Number 6 of 2006

FINANCE ACT 2006

ARRANGEMENT OF SECTIONS

PART 1

Income Tax, Corporation Tax and Capital Gains Tax

Chapter 1

Interpretation

Section

1. Interpretation (Part 1).

Chapter 2

Income Tax

2. Amendment of section 15 (rate of charge) of Principal Act.

3. Personal tax credits.

4. Age exemption.

5. Amendment of section 467 (employed person taking care of incapacitated individual) of Principal Act.

6. Amendment of section 472C (relief for trade union subscriptions) of Principal Act.

7. Amendment of section 473 (allowance for rent paid by certain tenants) of Principal Act.

8. Relief for service charges.

9. Amendment of section 248 (relief to individuals on loans applied in acquiring interest in companies) of Principal Act.

10. Amendment of Schedule 13 (accountable persons for purposes of Chapter 1 of Part 18) to Principal Act.

11. Computational rules and allowable deductions.

12. Amendment of section 664 (relief for certain income from leasing of farm land) of Principal Act.

13. Childcare services relief.

14. Retirement benefits.

15. Remittance basis of assessment.

16. Deduction of tax under PAYE.

17. Limitation on amount of certain reliefs used by certain high income individuals.

Chapter 3

Income Tax, Corporation Tax and Capital Gains Tax

18. Amendment of section 481 (relief for investment in films) of Principal Act.

19. Amendment of section 659 (farming: allowances for capital expenditure on the construction of farm buildings etc., for control of pollution) of Principal Act.

20. Donation of designated securities to approved bodies.

21. Amendment of section 373 (interpretation (Part 11)) of Principal Act.

22. Amendment of Chapter 3 (income tax and corporation tax) of Part 7 (income tax and corporation tax exemptions) of Principal Act.

23. Amendment of Schedule 26A (donations to approved bodies, etc.) to Principal Act.

24. Amendment of section 817 (schemes to avoid liability to tax under Schedule F) of Principal Act.

25. Residential reliefs — various schemes.

26. Restriction of expenditure incurred on the construction and refurbishment of certain industrial and commercial buildings.

27. Capital allowances for hotels, holiday camps and holiday cottages.

28. Capital allowances for sports injuries clinics.

29. Capital allowances for multi-storey car parks.

30. Capital allowances for industrial and commercial premises in urban renewal areas and commercial premises on living over the shop streets.

31. Capital allowances for industrial and commercial premises in rural renewal areas.

32. Capital allowances for park and ride facilities and related commercial premises.

33. Capital allowances for industrial and commercial premises in town renewal areas.

34. Capital allowances for buildings used for third level educational purposes.

35. Capital allowances for qualifying private hospitals.

36. Capital allowances for qualifying mental health centres.

37. Capital allowances for convalescent homes, registered nursing homes and qualifying residential units.

38. Capital allowances for buildings used for certain childcare purposes.

39. Balancing charges for certain buildings and structures.

40. Amendment of section 812 (taxation of income deemed to arise from transfers of right to receive interest from securities) of Principal Act.

41. Amendment of Part 36A (special savings incentive accounts) of Principal Act.

42. Pensions: incentive tax credits.

43. Amendment of section 530 (interpretation (Chapter 2)) of Principal Act.

44. Amendment of section 531 (payments to subcontractors in certain industries) of Principal Act.

45. Common contractual funds.

46. Treatment of certain dividends.

47. Amendment of section 246 (interest payments by companies and to non-residents) of Principal Act.

48. Amendment of Chapter 5 (policyholders — new basis) of Part 26 of Principal Act, etc.

49. Amendment of Chapter 6 (certain foreign life policies — taxation and returns) of Part 26 of Principal Act.

50. Certain matters relating to investment undertakings in Chapter 1A of Part 27 of Principal Act.

51. Amendment of Chapter 4 (certain offshore funds — taxation and returns) of Part 27 of Principal Act.

52. Securitisation companies and money market funds.

53. Amendment of section 739G (taxation of unit holders in investment undertakings) of Principal Act.

54. Amendment of section 713 (investment income reserved for policyholders) of Principal Act.

55. Amendment of section 141 (distributions out of income from patent royalties) of Principal Act.

56. Amendment of Chapter 7 (special measures on discontinuance of, and change of basis for computation of profits or gains of, a trade or profession) of Part 4 of Principal Act.

57. Amendment of section 64 (interest on quoted Eurobonds) of Principal Act.

58. Amendment of section 407 (restriction on use of losses and capital allowances for qualifying shipping trade) of Principal Act.

59. Definition of assurance company.

Chapter 4

Corporation Tax

60. Implementation of Council Directive No. 2005/19/EC amending Directive 90/434/EEC concerning companies of different Member States, and certain other matters.

61. Generally accepted accounting standards.

62. Matching of foreign currency assets with certain foreign currency share capital.

63. Amendment of Schedule 24 (relief from income tax and corporation tax by means of credit in respect of foreign tax) to Principal Act.

64. Amendment of section 626B (exemption from tax in the case of gains on certain disposals of shares) of Principal Act.

65. Amendment of section 247 (relief to companies on loans applied in acquiring interest in other companies) of Principal Act.

66. Amendment of section 766 (tax credit for research and development expenditure) of Principal Act.

67. Tonnage tax.

68. Amendment of Chapter 4 (income tax and corporation tax: treatment of certain losses and certain capital allowances) of Part 12 of Principal Act.

69. Amendment of Schedule 4 (exemption of specified non-commercial State sponsored bodies from certain tax provisions) to Principal Act.

Chapter 5

Capital Gains Tax

70. Amendment of section 598 (disposals of business or farm on “retirement”) of Principal Act.

71. Amendment of section 599 (disposals within family of business or farm) of Principal Act.

72. Amendment of section 603A (disposal of site to child) of Principal Act.

73. Amendment of section 606 (disposals of work of art, etc., loaned for public display) of Principal Act.

74. Amendment of Schedule 15 (list of bodies for purposes of section 610) to Principal Act.

75. Amendment of Chapter 2 (capital gains tax) of Part 44 of Principal Act.

76. Amendment of section 588 (demutualisation of assurance companies) of Principal Act.

77. Amendment of Schedule 16 (building societies: change of status) to Principal Act.

PART 2

Excise

78. Amendment of section 75 (charging and rates) of Finance Act 2003.

79. Rates of mineral oil tax.

80. Amendment of section 94 (interpretation) of Finance Act 1999.

81. Relief for biofuel.

82. Amendment of penalties on summary conviction for certain excise offences.

83. Amendment of section 153 (regulations) of Finance Act 2001.

84. Amendment of section 81 (regulations) of Finance Act 2003.

85. Amendment of section 104 (regulations) of Finance Act 1999.

86. Amendment of section 8 (regulations) of Finance (Excise Duty on Tobacco Products) Act 1977.

87. Amendment of section 83 (regulations) of Finance Act 2005.

88. Remission or repayment in respect of vehicle registration tax on certain hybrid electric vehicles or certain flexible fuel vehicles.

89. Amendment of section 141 (regulations) of Finance Act 1992.

90. Amendment of section 67 (betting duty) of Finance Act 2002.

91. Payment of betting duty.

PART 3

Value-Added Tax

92. Interpretation (Part 3).

93. Amendment of section 1 (interpretation) of Principal Act.

94. Amendment of section 5 (supply of services) of Principal Act.

95. Amendment of section 8 (taxable persons) of Principal Act.

96. Amendment of section 10 (amount on which tax is chargeable) of Principal Act.

97. Amendment of section 11 (rates of tax) of Principal Act.

98. Amendment of section 12 (deduction for tax borne or paid) of Principal Act.

99. Amendment of section 32 (regulations) of Principal Act.

100. Amendment of First Schedule to Principal Act.

101. Amendment of Sixth Schedule to Principal Act.

PART 4

Stamp Duties

102. Interpretation (Part 4).

103. Amendment of section 1 (interpretation) of Principal Act.

104. Demutualisation of assurance companies.

105. Amendment of section 81A (further relief from stamp duty in respect of transfers to young trained farmers) of Principal Act.

106. Approved bodies.

107. Reconstructions or amalgamations of certain funds.

108. Courts Service.

109. Single farm payment entitlement.

110. Amendment of Part 8 (companies capital duty) of Principal Act.

111. Amendment of section 123B (cash, combined and debit cards) of Principal Act.

PART 5

Capital Acquisitions Tax

112. Interpretation (Part 5).

113. Amendment of section 6 (taxable gift) of Principal Act.

114. Amendment of section 11 (taxable inheritance) of Principal Act.

115. Amendment of section 77 (exemption of heritage property) of Principal Act.

116. Amendment of Chapter 3 (annual levy on discretionary trusts) of Part 3 of Principal Act.

117. Discretionary trusts: returns.

118. Amendment of Part 10 (reliefs) of Principal Act.

119. Amendment of section 104 (allowance for capital gains tax on the same event) of Principal Act.

PART 6

Miscellaneous

120. Interpretation (Part 6).

121. Amendment of section 1003 (payment of tax by means of donation of heritage items) of Principal Act.

122. Payment of tax by means of donation of heritage property to an Irish heritage trust.

123. Prescribing of forms, etc.

124. Amendment of Chapter 3A (implementation of Council Directive 2003/48/EC of 3 June 2003 on Taxation of Savings Income in the Form of Interest Payments and Related Matters) of Part 38 of Principal Act.

125. Amendment of Chapter 3 (other obligations and returns) of Part 38 of Principal Act.

126. Transactions to avoid liability to tax: surcharge, interest and protective notifications.

127. Miscellaneous technical amendments in relation to tax.

128. Capital Services Redemption Account.

129. Care and management of taxes and duties.

130. Short title, construction and commencement.

SCHEDULE 1

Amendments Consequential on Changes in Personal Tax Credits

SCHEDULE 2

Miscellaneous Technical Amendments in Relation to Tax

Acts Referred to

Number 6 of 2006

FINANCE ACT 2006

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS: