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21 1978

FINANCE ACT, 1978

PART VI

Capital Acquisitions Tax

Extension of section 55 (exemption of certain objects) of Capital Acquisitions Tax Act, 1976.

39. —(1) Section 55 of the Capital Acquisitions Tax Act, 1976 , shall apply, as it applies to the objects specified therein, to a house or garden that is situated in the State and is not held for the purposes of trading and—

(a) which, on a claim being made to the Commissioners, appears to them to be of national, scientific, historic or artistic interest,

(b) in respect of which reasonable facilities for viewing were allowed to members of the public from the date of the passing of this Act to the date of the gift or the date of the inheritance, or during the three years immediately before the date of the gift or the date of the inheritance, and

(c) in respect of which reasonable facilities for viewing are allowed to members of the public,

with the modification that the reference in subsection (4) of that section to subsection (1) (b) or (c) of that section shall be construed as a reference to paragraph (c) of this subsection and with any other necessary modifications.

(2) This section shall apply where the date of the gift or the date of the inheritance is on or after the date of the passing of this Act.

Amendment of section 57 (exemption of certain securities) of Capital Acquisitions Tax Act, 1976.

40. —(1) Section 57 of the Capital Acquisitions Tax Act, 1976 , is hereby amended by the substitution for subsections (2) and (3) of the following subsections:

“(2) Securities, or units (within the meaning of the Unit Trusts Act, 1972 ) of a unit trust scheme, comprised in a gift or an inheritance taken on or after the 14th day of April, 1978, shall be exempt from tax (and shall not be taken into account in computing tax on any gift or inheritance taken by the donee or successor from the same disponer) if, but only if, it is shown to the satisfaction of the Commissioners that—

(a) the securities or units were comprised in the disposition continuously for a period from the date aforesaid to the date of the gift or the date of the inheritance, or continuously for a period of three years immediately before the date of the gift or the date of the inheritance, and any period immediately before the date of the disposition during which the securities or units were continuously in the beneficial ownership of the disponer shall be deemed, for the purposes of this paragraph, to be a period or part of a period immediately before the date of the gift or the date of the inheritance during which they were continuously comprised in the disposition;

(b) the securities or units were comprised in the gift or inheritance—

(i) at the date of the gift or the date of the inheritance; and

(ii) at the valuation date; and

(c) the donee or successor is at the date of the gift or the date of the inheritance neither domiciled nor ordinarily resident in the State,

and the provisions of section 19 (6) shall apply, for the purposes of this subsection, as they apply in relation to agricultural property.

(3) Subsection (2) (a) shall not apply in a case where the disponer was neither domiciled nor ordinarily resident in the State at the date of the disposition, or at the date of the gift or the date of the inheritance.”.

(2) This section shall have and be deemed to have had effect only in relation to securities or units comprised in a gift or an inheritance where the date of the gift or the date of the inheritance is on or after the 14th day of April, 1978.

Alteration of rates of tax.

41. —The Second Schedule to the Capital Acquisitions Tax Act, 1976 , is hereby amended, as respects taxable gifts and taxable inheritances taken on or after the 1st day of April, 1978, by the substitution of the Part set out in the Third Schedule to this Act for Part II.

Amendment of section 36 (delivery of returns) of Capital Acquisitions Tax Act, 1976s.

42. —(1) Section 36 of the Capital Acquisitions Tax Act, 1976 , is hereby amended by the substitution for subsection (3) of the following subsection—

“(3) Subsection (2) applies to a gift where—

(a) the taxable value of such gift, so far as it is a taxable gift, exceeds an amount which is 80 per cent. of the lowest value upon which, at the date of such gift, tax becomes chargeable in respect of a gift taken by the donee of such gift from the disponer thereof,

(b) the taxable value of such gift, so far as it is a taxable gift, falls to be aggregated with previous gifts taken by the donee of such gift from the disponer thereof and thereby increases the total taxable value of all taxable gifts taken by such donee from such disponer from an amount which is less than or equal to the amount specified in paragraph (a) to an amount which exceeds the amount so specified,

(c) the taxable value of such gift, so far as it is a taxable gift, falls to be aggregated with previous gifts taken by the donee of such gift from the disponer thereof and thereby increases the total taxable value of all taxable gifts taken by such donee from such disponer from an amount which is greater than the amount specified in paragraph (a), or

(d) the donee is required by notice in writing by the Commissioners to deliver a return.”.

(2) Subsection (1) of this section shall be deemed to have come into operation on the 31st day of March, 1976.

Amendment of section 41 (payment of tax and interest on tax) of Capital Acquisitions Tax Act, 1976.

43. Section 41 (2) of the Capital Acquisitions Tax Act, 1976 , shall have effect, in its application to interest accruing due after the date of the passing of this Act, as if “1.25 per cent.” were substituted for “one and one-half per cent.”.

Amendment of section 53 (exemption of small gifts) of Capital Acquisitions Tax Act, 1976.

44. Section 53 (1) of the Capital Acquisitions Tax Act, 1976 , shall have effect, as respects relevant periods ending on or after the 31st day of December, 1978, as if “£500” were substituted for “£250”.