Number 6 of 1975
FINANCE ACT, 1975
ARRANGEMENT OF SECTIONS
Income Tax, Sur-tax and Corporation Profits Tax
Income Tax
Section | |
Taxation of Farming Profits
Anti-avoidance
Appeals against determinations under sections 83 to 85 of Income Tax Act, 1967. | |
Corporation Profits Tax
Continuance of certain exemptions from corporation profits tax. |
Miscellaneous
Adjustment of capital allowances by reference to value-added tax. | |
Patent royalties: provisions supplemental to section 34 of Finance Act, 1973. | |
Customs and Excise
Increase of dog duty and penalty for failure to pay dog duty. | |
Death Duties
Stamp Duties
Value-Added Tax
Miscellaneous
Acts Referred to | |
1974, No. 27 | |
1967, No. 6 | |
1972, No. 19 | |
1973, No. 19 | |
1971, No. 23 | |
1959, No. 18 | |
1929, No. 32 | |
1963, No. 33 | |
1968, No. 33 | |
1970, No. 14 | |
1962, No. 15 | |
1972, No. 22 | |
1974, No. 17 | |
Finance Act, 1920 | 1920, c. 18 |
Imposition of Duties (No. 200) (Customs and Excise Duties and Form of Tariff) Order, 1972 | S.I. No. 220 of 1972 |
1933, No. 15 | |
Imposition of Duties (No. 208) (Beer, Spirits and Tobacco) Order, 1973 | S.I. No. 249 of 1973 |
1926, No. 35 | |
1932, No. 20 | |
1934, No. 31 | |
1969, No. 21 | |
Imposition of Duties (No. 213) (Customs Duties and Form of Customs Tariff) Order, 1974 | S.I. No. 174 of 1974 |
1966, No. 17 | |
Finance (New Duties) Act, 1916 | 1916, c. 11 |
Imposition of Duties (No. 187) (Customs and Excise Duties and Form of Tariff) Order, 1970 | S.I. No. 268 of 1970 |
1931, No. 31 | |
1956, No. 2 | |
1956, No. 22 | |
1973, No. 25 | |
1925, No. 28 | |
1963, No. 23 | |
1941, No. 14 | |
1957, No. 7 | |
Finance Act, 1894 | 1894, c. 30 |
Legacy Duty Act, 1796 | 1796, c. 52 |
Succession Duty Act, 1853 | 1853, c. 51 |
Probate and Legacy Duties (Ireland) Act, 1814 | 1814, c. 92 |
Stamp Act, 1891 | 1891, c. 39 |
Imposition of Duties (No. 217) (Stamp Duty on Certain Instruments) Order, 1975 | S.I. No. 27 of 1975 |
1950, No. 18 | |
1927, No. 7 | |
1964, No. 15 | |
Number 6 of 1975
FINANCE ACT, 1975
PART I
Income Tax, Sur-tax and Corporation Profits Tax
Chapter I
Income Tax
Amendment of section 142 of Income Tax Act, 1967.
1.—Section 142 (1) (as amended by the Finance Act, 1974) of the Income Tax Act, 1967, is hereby amended by the substitution of “£592” for “£489”, in both places where it occurs, by the substitution of “£95” for “£80”, in both places where it occurs, and by the substitution of “£497” for “£409” and the said section 142 (1), as so amended, is set out in the Table to this section.
TABLE
142.—(1) If the claimant proves that he maintains at his own expense any person, being a relative of his or of his wife who is incapacitated by old age or infirmity from maintaining himself, or his or his wife's widowed mother, whether incapacitated or not, and being a person whose total income from all sources is less than £592 a year, he shall be entitled to a deduction of £95 in respect of each person whom he so maintains, and a like deduction shall be made in the case of a claimant who, by reason of old age or infirmity, is compelled to depend upon the services of a person (being a person whose total income from all sources is less than £592 a year and being a son or daughter of the claimant) resident with and maintained by him or her:
Provided that each of the foregoing provisions of this subsection shall have effect, in a case in which the total income from all sources of the person in respect of whom the deduction is to be made exceeds £497 a year, as if, instead of specifying a deduction of £95, it specified a deduction of that amount reduced by the amount of the excess.
Amendment of section 143 of Income Tax Act, 1967.
2.—Section 143 of the Income Tax Act, 1967, is hereby amended, with effect as on and from the 6th day of April, 1974, by the addition to subsection (3) (b) of the following proviso:
“Provided that where any of the taxable income is chargeable at one or more of the higher rates, the claimant shall be entitled to have the amount of the tax payable by him reduced so as not to exceed a sum equal to the aggregate of the two following amounts, that is to say, the amount of the tax that would have been payable by him if the deduction from the total income had been two-thirds of the premium paid by him or, as the case may be, of the sum paid by him or deducted from his salary or stipend and an amount representing tax at the standard rate on one-sixth of the premium paid by him or, as the case may be, of the sum paid by him or deducted from his salary or stipend.”.
Amendment of section 251 of Income Tax Act, 1967.
3.—Section 251 of the Income Tax Act, 1967, is hereby amended by the substitution in subsection (4) (d) (inserted by the Finance Act, 1972) of “the 1st day of April, 1977” for “the 1st day of April, 1975” (inserted by the Finance Act, 1973).
Amendment of section 254 of Income Tax Act, 1967.
4.—Section 254 of the Income Tax Act, 1967, is hereby amended by the insertion after subsection (2) of the following subsection:
“(2A) Notwithstanding anything contained in subsections (1) and (2), this Chapter shall have effect—
(a) in relation to capital expenditure incurred on or after the 16th day of January, 1975, and before the 1st day of April, 1977, on the construction of a building or structure in respect of which an allowance under this Chapter falls to be made by reason of its use for a purpose specified in paragraph (a) or (b) of section 255 (1), as if ‘one-half’ were substituted for ‘one-tenth’, and
(b) in relation to capital expenditure incurred on or after the 6th day of April, 1974, on the construction of a building or structure in respect of which an allowance under this Chapter falls to be made by reason of its use for a purpose specified in paragraph (c) of section 255 (1), as if ‘one-fifth’ were substituted for ‘one-tenth’.”.
Amendment of section 264 of Income Tax Act, 1967.
5.—Section 264 of the Income Tax Act, 1967, is hereby amended—
(a) in relation to capital expenditure incurred on or after the 16th day of January, 1975, and before the 1st day of April, 1977, by the substitution in subsection (1) of “one-twentyfifth” for “one-fiftieth”in each place where it occurs, and
(b) by the substitution for the proviso to subsection (3) of the following proviso:
“Provided that—
(i) in relation to a building or structure the capital expenditure on the construction of which has been incurred on or after the 1st day of January, 1960, and which falls to be regarded as an industrial building or structure within the meaning of section 255 (1) by reason of its use for a purpose specified in paragraph (c) or (d) of that subsection, this Part shall have effect as if ‘tenth year’ were substituted for ‘fiftieth year’ in the foregoing provisions of this subsection, and
(ii) in relation to a building or structure the capital expenditure on the construction of which has been incurred on or after the 16th day of January, 1975, and before the 1st day of April, 1977, and which falls to be regarded as an industrial building or structure within the meaning of section 255 (1) by reason of its use for a purpose specified in paragraph (a) or (b) of that subsection, this Part shall have effect as if ‘twentyfifth year’ were substituted for ‘fiftieth year’ in the foregoing provisions of this subsection.”.
Amendment of section 22 of Finance Act, 1971.
6.—Section 22 (2) of the Finance Act, 1971, is hereby amended by the substitution of “the 1st day of April, 1977” for “the 1st day of April, 1975” (inserted by the Finance Act, 1973).
Amendment of section 26 of Finance Act, 1971.
7.—Section 26 (1) of the Finance Act, 1971, is hereby amended by the substitution of “the 1st day of April, 1977” for “the 1st day of April, 1975” (inserted by the Finance Act, 1973).
Amendment of section 8 of Finance Act, 1973.
8.—Section 8 of the Finance Act, 1973, is hereby amended by the substitution of “the 1st day of April, 1977” for “the 1st day of April, 1975”.
Amendment of section 19 of Finance Act, 1973.
9.—Section 19 of the Finance Act, 1973, is hereby amended—
(a) by the insertion in subsection (2) after “made” of “by the Minister for Health or”, and
(b) by the addition thereto of the following subsection:
“(3) In so far as it relates to any payment made by the Minister for Health, subsection (2) shall apply to any such payment made after the 1st day of January, 1975.”,
and the said subsection (2), as so amended, is set out in the Table to this section.
TABLE
(2) This section applies to any income consisting of payments made by the Minister for Health or by the foundation known as the Hilfswerk für behinderte Kinder to or in respect of any person handicapped by reason of infirmity which can be linked with the taking by the person's mother during her pregnancy of preparations containing thalidomide.
Amendment of section 3 of Finance Act, 1974.
10.—Section 3 of the Finance Act, 1974, is hereby amended, in relation to tax for the year 1975-76 and any subsequent year of assessment, by the substitution for the Table in subsection (2) (c) of the following Table:
TABLE
Part of excess over £4,350 | Higher rate |
The first £2,000 | 45 per cent. |
The next £2,000 | 55 per cent. |
The next £2,000 | 65 per cent. |
The remainder | 70 per cent. |
Personal reliefs.
11.—(1) Section 6 of the Finance Act, 1974, is hereby amended by the substitution of the following subsection for subsection (1):
“(1) Where a deduction falls to be made from the total income of an individual for the year 1975-76 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 section 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).
TABLE
Statutory provision | Amount to be deducted from total income for 1974–75 | Amount to be deducted from total income for 1975–76 and subsequent years |
(1) | (2) | (3) |
£ | £ | |
section 138 | ||
(married man) | 800 | 920 |
(single person) | 500 | 575 |
(widowed person) | 550 | 635 |
(working wife) | 200 or, if less, amount of wife's earned income | 230 or, if less, amount of wife's earned income |
sections 139 and 140 (housekeeper) | 140 | 165 |
section 141 (child) | 200 | 230 |
section 142 (dependent relative) | 80 | 95 |
section 3 (housekeeper taking care of incapacitated person) | 140 | 165 |
section 11 (blind person) | 140 | 165 |
(both spouses blind) | 280 | 330 |
section 8 (age allowance) | ||
(single or widowed person) | 25 | 45 |
(married man) | 50 | 145 |
”
(2) Part I of the First Schedule shall have effect for the purpose of supplementing subsection (1) (inserted by this section) of section 6 of the Finance Act, 1974.
Chapter II
Taxation of Farming Profits
Amendment of section 13 of Finance Act, 1974.
12.—Section 13 of the Finance Act, 1974, is hereby amended by the substitution of the following subsection for subsection (1):
“(1) In this Chapter—
‘farming’ means farming farm land, that is, land in the State wholly or mainly occupied for the purposes of husbandry, other than market garden land within the meaning of section 54 of the Income Tax Act, 1967;
‘occupation’, in relation to any land, means having the use thereof or having the right by virtue of any easement (within the meaning of section 80 of the Income Tax Act, 1967) to graze livestock thereon.”.
Amendment of section 15 of Finance Act, 1974.
13.—Section 15 of the Finance Act, 1974, is hereby amended by the addition to subsection (3) of the following proviso:
“Provided that this subsection shall not have effect for a year of assessment in a case where farming is carried on in that year of assessment by an individual to whom section 16 applies.”.
Amendment of section 16 of Finance Act, 1974.
14.—(1) Section 16 of the Finance Act, 1974, is hereby amended—
(a) by the substitution in subsection (1) of “In this Chapter ‘an individual to whom section 16 applies’ means an individual (other than an individual who shows that the rateable valuation of all farm land occupied by him did not, at any time during the relevant year of assessment, exceed £50) who is carrying on farming in a year of assessment and” for the words from “Section 15 (3)” to “individual” where that word first occurs,
(b) by the insertion in subsection (1) (b) after “profession,” of “other than a trade consisting solely of the provision of accommodation in buildings on the farm land occupied by him, the provision of such accommodation being ancillary to the farming of that farm land,”, and
(c) by the deletion of subsection (3),
and the said section 16 (1), as so amended, is set out in the Table to this section.
(2) This section and sections 13 and 15 shall be deemed to have come into force and shall take effect as on and from the 6th day of April, 1974.
TABLE
16.—(1) In this Chapter “an individual to whom section 16 applies” means an individual (other than an individual who shows that the rateable valuation of all farm land occupied by him did not, at any time during the relevant year of assessment, exceed £50) who is carrying on farming in a year of assessment and—
(a) who at any time in that year of assessment is also carrying on either solely or in partnership another trade or profession,
(b) whose spouse, in a case where the individual is a married person, is, at any time in that year of assessment, also carrying on either solely or in partnership another trade or profession, other than a trade consisting solely of the provision of accommodation in buildings on the farm land occupied by him, the provision of such accommodation being ancillary to the farming of that farm land,
(c) who, at any time in that year of assessment, is a director of a company carrying on a trade or profession and who is either the beneficial owner of, or able, either directly or through the medium of other companies or by any other means, to control more than 25 per cent. of the ordinary share capital of the company, or
(d) whose spouse, in a case where the individual is a married person, is, at any time in that year of assessment, a director of a company carrying on a trade or profession and who is either the beneficial owner of, or able, either directly or through the medium of other companies or by any other means, to control more than 25 per cent. of the ordinary share capital of the company:
Provided that paragraphs (b) and (d) shall not apply in a case where the wife of an individual is treated for tax purposes as not living with her husband.
Amendment of section 17 of Finance Act, 1974.
15.—Section 17 (4) of the Finance Act, 1974, is hereby amended by the insertion of “or otherwise” after “partnership”, and the said section 17 (4), as so amended, is set out in the Table to this section.
TABLE
(4) Where farm land is beneficially owned by an individual, or by his wife, jointly with any other person or persons and the said farm land is occupied by the individual, or by his wife, in partnership or otherwise with any other person or persons, he shall be deemed to occupy farm land the rateable valuation of which is an amount which is equal to such fractional part of the total rateable valuation of the land of which he or his wife is a beneficial owner as is proportionate to his or her share in the beneficial ownership of the said farm land.
Amendment of section 20 of Finance Act, 1974.
16.—Section 20 (1) of the Finance Act, 1974, is hereby amended, with effect from the 6th day of April, 1974, by the substitution of “fifteen months” for “six months”and the said section 20 (1), as so amended, is set out in the Table to this section.
TABLE
20.—(1) Where, for the year of assessment 1974-75, a person is, by virtue of section 15, chargeable to tax in respect of profits or gains from farming and would, in accordance with the provisions of section 58 (1) of the Income Tax Act, 1967, be charged to tax under Case I of Schedule D on the full amount of the profits or gains of the year preceding that year of assessment, he may, by notice in writing given to the inspector within fifteen months after the commencement of the said year of assessment, elect to be charged to tax for that year of assessment on the full amount of the profits or gains of that year and not on the full amount of the profits or gains of the year preceding that year of assessment.
Amendment of section 21 of Finance Act, 1974.
17.—(1) Section 21 (1) of the Finance Act, 1974, shall have effect, as respects any assessment for the year 1974-75, as if “fifteen months” were substituted therein for “six months”.
(2) The said section 21 (1) of the Finance Act, 1974, is hereby amended—
(a) by the substitution of “1975-76” for “1974-75”, and
(b) by the deletion of “, or of section 20”,
and the said section21 (1), as so amended, is set out in the Table to this subsection.
TABLE
21.—(1) Where, for the year of assessment 1975-76, an individual, other than an individual to whom section 16 applies, is, by virtue of section 15, chargeable to tax in respect of profits or gains from farming he may, by notice in writing given to the inspector within six months after the commencement of the said year of assessment, elect to be charged to tax for that year of assessment in respect of those profits or gains in accordance with the provisions of this section and not by reference to the provisions of section 58 (1) of the Income Tax Act, 1967.
Amendment of section 22 of Finance Act, 1974.
18.—(1) Section 22 of the Finance Act, 1974, is hereby amended—
(a) by the substitution for subsection (2) of the following subsections—
“(2) Where a person to whom this section applies incurs, for the purpose of farming farm land occupied by him, any capital expenditure on the construction of farmhouses, farm buildings, cottages, fences or other works, there shall be made, in charging the profits or gains from farming the said farm land, in respect of that expenditure—
(a) for the first relevant year of assessment, an initial allowance equal to one-fifth of that expenditure, and
(b) for the first relevant year of assessment and for each subsequent year of assessment (until the allowances made, or deemed to have been made, under this section in respect of the said expenditure equal the amount of the expenditure as determined in accordance with the provisions of section 29 of the Finance Act, 1975) an allowance (in this section referred to as an annual allowance) equal to one-tenth of that expenditure:
Provided that paragraph (a) shall not apply in respect of expenditure incurred before the 6th day of April, 1974, and paragraph (b) shall not apply in respect of expenditure incurred before the 6th day of April, 1971.
(2A) Where any capital expenditure as aforesaid was incurred by a person on or after the 6th day of April, 1971, and before the 6th day of April, 1974, an annual allowance shall, for the purposes of this section, be deemed—
(a) to have been made to that person, and
(b) to have been set off against chargeable profits or gains for the first relevant year of assessment and for each subsequent year of assessment prior to the year 1974-75, and no such allowance shall be carried forward and set off against profits or gains chargeable for the year 1974-75 or any subsequent year of assessment:
Provided that where the said expenditure was incurred in the year 1973-74, an annual allowance shall, for the purposes of this section, be deemed to have been made and to have been set off against chargeable profits or gains for that year of assessment.
(2B) Where, for any year of assessment, an individual—
(a) elects to be charged to tax, in respect of his profits or gains from farming, by reference to the provisions of section 21, or
(b) is not, by virtue of section 15 (3), chargeable to tax in respect of such profits or gains,
and that year is a year of assessment in respect of which he could, otherwise, have claimed an annual allowance under this section, that allowance shall, for the purposes of this section, be deemed to have been made for that year of assessment and shall not be carried forward and set off against profits or gains chargeable for any subsequent year of assessment.”,
(b) by the substitution, in subsection (3), of “1971” for “1974”, and
(c) by the addition to subsection (5) of “or in what would have been his basis period if his profits or gains from farming had been chargeable to tax under Case I of Schedule D”, and the said subsection (5), as so amended, is set out in the Table to this section.
(2) This section shall be deemed to have come into force and shall have effect as on and from the 6th day of April, 1974.
TABLE
(5) For the purposes of this section, the first relevant year of assessment, in relation to expenditure incurred by any person, is the year in his basis period (within the meaning of section 297 of the Income Tax Act, 1967) for which he incurs the expenditure or in what would have been his basis period if his profits or gains from farming had been chargeable to tax under Case I of Schedule D.
Chapter III
Anti-avoidance
Amendment of section 80 of Income Tax Act, 1967.
19.—Section 80 of the Income Tax Act, 1967, is hereby amended—
(a) by the insertion after “lessor” in the definition of “premium” in subsection (1) of “or to a person connected with the immediate or superior lessor”,
(b) by the substitution for subsection (2) of the following subsection:
“(2) (a) In ascertaining, for the purposes of this Chapter, the duration of a lease, the following provisions shall have effect:
(i) where any of the terms of the lease (whether relating to forfeiture or to any other matter) or any other circumstances render it unlikely that the lease will continue beyond a date falling before the expiration of the term of the lease and the premium was not substantially greater than it would have been (on the assumptions required by paragraph (b)) if the term had been one expiring on that date, the lease shall not be treated as having been granted for a term longer than one ending on that date, and
(ii) where the terms of the lease include provision for the extension of the lease beyond a given date by notice given by the lessee, account may be taken of any circumstances making it likely that the lease will be so extended, and
(iii) where the lessee, or a person connected with him, is or may become entitled to a further lease or the grant of a further lease (whenever commencing) of the same premises or of premises including the whole or part of the same premises, the term of the lease may be treated as not expiring before the term of the further lease.
(b) Paragraph (a) shall be applied by reference to the facts which were known or ascertainable at the time of the grant of the lease, or, in relation to tax under section 83 (4), at the time when the contract providing for a variation or waiver of a kind referred to in the said section 83 (4) is entered into; and in applying the said paragraph (a)—
(i) it shall be assumed that all parties concerned, whatever their relationship, act as they would act if they were at arm's length; and
(ii) if, by the lease or in connection with the granting of it—
(I) benefits were conferred other than vacant possession and beneficial occupation of the premises or the right to receive rent at a reasonable commercial rate in respect of them, or
(II) payments were made which would not be expected to be made by parties so acting if no other benefits had been so conferred,
it shall be further assumed, unless it is shown that the benefits were not conferred or the payments made for the purpose of securing a tax advantage in the application of this Chapter, that the benefits would not have been conferred nor the payments made had the lease been for a term ending on the date mentioned in paragraph (a).”, and
(c) by the insertion after subsection (4) of the following subsection:
“(5) Where an inspector has reason to believe that a person has information relevant to the ascertainment of the duration of a lease in accordance with the preceding provisions of this section, the inspector may by notice in writing require him to give, within twenty-one days after the date of the notice or such longer period as the inspector may allow, such information relevant to the ascertainment of the duration of the lease on the matters specified in the notice as is in his possession.”,
and the definition of premium in the said subsection (1), as so amended, is set out in the Table to this section.
TABLE
“premium” includes any like sum, whether payable to the immediate or a superior lessor or to a person connected with the immediate or superior lessor;
Amendment of section 83 of Income Tax Act, 1967.
20.—Section 83 of the Income Tax Act, 1967, is hereby amended—
(a) by the substitution for subsection (6) of the following subsection:
“(6) If an amount by reference to which a person is chargeable to tax by virtue of this section is payable by instalments, the tax chargeable may, if the person chargeable satisfies the Revenue Commissioners that he would otherwise suffer undue hardship, be paid at his option by such instalments as the Commissioners may allow over a period not exceeding eight years and ending not later than the time at which the last of the first-mentioned instalments is payable.”,
(b) by the substitution for subsection (8) of the following subsection:
“(8) Where subparagraph (iii) of section 80 (2) (a) applies, the premium, or an appropriate part of the premium, payable for or in connection with any lease mentioned in that subparagraph may be treated as having been required under any other lease.”, and
(c) by the insertion after subsection (8) of the following subsection:
“(9) Reference in this section to a sum shall be construed as including the value of any consideration, and references to a sum paid or payable or to the payment of a sum shall be construed accordingly.”.
Appeals against determinations under sections 83 to 85 of Income Tax Act, 1967.
21.—(1) Where it appears to the inspector that the determination of any amount on which a person may be chargeable to tax by virtue of section 83, 84 or 85 of the Income Tax Act, 1967, may affect the liability to tax of other persons, he shall give notice in writing to those persons as well as to the first-mentioned person of the determination he proposes to make and of the rights conferred on them by this section.
(2) Any person to whom such a notice is given may, within twenty-one days after the date on which it is given, object to the proposed determination by notice in writing given to the inspector:
Provided that section 416 (7) of the Income Tax Act, 1967, shall apply, with any necessary modifications, in relation to any such notice as it applies in relation to a notice of appeal under the said section 416.
(3) Where notices have been given under subsection (1) and no notice of objection is duly given under subsection (2), the inspector shall make the determination as proposed in his notices and the determination shall not be called in question in any proceedings:
Provided that this subsection shall not operate to prevent any person to whom notice has not been given under subsection (1) from appealing against any such determination of the inspector which may affect that person's liability to tax.
(4) Where a notice of objection is duly given, the amount mentioned in subsection (1) shall be determined in like manner as an appeal and shall be so determined by the Appeal Commissioners.
(5) All persons to whom notices have been given under subsection (1) may take part in any proceedings under subsection (4) and in any appeal arising out of those proceedings and shall be bound by the determination made in the proceedings or on appeal, whether or not they have taken part in the proceedings, and their successors in title shall also be so bound.
(6) A notice under subsection (1) may, notwithstanding any obligation as to secrecy or other restriction on the disclosure of information, include a statement of the grounds on which the inspector proposes to make the determination.
(7) An inspector may by notice in writing require any person to give, within twenty-one days after the date of the notice or within such longer period as the inspector may allow, such information as appears to the inspector to be required for deciding whether to give a notice under subsection (1) to any person.
(8) In this section “tax” means income tax or corporation profits tax, as may be appropriate.
Provisions supplementary to sections 19 to 21.
22.—(1) Part I of the Second Schedule shall have effect for the purpose of supplementing sections 19 to 21 and this section.
(2) The enactment mentioned in column (2) of Part II of the Second Schedule is hereby amended to the extent specified in column (3) of that Part.
(3) The enactment mentioned in column (2) of Part III of the Second Schedule is hereby repealed to the extent specified in column (3) of that Part.
Chapter IV
Corporation Profits Tax
Amendment of section 69 of Finance Act, 1959.
23.—Section 69 (1) of the Finance Act, 1959, is hereby amended by the insertion after paragraph (f) of the following paragraph:
“(g) an allowance under section 22 of the Finance Act, 1974.”.
Continuance of certain exemptions from corporation profits tax.
24.—The exemptions from corporation profits tax specified in section 33 (1) of the Finance Act, 1929, shall be given in respect of the period beginning on the 1st day of January, 1975, and ending on the 31st day of December, 1975.
Chapter V
Miscellaneous
Amendment of section 542 of Income Tax Act, 1967.
25.—Section 542 of the Income Tax Act, 1967, is hereby amended by the substitution for subsections (2) and (3) of the following subsection:
“(2) (a) Any notice, form or other document which under the Income Tax Acts is to be given, served, sent or delivered to or on a person by the Revenue Commissioners or by an inspector or other officer of the Revenue Commissioners may be either delivered to the person or left—
(i) in case the person is a company, at its registered office or place of business, or
(ii) in any other case, at the person's usual or last known place of abode or place of business or, if the person is an individual, at his place of employment.
(b) Any such notice, form or other document as is referred to in paragraph (a) may be served by post addressed—
(i) in case the person is a company, to it at either of the places specified in paragraph (a) (i), or
(ii) in any other case, to the person at any of the places specified in paragraph (a) (ii).
(c) Without prejudice to paragraphs (a) and (b) the provisions of section 379 of the Companies Act, 1963, shall apply in relation to the service on a company of any such notice, form or other document as is referred to in this subsection as they apply in relation to the service of documents under the said section 379 on a company within the meaning of that Act.
(d) In this subsection ‘company’ means any body corporate.”.
Amendment of section 9 of Finance Act, 1968.
26.—Section 9 of the Finance Act, 1968, is hereby amended by the substitution for paragraph (b) of the following paragraph:
“(b) to tax recoverable by virtue of a notice under section 8 served after the 15th day of January, 1975, as if the tax were tax which the person was liable under the regulations to remit for the last income tax month of the year of assessment to which the notice relates.”.
Amendment of section 35 of Finance Act, 1973.
27.—Section 35 of the Finance Act, 1973, is hereby amended, as respects interest payable on or after the 12th day of February, 1975, by the insertion after paragraph (a) of the following paragraph:
“(aa) section 17 (6A) of the Finance Act, 1970,”.
Interest on unpaid taxes.
28.—(1) This section applies to interest chargeable under—
(a) section 14 of the Finance Act, 1962,
(b) section 129 of the Income Tax Act, 1967,
(c) section 550 of the said Income Tax Act, 1967,
(d) section 17 (6A) of the Finance Act, 1970,
(e) sections 20 (2) and 50 (2) of the Finance Act, 1971, and
(f) section 21 of the Value-Added Tax Act, 1972.
(2) Where any interest to which this section applies is chargeable for any month commencing on or after the 6th day of April, 1975, or any part of such a month, in respect of tax due to be paid or remitted whether before, on or after such date, such interest shall be chargeable at the rate of 1.5 per cent. for each month or part of a month instead of at the rate specified in the said sections and those sections shall have effect as if the rate aforesaid were substituted for the rates specified in those sections.
(3) In this section “tax” means income tax, sur-tax, corporation profits tax or value-added tax, as may be appropriate.
Adjustment of capital allowances by reference to value-added tax.
29.—(1) In computing any deduction, allowance or relief, for any of the purposes of—
(a) Parts XIII to XVIII, inclusive, of the Income Tax Act, 1967,
(b) section 22 of the Finance Act, 1971,
(c) the Finance (Taxation of Profits of Certain Mines) Act, 1974, or
(d) section 22 of the Finance Act, 1974,
the cost to a person of any machinery or plant, or the amount of any expenditure incurred by him, shall not take account of any amount included in such cost or expenditure for value-added tax in respect of which the person may claim—
(i) a deduction under section 12 of the Value-Added Tax Act, 1972, or
(ii) a refund of value-added tax under an order under section 20 (3) of that Act.
(2) In calculating, for any of the purposes of Part XVI of the Income Tax Act, 1967, the amount of sale, insurance, salvage or compensation moneys to be taken into account in computing a balancing allowance or balancing charge to be made to or on a person, no account shall be taken of the amount of value-added tax (if any) chargeable to the person in respect of those moneys.
(3) Section 39 of the Value-Added Tax Act, 1972, is hereby repealed.
Patent royalties: provisions supplemental to section 34 of Finance Act, 1973.
30.—(1) (a) Where a dividend is paid in part out of profits consisting of income disregarded by virtue of section 34 (2) of the Finance Act, 1973 (in this section referred to as disregarded income), and in part out of other profits, sections 456 and 457 of the Income Tax Act, 1967, shall apply as if the dividend consisted of two dividends of which one is paid out of profits consisting of disregarded income and the other is paid out of other profits,
(b) so much of any dividend as is paid out of disregarded income shall not be regarded as income or profits for any purpose of the Income Tax Acts or of the enactments relating to corporation profits tax,
(c) in relation to every warrant, cheque or order drawn or made by a company for the payment of a dividend payable wholly or in part out of disregarded income, section 458 of the Income Tax Act, 1967, shall apply to the company so that the statement required by that section shall show, in addition to the particulars required to be given apart from this section, either (as the case may require)—
(i) that the whole of the sum for which the warrant, cheque or order is drawn or made is a payment of a dividend out of disregarded income, or
(ii) that a part of such sum is a payment out of disregarded income and that a part (the gross amount of which, before any deduction in respect of income tax, is separately stated) of such sum is a payment out of other income.
(2) Where under section 456 of the Income Tax Act, 1967, a body corporate is entitled to deduct tax from any dividend and the profits of the body corporate include a dividend all or part of which is not regarded as income by virtue of subsection (1) (b), so much of any dividend included in the profits of the body corporate as is not regarded as income shall be deemed for the purposes of this section to be profits representing disregarded income.
Relief in respect of increase in stock values.
31.—(1) In this section—
“accounting period”, in relation to a company, means an accounting period determined in accordance with the provisions of section 54 of the Finance Act, 1920, which ends on a date in the period from the 6th day of April, 1973, to the 5th day of April, 1975;
“company” means any body corporate resident in the State;
“trade” means a trade which is carried on in the State and which during an accounting period consists wholly or mainly of any of the following classes of trading operations—
(a) the manufacture of goods,
(b) the carrying out of construction operations within the meaning of section 17 of the Finance Act, 1970,
(c) farming, or
(d) the sale of machinery or plant (excluding vehicles suitable for the conveyance by road of persons) or goods to a person engaged in a trade consisting wholly or mainly of trading operations of a class specified in paragraph (a), (b) or (c) for use for the purposes of that trade;
“trading profits”, in relation to any trade, means the profits or gains of the trade computed in accordance with the rules applicable to Case I of Schedule D before the allowance of any deduction under section 64 of the Income Tax Act, 1967;
“trading stock”, in relation to any trade, has the same meaning as in section 62 of the Income Tax Act, 1967, and in determining the value of a company's trading stock at any time for the purposes of a deduction under this section, to the extent that, at or before that time, any payments on account have been received by the company in respect of any trading stock, the value of that stock shall be reduced accordingly.
(2) Subject to the following provisions of this section, if—
(a) a company carries on in an accounting period a trade in respect of which it is within the charge to income tax under Case I of Schedule D, and
(b) the value of the company's trading stock at the end of the accounting period (in this section referred to as its “closing stock value”) exceeds the value of its trading stock at the beginning of the accounting period (in this section referred to as its “opening stock value”),
the company shall, in the computation for the purposes of income tax of its trading profits, be entitled to a deduction under this section by reference to the amount of that excess as if the deduction were a trading expense incurred in the accounting period; and in the
following provisions of this section the amount of that excess is referred to as the company's “increase in stock value”.
(3) The third Schedule shall have effect for the purpose of supplementing this section.
(4) (a) In any case where a company is entitled to a deduction under this section, that deduction shall be an amount equal to its increase in stock value in an accounting period less 20 per cent. of its trading profits for that period:
Provided that—
(i) in no case shall the amount of the deduction as so computed exceed the amount of the company's trading profits for that period,
(ii) the company's trading profits to be taken into account in computing a deduction shall be those profits before any deduction is made under this section or the Third Schedule, and
(iii) any deduction allowed under the provisions of this section in computing a company's trading profits for an accounting period shall not have effect for any purpose of the Income Tax Acts for any year of assessment prior to 1974-75 or later than 1975-76.
(b) There shall be made such reductions of assessments or repayments of tax as may in any case be required in order to give effect to this section.
(5) A company shall not be entitled to a deduction under this section in respect of an assessment unless it makes a claim before—
(a) the date on which the assessment becomes final and conclusive, or
(b) the expiry of the period of six months beginning with the date of the passing of this Act,
whichever is the later.
(6) Where under the provisions of this section an amount is deducted as an expense in computing trading profits for an accounting period for the purposes of income tax, that amount shall be similarly treated for the purposes of corporation profits tax.
Amendment of section 41 of Finance Act, 1974.
32.—Section 41 (7) of the Finance Act, 1974, is hereby amended, as on and from the 12th day of February, 1975, by the substitution of “section 16 (3)” for “section 16 (2)”.
Definition of “capital allowance”.
33.—(1) In the Income Tax Acts, save where the context otherwise requires, “capital allowance” means any allowance (other than an allowance or deduction to be made in computing profits or gains) under—
(a) Parts XIII to XVIII of the Income Tax Act, 1967,
(b) section 22 of the Finance Act, 1971,
(c) the Finance (Taxation of Profits of Certain Mines) Act, 1974, or
(d) section 22 of the Finance Act, 1974,
and “capital allowances” shall be construed accordingly.
(2) Part II of the First Schedule shall have effect for the purpose of supplementing this section.
Allowance in respect of certain buildings or structures.
34.—(1) Section 255 (1) of the Income Tax Act, 1967, is hereby amended by the insertion of the following paragraph after paragraph (c):
“(cc) for the intensive production of cattle, sheep, pigs, poultry or eggs in the course of a trade other than the trade of farming within the meaning of section 13 of the Finance Act, 1974, or”.
(2) In relation to a building or structure which falls to be regarded as an industrial building or structure by virtue of subsection (1), Chapter II of Part XV and Chapter I of Part XVI of the Income Tax Act, 1967, shall have effect as if—
(a) “one-fifth” were substituted for “one-tenth” in section 254 (1) of the said Act,
(b) “one-tenth” were substituted for “one-fiftieth” in sections 264 (1) and 266 (4) of the said Act,
(c) “tenth year” were substituted for “fiftieth year” in section 264 (3) and the proviso to section 265 (1) of the said Act,
(d) paragraph (a) of the proviso to section 266 (4) of the said Act were deleted.
(3) The foregoing provisions of this section shall have effect as respects capital expenditure incurred on or after the 6th day of April, 1971, but no allowance shall be made under the said Chapters by virtue of this section—
(a) for any year of assessment prior to the year 1974-75, or
(b) under section 254 (1) of the Income Tax Act, 1967, in respect of expenditure incurred before the 6th day of April, 1974.
Amendment of certain enactments.
35.—Each enactment mentioned in column (2) of Part III of the First Schedule is, with effect from the 6th day of April, 1974, amended as specified in column (3) of the said Part.
PART II
Customs and Excise
Beer.
36.—(1) In this section—
“the Act of 1973” means the Finance Act, 1973;
“the Order of 1973” means the Imposition of Duties (No. 208) (Beer, Spirits and Tobacco) Order, 1973.
(2) In lieu of the duty of excise imposed by section 47 (1) of the Act of 1973, as varied by paragraph 4 of the Order of 1973, there shall be charged, levied and paid on all beer brewed within the State on or after the 16th day of January, 1975, a duty of excise at the rate of £42·047 for every thirty-six gallons of worts of a specific gravity of one thousand and fifty-five degrees.
(3) In lieu of the duty of customs imposed by section 47 (2) of the Act of 1973, as varied by paragraph 4 of the Order of 1973, there shall, as on and from the 16th day of January, 1975, be charged, levied and paid on all beer of any description imported into the State, a duty of customs at the rate of £42·047 for every thirty-six gallons of beer of which the worts were before fermentation of a specific gravity of one thousand and fifty-five degrees.
(4) There shall be allowed and paid on the exportation as merchandise or the shipment for use as stores of beer on which it is shown, to the satisfaction of the Revenue Commissioners, that the duty imposed by subsection (2) or (3) of this section has been paid, a drawback calculated according to the original specific gravity of the beer, at the rate of £42·060 on every thirty-six gallons of beer of which the original specific gravity was one thousand and fifty-five degrees.
(5) Where, in the case of beer which is chargeable with the duty imposed by subsection (2) or (3) of this section or in the case of beer on which drawback under subsection (4) of this section is payable, the specific gravity of the beer is not one thousand and fifty-five degrees, the duty or drawback shall be varied proportionately.
(6) Section 24 of the Finance Act, 1933, shall not apply or have effect in relation to the duty of customs to which this section refers.
Spirits.
37.—(1) In this section—
“the Order of 1972” means the Imposition of Duties (No. 200) (Customs and Excise Duties and Form of Tariff) Order, 1972;
“the Act of 1973” means the Finance Act, 1973;
“the Order of 1973” means the Imposition of Duties (No. 208) (Beer, Spirits and Tobacco) Order, 1973.
(2) The duty of customs imposed by section 3 (1) of the Finance Act, 1920, on spirits described in column (1) of Part I of the First Schedule thereto, as amended by section 48 of and Part I of the Sixth Schedule to the Act of 1973, shall be varied, as on and from the 16th day of January, 1975, by the addition of the sum of—
(a) £6·851 to each of the rates of such duty chargeable immediately before that date in respect of every gallon of Perfumed Spirits entered in such manner as to indicate that the strength is not to be tested;
(b) £5·781 to each of the rates of such duty chargeable immediately before that date in respect of every gallon of liqueurs, cordials, mixtures and other preparations in bottle entered in such manner as to indicate that the strength is not to be tested;
(c) £4·282 to each of the rates of such duty chargeable immediately before that date in respect of every gallon computed at proof of spirits of any description not heretofore mentioned and mixtures and preparations containing spirits.
(3) Subsection (2) of this section shall not apply to—
(a) cider and perry mentioned at tariff code numbers 2207-254, 2207-262, 2207-426, 2207-434, 2207-627 and 2207-635 in the Schedule to the Order of 1972, or
(b) denatured spirits of any description mentioned at tariff code numbers 2208-215 and 2208-223 in the Schedule to the Order of 1972, or
(c) perfumery, cosmetics or toilet preparations of tariff heading number 33.06 in the Schedule to the Order of 1972 which are based on the spirits described in paragraph (b) of this subsection.
(4) The duty of excise on spirits imposed by section 3 (2) of the Finance Act, 1920, as amended by section 48 (3) of the Act of 1973 and paragraph 5 of the Order of 1973, shall be varied, as on and from the 16th day of January, 1975, by the addition of the sum of £4·282 to the rate of such duty chargeable immediately before that date.
(5) Nothing in this section shall operate to relieve from or to prejudice or affect the additional customs duties or the additional excise duty in respect of immature spirits imposed by section 9 of the Finance Act, 1926.
Tobacco.
38.—(1) The duty of customs on tobacco imposed by section 20 of the Finance Act, 1932, shall, as on and from the 16th day of January, 1975, be varied by the addition of the sum of £1·236 to each of the rates of such duty chargeable immediately before that date.
(2) The duty of excise on tobacco imposed by section 19 of the Finance Act, 1934, shall, as on and from the 16th day of January, 1975, be varied by the addition of the sum of £1·236 to each of the rates of such duty chargeable immediately before that date.
Wine.
39.—(1) The duty of customs on wine imported into the State imposed by section 39 of the Finance Act, 1969, as amended by paragraphs 7 and 8 of the Imposition of Duties (No. 213) (Customs Duties and Form of Customs Tariff) Order, 1974, shall, as on and from the 16th day of January, 1975, be varied by the addition of the sum of £0·562 to each of the rates of such duty chargeable immediately before that date.
(2) The duty of excise on Irish wine imposed by section 15 of the Finance Act, 1966, shall, as on and from the 16th day of January, 1975, be varied by the addition of the sum of £0·562 to each of the rates of such duty chargeable immediately before that date.
Table waters.
40.—(1) In this section “the order of 1972” means the Imposition of Duties (No. 200) (Customs and Excise Duties and Form of Tariff) Order, 1972.
(2) The duty of customs imposed by paragraph 5 of the Order of 1972 on—
(a) the goods of tariff heading number 22.02 and of tariff code numbers 2201-227, 2207-321, 2207-474 and 2207-689 in the Schedule to the Order of 1972, and
(b) the goods of tariff heading number 20.07 in the Schedule to the Order of 1972 which are prepared for consumption as a beverage without dilution,
shall be varied, as on and from the 16th day of January, 1975, by the addition of the sum of £0·0257 to each of the rates of such duty chargeable immediately before that date.
(3) The duty of excise imposed by section 4 of the Finance (New Duties) Act, 1916, as varied by section 14 of the Finance Act, 1966, and paragraph 20 of the Imposition of Duties (No. 187) (Customs and Excise Duties and Form of Tariff) Order, 1970, shall be further varied, as on and from the 16th day of January, 1975, by the addition of the sum of £0·0257 to the rate of duty chargeable immediately before that date.
Bets.
41.—The duty on bets imposed by section 24 of the Finance Act, 1926, shall (subject and without prejudice to the provisions of section 20 of the Finance Act, 1931) be charged, levied and paid on bets entered into on or after the 20th day of January, 1975, at the rate of twenty per cent. of the amount of the bet in lieu of the rate of fifteen per cent. mentioned in section 40 of the Value-Added Tax Act, 1972.
Gaming licences.
42.—(1) This section applies to gaming licences issued under section 19 of the Gaming and Lotteries Act, 1956.
(2) In lieu of the excise duty imposed by section 17 of the Finance Act, 1956, on gaming licences to which this section applies there shall be charged, levied and paid on such licences issued on or after the 16th day of January, 1975, an excise duty at the following rates, that is to say:—
where the period for which the licence is to be issued as specified in the certificate under the Gaming and Lotteries Act, 1956, authorising the issue of the licence—
(a) does not exceed three months, twenty-five pounds;
(b) exceeds three months but does not exceed six months, fifty pounds;
(c) exceeds six months but does not exceed nine months, seventy-five pounds;
(d) exceeds nine months, one hundred pounds.
Gaming machine licence duty.
43.—(1) In this section—
“gaming” and “gaming licence” have the same meanings respectively, as in the Gaming and Lotteries Act, 1956;
“premises” means an amusement hall or funfair in respect of which a gaming licence is in force;
“officer” means an officer of Customs and Excise.
(2) (a) A machine is a gaming machine if—
(i) it is constructed or adapted for gaming, and
(ii) the player pays to play the machine whether by the insertion of a coin or token or in some other way, and
(iii) the outcome of the game is determined by the action of the machine, whether or not provision is made for manipulation of the machine by the player,
but a machine which, when played by a player once and successfully, affords that player no more than an opportunity to play again (once or more often) without paying to play shall be deemed not to be a gaming machine.
(b) A gaming machine which provides more than one individual playing position shall, for the purposes of this section, be treated as a number of gaming machines equal to the number of individual playing positions provided on the machine.
(c) A gaming machine shall be deemed, for the purposes of this section, to be available for play unless—
(i) the Revenue Commissioners are satisfied, and so certify in writing, that by reason of—
(I) the inaccessibility to the public of the place in which it is stored, or
(II) the state in which it is,
it cannot be played by the public, and
(ii) it remains stored in the place aforesaid or remains in the state aforesaid.
(3) A holder of a gaming licence shall not cause or permit a gaming machine to be made available for play on the premises to which the licence relates unless he is the holder of a licence (in this section referred to as a gaming machine licence) for the time being in force granted under this section.
(4) (a) The Revenue Commissioners shall, on the application of the holder of a gaming licence and on payment by the holder of the amount payable by him in respect of the duty of excise imposed by this section, grant the holder a gaming machine licence in respect of the premises specified in the application for such number of gaming machines as is specified in the application.
(b) A gaming machine licence in respect of any premises shall remain in force for such period (not exceeding one year and not exceeding the period for which the gaming licence in respect of those premises in force at the time of the grant of the gaming machine licence is expressed to remain in force) as is specified in the application therefor.
(c) The period for which a gaming machine licence is to remain in force, the number of gaming machines, and the premises, to which it relates shall be specified in the licence.
(5) (a) A person who, in relation to any premises, contravenes subsection (3) shall be guilty of a separate offence in respect of each gaming machine made available for play on the premises and shall be liable on summary conviction to an excise penalty of £300 in respect of each offence, and the machine in respect of which the offence was committed shall be liable to forfeiture.
(b) A holder of a gaming machine licence who causes or permits one or more gaming machines in excess of the number specified in the licence to be made available for play on the premises to which the licence relates shall be guilty of a separate offence in respect of each gaming machine so caused or permitted to be made available for play and shall be liable on summary conviction to an excise penalty of £300 in respect of each offence and such number of machines as is equal to the difference between the number so specified and the number so made available shall be liable to forfeiture.
(6) There shall be charged, levied and paid on the grant of a gaming machine licence a duty of excise at whichever of the following rates is appropriate having regard to the period for which the licence is to remain in force, that is to say, where the period for which the licence is to remain in force—
(a) does not exceed three months, £12·50 for each gaming machine to which the licence relates,
(b) exceeds three months but does not exceed six months, £25 for each gaming machine to which the licence relates,
(c) exceeds six months but does not exceed nine months, £37·50 for each gaming machine to which the licence relates,
(d) exceeds nine months, £50 for each gaming machine to which the licence relates.
(7) (a) A gaming machine licence may, pursuant to a request contained in the application therefor, be expressed to relate only to Sundays and holidays in the period specified in the licence for which it is to remain in force and, where a licence is so expressed—
(i) the duty of excise imposed by subsection (6) of this section shall be charged, levied and paid on the grant of the licence at two-fifths of the rate at which it would have been chargeable if the licence were not so expressed, and
(ii) the licence shall be deemed, for the purpose of subsections (3) and (10) (b) of this section, not to be in force on days in the period aforesaid other than Sundays and holidays.
(b) In this subsection “holidays” means days which are public holidays for the purposes of the Holidays (Employees) Act, 1973.
(8) On the application of the holder of a gaming machine licence and on payment by him of the appropriate additional amount in respect of the duty of excise imposed by this section, the Revenue Commissioners may increase the number of gaming machines specified in the licence.
(9) On the application of the holder of a gaming machine licence, the Revenue Commissioners may, subject to such conditions as they think fit to impose, permit the transfer of the licence from the holder to another person who is the holder of a gaming licence or permit the licence, in lieu of applying to the premises specified in the licence at the time of the application, to apply in relation to another premises in respect of which a gaming licence is in force and shall amend the licence in accordance with any permission under this subsection.
(10) (a) An officer may at all reasonable times enter premises on which gaming machines are, or are believed by such officer to be, available for play and may there make such search and investigation as such officer shall think proper, and may inspect and take copies or extracts from any books or other documents there found relating to, or believed by such officer to relate to, gaming machines.
(b) Where gaming machines are made available for play on premises in respect of which a gaming machine licence is not in force or in respect of which a gaming machine licence is in force and the number of gaming machines made available for play is in excess of the number specified in the licence, all the machines or, as the case may be, such number of them, as is equal to the difference between the number so specified and the number so made available may be seized by an officer.
(c) A person who resists, obstructs, or impedes an officer in the exercise of any power conferred on such officer by this subsection shall be guilty of an offence and shall be liable on summary conviction to an excise penalty of £100.
(11) (a) The holder of a gaming machine licence shall cause the licence to be displayed at all times in a conspicuous position near the entrance to the premises to which the licence relates and shall, on demand by an officer at any reasonable time, produce the licence for the officer's inspection.
(b) A person who contravenes paragraph (a) of this subsection shall be guilty of an offence and shall be liable on summary conviction to an excise penalty of £100.
(12) The Revenue Commissioners may make regulations to secure the duty of excise imposed by this section.
(13) Nothing in this section shall operate to make lawful anything which, apart from this section, is not lawful.
(14) This section shall come into operation on the 1st day of June, 1975.
Increase of dog duty and penalty for failure to pay dog duty.
44.—(1) Section 37 (1) of the Finance Act, 1925, is hereby amended by the substitution of “£1” for “five shillings”.
(2) Section 33 of the Finance Act, 1963, is hereby amended by the substitution of “£25” for “£10” in subsections (1) and (2).
(3) Section 26 of the Finance Act, 1941, is hereby repealed and in lieu thereof it is hereby enacted that any person guilty of an offence under the said section 37 of the Finance Act, 1925, shall be liable on summary conviction to an excise penalty of £10.
(4) Subsections (1), (2) and (3) of this section shall come into operation on such day as the Minister for Finance may appoint by order.
Confirmation of Orders and provision in relation to Imposition of Duties (No. 216) (Excise Duties) (Vehicles) Order, 1975.
45.—(1) The Orders mentioned in the Table to this subsection are hereby confirmed.
Table
S.I. No.174 of 1974 | Imposition of Duties (No. 213) (Customs Duties and Form of Customs Tariff) Order, 1974. |
S.I. No. 350 of 1974 | Imposition of Duties (No. 214) (Mineral Hydrocarbon Light Oil) Order, 1974. |
S.I. No. 356 of 1974 | Imposition of Duties (No. 215) (Customs Duties and Form of Customs Tariff) Order, 1974. |
S.I. No. 5 of 1975 | Imposition of Duties (No. 216) (Excise Duties) (Vehicles) Order, 1975. |
(2) The appropriate repayments shall be made having regard to the provisions of the Imposition of Duties (No. 216) (Excise Duties) (Vehicles) Order, 1975, in accordance with such directions as may be given by the Minister for Local Government.
Amendment of Imposition of Duties Act, 1957.
46.—Section 1 of the Imposition of Duties Act, 1957, is hereby amended by the insertion after paragraph (e) of the following paragraph:
“(ee) where a customs duty on goods of any particular description—
(i) is terminated by the order and, in the opinion of the Government, the whole of the duty was of a fiscal nature or there was a fiscal element in the duty, or
(ii) is varied by the substitution for the rate at which the duty was chargeable of another such rate and there was, in the opinion of the Government, a fiscal element in the duty before such variation and the substituted rate is equal to the rate for which it was substituted less so much thereof as, in the opinion of the Government, was the fiscal element in the duty,
impose, whether with or without qualifications, limitations, drawbacks, allowances, exemptions or preferential rates, and as from any specified day, on goods of that particular description imported into the State an excise duty at a rate equal—
(I) if, in the opinion of the Government, the whole of the customs duty was of a fiscal nature, to the rate of such duty, and
(II) if, in the opinion of the Government, there was a fiscal element in the customs duty, to the part of the rate of such duty that, in the opinion of the Government, was the fiscal element therein,
and the references in paragraph (e) of this section to any excise duty and in paragraphs (h) and (i) of this section to any duty shall be construed as including references to any duty imposed under this paragraph and a duty imposed under this paragraph shall be deemed, for the purposes of the said paragraph (h), to be a customs duty and an excise duty;”.
PART III
Death Duties
Abolition of death duties.
47.—(1) Estate duty shall not be levied or paid in respect of any property passing or deemed to pass on the death of any person dying on or after the appointed day.
(2) The duties referred to in paragraphs 1, 2, 3 and 4 of the First Schedule to the Finance Act, 1894, shall not be leviable in connection with the death of any person dying on or after the appointed day.
(3) Legacy duty and succession duty shall not be chargeable on a legacy derived from a testator or intestate dying on or after the appointed day nor on a succession conferred on or after the appointed day nor on any other legacy or succession in so far as the duty would, apart from this section, be payable in connection with any event mentioned in subsection (4) of this section.
(4) The events referred to in subsection (3) are any of the following events happening on or after the appointed day, that is to say—
(a) the death of any person;
(b) the determination or failure of any charge, estate, interest or trust;
(c) the exercise of a power of appointment;
(d) the making of any payment or the application of any property, if legacy duty or succession duty would, apart from this section, be chargeable—
(i) under section 11 of the Legacy Duty Act, 1796 (as applied by section 32 of the Succession Duty Act, 1853) or section 12 of the Probate and Legacy Duties (Ireland) Act, 1814, or
(ii) under section 25 of the Succession Duty Act, 1853;
(e) any other event which, under the provisions of the relevant will or disposition or the rules governing the distribution of the intestate's estate, affects the right to the legacy or succession or to the enjoyment thereof or which changes the nature of the property comprised therein or any part of that property.
(5) The reference in subsection (3) of this section to duty being payable in connection with an event shall, in relation to legacy duty, include its being payable when the legacy is paid, delivered, retained, satisfied or discharged in connection with that event.
(6) In this section—
“the appointed day” means the 1st day of April, 1975;
“death duties” has the meaning assigned to it by section 30 of the Finance Act, 1971;
“legacy” includes a residue or a share of a residue.
PART IV
Stamp Duties
Amendment of First Schedule to Stamp Act, 1891.
48.—(1) (a) The Heading set out in Part I of the Fourth Schedule to this Act, is hereby substituted for the Heading “CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities” in the First Schedule (as amended by the Finance Act, 1970, and by subsequent enactments) to the Stamp Act, 1891.
(b) Subject to the provisions of the Heading in the said First Schedule (inserted by paragraph (a) of this subsection), that Heading shall be deemed to include any conveyance or transfer of any property other than stocks or marketable securities operating as a voluntary disposition inter vivos and any reference in that Heading to the amount or value of any consideration shall be construed in relation to duty chargeable on such conveyance or transfer as a reference to the value of the property.
(2) The paragraph set out in Part II of the said Fourth Schedule is hereby substituted for paragraph (3) of the Heading “LEASE” in the said First Schedule (as so amended).
(3) This section shall not have effect in relation to any instrument executed before the date of the passing of this Act.
Revocation of Order.
49.—The Imposition of Duties (No. 217) (Stamp Duty on Certain Instruments) Order, 1975, is hereby revoked.
PART V
Value-Added Tax
Amendment of section 10 of Value-Added Tax Act, 1972.
50.—Section 10 of the Value-Added Tax Act, 1972, is hereby amended with effect on and from the 16th day of January, 1975—
(a) by the insertion, before subsection (3), of the following subsection:
“(2A) (a) The amount on which tax is chargeable by virtue of section 2 (1) (a) on the delivery of goods of a kind specified in the Fourth Schedule delivered in the circumstances specified in paragraph (b) shall be the open market price.
(b) The circumstances referred to in paragraph (a) in which a delivery is made are—
(i) that the person to whom or to whose order the delivery is made is a body of persons over whom the person making the delivery has control, or the person making the delivery is a body of persons over whom the person to whom or to whose order the delivery is made has control, or both the person making the delivery and the person to whom or to whose order the delivery is made are bodies of persons and some other person has control over both of them,
(ii) that the delivery is made in such circumstances that tax at the rate for the time being specified in section 11 (1) (c) is chargeable in relation thereto, and
(iii) that the consideration referred to in subsection (1) is less than the open market price.”,
(b) by the insertion, in subsection (3) (c) before “paragraph (a)”, of “subsection (2A) or” and
(c) by the insertion, in subsection (9) (b) before the definition of “the open market price”, of the following definition:
“‘control’, in relation to a body corporate, means the power of a person to secure, by means of the holding of shares or the possession of voting power in or in relation to that or any other body corporate, or by virtue of any powers conferred by the articles of association or other document regulating that or any other body corporate, that the affairs of the first-mentioned body corporate are conducted in accordance with the wishes of that person and, in relation to a partnership, means the right to a share of more than one-half of the assets, or of more than one-half of the income, of the partnership;”.
Amendment of section 11 of Value-Added Tax Act, 1972.
51.—Section 11 of the Value-Added Tax Act, 1972, is hereby amended with effect on and from the 16th day of January, 1975—
(a) by the substitution of the following subsection for subsection (2):
“(2) Where goods which are of a kind specified in the Fourth Schedule and which—
(a) were imported, or sold in the State, before the specified day in such circumstances that whole-sale tax was chargeable or would have been chargeable if that tax had been in force on the date of the importation or sale, or
(b) were, on any previous occasion on or after the specified day, imported by or delivered to a person other than a manufacturer of goods of the kind so delivered or imported in such circumstances that tax at the rate for the time being specified in subsection (1) (c) was chargeable in relation to such importation or delivery,
are delivered within the State on or after the specified day, tax shall be charged at the rate for the time being specified in subsection (1) (a) on the appropriate amount of any consideration for such delivery.”,
and
(b) by the substitution of the following subsection for subsection (4):
“(4) Where goods for the manufacture of which materials have been supplied by or on behalf of any person are delivered by the manufacturer to that person and the rate of tax chargeable in relation to the delivery of the goods exceeds that which would be chargeable in relation to a delivery within the State of the materials, the person who delivers the goods shall, in respect of the delivery of such goods, be liable, in addition to any other liability imposed on him by this Act, to pay tax on the value of the materials supplied to him at a rate equivalent to the difference between the two aforementioned rates.”.
Amendment of section 13 of Value-Added Tax Act, 1972.
52.—Section 13 of the Value-Added Tax Act, 1972, is hereby amended by the insertion, after subsection (2), of the following subsection:
“(2A) (a) With effect on and from the 1st day of March, 1975, notwithstanding any other provision of this Act or of regulations—
(i) subsection (1) and section 17 (2) shall not apply to deliveries of live cattle, and
(ii) dealers in livestock and auctioneers (including persons operating a livestock mart) shall not be treated as persons required under this section to issue invoices in respect of the delivery of live cattle.
(b) (i) This subsection shall expire at the end of the appointed day.
(ii) In this paragraph ‘the appointed day’ means the 30th day of June, 1976, or such day before that day as the Minister may specify by order under this paragraph.
(iii) The reference in paragraph (c) of subsection (3) to an order under that subsection shall be construed as including a reference to an order under this paragraph and paragraph (c) shall have effect accordingly.”.
Amendment of Third Schedule to Value-Added Tax Act, 1972.
53.—The Third Schedule to the Value-Added Tax Act, 1972, is hereby amended by the substitution in paragraph (iii) of Part II of “specified in section 11 (1) (a)” for “of 5.26 per cent.”and the said paragraph, as so amended, is set out in the Table to this section.
TABLE
(iii) the hiring of goods of a kind on the delivery of which, if paragraph (xxviii) of Part I of this Schedule were disregarded, tax would be chargeable at the rate specified in section 11 (1) (a);
PART VI
Miscellaneous
Capital Services Redemption Account.
54.—(1) In this section—
“the principal section” means section 22 of the Finance Act, 1950;
“the 1974 amending section” means section 84 of the Finance Act, 1974;
“the twenty-fifth additional annuity” means the sum charged on the Central Fund under subsection (4) of this section;
“the Minister”, “the Account” and “capital services” have the same meanings respectively as they have in the principal section.
(2) In relation to the twenty-nine successive financial years commencing with the financial year ending on the 31st day of December, 1975, subsection (4) of the 1974 amending section shall have effect with the substitution of “£4,342,633” for “£4,373,032”.
(3) Subsection (6) of the 1974 amending section shall have effect with the substitution of “£2,755,008” for “£2,815,015”.
(4) A sum of £7,272,655 to redeem borrowings, and interest thereon, in respect of capital services shall be charged annually on the Central Fund or the growing produce thereof in the thirty successive financial years commencing with the financial year ending on the 31st day of December, 1975.
(5) The twenty-fifth additional annuity shall be paid into the Account in such manner and at such times in the relevant financial year as the Minister may determine.
(6) Any amount of the twenty-fifth additional annuity not exceeding £4,681,565 in any financial year, may be applied towards defraying the interest on the public debt.
(7) The balance of the twenty-fifth additional annuity shall be applied in any one or more of the ways specified in subsection (6) of the principal section.
Amendment of Provisional Collection of Taxes Act, 1927.
55.—Section 4 (a) of the Provisional Collection of Taxes Act, 1927, is hereby amended by the substitution of “thirty days” for “twenty days” and the said paragraph (a), as so amended, is set out in the Table to this section.
TABLE
(a) if a Bill containing provisions to the same effect (with or without modifications) as the resolution is not read a second time by Dáil Éireann within the next thirty days on which Dáil Éireann sits after the resolution is passed by Dáil Éireann;
Care and management of taxes and duties.
56.—All taxes and duties imposed by this Act are hereby placed under the care and management of the Revenue Commissioners.
Short title, construction and commencement.
57.—(1) This Act may be cited as the Finance Act, 1975.
(2) Part I of this Act (so far as relating to income tax including sur-tax) shall be construed together with the Income Tax Acts and (so far as relating to corporation profits tax) shall be construed together with Part V of the Finance Act, 1920, and the enactments amending or extending that Part.
(3) Part II of this Act, so far as it relates to customs, shall be construed together with the Customs Acts and the said Part II, so far as it relates to duties of excise, shall be construed together with the Statutes which relate to the duties of excise and the management of those duties.
(4) Part III of this Act shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act.
(5) Part I of this Act shall, save as is otherwise expressly provided therein, come into force and shall take effect as on and from the 6th day of April, 1975.
(6) Any reference in this Act to any other enactment shall, except so far as the context otherwise requires, be construed as a reference to that enactment as amended by or under any other enactment including this Act.
FIRST SCHEDULE
Amendment of Enactments
PART I
Amendments consequential on changes in personal reliefs
1. The Income Tax Act, 1967, is hereby amended in accordance with the following provisions of this paragraph:
(i) In section 138—
(a) in subsection (1), for “£800”, in each place where it occurs, there shall be substituted “£920”; for “£500” there shall be substituted “£575”, and for “£900” there shall be substituted “£1,035”,
(b) in subsection (2), for “£500”, in each place where it occurs, there shall be substituted “£575”, and for “£550” there shall be substituted “£635”, and
(c) in subsection (3), for “£200”there shall be substituted “£230”.
(ii) In sections 139 and 140, for “£140”, in each place where it occurs, there shall be substituted “£165”.
(iii) In section 141, in subsection (1A), for “£200”there shall be substituted “£230” and for “£270”, in each place where it occurs, there shall be substituted “£310”.
2. In section 3 of the Finance Act, 1969, for “£140” there shall be substituted “£165”.
3. In section 11 of the Finance Act, 1971, for “£140” there shall be substituted “£165” and for “£280” there shall be substituted “£330”.
4. In section 8 of the Finance Act, 1974, for “£50” there shall be substituted “£145” and for “£25” there shall be substituted “£45”.
PART II
Amendments consequential on definition of capital allowance
1. Sections 69 (1), 218 and 317 (1) of the Income Tax Act, 1967, section 20 (5) (a) of the Finance Act, 1970, section 39 (7) of the Finance Act, 1973, and section 27 (1) of the Finance Act, 1974, are hereby amended by the deletion of the definition of “capital allowance” or “capital allowances”, as the case may be.
2. Section 236 (3) of the Income Tax Act, 1967, is hereby amended by the substitution of “a capital allowance within the meaning of section 33 of the Finance Act, 1975” for all the words from “any allowance” to “XVI”.
3. Section 314 of the Income Tax Act, 1967, is hereby amended by the deletion of subsection (2).
4. Section 22 of the Finance Act, 1971, is hereby amended by the deletion of subsection (5).
5. Section 39 (1) (b) of the Finance Act, 1973, is hereby amended by the insertion after “1967” of “or section 24 (3) of the Finance Act, 1971, section 6 (1) or 7 (4) of the Finance (Taxation of Profits of Certain Mines) Act, 1974, or section 22 (6) of the Finance Act, 1974”.
PART III
Miscellaneous
Number and Year | Short Title | Amendment |
(1) | (2) | (3) |
No.12 of 1942 | Taxes and Duties (Special Circumstances) Act, 1942. | In section 3 (1), the words “or the rates of sur-tax” shall be deleted. |
No. 6 of 1967 | In paragraph (iii) of the proviso to section 288 (2), “(other than tax at the higher rates)” shall be inserted after “tax” in the last two places in which it occurs. | |
No. 17 of 1974 | In section 1, in the definition of “tax” the word “, sur-tax” shall be deleted. | |
In paragraph (iii) of the proviso to section 11 (2), “(other than tax at the higher rates)” shall be substituted for “(other than sur-tax)” in both places where it occurs. | ||
In section 7 (4), “subsection (3)” shall be substituted for “subsection (2)”. |
SECOND SCHEDULE
PART I
Provisions supplementary to sections 19 to 22
1. Subject to the following paragraphs, section 19, paragraphs (b) and (c) of section 20 and sections 21 and 22 shall have effect—
(a) as respects a lease granted after the 15th day of January, 1975, and
(b) so far as they relate to section 83 (4) of the Income Tax Act, 1967, as respects a variation or waiver of a lease (whether granted before, on or after that date) the contract for which is entered into after that date.
2. So far as relates to relief under subsection (5) or (6) of section 81, section 89, 307, 308, 309 or 310 of the Income Tax Act, 1967, or section 25 of the Finance Act, 1964, or to the computation of profits or gains or losses of a trade or profession for—
(a) the year 1975-76 or any subsequent year of assessment, or
(b) for a company's accounting period ending after the 5th day of April, 1975, for the purposes of corporation profits tax,
section 19, paragraphs (b) and (c) of section 20 and sections 21 and 22 shall be deemed to have had effect as from the passing of the Finance Act, 1963, and as respects leases granted at any time.
3. In applying paragraph 2 it shall be assumed—
(a) that all relief which could not be affected by the operation of that paragraph was given (for all years of assessment and accounting periods before or after the passing of this Act) before relief which could be affected by the operation of that paragraph, and
(b) that, in particular, any loss which would not have been sustained if section 19 and paragraphs (a) and (b) of section 20 had always had effect was postponed to any other loss in giving relief against income of a year of assessment before the year 1975-76 or a company's accounting period ending on or before the 5th day of April, 1975.
This paragraph shall have effect notwithstanding the provisions of any enactment governing the order in which reliefs are given.
4. Where an amount is payable by instalments and, by virtue of a claim made under section 83 (6) of the Income Tax Act, 1967, as originally enacted, any of the instalments would have fallen to be treated as rent payable on or after the 6th day of April, 1975, the instalment shall be treated as due on the 6th day of April, 1975, and the person who made the claim shall be chargeable to tax under Case V of Schedule D on the amount of that instalment, less any deduction authorised by subsections (5) and (6) of section 81 in so far as it has not been set off against or deducted from any other amount, as if the claim under the said section 83 (6) had not been made.
5. A person chargeable to tax in accordance with paragraph 4 may, by notice in writing given to the inspector not later than the 5th day of April, 1976, elect that that paragraph shall not apply in his case but that his liability to tax (including his liability for past periods) shall be computed as if section 20 (a) had come into force before the claim under section 83 (6) of the Income Tax Act, 1967, was made; and where he so elects all such assessments, alterations of assessments and repayments of tax shall be made as may be necessary.
6. Where a person liable to pay tax in accordance with paragraphs 4 and 5 satisfies the Revenue Commissioners that he would otherwise suffer undue hardship, the tax may, at his option, be paid by such instalments as the Commissioners may allow.
7. All such adjustments shall be made, whether by way of assessment or discharge or repayment of tax, as are required to give effect to sections 19 and 20 and the provisions of this Schedule.
PART II
Amendment of Enactments
Number and Year | Short Title | Amendment |
(1) | (2) | (3) |
No.6 of 1967 | In column (2) of Schedule 15 there shall be added: “Finance Act, 1975, sections 19 to 22”. |
PART III
Enactments Repealed
Number and Year | Short Title | Extent of Repeal |
(1) | (2) | (3) |
No. 6 of 1967 | In paragraph (III) of the proviso to section 81 (3) the words “and in respect of which no election has been or could have been made under subsection (6) of that section,”. | |
In section 91 (1) (b) the words “but for section 83 (6) or”. | ||
In section 92 (2) the words “, where no claim is or can be made under section 83 (6),”. |
THIRD SCHEDULE
Increase in Stock Values: Supplementary Provisions
1. (1) In any case where a company's accounting period does not coincide with a period of account or with two or more consecutive periods of account, the company's increase in stock value in the accounting period shall be determined for the purposes of section 31 not in accordance with subsection (2) of that section but by reference to a period (in this Schedule referred to as the reference period) determined in accordance with this paragraph.
(2) In any case where the beginning of a company's accounting period does not coincide with the beginning of a period of account, the reference period shall begin at the beginning of the period of account which is current at the beginning of the company's accounting period.
(3) In any case where the end of a company's accounting period does not coincide with the end of a period of account, the reference period shall end at the end of the period of account which is current at the end of the company's accounting period.
(4) In any case where subparagraph (2) does not apply, the reference period shall begin at the beginning of the company's accounting period and, in any case where subparagraph (3) does not apply, the reference period shall end at the end of the company's accounting period.
2. (1) In any case where paragraph 1 (1) applies, a company's increase in stock value in the accounting period shall be determined for the purposes of section 31 by the formula
A(C−O) _____ N |
where—
“A” is the number of months in the company's accounting period or 12, whichever is the less;
“C” is the value of the company's trading stock at the end of the reference period;
“O” is the value of the company's trading stock at the beginning of the reference period; and
“N” is the number of months in the reference period.
(2) In any case where a company's increase in stock value in an accounting period falls to be determined in accordance with subparagraph (1), then, in section 31 (4) and in the following provisions of this Schedule—
(a) any reference to the company's closing stock value shall be construed as a reference to the value of the company's trading stock at the end of the reference period; and
(b) any reference to the company's trading profits for an accounting period shall be construed as a reference to that fraction of its trading profits for the reference period of which the numerator is A and the denominator is N as defined in subparagraph (1).
(3) For the purposes of subparagraph (2) (b), the company's trading profits for the reference period shall be the aggregate of its trading profits for each of the accounting periods comprised in the reference period.
3. (1) The provisions of this paragraph shall have effect for the purposes of section 31 and the preceding provisions of this Schedule in any case where—
(a) there are two companies one of which is engaged in a trade consisting wholly or mainly of the manufacture of goods (in this paragraph referred to as the transferor company) and the other of which (in this paragraph referred to as the transferee company) acquires those goods as trading stock; and
(b) the acquisition occurs during an accounting period of the transferee company or, if paragraph 1 (1) applies in relation to that company, during a reference period; and
(c) the acquisition referred to in paragraph (a) results in a reduction in the trading stock held by the transferor company and a corresponding increase in the trading stock held by the transferee company; and
(d) the business of the transferee company consists wholly or mainly of the sale of goods manufactured by the transferor company; and
(e) the transferee company is not entitled to a deduction under section 31 otherwise than by virtue of this paragraph.
(2) If a claim for relief under section 31 is made by the transferor company, then that company and the transferee company, if it has the same accounting period as the transferor company, shall be treated as one company for the purpose of determining the aggregate amount of the deductions to which they are entitled under section 31:
Provided that if paragraph 1 (1) applies in relation to the transferor company, the transferee company shall not be treated as falling within this subparagraph unless paragraph 1 (1) also applies in relation to the transferee company and both the transferee company and the transferor company have the same reference period.
(3) For the purpose specified in subparagraph (2), any reference in section 31 or in the preceding provisions of this Schedule to the value of a company's trading stock at any time or to its trading profits for any period shall be construed as a reference to the aggregate of the values of trading stocks at that time or, as the case may be, the aggregate of the trading profits for that period, of the companies which, for that purpose, are treated as one by virtue of that subparagraph.
(4) Where the aggregate amount of the deductions to which the transferor company and the transferee company are entitled under section 31 has been determined in accordance with subparagraphs (2) and (3), that amount shall be apportioned between them so that the deduction to which one of them is so entitled bears to the deduction to which the other is so entitled the same proportion as the closing stock value of that one of them bears to the closing stock value of the other.
(5) The provisions of this paragraph shall apply only where one of the two companies referred to in subparagraph (1) (a) holds throughout the relevant accounting period or reference period either in its own name or in that of a nominee all of the ordinary shares in the other company referred to in the said subparagraph or where some other company holds throughout the relevant accounting period or reference period either in its own name or in that of a nominee all of the ordinary shares in each of the two companies referred to in the said subparagraph.
(6) For the purposes of computing the aggregate amount of the deductions to which the transferor company and the transferee company treated as one by virtue of subparagraph (2) are entitled under section 31 pursuant to this paragraph and the apportionment of that amount between them, the transferee company shall be regarded as carrying on a trade.
4.(1) A company shall not be entitled to a deduction under section 31 for an accounting period if that accounting period ends by virtue of the company—
(a) ceasing to carry on a trade; or
(b) ceasing to be resident in the State; or
(c) ceasing to be within the charge to income tax under Case I of Schedule D.
(2) In any case where a company's increase in stock value in an accounting period falls to be determined in accordance with paragraph 2 (1), subparagraph (1) shall have effect as if the reference therein to the company's accounting period were a reference to any of the accounting periods comprised in the company's reference period.
5. (1) Subject to the following provisions of this paragraph, where a company claims a deduction under section 31 and, immediately before the beginning of an accounting period, the company was not carrying on the trade to which the claim relates, then, unless—
(a) the company acquired the initial trading stock of that trade on a sale or transfer from another person on that person's ceasing to carry on that trade, and
(b) the stock so acquired is, or is included in, the company's trading stock as valued at the beginning of the accounting period,
the company shall be treated for the purposes of section 31 and the preceding provisions of this Schedule as having at the beginning of the accounting period trading stock of such value as appears to the inspector to be reasonable and just.
(2) In determining, for the purposes specified in subparagraph (1), the value of trading stock to be attributed to a company at the beginning of the accounting period, the inspector shall have regard to all the relevant circumstances of the case and, in particular—
(a) to movements during the company's accounting period in the costs of items of a kind comprised in the company's trading stock during that period; and
(b) to changes during that period in the volume of the trade in question carried on by the company.
(3) The Appeal Commissioners dealing with an appeal from the decision of an inspector on a claim in a case where, in accordance with subparagraph (1), the inspector has attributed to a company at the beginning of an accounting period trading stock of a particular value shall, in hearing and determining the appeal, in so far as it relates to the value of the trading stock to be so attributed, determine such value as appears to them to be reasonable and just, having regard to those factors to which the inspector is required to have regard by virtue of subparagraph (2).
(4) In any case where paragraph 1 (1) applies to a company's accounting period, for any reference in subparagraphs (1) to (3) to that accounting period there shall be substituted a reference to the reference period.
6. (1) In this Schedule “period of account”, in relation to a company, means a period for which the accounts of the company have been made up, and “accounting period”, “company”, “trade”, “trading profits”, and “trading stock”, have the same meanings, respectively, as in section 31.
(2) In any case where a company's accounting period or reference period consists of a number of complete months and a fraction of a month, any reference in the preceding provisions of this Schedule to the number of months in the period shall be construed as including that fraction of a month (and in any case where any such period is less than one month any such reference shall be construed as a reference to that fraction of a month of which the period consists).
FOURTH SCHEDULE
Stamp Duties on Instruments
Part I
Conveyance or Transfer on sale of any property other than stocks or marketable securities.
(1) Where the amount or value of the consideration for the sale does not exceed one thousand pounds and the instrument contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration exceeds one thousand pounds | Exempt | |
(2) Where the amount or value of the consideration for the sale exceeds one thousand pounds but does not exceed two thousand pounds and the instrument contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration exceeds two thousand pounds:— | ||
For every £50, or fractional part of £50, of the consideration | 25p | |
(3) Where the amount or value of the consideration for the sale exceeds two thousand pounds but does not exceed six thousand pounds and the instrument contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration exceeds six thousand pounds:— | ||
For every £50, or fractional part of £50, of the consideration | 50p | |
(4) Where in the case of a conveyance or transfer on sale or in the case of a conveyance or transfer operating as a voluntary disposition inter vivos the consideration for the sale or the value of the property exceeds six thousand pounds and the instrument contains a certificate by the party to whom the property is being conveyed or transferred to the effect that the person becoming entitled to the entire beneficial interest in the property (or, where more than one person becomes entitled to a beneficial interest therein, each of them) is related to the person or each of the persons immediately theretofore entitled to the entire beneficial interest in the property in one or other of the following ways, that is to say, as a lineal descendant, parent, grandparent, step-parent, husband or wife, brother or sister of a parent or brother or sister, or lineal descendant of a parent, husband or wife or brother or sister:— | ||
For every £50, or fractional part of £50, of the consideration or of the value | 50p | |
(5) Where the amount or value of the consideration for the sale exceeds six thousand pounds but does not exceed seven thousand five hundred pounds and the instrument contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration exceeds seven thousand five hundred pounds:— | ||
If the amount or value of the consideration— | ||
Exceeds £6,000 and does not exceed £6,250 | £70 | |
” £6,250 ” ” ” ” £6,500 | £80 | |
” £6,500 ” ” ” ” £6,750 | £90 | |
” £6,750 ” ” ” ” £7,000 | £100 | |
” £7,000 ” ” ” ” £7,250 | £100 | |
” £7,250 ” ” ” ” £7,500 | £120 | |
(6) Where the amount or value of the consideration for the sale exceeds seven thousand five hundred pounds but does not exceed ten thousand pounds and the instrument contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration exceeds ten thousand pounds:— | ||
For every £50, or fractional part of £50, of the consideration | £1·00 | |
(7) Where the amount or value of the consideration for the sale exceeds ten thousand pounds but does not exceed twenty thousand pounds and the instrument contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration exceeds twenty thousand pounds:— | ||
For every £50, or fractional part of £50, of the consideration | £1·50 | |
(8) Where the amount or value of the consideration for the sale exceeds twenty thousand pounds but does not exceed fifty thousand pounds and the instrument contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration exceeds fifty thousand pounds:— | ||
For every £50, or fractional part of £50, of the consideration | £2·00 | |
(9) Of any other kind whatsoever not hereinbefore described:— | ||
For every £50, or fractional part of £50, of the amount or value of the consideration for the sale, or, in the case of a conveyance or transfer operating as a voluntary disposition inter vivos, of the value of the property conveyed or transferred | £3.00 | |
Part II | ||
(3) For any other definite term or for any indefinite term of any lands, tenements, or heritable subjects— | ||
Where the consideration, or any part of the consideration (other than rent), moving either to the lessor or to any other person, consists of any money, stock, or security, and— | ||
(a) The amount or value of such consideration does not exceed one thousand pounds and the lease contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration other than rent exceeds one thousand pounds | Exempt | |
(b) The amount or value of such consideration exceeds one thousand pounds but does not exceed two thousand pounds and the lease contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration other than rent exceeds two thousand pounds:— | ||
For every £50, or fractional part of £50, of the amount or value | 25p | |
(c) The amount or value of such consideration exceeds two thousand pounds but does not exceed six thousand pounds and the lease contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration other than rent exceeds six thousand pounds:— | ||
For every £50, or fractional part of £50, of the amount or value | 50p | |
(d) The amount or value of such consideration exceeds six thousand pounds but does not exceed seven thousand five hundred pounds and the lease contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration other than rent exceeds seven thousand five hundred pounds:— | ||
If the amount or value of the consideration— | ||
Exceeds £6,000 and does not exceed £6,250 | £70 | |
” £6,250 ” ” ” ” £6,500 | £80 | |
” £6,500 ” ” ” ” £6,750 | £90 | |
” £6,750 ” ” ” ” £7,000 | £100 | |
” £7,000 ” ” ” ” £7,250 | £110 | |
” £7,250 ” ” ” ” £7,500 | £120 | |
(e) The amount or value of such consideration exceeds seven thousand five hundred pounds but does not exceed ten thousand pounds and the lease contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration other than rent exceeds ten thousand pounds:— | ||
For every £50, or fractional part of £50, of the amount or value | £1·00 | |
(f) The amount or value of such consideration exceeds ten thousand pounds but does not exceed twenty thousand pounds and the lease contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration other than rent exceeds twenty thousand pounds:— | ||
For every £50, or fractional part of £50, of the amount or value | £1·50 | |
(g) The amount or value of such consideration exceeds twenty thousand pounds but does not exceed fifty thousand pounds and the lease contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration other than rent exceeds fifty thousand pounds:— | ||
For every £50, or fractional part of £50, of the amount or value | £2·00 | |
(h) The case is of any other kind whatsoever not hereinbefore described:— | ||
For every £50, or fractional part of £50, of the amount or value | £3·00 | |
Where the consideration or any part of the consideration is any rent: In respect of such consideration: If the rent, whether reserved as a yearly rent or otherwise, is at a rate or average rate: | ||
If the term does not exceed 35 years, or is indefinite. | If the term exceeds 35 years, but does not exceed 100 years. | If the term exceeds 100 years. | |
Not exceeding £5 per annum | 5p | 30p | 60p |
Exceeding— | |||
£5 and not exceeding £10 | 10p | 60p | £1·20 |
£10 ” ” ” £15 | 15p | 90p | £1·80 |
£15 ” ” ” £20 | 20p | £1·20 | £2·40 |
£20 ” ” ” £25 | 25p | £1·50 | £3·00 |
£25 ” ” ” £30 | 50p | £3·00 | £6·00 |
£30 ” ” ” £35 | 75p | £4·50 | £9·00 |
£35 ” ” ” £40 | £1·00 | £6·00 | £12·00 |
£100 | |||
For every full sum of £50, and also for any fractional part of £50 thereof | 50p | £3·00 | £6·00 |