for the basis period, or

(b) in the case of a person chargeable to corporation tax, for the accounting period,

in which the said sum is paid or valuable consideration is given.

(4) Where any sum paid or valuable consideration given by an investment company (within the meaning of section 15 of the Corporation Tax Act, 1976 ) or a company to which the said section 15 applies by virtue of section 33 of that Act, is chargeable to tax in accordance with the provisions of subsection (1), the sum paid or the value of consideration given, as the case may be, shall, for the purposes of the said section 15, be treated as an expense of management for the accounting period in which the sum is paid or valuable consideration is given.

(5) (a) In this section ‘office or employment’ means any office or employment whatsoever such that the emoluments thereof, if any, are or would be chargeable to income tax under Schedule E, or under Case III of Schedule D, for any year of assessment.

(b) In this section references to the giving of valuable consideration shall not include references to the mere assumption of an obligation to make over or provide valuable property, rights or advantages, but shall include references to the doing of anything in or towards the discharge of such an obligation.”.

(2) Section 115 of the Income Tax Act, 1967 , is hereby amended by the substitution in subsection (1) of the following paragraph for paragraph (b):

“(b) any sum chargeable to tax under section 525;”.

(3) This section shall apply and have effect in relation to any sum paid or consideration given on or after the 24th day of April, 1992, in respect of the giving of, or the total or partial fulfilment of, any undertaking whether given before, on or after that date.

Treatment of patent royalties and related distributions.

19.—(1) Section 34 of the Finance Act, 1973 , is hereby amended by the insertion of the following subsection after subsection (2):

“(2A) Notwithstanding the provisions of subsection (2), an individual shall not be entitled to have any amount of income from a qualifying patent arising to him disregarded for any purpose of the Income Tax Acts to the extent that it—

(a) is in excess of two-thirds of the amount arising to him in the period beginning on the 24th day of April, 1992, and ending on the 5th day of April, 1993,

(b) is in excess of one-third of the amount arising to him in the year of assessment 1993-94, or

(c) arises to him in the year of assessment 1994-95 or any subsequent year of assessment:

Provided that this subsection shall not apply or have effect in relation to income from a qualifying patent received by an individual who carried out, either solely or jointly with another person, the research, planning, processing, experimenting, testing, devising, designing, developing or other similar activity leading to the invention which is the subject of the qualifying patent.”.

(2) As respects distributions received by a person on or after the 24th day of April, 1992, section 170 of the Corporation Tax Act, 1976 , is hereby amended—

(a) by the insertion after the definition of “disregarded income” in subsection (1) of the following definition:

“‘eligible shares’ has the same meaning as in paragraph (a) of subsection (1A) of section 14 of the Finance Act, 1986 ;”,

(b) by the insertion in subparagraph (ii) of paragraph (a) of subsection (3) after “company” of “and the distribution is in respect of eligible shares”, and

(c) by the insertion after subsection (3) of the following subsection:

“(3A) (a) Subject to paragraph (b), where a person receives any distributions on or after the 24th day of April, 1992, subparagraph (i) of paragraph (a) of subsection (3) shall not apply to those distributions:

Provided that this paragraph shall not apply to—

(i) two-thirds of the total amount of distributions, being distributions (hereafter in this paragraph referred to as ‘relevant distributions’) to which subparagraph (i) of paragraph (a) of subsection (3) would apply apart from the foregoing provisions of this paragraph, received by the person in the period beginning on the 24th day of April, 1992, and ending on the 5th day of April, 1993, or

(ii) one-third of the total amount of relevant distributions received by the person in the year of assessment 1993-94.

(b) Paragraph (a) shall not apply to any distribution received by a person, which is a distribution—

(i) in respect of eligible shares, or

(ii) made out of disregarded income, being income (hereafter in this subsection referred to, in relation to a person, as ‘relevant income’) which is referable to a qualifying patent in relation to which he carried out, either solely or jointly with another person, the research, planning, processing, experimenting, testing, devising, designing, development or other similar activity leading to the invention which is the subject of the qualifying patent.

(c) For the purposes of paragraph (b), where a distribution for an accounting period is made by a company to a person in part out of relevant income, in relation to the person, and in part out of other disregarded income, the distribution shall be treated as if it consisted of two distributions, respectively, made out of relevant income and out of other disregarded income.”.

Amendment of section 28 (farming: provision relating to relief in respect of increase in stock values) of Finance Act, 1980.

20.—As respects disposals made on or after the 6th day of April, 1992, section 28 of the Finance Act, 1980 , is hereby amended in paragraph (b) of subsection (3)—

(a) by the substitution in subparagraph (ii) of the following clause for clause (II) (inserted by the Finance Act, 1991 ):

“(II) the value of the said trading stock at the beginning of the first succeeding accounting period, or, where the farmer so elects, at the beginning of either the first and second, or the first and second and third succeeding accounting periods,”,

and

(b) by the substitution of the following paragraph for paragraph (A) (inserted by the Finance Act, 1990 ) of the proviso:

“(A) no deduction shall be allowed by virtue of section 12 of the Finance Act, 1976 , for any accounting period or periods for which a farmer has elected under the provisions of this subsection,”.

Capital allowances for, and deduction in respect of, vehicles.

21.—(1) (a) Sections 25 to 29 of the Finance Act, 1973 , shall have effect, in relation to expenditure incurred on the provision or hiring of a vehicle to which those sections apply, as if for “£2,500”, in each place where it occurs in those sections, there were substituted “£10,000”.

(b) The reference in paragraph (a) to expenditure incurred on the provision or hiring of a vehicle does not include—

(i) as respects the said sections 25 to 27, a reference to expenditure incurred before the 30th day of January, 1992, or incurred within 12 months after that day under a contract entered into before that day, and

(ii) as respects subsections (2) and (3) of the said section 28 and the said section 29, a reference to expenditure under a contract entered into before the said 30th day of January, 1992.

(2) Section 32 of the Finance Act, 1976 , shall have effect, in relation to qualifying expenditure (within the meaning of that section) incurred after the 29th day of January, 1992, as if for “£3,500”, in each place where it occurs, there were substituted “£10,000”.

Amendment of Chapter IV (interest payments by certain deposit takers) of Part I of Finance Act, 1986.

22.—(1) Chapter IV of Part I of the Finance Act, 1986 , is hereby amended—

(a) in subsection (1) of section 31—

(i) by the substitution of the following definition for the definition of “appropriate tax”:

“‘appropriate tax’, in relation to a payment of relevant interest, means a sum representing income tax on the amount of that payment—

(a) in the case of a relevant deposit or relevant deposits held in a special savings account, at the rate of 10 per cent., and

(b) in the case of any other relevant deposit, at the standard rate in force at the time of payment;”,

(ii) by the insertion of the following definitions after the definition of “interest”:

“‘operative date’ means the date on which sections 37 A and 37B (inserted by the Finance Act, 1992) come into operation by virtue of an order made by the Minister for Finance under section 22 of that Act;

‘pension scheme’ means an exempt approved scheme within the meaning of section 16 of the Finance Act, 1972 , or a retirement annuity contract or a trust scheme to which section 235 or section 235A (inserted by the Finance Act, 1974 ) of the Income Tax Act, 1967 , applies;”,

(iii) in the definition of “relevant deposit”—

(I) by the substitution, in paragraph (a), of the following subparagraph for subparagraph (iii):

“(iii) Icarom p.l.c.,”,

and

(II) by the insertion of the following paragraph after paragraph (e):

“(ee) (i) which is made on or after the operative date by, and the interest on which is beneficially owned by, a company within the charge to corporation tax or a pension scheme, and

(ii) in respect of which a declaration of the kind mentioned in section 37B (inserted by the Finance Act, 1992) has been made to the relevant deposit taker;”, and

(iv) by the insertion of the following definition after the definition of “return”:

“‘special savings account’ means an account, opened on or after the operative date, in which a relevant deposit or relevant deposits made by an individual is or are held and in respect of which—

(a) the conditions in subsection (1) of section 37A (inserted by the Finance Act, 1992) are satisfied, and

(b) a declaration of the kind mentioned in subsection

(2) of that section has been made to the relevant deposit taker.”,

(b) in subsection (1) of section 35—

(i) by the deletion, in paragraph (c), of “, subject to paragraph (d),”, and

(ii) by the deletion of paragraphs (d) and (e),

and the said paragraph (c), as so amended, is set out in the Table to this section, and

(c) by the insertion of the following sections after section 37:

“Conditions and declarations relating to special saving accounts.

37A.—(1) The conditions referred to in paragraph (a) of the definition of ‘special savings account’ (inserted by the Finance Act, 1992) in section 31 (1) are as follows—

(a) the account shall be designated by the relevant deposit taker as a special savings account;

(b) no withdrawal of money shall be made from the account within the period of three months commencing with the date on which it is opened;

(c) the terms under which the account is opened shall require the individual to give a minimum notice of 30 days to the relevant deposit taker in relation to the withdrawal of any money therefrom;

(d) there shall not be any agreement, arrangement or understanding in existence, whether express or implied, which influences or determines, or could influence or determine, the rate (other than an unspecified and variable rate) of interest which is paid or payable, in respect of the relevant deposit or relevant deposits held in the account, in, or in respect of, any period which is more than 24 months;

(e) the relevant deposit or the aggregate of the relevant deposits held in the account, including any relevant interest added thereto, shall not, at any time, exceed £50,000;

(f) the account shall not be opened by or held in the name of an individual who is not of full age;

(g) the account shall be opened byand held in the name of the individual who is beneficially entitled to the relevant interest payable in respect of the relevant deposit or relevant deposits held therein;

(h) except in the case of an account opened and held jointly by and only by a couple married to each other, the account shall not be a joint account;

(i) except in the case of an account opened and held jointly by and only by a couple married to each other, either the same or any other relevant deposit taker shall not simultaneously hold another special savings account opened and held by an individual;

(j) in the case of an account opened and held jointly by and only by a couple married to each other, they shall not simultaneously hold (either with the same or any other relevant deposit taker) any other special savings account either individually or jointly other than one other such account opened and held jointly by them.

(2) The declaration referred to in paragraph (b) of the definition of ‘special savings account’ in section 31 (1) is a declaration in writing to a relevant deposit taker which—

(a) is made by the individual (here-after in this section referred to as ‘the declarer’) to whom any interest payable in respect of the relevant deposit or relevant deposits held in the account in respect of which the declaration is made is payable by the relevant deposit taker, and is signed by the declarer,

(b) is made in such form as may be prescribed or authorised by the Revenue Commissioners,

(c) declares that at the time when the declaration is made the conditions referred to in paragraphs (f) to (j) of subsection (1) are satisfied in relation to the account in respect of which the declaration is made,

(d) contains the full name and address of the individual beneficially entitled to the interest payable in respect of the relevant deposit or relevant deposits held in the account in respect of which the declaration is made,

(e) contains an undertaking by the declarer that if the conditions referred to in paragraphs (f) to (j) of subsection (1) cease to be satisfied in respect of the account in respect of which the declaration is made, the declarer will notify the relevant deposit taker accordingly, and

(f) contains such other information as the Revenue Commissioners may reasonably require for the purposes of this Chapter.

(3) Subsection (2) of section 37 shall have effect as respects declarations of the kind mentioned in this section as it has effect as respects declarations of the kind mentioned in that section.

(4) Section 35 shall apply and have effect in relation to any relevant interest paid in respect of any relevant deposit held in a special savings account—

(a) as if the following paragraph were substituted for paragraph (c) of subsection (1):

‘(c) except for the purposes of a claim to repayment under section 39 (2), the amount of any payment of relevant interest (being relevant interest paid in respect of any relevant deposit held in a special savings account) shall not be reckoned in computing total income for the purposes of the Income Tax Acts,’,

and

(b) as if paragraphs (d) and (e) of subsection (1) were deleted.

(5) An account shall cease to be a special savings account if any of the conditions mentioned in subsection (1) cease to be satisfied and the provisions of subsection (4) shall not apply to any relevant interest in respect of any relevant deposit held in the account which is paid on or after the date on which the account ceases to be a special savings account.

Declarations by companies and pension schemes.

37B.—(1) The declaration referred to in paragraph (ee) (inserted by the Finance Act, 1992) of the definition ‘relevant deposit’ in section 31 (1) is a declaration in writing to the relevant deposit taker which—

(a) is made by a person (hereafter in this section referred to as ‘the declarer’) to whom any interest on the deposit in respect of which the declaration is made is payable by the relevant deposit taker, and is signed by the declarer,

(b) is made in such form as may be prescribed or authorised by the Revenue Commissioners,

(c) declares that at the time the declaration is made the interest on the deposit in respect of which the declaration is made is beneficially owned by a company within the charge to corporation tax or a pension scheme, as the case may be,

(d) contains as respects the person beneficially entitled to the interest—

(i) that person's name and address, and

(ii) that person's tax reference number,

(e) contains a certificate by the appropriate person that, to the best of his knowledge and belief, the declaration made in accordance with paragraph (c) and the information furnished in accordance with paragraph (d) are true and correct, and

(f) contains such information as the Revenue Commissioners may reasonably require for the purposes of this Chapter.

(2) Subsection (2) of section 37 shall have effect as respects declarations of the kind mentioned in this section as it has effect as respects declarations of the kind mentioned in that section.

(3) Where a return is required to be made by a relevant deposit taker under section 175 of the Income Tax Act, 1967 , in respect of interest on a deposit in respect of which a declaration has been made in accordance with the provisions of this section, that return shall include the tax reference number contained in the said declaration of the person beneficially entitled to the interest.

(4) In this section—

‘appropriate person’ means—

(a) in relation to a company, the person or persons appointed as auditor of the company under section 160 of the Companies Act, 1963 , or under the law of the state in which the company is incorporated and which corresponds to that section, and

(b) in relation to a pension scheme—

(i) in the case of an exempt approved scheme (within the meaning of section 16 of the Finance Act, 1972 ), the administrator (within the meaning of section 13 of that Act) of the scheme,

(ii) in the case of a retirement annuity contract to which section 235 or section 235A (inserted by the Finance Act, 1974 ) of the Income Tax Act, 1967 , applies, the person lawfully carrying on in the State the business of granting annuities on human life with whom the contract is made, and

(iii) in the case of a trust scheme to which the said section 235 or the said section 235A applies, the trustees of the trust scheme;

‘tax reference number’, in relation to a person, has the same meaning as is assigned to it in section 22 of the Finance Act, 1983 , in relation to a specified person within the meaning of that section.”.

(2) (a) Subparagraph (iii) (I) of paragraph (a) of subsection (1) shall be deemed to have come into operation on the 1st day of August, 1990.

(b) Paragraph (b) of subsection (1) shall apply and have effect as respects the year 1993-94 and subsequent years of assessment.

(c) Paragraph (c) of subsection (1) shall come into operation on such day as the Minister for Finance may by order appoint.

TABLE

(c) the amount of any payment of relevant interest shall be regarded as income chargeable to tax under Case IV of Schedule D and under no other Case or Schedule and shall be taken into account in computing the total income of the person entitled to that amount, but no assessment to income tax shall be made in respect of relevant interest on the person receiving or entitled to the payment of the relevant interest.

Amendment of section 46 (limited partnerships: relief restrictions) of Finance Act, 1986.

23.—(1) Section 46 of the Finance Act, 1986 , is hereby amended, in subsection (2)—

(a) by the substitution, in paragraph (a), of “only against income consisting of profits or gains arising from the trade and” for “, otherwise than against income consisting of profits or gains arising from the trade,”, and

(b) by the substitution, in paragraph (b), of “only against profits or gains arising from the trade and” for “, otherwise than against profits or gains arising from the trade, or to another company,”,

and the said paragraphs (a) and (b), as so amended, are set out in the Table to this section.

(2) (a) This section shall apply and have effect, in relation to an amount given or allowed under any of the specified provisions within the meaning of section 46 of the Finance Act, 1986 , as respects a contribution (within the meaning of that section) by a limited partner to the trade of the limited partnership which is made on or after the 24th day of April, 1992.

(b) In determining whether an amount is given or allowed under any of the specified provisions, within the meaning of section 46 of the Finance Act, 1986 , as respects a contribution to a trade, within the meaning of that section, on or after the 24th day of April, 1992, any amount which would not otherwise have been given or allowed by virtue of that section but for a contribution to a trade on or after the said date and on the basis that paragraph (a) had not been enacted, shall be treated as given or allowed as respects such a contribution.

(3) Notwithstanding subsections (1) and (2), this section shall apply in so far as the trade of a limited partnership consists of the management and letting of holiday cottages within the meaning of section 255 of the Income Tax Act, 1967 , where—

(a) a written contract for the construction of the holiday cottages was signed and construction work had commenced before the 24th day of April, 1992, and

(b) the construction work is completed before the 6th day of April, 1993,

as if references to a contribution to a trade by a limited partner on or after the 24th day of April, 1992, were references to such contribution on or after the 1st day of September, 1992.

TABLE

(a) Where, in the case of an individual who is a limited partner in relation to a trade, an amount may, apart from this section, be given or allowed under any of the specified provisions—

(i) in respect of a loss sustained by him in the trade or of interest paid by him by reason of his participation in the trade, in a relevant year of assessment, or

(ii) as an allowance falling to be made to him for a relevant year of assessment either in taxing the trade or by way of discharge or repayment of tax to which he is entitled by reason of his participation in the trade,

such an amount may be given or allowed only against income consisting of profits or gains arising from the trade and only to the extent that the amount given or allowed or, as the case may be, the aggregate amount in relation to that trade, does not exceed the amount of his contribution to the trade as at the relevant time.

(b) Where, in the case of a partner company which is a limited partner in relation to a trade, an amount may, apart from this section, be given or allowed under any of the specified provisions—

(i) in respect of a loss sustained by the partner company in the trade, or of charges paid by the partner company or another company by reason of its participation in the trade, in a relevant accounting period, or

(ii) as an allowance falling to be made to the partner company for a relevant accounting period either in taxing the trade or by way of discharge or repayment of tax to which it is entitled by reason of its participation in the trade,

such an amount may be given or allowed to the partner company only against profits or gains arising from the trade and only to the extent that the amount given or allowed, or, as the case may be, the aggregate amount does not exceed the partner company's contribution to the trade as at the relevant time.

Securities of Bord Gáis Éireann.

24.—(1) Part XXXII of the Income Tax Act, 1967 , is hereby amended—

(a) by the insertion after section 467B (inserted by the Finance Act, 1989 ) of the following section:

“467C.—(1) Any debentures, debenture stock, bonds, notes, certificates of charge or other forms of security issued after the passing of the Finance Act, 1992, by Bord Gáis Éireann shall be deemed to be securities issued under the authority of the Minister for Finance within the meaning of section 466 and that section shall apply accordingly.

(2) Notwithstanding anything contained in this Act, in computing for the purposes of assessment under Schedule D the amount of the profits or gains of Bord Gáis Éireann for any period for which accounts are made up, there shall be allowed as a deduction the amount of the interest on debentures, debenture stock, bonds, notes, certificates of charge or other forms of security which, by direction of the Minister for Finance given under section 466 as applied by this section, is paid by Bord Gáis Éireann without deduction of tax for such period.”,

and

(b) by the insertion in subsection (1) of section 474 after “467B,” (inserted by the Finance Act, 1989 ) of “467C,” and the said subsection (1), as so amended, is set out in the Table to this subsection.

TABLE

(1) This section applies to any stock or other security on which interest is payable without deduction of income tax by virtue of a direction given by the Minister for Finance in pursuance of section 467 , 467A, 467B, 467C, 471 , 472 or 473 or section 59 of the Finance Act, 1970 or section 92 of the Finance Act, 1973 .

(2) (a) Paragraph (d) of section 19 of the Capital Gains Tax Act, 1975 , is hereby amended, as on and from the passing of this Act, by the insertion after “the Electricity Supply Board,” of “Bord Gáis Éireann,” and the said paragraph (d), as so amended, is set out in the Table to this subsection.

(b) As on and from the passing of this Act, section 41 of the Finance Act, 1982 , in so far as it relates to Bord Gáis Éireann, shall not apply or have effect.

TABLE

(d) debentures, debenture stock, certificates of charge or other forms of security issued by the Electricity Supply Board, Bord Gáis Éireann, Radio Telefís Éireann, the Industrial Credit Corporation p.l.c., Bord Telecom Éireann, Irish Telecommunications Investments p.l.c., Córas Iompair Éireann, The Agricultural Credit Corporation Limited, Bord na Móna, Aerlínte Éireann, Teoranta, Aer Lingus, Teoranta or Aer Rianta, Teoranta.

Restriction of capital allowances on holiday cottages.

25.—Where, on or after the 24th day of April, 1992, a person incurs capital expenditure on the acquisition or construction of a building or structure which is, or is to be, an industrial building or structure by virtue of being a holiday cottage within the meaning of section 255 of the Income Tax Act, 1967 , and an allowance falls to be made in respect of that expenditure under section 254 (as amended by section 74 of the Finance Act, 1990 ) or 264 (as amended by section 52 of the Finance Act, 1986 ) of the Income Tax Act, 1967 —

(a) (i) neither section 307 (as amended by section 27 of the Finance Act, 1990 ) of the Income Tax Act, 1967 , nor

(ii) subsection (2) of section 16 of the Corporation Tax Act, 1976 ,

shall apply or have effect as respects the whole or part (as the case may be) of any loss which would not have arisen but for the making of the said allowance, and

(b) neither the proviso to subsection (1) of section 296 of the Income Tax Act, 1967 , nor subsection (6) of section 14 of the Corporation Tax Act, 1976 , shall apply or have effect as respects the said allowance:

Provided that this section shall not apply to expenditure incurred before the 6th day of April, 1993, on the acquisition or construction of a building or structure (hereafter in this proviso referred to as “the holiday cottage”) which is, or is to be, an industrial building or structure by virtue of being a holiday cottage within the meaning of the said section 255 if—

(a) a binding contract in writing for the construction of the holiday cottage was entered into, or

(b) (i) a binding contract in writing for the purchase or lease of land for the construction of the holiday cottage was entered into, and

(ii) an application for planning permission for the construction of the holiday cottage was received by a planning authority,

before the 24th day of April, 1992.

Application and amendment of section 241 (wear and tear of machinery, plant, etc.) of Income Tax Act, 1967.

26.—(1) As respects machinery or plant to which this section applies, section 241 of the Income Tax Act, 1967 , shall apply and have effect—

(a) as if the following subsection were substituted for subsection (1) (including the provisos thereto):

“(1) Subject to the provisions of this Act, where a person carrying on a trade in any chargeable period has incurred capital expenditure on the provision of machinery or plant for the purposes of the trade—

(a) an allowance shall be made to him for that chargeable period on account of the wear and tear of any of the machinery or plant which belongs to him and is in use for the purposes of the trade at the end of that chargeable period or its basis period and which, while used for the purposes of the trade, is wholly and exclusively so used,

(b) the amount of the allowance shall, subject to subsection (6), be equal to 15 per cent. of the capital expenditure incurred as aforesaid, and

(c) the allowance shall be made in taxing the trade:

Provided that where a chargeable period or its basis period consists of a period which is less than one year in length the allowance to be made under this section shall not exceed such portion of the amount specified in paragraph (b) as bears to that amount the same proportion as the length of the chargeable period or its basis period bears to a period of one year.”,

and

(b) as if subsections (7) and (8) were deleted.

(2) This section shall apply to machinery or plant (other than vehicles suitable for the conveyance by road of persons or goods or the haulage by road of other vehicles) which, on or after the 1st day of April, 1992, is provided for use for the purposes of a trade, profession, employment or office.

(3) Section 4 of the Finance Act, 1968 , shall not apply or have effect in relation to machinery or plant to which this section applies.

(4) Section 241 of the Income Tax Act, 1967 , is hereby amended, as respects capital expenditure incurred on or after the 24th day of April, 1992, by the insertion of the following subsection after subsection (6):

“(6A) No allowance shall be made under this section in respect of capital expenditure incurred on the construction of a building or structure which is, or which is deemed to be, an industrial building or structure within the meaning of section 255.”.

(5) In relation to a case in which subsection (1) has had effect, any reference in the Tax Acts to an allowance made under section 241 of the Income Tax Act, 1967 , shall be construed as a reference to that allowance as determined pursuant to that section, as applied and amended by this section.

Amendment of section 255 (meaning of “industrial building or structure”) of Income Tax Act, 1967.

27.—(1) Section 255 of the Income Tax Act, 1967 , is hereby amended by the insertion of the following paragraph after paragraph (b) of subsection (1):

“(bb) for the purposes of a trade which consists of the operation or management of an airport and which is an airport runway or an airport apron used solely or mainly by aircraft carrying passengers or cargo for hire or reward, or”.

(2) Subsection (1) shall have effect in relation to capital expenditure incurred on or after the 24th day of April, 1992.

Extension and amendment of section 17 (tax deductions from payments to subcontractors in the construction industry) of Finance Act, 1970.

28.—As on and from the 6th day of October, 1992, section 17 (as amended by section 128 of the Finance Act, 1991 ) of the Finance Act, 1970 , is hereby amended—

(a) in subsection (1)—

(i) by the substitution of the following definition for the definition of “certificate of authorisation”:

“‘certification of authorisation’ means a certificate issued under subsection (7), which certificate shall be valid for such period as the Revenue Commissioners may by regulations made in accordance with subsection (5) provide;”,

(ii) by the deletion of the definitions of “construction contract”, “construction payments card” and “construction tax deduction card”,

(iii) by the insertion of the following definitions after the definition of “construction operations”:

“‘forestry operations’ means operations of any of the following descriptions—

(a) the thinning, lopping or felling of trees in woods, forests or other plantations;

(b) the haulage or removal of thinned, lopped or felled trees;

(c) the processing (including cutting or preserving) of wood from thinned, lopped or felled trees in sawmills or other like premises;

(d) the haulage for hire of materials, machinery or plant for use, whether used or not, in any of the aforesaid operations;

‘meat processing operations’ means operations of any of the following descriptions—

(a) the slaughter of cattle, sheep or pigs;

(b) the division (including cutting or boning), sorting, packaging (including vacuum packaging) or branding of, or the application of any other similar process to, the carcasses, or any part of the carcasses, of slaughtered cattle, sheep or pigs;

(c) the application of methods of preservation (including cold storage) to the carcasses, or any part of the carcasses, of slaughtered cattle, sheep or pigs;

(d) the loading or unloading of the carcasses, or any part of the carcasses, of slaughtered cattle, sheep or pigs at any establishment where any of the operations referred to in paragraphs (a), (b) and (c) are carried on;”,

(iv) by the substitution in the definition of “qualifying period” of “in the year preceding the year of assessment which is the first year of assessment of the period in respect of which a certificate of authorisation is sought” for “in the year preceding the year of assessment in respect of which a certificate of authorisation is sought”, and

(v) by the insertion after the definition of “qualifying period” of the following definitions:

“‘relevant contract’ means a contract (not being a contract of employment) whereby a person (in this section referred to as ‘the contractor’) is liable to another person (in this section referred to as ‘the principal’)—

(a) to carry out relevant operations; or

(b) to be answerable for the carrying out of such operations by others, whether under a contract with him or under other arrangements made or to be made by him; or

(c) to furnish his own labour, or the labour of others, in the carrying out of such operations;

‘relevant operations’ means construction operations, forestry operations or meat processing operations, as the case may be;

‘relevant payments card’ has the meaning assigned to it by subsection (8);

‘relevant tax deduction card’ has the meaning assigned to it by subsection (5).”,

(b) in subsection (2)—

(i) by the substitution of “relevant contract” for “construction contract” in both places where it occurs,

(ii) by the substitution of “relevant operations” for “construction operations”, and

(iii) by the substitution of the following paragraph for paragraph (b) (inserted by the Finance Act, 1981 ):

“(b) a person—

(i) carrying on a business which includes the erection of buildings or the manufacture, treatment or extraction of materials for use, whether used or not, in construction operations, or

(ii) carrying on a business of meat processing operations in an establishment approved and inspected in accordance with the European Communities (Fresh Meat) Regulations, 1987 ( S.I. No. 284 of 1987 ), or

(iii) carrying on a business which includes the processing (including cutting and preserving) of wood from thinned or felled trees in sawmills or other like premises or the supply of thinned or felled trees for such processing, or”,

(c) in subsection (4), by the insertion of the following clause after clause (A) of subparagraph (ii) of paragraph (c):

“(AA) under the Capital Gains Tax Acts,”,

(d) in subsection (5)—

(i) by the substitution of the following paragraph for paragraph (a):

“(a) (i) the issue for a year of assessment, or, in relation to such class or classes of sub-contractor as may be specified in the regulations, for such longer period as may be so specified, of certificates of authorisation,

(ii) the refusal to issue, appeal against refusal to issue, recall or cancellation of certificates of authorisation and the surrender of such certificates, and

(iii) the production of documents or other material, including a photograph of the subcontractor or, in a case where the sub-contractor is not an individual, a photograph of the individual by whom the certificate of authorisation will be produced in accordance with subsection (8) (a), in support of an application for a certificate of authorisation;”,

and

(ii) by the substitution in paragraph (b) of “relevant payments cards” and “relevant tax deduction cards” for “construction payments cards” and “construction tax deduction cards” respectively,

(e) in subsection (7)—

(i) by the substitution in subparagraph (i) of paragraph (a) of “relevant contracts” for “construction contracts”,

(ii) by the substitution in subparagraph (iv) of paragraph (a) of “the Tax Acts, the Capital Gains Tax Acts or the Value-Added Tax Act, 1972 ,” for “the Tax Acts, or the Acts relating to corporation profits tax”, and

(iii) by the deletion of paragraph (c),

(f) in subsection (8)—

(i) by the substitution in paragraph (a) of “relevant payments card” for “construction payments card”, and

(ii) by the substitution in paragraph (b) of “relevant payments card” and “to which the relevant payments card relates” for “construction payments card” and “to which the sub-contractor's certificate of authorisation relates” respectively,

(g) in subsection (9)—

(i) by the insertion after subparagraph (iii) of paragraph (a) of the following subparagraph:

“(iiia) in the case of a certificate issued to a company, there has been a change in control of the company,”,

(ii) by the substitution of the following subparagraph for subparagraph (iv) of paragraph (a):

“(iv) a person to whom a certificate of authorisation was issued has failed to comply with any of the obligations imposed on him by the Tax Acts, the Capital Gains Tax Acts, the Value-Added Tax Act, 1972 , or by any regulations made thereunder in relation to—

(I) the payment or remittance of the taxesrequired to be paid or remitted under any of those Acts,

(II) the delivery of returns, and

(III) requests to supply to an inspector accounts of, or other information about, any business carried on by him,”,

(iii) by the substitution in subparagraph (v) of paragraph (a) of “relevant contracts” for “construction contracts”,

(iv) by the substitution in subparagraph (ii) of paragraph (b) of “relevant payments cards” and “relevant tax deduction card” for “construction payments cards” and “construction tax deduction card”, respectively, and

(v) by the addition after paragraph (c) of the following paragraph:

“(d) In paragraph (a) and subsection (10) (c) ‘control’ has the same meaning as in section 102 of the Corporation Tax Act, 1976 .”,

and

(h) in subsection (10)—

(i) by the insertion after “a certificate of authorisation” in subparagraph (i) of paragraph (a) of “or a relevant payments card”,

(ii) by the substitution of “£1,000” for “£500” in paragraphs (a), (b) and (c),

(iii) by the substitution in paragraph (c) of “relevant payments card or relevant tax deduction card” for “construction payments card or construction tax deduction card” in both places where it occurs, and

(iv) by the addition after subparagraph (iv) of paragraph (c) of the following subparagraphs to that paragraph:

“(v) who fails to give a sub-contractor from whom tax has been deducted under subsection (2) a certificate of deduction in the prescribed form containing such particulars as are required to be entered therein by virtue of any regulations made under this section, or

(vi) who, being a company to which a certificate of authorisation has been issued under subsection (7), fails to notify the Revenue Commissioners of a change in control of the company,”.

Amendment of Chapter V (Urban Renewal: Relief from Income Tax and Corporation Tax) of Part I of Finance Act, 1986.

29.—Chapter V of Part I of the Finance Act, 1986 , is hereby amended—

(a) in subsection (2) of section 41, by the substitution of “nine years” for “five years” in the definition of “the specified period”;

(b) in section 42—

(i) by the substitution, in subsection (1), of the following definition for the definition of “qualifying period” (as provided for by section 30 of the Finance Act, 1990 ):

“‘qualifying period’ means—

(a) the period commencing on the 23rd day of October, 1985, and ending on the 31st day of May, 1993, or

(b) where section 41 (2) applies, the specified period:

Provided that where capital expenditure is incurred on the construction of any qualifying premises the foundation for which was laid in its entirety on or before the 31st day of May, 1993, the reference to the 31st day of May, 1993, in paragraph (a) of this definition shall be construed as a reference to the 31st day of May, 1994;”,

and

(ii) by the insertion in subsection (4) of the following additional proviso to that subsection:

“Provided also that, notwithstanding section 51 (as amended by section 80 of the Finance Act, 1990 ) of the Finance Act, 1988 , as respects any capital expenditure incurred on or after the 25th day of January, 1996, on the construction of any qualifying premises the site of which is wholly within the Custom House Docks Area—

(i) any allowance made under section 264 of the Income Tax Act, 1967 , and increased under paragraph (a) of subsection (2) of section 25 of the Finance Act, 1978 , in respect of that expenditure, whether claimed in one chargeable period or more than one such period, shall not, in the aggregate, exceed 54 per cent. of the amount of that expenditure, and

(ii) where any allowance made under the said section 264 in respect of that expenditure is increased under the said section 25 for any chargeable period, no allowance shall be made in respect of that expenditure under section 254 of the Income Tax Act, 1967 .”;

(c) in subsection (1) (a) of section 44, by the substitution of the following definition for the definition of “qualifying period” (as provided for by section 30 of the Finance Act, 1990 ):

“‘qualifying period’ means—

(a) the period commencing on the 23rd day of October, 1985, and ending on the 31st day of May, 1993, or

(b) where section 41 (2) applies, the specified period:

Provided that where qualifying expenditure is incurred on the construction of any qualifying premises the foundation for which was laid in its entirety on or before the 31st day of May, 1993, the reference to the 31st day of May, 1993, in paragraph (a) of this definition shall be construed as a reference to the 31st day of May, 1994;”;

and

(d) in subsection (1) (a) of section 45 (as amended by section 21 of the Finance Act, 1991 )—

(i) by the substitution of the following definition for the definition of “qualifying period” (as provided for by section 30 of the Finance Act, 1990 ):

“‘qualifying period’ means—

(a) the period commencing on the 23rd day of October, 1985, and ending on the 31st day of May, 1993, or

(b) where section 41 (2) applies, the specified period:

Provided that in the case of a qualifying lease in relation to any qualifying premises the foundation for which was laid in its entirety on or before the 31st day of May, 1993, the reference to the 31st day of May, 1993, in paragraph (a) of this definition shall be construed as a reference to the 31st day of May, 1994;”,

and

(ii) by the substitution, as on and from the 24th day of April, 1992, of the following subparagraph for subparagraph (I) of paragraph (i) of the definition of “qualifying premises”:

“(I) which is an industrial building or structure within the meaning of section 255 (1) of the Income Tax Act, 1967 , and in respect of which capital expenditure is incurred in the qualifying period for which an allowance falls to be made for the purposes of income tax or corporation tax, as the case may be, under Chapter II of Part XV or under Chapter I of Part XVI of that Act, or”.

Amendment of section 27 (designated areas for urban renewal relief) of Finance Act, 1987.

30.— Section 27 of the Finance Act, 1987 , is hereby amended by the substitution in subsection (1) (a) (ii) of “the 24th day of January, 1997” for “the 31st day of May, 1993” (inserted by section 31 of the Finance Act, 1990 ).

Amendment of section 4 (relief for expenditure on certain buildings in designated areas) of Finance Act, 1989.

31.— Section 4 of the Finance Act, 1989 , is hereby amended, in subsection (1), by the substitution in the definition of “qualifying period” of “31st day of May, 1994” for “31st day of May, 1993” (as provided for by section 30 of the Finance Act, 1990 ).

Amendment of section 18 (date for payment of tax) of Finance Act, 1988.

32.— Section 18 (as amended by section 52 of the Finance Act, 1991 ) of the Finance Act, 1988 , is hereby amended in paragraph (b) of subsection (3) (inserted by section 24 of the Finance Act, 1990 )—

(a) by the substitution in subparagraph (ii) of “in the case of an assessment to income tax made on a chargeable person” for “in the case of a chargeable person who is chargeable to income tax”,

(b) by the substitution in subparagraph (ii) and in both of the provisos thereto of “the income tax payable” for “the tax payable”, in each place where it occurs, and

(c) by the substitution in the first proviso to subparagraph (ii) of “additional income tax” for “additional tax”, in both places where it occurs,

and the said subparagraph (ii) (including the said provisos thereto), as so amended, is set out in the Table to this section.

TABLE

(ii) in the case of an assessment to income tax made on a chargeable person for the said chargeable period being a year of assessment, the income tax payable for the immediately preceding chargeable period:

Provided that for the purposes of this subparagraph—

(I) where the chargeable person was not a chargeable person for the immediately preceding chargeable period, the income tax payable for the immediately preceding chargeable period shall be taken to be nil, and

(II) where, after the due date for the payment of an amount of preliminary tax for a chargeable period which is a year of assessment, an amount of additional income tax for the immediately preceding chargeable period becomes payable, that additional income tax shall not be taken into account if, but only if, it became due and payable one month following the amendment to the assessment or the determination of the appeal, as the case may be, by virtue of the provisos (as amended by section 24 of the Finance Act, 1990 ) to subsection (4) or (5),

Provided also that, for the purpose of this subparagraph, where the chargeable person is chargeable to income tax for a chargeable period being the year of assessment 1991-92 or any subsequent year of assessment, the income tax payable for the immediately preceding chargeable period shall be determined without regard to any relief to which the chargeable person is, or may become, entitled for that immediately preceding chargeable period under Chapter III of Part I of the Finance Act, 1984 .

Amendment of section 21 (miscellaneous) of Finance Act, 1988.

33.—(1) Section 21 of the Finance Act, 1988 , is hereby amended by the substitution of “the Tax Acts and the Capital Gains Tax Acts” for “the Tax Acts”—

(a) in subsection (3) (as amended by the Finance Act, 1991 ), and

(b) in both places where it occurs in subsection (4), and the said subsections (3) and (4), as so amended, are set out in the Table to this section.

(2) Subsection (1) shall be deemed to have come into operation on the 6th day of April, 1991.

TABLE

(3) Where the inspector or any other officer of the Revenue Commissioners acting with the knowledge of the inspector causes to issue, manually or by any electronic, photographic or other process, a notice of preliminary tax bearing the name of the inspector or a notice of assessment or a notice of an amendment of an assessment bearing the name of the inspector, the said notice of preliminary tax shall, for all the purposes of the Tax Acts and the Capital Gains Tax Acts, be deemed to have been given by the inspector to the best of his opinion and the said assessment or amended assessment to which the notice of assessment or notice of amended assessment relates, as the case may be, shall, for those purposes, be deemed to have been made by the inspector to the best of his judgment.

(4) An assessment which is otherwise final and conclusive shall not, for any purpose of the Tax Acts and the Capital Gains Tax Acts, be regarded as not final and conclusive or as ceasing to be final and conclusive by reason only of the fact that the inspector has amended or may amend the assessment pursuant to the provisions of section 14 and where, in the case of a chargeable person, the inspector elects under section 13 (4) not to make an assessment for a chargeable period, the provisions of the Tax Acts and the Capital Gains Tax Acts shall apply as if an assessment for that chargeable period made on the chargeable person had become final and conclusive on the date the notice of election is given.

Amendment of Chapter VII (Urban Renewal: Temple Bar and other areas) of Part I of Finance Act, 1991.

34.—Chapter VII of Part I of the Finance Act, 1991 , is hereby amended—

(a) in subsection (1) (a) of section 56—

(i) by the insertion in the definition of “qualifying period” in subparagraph (ii) of the following proviso to that definition:

“Provided that where relevant expenditure is incurred on any qualifying premises the foundation for which was laid in its entirety on or before the 31st day of May, 1993, the first-mentioned reference to the 31st day of May, 1993, in this definition shall be construed as a reference to the 31st day of May, 1994.”,

and

(ii) by the insertion in the definition of “qualifying period” in subparagraph (iv) of the following proviso to that definition:

“Provided that—

(I) subject to paragraph (II), where relevant expenditure is incurred on any qualifying premises the foundation for which was laid in its entirety on or before the 28th day of January, 1992, the reference to the 31st day of March, 1992, shall be construed as a reference to the 31st day of July, 1992, and

(II) paragraph (I) shall not apply to expenditure to which the provisions of section 23 of the Finance Act, 1981 , are applied by virtue of the provisions of—

(A) section 24 of that Act, or

(B) section 21 or 22 of the Finance Act, 1985 ;”;

(b) in section 57, by the substitution of “the 31st day of May, 1994” for “the 31st day of May, 1993” in subsection (1) (b) (ii) and in the definition of “qualifying period” in subsection (3) (a) (ii); and

(c) in section 58, by the substitution of “the 31st day of May, 1994” for “the 31st day of May, 1993” in both subsections (1) (b) (ii) and (3) (b) (i) and in the definition of “qualifying period” in subsection (3) (b) (ii).

Treatment of certain distributions received on or after 29th day of January, 1992.

35.— As respects distributions received by a person on or after the 29th day of January, 1992, the Corporation Tax Act, 1976 , is hereby amended as follows—

(a) in Part IV by the insertion after section 66 of the following section—

“Distributions received on or after 29th day of January, 1992 (Part IV).

66A.—(1) In this section—

‘the adjusted average relieved distribution’, in relation to a relieved distribution received by a person from a company, means five-fourths of the average relieved distribution in relation to the relieved distribution received by the person from the company;

‘the average relieved distribution’, in relation to a relieved distribution received by a person from a company, means one-quarter of the total amount of relieved distributions received by the person from the company in the years 1987-88, 1988-89, 1989-90 and 1990-91;

‘the relieved amount’ means so much of a distribution to which section 64 applies as is determined by the formula—

where—

A is the amount of the distribution,

B is the amount of the tax credit in respect of the distribution, and

C is the standard rate per cent. for the purposes of section 88 (2) in respect of the year of assessment in which the distribution is made;

‘the relieved distribution’ has the meaning assigned to it in subsection (2).

(2) Notwithstanding any other provision of the Tax Acts—

(a) as respects distributions received by a person on or after the 29th day of January, 1992, for the purposes of determining his liability, if any, to income tax in respect of such distributions, and

(b) as respects distributions received by a person in the year 1987-88 and subsequent years of assessment, for the purposes of applying the provisions of subsection (3) to distributions received by the person on or after the 29th day of January, 1992,

so much of a distribution to which section 64 applies as is the relieved amount shall be treated as a separate distribution (hereinafter in this section referred to, in particular, as ‘the relieved distribution’) received by the person in respect of which he shall not be entitled to a tax credit, and the remainder, if any, of the distribution to which section 64 applies shall be treated as a separate distribution received by him in respect of which the tax credit shall be the tax credit in respect of the distribution to which section 64 applies.

(3) Sections 66 and 67 shall not have effect as respects any distribution received by a person on or after the 29th day of January, 1992:

Provided that—

(a) as respects the year 1991-92, two-thirds of the lesser of—

(i) the total amount of relieved distributions received by a person from a company on or after the 29th day of January, 1992, and before the 6th day of April, 1992, or

(ii) the amount by which the adjusted average relieved distribution in relation to those distributions exceeds the total amount, which may be nil, of relieved distributions received by the person from the company on or after the 6th day of April, 1991, and before the 29th day of January, 1992,

shall not be regarded as income for any of the purposes of the Income Tax Acts other than the purposes of section 54 of the Finance Act, 1974 ;

(b) two-thirds of so much of the total amount of relieved distributions received by a person from a company in the year 1992-93 as does not exceed the adjusted average relieved distribution in relation to those distributions, shall not be regarded as income for any of the purposes of the Income Tax Acts other than the purposes of the said section 54; and

(c) one-third of so much of the total amount of relieved distributions received by a person from a company in the year 1993-94 as does not exceed the adjusted average relieved distribution in relation to those distributions, shall not be regarded as income for any of the purposes of the Income Tax Acts other than the purposes of the said section 54.

(4) Where by virtue of this section sections 66 and 67 are not to apply to a distribution to which section 64 applies, then that distribution shall be ignored for the purposes of section 54 of the Finance Act, 1974 :

Provided that where an amount representing relieved distributions is not to be regarded as income for any of the purposes of the Income Tax Acts by virtue of this section, other than the purposes of the said section 54, it shall not be so ignored.”,

and

(b) in Part V by the insertion after section 76 of the following section—

“Distributions received on or after 29th day of January, 1992 (Part V).

76A.—(1) In this section—

‘the adjusted average distribution’, in relation to a distribution received by a person from a company, means five-fourths of the average distribution in relation to the distribution received by the person from the company;

‘the average distribution’, in relation to a distribution received by a person from a company, means one-quarter of the total amount of distributions received by the person from the company in the years of assessment 1987-88, 1988-89, 1989-90 and 1990-91;

‘distribution’ means any distribution made out of income from exempted trading operations within the meaning of section 70.

(2) Where a person receives any distributions on or after the 29th day of January, 1992, subparagraph (i) of paragraph (a) of subsection (2) of section 76 shall not apply to those distributions:

Provided that this subsection shall not have effect in respect of—

(a) as respects the year 1991-92, two-thirds of the lesser of—

(i) the total amount of distributions received by a person from a company on or after the 29th day of January, 1992, and before the 6th day of April, 1992, or

(ii) the amount by which the adjusted average distribution in relation to those distributions exceeds the total amount, which may be nil, of distributions received by the person from the company on or after the 6th day of April, 1991, and before the 29th day of January, 1992,

(b) two-thirds of so much of the total amount of distributions received by a person from a company in the year 1992-93 as does not exceed the adjusted average distribution in relation to those distributions, and

(c) one-third of so much of the total amount of distributions received by a person from a company in the year 1993-94 as does not exceed the adjusted average distribution in relation to those distributions.

(3) Where, by virtue of this section, subparagraph (i) of paragraph (a) of subsection (2) of section 76 is not to apply to an amount representing distributions received by a person from a company, those distributions shall be disregarded for the purposes of section 54 of the Finance Act, 1974 , to the extent of that amount.”.

Option in relation to section 35 (certain unit trusts not to be collective investment undertakings) of Finance Act, 1990.

36.—(1) Where the trustees of a unit trust scheme, within the meaning assigned to it by section 1 (1) of the Unit Trust Act, 1990, which, apart from section 35 of the Finance Act, 1990 , would be a collective investment undertaking for the purposes of section 18 of, and the First Schedule to, the Finance Act, 1989 , have, not later than the 1st day of November, 1992—

(a) paid the capital gains tax, which would have been chargeable on them if—

(i) on the 31st day of March, 1992, they had disposed of all the assets of the unit trust scheme, and

(ii) the resulting chargeable gains were chargeable to tax at one half of the rate at which they would have been chargeable under the Capital Gains Tax Acts apart from this subparagraph,

and

(b) given notice in writing to the Revenue Commissioners that they have paid that tax in accordance with paragraph (a),

then, notwithstanding the said section 35, the unit trust scheme (hereafter in this section referred to as “the relevant unit trust”) shall be deemed to be, and to have been, a collective investment undertaking for the said purposes with effect from the 1st day of April, 1992.

(2) (a) Where units in a relevant unit trust were held by a person on the 31st day of March, 1992, they shall be treated, for the purposes of computing chargeable gains accruing to him on or after the 1st day of April, 1992, as having been acquired by him on the 31st day of March, 1992.

(b) Subsection (5A) (inserted by section 34 of the Finance Act, 1977 ) of section 31 of the Capital Gains Tax Act, 1975 , shall not apply to disposals on or after the 1st day of April, 1992, of units in a relevant unit trust.

(3) Where the consideration received for a disposal, or given for an acquisition, of an asset on the 31st day of March, 1992, is to be determined as a result of the provisions of this section, it shall be deemed to be an amount equal to the market value of the asset on the said day.

(4) For the purposes of this section “market value”, in relation to any asset, has the meaning assigned to it by section 49 of the Capital Gains Tax Act, 1975 .

Application of section 25 (attribution of distributions to accounting periods) of Finance Act, 1989, to interim dividends.

37.—(1) Section 25 (as amended by section 38 of the Finance Act, 1990 ) of the Finance Act, 1989 , shall have effect as respects dividends paid on or after the 6th day of April, 1992, as if in subsection (3) (a) for “6th day of April, 1991,” there was substituted “6th day of April, 1997”:

Provided that, subject to subsection (2), a company shall not be entitled, by virtue of this section, to specify, in accordance with subsection (1) of the said section 25, that a distribution, being an interim dividend or part of it, is to be treated as made for the accounting period in which it is made where—

(a) the circumstances of the company are such that, if the distribution or the part of it, as the case may be, were treated as made for the accounting period in which it is made, the company would be unable, at the time when the interim dividend is paid, to determine without recourse to estimation, how much of the distribution or the part of it, as the case may be, would, in accordance with subsection (1) of section 45 (as amended by section 24 of the Finance Act, 1989 ) of the Finance Act, 1980 , be treated as a specified distribution for the purposes of subsection (2) of the said section 45, or

(b) that treatment of the distribution or the part of it, as the case may be, as made for the accounting period in which it is made, would facilitate any arrangement whereby the tax credit in respect of a dividend received by a shareholder could exceed the tax credit, if any, in respect of a dividend received by another shareholder, notwithstanding that the shareholdings of those shareholders carry the same or substantially similar rights in respect of dividends and capital.

(2) The proviso to subsection (1) shall apply to a company—

(a) the profits brought into charge to corporation tax of which are wholly or mainly referable to relevant trading operations within the meaning of subsection (1) (as amended by section 33 of the Finance Act, 1991 ) of section 39A (inserted by section 17 of the Finance Act, 1981 ) or subsection (1) of section 39B (inserted by section 30 of the Finance Act, 1987 ) of the Finance Act, 1980 , and

(b) which—

(i) (I) is a trading or holding company owned by a consortium for the purposes of paragraph (b) of subsection (1) of section 44 of the Finance Act, 1983 , or a 51 per cent. subsidiary of a company resident in the State, and

(II) has not made an election under the proviso (inserted by section 51 ) to subsection (1) of the said section 44,

or

(ii) is referred to in subparagraph (ii) of paragraph (a) of subsection (1) of section 47 of the Finance Act, 1983 , as the first-mentioned company,

as if paragraph (b) were deleted from that proviso.

Distributions to non-residents.

38.—(1) As respects distributions made on or after the 6th day of April, 1992, section 83 of the Corporation Tax Act, 1976 , is hereby amended by the substitution for subsection (4) of the following subsection:

“(4) Where a person who is not resident in the State receives a distribution made by a company which is resident in the State that distribution shall not be regarded as income of the person for any purpose of the Income Tax Acts:

Provided that, for the purposes of determining whether and to what extent a tax credit in respect of a distribution shall be paid to a person, this section shall apply as if section 38 of the Finance Act, 1992, had not been enacted.”.

(2) The Revenue Commissioners may by notice in writing require a company which has made a distribution to furnish them, within such time as they may direct, with such particulars as they consider necessary to identify persons benefiting from the provisions of subsection (4) of section 83 of the Corporation Tax Act, 1976 .

Provisions relating to section 244 (allowance for scientific research) of Income Tax Act, 1967, etc.

39.—(1) For the purposes of the definition of scientific research, that definition shall, subject to subsection (2), be construed as including, and be deemed always to have included, a provision excluding from the meaning of that definition the following activities, that is to say:

(a) exploring for specified minerals,

(b) petroleum exploration, and

(c) petroleum extraction.

(2) As respects activities carried on before the 29th day of January, 1992, subsection (1) shall not have effect for the purpose of computing any charge to income tax or corporation tax on a person who has, before the 3rd day of December, 1991, made a claim in respect of expenditure incurred in exploring for specified minerals or in respect of petroleum exploration activities or in respect of petroleum extraction activities.

(3) In this section—

“the definition of scientific research” means the definition of scientific research as enacted in section 5 of the Finance Act, 1946 , which definition was repealed and re-enacted in section 244 of the Income Tax Act, 1967 (being a consolidating enactment), and was subsequently substituted (without amendment) in the said section 244 by section 21 of, and paragraph 9 of the First Schedule to, the Corporation Tax Act, 1976 ;

“designated area” means an area standing designated for the time being by order under section 2 of the Continental Shelf Act, 1968 ;

“exploring for specified minerals” means searching in the State for deposits of specified minerals or on testing such deposits or winning access thereto, and includes the systematic searching for areas containing specified minerals and searching, by drilling or other means, for specified minerals within those areas but does not include operations which are operations in the course of developing or working a mine;

“licence” means—

(a) an exploration licence,

(b) a petroleum prospecting licence,

(c) a petroleum lease, or

(d) a reserved area licence, duly granted before the 11th day of June, 1968, in respect of an area in the State, or on or after the 11th day of June, 1968, in respect of either or both a designated area and an area in the State, and which was or may be so granted subject to such licensing terms as were presented to each House of the Oireachtas and includes any such licence the terms of which have been duly amended or varied from time to time;

“licensed area” means an area in respect of which a licence is in force;

“mine” means an underground excavation for the purpose of getting specified minerals;

“petroleum” includes:

(a) any mineral oil or relative hydrocarbon and natural gas and other liquid or gaseous hydrocarbons and their derivatives or constituent substances existing in its natural condition in strata (including, without limitation, distillate, condensate, casinghead gasoline and such other substances as are ordinarily produced from oil and gas wells), and

(b) any other mineral substance contained in oil or natural gas brought to the surface with them in the normal process of extraction, but does not include coal and bituminous shales and other stratified deposits from which oil can be extracted by distillation,

won or capable of being won under the authority of a licence;

“petroleum exploration activities” means activities of a person carried on by him or on his behalf in searching for deposits of petroleum in a licensed area, in testing or appraising such deposits or in winning access thereto for the purposes of such searching, testing or appraising, where such activities are carried on under a licence (other than a petroleum lease) authorising the activities and held by him or, if the person is a company, held by the company or a company associated with it;

“petroleum extraction activities” means activities of a person carried on by him or on his behalf under a petroleum lease authorising the activities and held by him or, if the person is a company, held by the company or a company associated with it in—

(a) winning petroleum from a relevant field, including searching in that field for, and winning access to, such petroleum,

(b) transporting as far as dry land petroleum that is so won from a place not on dry land, or

(c) effecting the initial treatment and storage of petroleum that is so won from the relevant field;