PART I

Income Tax, Corporation Tax and Capital Gains Tax

Chapter I

Income Tax

1. —As respects the year 1991-92 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 “52 per cent.” for “53 per cent.” (inserted by the Finance Act, 1990 ),

(ii) by the substitution, in subsection (2) (inserted by the Finance Act, 1989 ), of “£6,800” for “£6,500” (inserted by the Finance Act, 1990 ), and “£3,400” for “£3,250” (inserted by the Finance Act, 1990 ), and

(iii) by the substitution of the following paragraph for paragraph (a) of subsection (3) (inserted by the Finance Act, 1989 ):

“(a) For the purposes of this section and section 2, where a claimant proves that he has living, at any time during the year of assessment, any qualifying child, then, subject to subsection (4), the specified amount (within the meaning of this section or section 2, as the case may be) shall be increased, for that year of assessment, by £300 in respect of the first such child, £300 in respect of the second such child and £500 in respect of each such child in excess of two.”,

and

(b) in section 2—

(i) by the substitution, in subsection (3), of “52 per cent.” for “53 per cent.” (inserted by the Finance Act, 1990 ), and

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

(I) of “£7,800” and “£9,000”, respectively, for “£7,500” and “£8,700” (inserted by the Finance Act, 1990 ), in paragraph (a), and

(II) of “£3,900” and “£4,500”, respectively, for “£3,750” and “£4,350” (inserted by the Finance Act, 1990 ), 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.

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(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 52 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 , £6,800, and

(b) in any other case, £3,400.

(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 52 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 , £7,800:

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 £9,000, and

(b) in any other case, £3,900:

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 £4,500.

2. —(1) Income tax shall be charged for the year 1991-92 and for each subsequent year of assessment and shall, subject to subsection (2), be so charged at the rate of tax specified in the Table to this section as the standard rate.

(2) Where a person who is charged to income tax for the year 1991-92 or any subsequent year of assessment is an individual (other than an individual acting in a fiduciary or representative capacity), he shall, notwithstanding anything in the Income Tax Acts but subject to section 5 (3) of the Finance Act, 1974 , be charged to tax on his taxable income—

(a) in a case in which he is assessed to tax otherwise than in accordance with the provisions of section 194 (inserted by the Finance Act, 1980 ) of the Income Tax Act, 1967 , at the rates specified in Part I of the Table to this section, or

(b) in a case in which he is assessed to tax in accordance with the provisions of the said section 194, at the rates specified in Part II of the said Table,

and the rates in each Part of that Table shall be known, respectively, by the description specified in column (3), in each such Part opposite the mention of the rate or rates, as the case may be, in column (2) of that Part.

(3) Paragraph 1 of Part I of the First Schedule shall have effect for the purpose of supplementing subsection (2) and paragraph 2 of the said Part I shall have effect for the purpose of supplementing section 3 of the Finance Act, 1974 .

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PART I

PART II

3. —(1) Where a deduction falls to be made from the total income of an individual for the year 1991-92 or any subsequent year of assessment in respect of relief to which the individual is entitled under a provision mentioned in column (1) of the Table to this subsection and the amount of the deduction would, but for this section, be an amount specified in column (2) of the said Table, the amount of the deduction shall, in lieu of being the amount specified in the said column (2), be the amount specified in column (3) of the said Table opposite the mention of the amount in the said column (2).

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(2) Section 3 of the Finance Act, 1988 , shall have effect subject to the provisions of this section.

(3) Part II of the First Schedule shall have effect for the purpose of supplementing subsection (1).

4. —(1) (a) This section applies to an individual whose spouse dies in a year of assessment, being the year 1988-89 or any subsequent year of assessment (hereafter in this section referred to as “a claimant”).

(b) For the purposes of this section “a qualifying child”, in relation to a claimant and a year of assessment, has the meaning assigned to it by subsection (1) (b) of section 138A (inserted by the Finance Act, 1985 ) of the Income Tax Act, 1967 , and the question of whether a child is a qualifying child shall be determined on the same basis as it would be for the purposes of the said section 138A, and the provisions of subsections (3), (4), (6) and (7) of that section shall apply accordingly.

(2) Subject to the provisions of this section, where a claimant proves, in relation to any of the three years of assessment next immediately following the year of assessment in which his spouse dies, that—

(a) he has not remarried before the commencement of the year, and

(b) a qualifying child is resident with him for the whole or part of the year,

he shall, in respect of each of the years in relation to which he so proves, be entitled, in computing the amount of his taxable income, to have a deduction made from his total income as follows—

(i) for the first of the said three years, £1,500,

(ii) for the second of the said three years, £1,000, and

(iii) for the third of the said three years, £500:

Provided that this section shall not apply for any year of assessment in the case of a man and woman who are living together as man and wife.

(3) All such provisions of the Income Tax Acts as apply in relation to the deductions specified in sections 138 to 143 of the Income Tax Act, 1967 , shall apply in relation to a deduction under this section.

(4) This section shall apply and have effect as respects the year 1991-92 and subsequent years of assessment.

5. — Section 8 of the Finance Act, 1989 , shall have effect, as respects the year 1991-92 and subsequent years of assessment, as if “25 per cent.” were substituted for “80 per cent.”.

6. — Section 110 (inserted by the Finance Act, 1990 ) of the Income Tax Act, 1967 , is hereby amended—

(a) by renumbering the existing provision as subsection (1) of that section, and

(b) by the addition of the following subsections:

“(2) Where (apart from this subsection) emoluments from an office or employment would be for a year of assessment in which a person does not hold the office or employment, the following provisions shall apply for the purposes of subsection (1):

(a) if in the year concerned the office or employment has never been held, the emoluments shall be treated as emoluments for the first year of assessment in which the office or employment is held, and

(b) if in the year concerned the office or employment is no longer held, the emoluments shall be treated as emoluments for the last year of assessment in which the office or employment was held.

(3) In this section ‘emoluments’ means anything assessable to income tax under Schedule E.”.

7. —As respects the year 1991-92 and subsequent years of assessment, section 138B (inserted by the Finance Act, 1980 ) of the Income Tax Act, 1967 , is hereby amended by the addition after subsection (2) of the following subsection:

“(3) Where an individual is in receipt of profits or gains from an office or employment held or exercised outside the State, such profits or gains shall be deemed to be emoluments within the meaning of subsection (2) if such profits or gains—

(a) are chargeable to tax in the country in which they arise, and

(b) are, on payment by the person making such payment, subject to a system of tax deduction which is similar in form to that provided for in Chapter IV of Part V, and

(c) are chargeable to tax in the State on the full amount thereof under Schedule D, and

(d) would, if the said office or employment was held or exercised within the State and the said person was resident in the State, be emoluments within the meaning of subsection (2).”.

8. —As respects the year 1991-92 and subsequent years of assessment, section 142A (inserted by the Finance Act, 1982 ) of the Income Tax Act, 1967 , is hereby amended by the substitution, in subsection (2), of the following paragraph for paragraph (b):

“(b) In this subsection ‘the relevant limit’ means—

(i) in the case of a claimant who is entitled to a deduction under section 138 (a), £2,000,

(ii) in the case of a widowed person, £1,500, and

(iii) in any other case, £1,000.”.

9. — 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 1991-92, as if in subsection (2)—

(a) “1991-92” were substituted for “1982-83”, and

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

10. —(1) In this section, “qualifying lease”, “qualifying lessor” and “the specified amount” have the meanings respectively assigned to them by section 10 (1) of the Finance Act, 1985 .

(2) As respects a qualifying lease or qualifying leases made on or after the 30th day of January, 1991, the said section 10 (1) shall have effect as if references therein to £2,000 were references to—

(a) where the qualifying lease or qualifying leases is or are for a definite term of seven years or more, £4,000, and

(b) in every other case, £3,000:

Provided that, where the income of a qualifying lessor consists of, or includes, rent or rents from a qualifying lease or qualifying leases made before the 30th day of January, 1991, and from a qualifying lease or qualifying leases made on or after that date, the specified amount shall not exceed £4,000 or, as may be appropriate, £3,000.

11. — Section 31 of the Finance Act, 1986 , is hereby amended, in the definition of “relevant deposit” in subsection (1)—

(a) by the insertion in paragraph (a), with effect as on and from the 3rd day of December, 1990, of the following subparagraph after subparagraph (i):

“(ia) the National Treasury Management Agency,”,

and

(b) by the substitution of the following paragraph for paragraph (e):

“(e) which is a deposit denominated in a foreign currency but not including such a deposit made by an individual on or after the 1st day of June, 1991:

Provided that, where on or after that date a deposit denominated in a foreign currency is made by an individual to a relevant deposit taker with whom that individual had a deposit denominated in the same foreign currency immediately prior to that date, such a deposit shall not be regarded as a relevant deposit,”.

12. —(1) Subject to the following provisions of this section, the Revenue Commissioners may, if they think fit, and subject to any undertakings and conditions that they think proper to attach to the approval, approve for the purposes of Chapter II of Part I of the Finance Act, 1972 , a scheme of superannuation provided for under an agreement for the provision of services under section 58 of the Health Act, 1970 (hereafter in this section referred to as “a scheme”), as if it were a retirement benefits scheme within the meaning of that Chapter and notwithstanding that it does not satisfy one or more of the conditions set out in subsections (2) and (3) of section 15 of that Act.

(2) As respects a scheme approved under this section, the provisions of Chapter II of Part I of, and Parts I and VI of the First Schedule to, the Finance Act, 1972 , shall apply subject to any necessary modifications and, in particular, as if in those provisions—

(a) “employee” included a registered medical practitioner providing services under an agreement for the provision of services under section 58 of the Health Act, 1970 (hereafter in this section referred to as “an agreement”),

(b) “service” included services by a registered medical practitioner under an agreement and an “office or employment” included the provision of such services, and

(c) a reference to “Schedule E” were a reference to Case II of Schedule D, except in section 20 of the said Act.

(3) Chapter III of Part XII of the Income Tax Act, 1967 , shall apply as if a member of a scheme were the holder of a pensionable office or employment and his income assessable to tax under Case II of Schedule D arising from an agreement were remuneration from such an office or employment.

13. —(1) In this section “the Trust” means “The Great Book of Ireland Trust” established by trust deed dated the 12th day of December, 1990, for the purposes of—

(a) making and carrying to completion and selling a unique manuscript volume (hereafter in this section referred to as “The Great Book of Ireland”), and

(b) using the proceeds of the sale of The Great Book of Ireland for the benefit of—

(i) a company incorporated on the 5th day of August, 1986, as Clashganna Mills Trust Limited, and

(ii) a company incorporated on the 1st day of March, 1991, as Poetry Ireland Limited.

(2) Notwithstanding any provision of the Income Tax Acts,

(a) income arising to the trustees of the Trust in respect of the sale by it of The Great Book of Ireland, and

(b) payments made to the said companies under the Trust by the trustees of the Trust,

shall be disregarded for all the purposes of those Acts.