Chapter III

Miscellaneous

80. —(1) Section 2 of the Principal Act is hereby amended—

(a) in the definition of “child” in subsection (1), by the substitution for “the Adoption Acts, 1952 to 1974” of “the Adoption Acts, 1952 to 1988” in each place where it occurs, and

(b) in subsection (5), by the substitution for “the Adoption Acts, 1952 to 1974” of “the Adoption Acts, 1952 to 1988” in both places where it occurs.

(2) This section shall have effect as respects gifts and inheritances taken on or after the 26th day of July, 1988.

81. —(1) In the case of an inheritance taken on or before the date of death of the disponer, the disponer shall also be a person accountable for the payment of any amount of the tax for which the persons referred to in section 35 (1) of the Principal Act are made primarily accountable, and, subject to subsection (2), the Principal Act shall have effect as if such disponer were a person referred to in section 35 (2) (b) of that Act:

Provided that the disponer as such shall not be so accountable in the case where the date of the disposition was prior to the 1st day of May, 1989.

(2) The provisions of subsections (3) and (9) of section 35 of the Principal Act shall not apply to a disponer who is accountable for the payment of tax under subsection (1).

82. —Section 37 of the Principal Act is hereby amended by the substitution for subsection (4) of the following subsection:

“(4) (a) A return or additional return delivered under this Act shall—

(i) be made on a form provided, or approved of, by the Commissioners, or

(ii) except in a case to which subsection (2) relates but in a case where subsection (3) applies, be in a form approved of by the Commissioners and delivered by any electronic, photographic or other process approved of by them and in circumstances where the use of such process has been agreed by them and subject to such conditions as they may impose.

(b) An affidavit, additional affidavit, account or additional account, delivered under this Act, shall be made on a form provided, or approved of, by the Commissioners.”.

83. —(1) Part I of the Second Schedule to the Principal Act is hereby amended by the substitution for paragraph 9 of the following paragraph:

“9. (1) In this paragraph—

‘company’ means a company which—

(a) is a private trading company within the meaning assigned by section 16 (2); and

(b) for the relevant period, is such a company—

(i) controlled by the disponer; and

(ii) where the disponer is a director thereof;

‘company controlled by the disponer’ means a company that is under the control of any one or more of the following, that is to say—

(a) the disponer,

(b) nominees of the disponer,

(c) the trustees of a settlement made by the disponer;

‘control’, in relation to a company, shall be construed in accordance with section 16 (4) (b);

‘nominee’ has the same meaning as it has in section 16;

‘relevant period’ means—

(a) the period of five years ending on the date of the disposition; or

(b) where, at the date of the disposition,

(i) an interest in possession in—

(I) the property referred to in subparagraph (2) (a), or

(II) the shares referred to in subparagraph (2) (b),

as the case may be, is limited to the disponer under the disposition, and

(ii) such property is not, or such shares are not, property consisting of the appropriate part of property, within the meaning of section 5 (5), on which is charged or secured an annuity or other annual right limited to cease on the death of the disponer,

the period of five years ending on the coming to an end of that interest,

subject, in relation to work, to the exclusion of reasonable periods of annual or sick leave from that period of five years.

(2) For the purpose of computing the tax payable on a gift or inheritance, the donee or successor shall be deemed to bear to the disponer the relationship of a child in any case where the donee or successor is a child of a brother, or a child of a sister, of the disponer and either—

(a) the donee or successor has worked substantially on a full-time basis for the disponer for the relevant period in carrying on, or in assisting in carrying on, the trade, business or profession of the disponer, and the gift or inheritance consists of property which was used in connection with that business, trade or profession; or

(b) the donee or successor has worked substantially on a full-time basis for a company for the relevant period in carrying on, or in assisting in carrying on, the trade, business or profession of the company, and the gift or inheritance consists of shares in that company.

(3) Without prejudice to the generality of subparagraph (2), a donee or successor shall not be deemed to be working substantially on a full-time basis for a disponer or a company unless—

(a) where the gift or inheritance consists of property which was used in connection with the business, trade or profession of the disponer, the donee or successor works—

(i) more than 24 hours a week for the disponer, at a place where that business, trade or profession, is carried on; or

(ii) more than 15 hours a week for the disponer, at a place where that business, trade or profession is carried on, and such business, trade or profession is carried on exclusively by the disponer, any spouse of the disponer, and the donee or successor;

or

(b) where the gift or inheritance consists of shares in the company, the donee or successor works—

(i) more than 24 hours a week for the company, at a place where the business, trade or profession of the company is carried on; or

(ii) more than 15 hours a week for the company, at a place where the business, trade or profession of the company is carried on, and such business, trade or profession is carried on exclusively by the disponer, any spouse of the disponer, and the donee or successor.

(4) The provisions of this paragraph shall not apply to a gift or inheritance taken by a donee or successor under a discretionary trust.”.

(2) This section shall have effect as respects gifts and inheritances taken on or after the 1st day of May, 1989.

84. — Section 60 of the Finance Act, 1985 , is hereby amended by the insertion of the following subsection after subsection (1):

“(1A) In this section ‘insured’ means an individual or, in relation to a qualifying insurance policy where—

(a) the insured is an individual and the spouse of that individual at the date the policy is effected;

(b) annual premiums are paid by either or both of them during their joint lives, and by the survivor of them during the life of such survivor; and

(c) the proceeds of the policy are payable on the death of such survivor, or on the simultaneous deaths of both such spouses,

means—

(i) where the proceeds of the policy are so payable on the death of such survivor, that survivor, and the proceeds of the policy shall be deemed to have been provided by such survivor, as disponer; or

(ii) where the proceeds of the policy are so payable on the simultaneous deaths of both such spouses, each of the spouses, and each such spouse shall be deemed to have provided the proceeds of the policy—

(I) to the extent that such proceeds are applied in paying the relevant tax of the insured who is that spouse, and

(II) where the proceeds of the policy are not applied in paying relevant tax, to the extent that the proceeds not so applied are comprised in an inheritance taken under a disposition made by that spouse.”.

85. —(1) In this section “specified collective investment undertaking” and “unit” have, respectively, the same meanings as they have in section 18 .

(2) Where any unit of a specified collective investment undertaking is comprised in a gift or an inheritance, then such unit—

(a) shall be exempt from tax, and

(b) shall not be taken into account in computing tax on any gift or inheritance taken by the donee or successor,

if, but only if, it is shown to the satisfaction of the Commissioners that—

(i) the unit is comprised in the gift or inheritance—

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

(II) at the valuation date;

(ii) at the date of the disposition—

(I) the disponer is neither domiciled nor ordinarily resident in the State; or

(II) the proper law of the disposition is not the law of the State;

and

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

(3) This section shall have effect as respects gifts and inheritances taken on or after the date of the passing of this Act.