Finance Act , 1949

PART I. Income Tax.

1 Income tax and sur-tax for the year 1949-50.

1.—(1) Income tax shall be charged for the year beginning on the 6th day of April, 1949, at the rate of six shillings and six pence in the pound.

(2) Sur-tax for the year beginning on the 6th day of April, 1949, shall be charged in respect of the income of any individual the total of which from all sources exceeds one thousand five hundred pounds and shall be so charged at the same rates as those at which it is charged for the year beginning on the 6th day of April, 1948.

(3) The several statutory and other provisions which were in force on the 5th day of April, 1949, in relation to income tax and sur-tax shall, subject to the provisions of this Act, have effect in relation to the income tax and sur-tax to be charged as aforesaid for the year beginning on the 6th day of April, 1949.

2 Amendment of Rule 4 of Rules applicable to Cases I and II of Schedule D.

2.—Rule 4 of the Rules applicable to Cases I and II of Schedule D of the Income Tax Act, 1918, as amended by section 31 of the Finance Act, 1920, shall have effect as if in paragraph (1) thereof the words from the commencement of the paragraph to the word “paid”, where that word occurs thirdly, were deleted and in lieu thereof the following words were substituted:

“Where any company has paid corporation profits tax in respect of any accounting period, the amount so paid shall, in computing for purposes of income tax the profits or gains of the company, be allowed to be deducted as an expense incurred in that accounting period”.

3 Extension of allowance for wear and tear of machinery.

3.—(1) Throughout Rule 6 (as amended by section 2 of the Finance Act, 1944 (No. 18 of 1944)) and Rule 7 of the Rules applicable to Cases I and II of Schedule D of the Income Tax Act, 1918, references to the profits or gains of a trade shall be construed as including references to the profits or gains, whether assessable under Schedule D or otherwise, of a profession, employment, vocation or office, and the said Rules 6 and 7 shall apply and have effect accordingly.

(2) Section 5 of the Finance Act, 1936 (No. 31 of 1936), is hereby repealed.

4 Amendment of section 19 of Finance Act, 1920.

4.—Subsection (1) of section 19 of the Finance Act, 1920 (which relates to deductions in respect of relatives taking charge of widower's or widow's children) shall be construed and have effect as if the words “one hundred pounds” were substituted for the words “forty-five pounds”.

5 Amendment of section 20 of Finance Act, 1920.

5.—Section 20 of the Finance Act, 1920 (which relates to deductions in respect of widowed mother, etc.) shall be construed and have effect as if the words “one hundred pounds” were substituted for the words “forty-five pounds”.

6 Amendment of section 21 of Finance Act, 1920.

6.—Subsection (1) of section 21 of the Finance Act, 1920 (which relates to deductions in respect of children) shall be construed and have effect as if the words “living at any time during the year of assessment” were substituted for the words “living at the commencement of the year of assessment”.

7 Amendment of section 22 of Finance Act, 1920.

7.—Subsection (1) of section 22 of the Finance Act, 1920, as amended by section 5 of the Finance Act, 1944 (No. 18 of 1944) (which relates to deductions in respect of dependent relatives) shall be construed and have effect as if the words “fifty pounds” were substituted for the words “twenty-five pounds”.

8 Amendment of section 2 of Finance Act, 1937.

8.—(1) Where by any means whatsoever (including indirect means or means consisting of a series of operations and whether adopted before or after the passing of this Act), a trade, which at any time before the adoption of such means was carried on by any person solely or in partnership, becomes a trade carried on by one or more than one child of such person or by way of a partnership in which such person and one or more than one child of such person are partners, the following provisions shall have effect:

(a) such means shall, for the purposes of section 2 of the Finance Act, 1937 (No. 18 of 1937), be deemed to constitute a settlement as respects which such person shall be deemed to be the settlor,

(b) the profits or gains arising from the trade after the adoption of such means, in so far as they arise to (as the case may be) one or more than one child of such person or such person and one or more than one child of such person, shall for the purposes of the said section 2, be deemed to be the same income as would have arisen to such person had such means not been adopted, and

(c) the word “income” where it first occurs in the said section 2 shall be deemed to include the said profits or gains in so far as they arise to one or more than one child of such person.

(2) In subsection (1) of this section, the word “child” includes a stepchild, an adopted child, and an illegitimate child.

(3) The amount of the income of a person from the profits or gains of a trade which is to be deemed by virtue of subsection (1) of this section to be income of another person shall, if the first-mentioned person is engaged actively in the carrying on of the trade, be the full amount of the said income reduced by a sum (in subsection (4) of this section referred to as the appropriate sum) equal to the amount which would have been allowed in computing the said profits or gains in respect of the first-mentioned person if he, instead of being a person engaged in the carrying on of the trade, had been a person employed by a person or persons carrying on the trade.

(4) The appropriate sum shall be deemed to be profits or gains arising to the first-mentioned person referred to in subsection (3) of this section from the exercise of an office or employment within the meaning of Schedule E of the Income Tax Act, 1918.

PART II. Customs and Excise.

9 Cinematograph film.

9.—Subsection (1) of section 17 of the Finance Act, 1932 (No. 20 of 1932), is hereby amended as on and from the 5th day of May, 1949—

(a) by the insertion of the words “news reel films and” before the words “blank film on which no picture has been impressed” in both places where the latter words occur, and

(b) by the substitution of the words “news reel films” for the words “films which are shown to the satisfaction of the Revenue Commissioners to consist mainly of records of news”.

10 Firearm certificate.

10.—(1) In this section the expression “firearm certificate” means a firearm certificate granted under the Firearms Act, 1925 (No. 17 of 1925).

(2) The excise duty in respect of a firearm certificate imposed by section 40 of the Finance Act, 1925 (No. 28 of 1925), shall, in the case of any such certificate coming into force on or after the 1st day of August, 1949, be charged, levied and paid at the rate specified in the First Schedule to this Act in lieu of the rate specified in the Second Schedule to the Finance Act, 1925.

11 Spirits used for making power methylated spirits.

11.—The allowance payable under section 1 of the Revenue Act, 1906, section 11 of the Finance Act, 1920, and section 15 of the Finance Act, 1921, in respect of spirits used for making power methylated spirits, shall cease to be payable as respects spirits so used on or after the 1st day of October, 1949.

12 Entertainments duty in respect of ball or dance.

12.—(1) In this section the expression “entertainments duty” means the excise duty referred to by that name in and chargeable under section 1 of the Finance (New Duties) Act, 1916, as amended by subsequent enactments.

(2) As on and from the 1st day of July, 1949, section 1 of the Finance (New Duties) Act, 1916, shall be construed and have effect as if the word “entertainment” as defined in that section included any ball or dance, and entertainments duty shall, on and from the 1st day of July, 1949, be charged, levied and paid on all payments for admission to any ball or dance whether the admission is for the purpose of dancing or taking part in such ball or dance or as a spectator thereof and shall be charged, levied and paid as aforesaid at the following rates:—

Where the payment for admission, excluding duty.								Rate of Duty
							s. d.
exceeds	4d.	and	does	not	exceed	6d.	1
”	6d.	”	”	”	”	8d.	2
”	8d.	”	”	”	”	1s. 0d.	3
”	1s. 0d.	”	”	”	”	1s. 8d.	4
”	1s. 8d.	”	”	”	”	2s. 0d.	6
”	2s. 0d.	”	”	”	”	3s. 0d.	9
”	3s. 0d.	”	”	”	”	4s. 0d.	1 0
”	4s. 0d.						1s. for the first 4s. and 1s. for every additional 4s. or part of 4s.

(3) Subsection (1) of section 13 of the Finance Act, 1946 (No. 15 of 1946), is hereby repealed as on and from the 1st day of July, 1949.

13 Exemption from entertainments duty.

13.—Entertainments duty within the meaning of and chargeable under section 1 of the Finance (New Duties) Act, 1916, as amended by subsequent enactments, shall not be charged or levied in relation to any entertainment held on or after the 1st day of June, 1949, in a place not situated in or within three miles of any of the following:

(a) a county or other borough,

(b) an urban district,

(c) a town having commissioners under the Towns Improvement (Ireland) Act, 1854,

(d) a town—

(i) which is designated as such in the census of population which is for the time being the latest such census, and

(ii) has, according to such census, a population exceeding five hundred.

14 Wine.

14.—The customs duties on wine imposed by section 5 of the Finance Act, 1948 (No. 12 of 1948), shall, in the case of wine other than sparkling wine, be charged, levied and paid as on and fromthe 5th day of May, 1949, as follows in lieu of as provided for by that section, that is to say:—

Wine—		£	s.	d.
Not exceeding 25 degrees of proof spirit	the gallon	0	6	0
Exceeding 25 but not exceeding 30 degrees of proof spirit	the gallon	0	10	0
Exceeding 30 but not exceeding 42 degrees of proof spirit	the gallon	1	4	0
And for every degree or fraction of a degree beyond the highest above charged, an additional duty	the gallon	0	2	0
Wine not exceeding 25 degrees of proof spirit in bottle, an additional duty	the gallon	0	4	0
Wine exceeding 25 degrees of proof spirit in bottle, an additional duty	the gallon	0	8	0

15 Preferential rates of customs duties on unmanufactured tobacco.

15.—(1) In the case of unmanufactured tobacco, the provisions of section 8 of the Finance Act, 1919, shall apply to the duties imposed thereon by section 20 of the Finance Act, 1932 (No. 20 of 1932), with the substitution of the expression “the area of application of the Acts of the Oireachtas” for the expression “Great Britain and Ireland” and as though unmanufactured tobacco were mentioned separately in the first column of the Second Schedule to the said Finance Act, 1919, and the preferential rates specified in Second Schedule to this Act were specified in respect thereof in the second column of the said Second Schedule to the Finance Act, 1919.

(2) This section shall have effect notwithstanding section 24 of the Finance Act, 1924 (No. 27 of 1924), but shall not affect subsection (2) of that section.

16 Excise duty on tobacco.

16.—(1) The duty of excise imposed by section 19 of the Finance Act, 1934 (No. 31 of 1934), shall be charged, levied and paid at the several rates specified in the Third Schedule to this Act in lieu of at the several rates specified in Part II of the Second Schedule to the Finance Act, 1948 (No. 12 of 1948).

(2) Subsections (3) to (5) of section 19 of the Finance Act, 1934, shall apply to tobacco which is chargeable with the duty of exciseimposed by subsection (1) of that section at a rate specified in the Third Schedule to this Act and for the purpose of such application references in the said subsections (3) to (5) of the said section 19 to Part I of the Sixth Schedule to the said Finance Act, 1934, shall be construed and have effect as references to the Third Schedule to this Act.

17 Rebate of duty in the case of hydrocarbon oil used in road rollers.

17.—Subsection (15) of section 21 of the Finance Act, 1935 (No. 28 of 1935), as amended by subsection (6) of section 8 of the Finance Act, 1942 (No. 14 of 1942), is hereby further amended by the insertion of the words “or a road roller” in the definition of “motor vehicle” after the words “but does not include a tractor which is designed and constructed for use for agricultural purposes”.

PART III. Death Duties.

18 Amendment of section 2 of the Finance Act, 1894.

18.—Paragraph (e) of subsection (1) of section 2 of the Finance Act, 1894 (being the paragraph inserted in that subsection by subsection (1) of section 32 of the Finance Act, 1924 (No. 27 of 1924)) is hereby amended by the insertion after the words “at least three years before the death of the deceased,” of the words “or, in the case of a gift for public or charitable purposes, at least one year before the death of the deceased,”.

19 Relaxation of provisions of Finance Act, 1941, as to purchases of annuities, etc., from relatives.

19.—(1) Subject to the provisions of this section, the relief specified therein shall be granted where, on the death of a person who has made a disposition of property in favour of a relative of his or a company (hereinafter in this section referred to as the disposition), any estate duty becomes, or would but for this section become, payable by virtue of section 31 of the Finance Act, 1941 (No. 14 of 1941) (which relates to purchases of annuities or other interests from relatives).

(2) The sum on which estate duty would be payable apart from this section on the death in respect of the property which was the subject matter of the disposition or in respect of the property liable to a debt or incumbrance created by the deceased which was the subject matter of the disposition, as the case may be, shall first be computed and, subject to the limitations provided for by subsection (3) of this section, there shall then be allowed as a deduction from that sum—

(a) the amount, if any, by which the aggregate of the payments which have been made on account of the annuity or other interest for the period from the date when the annuity or other interest began to accrue in favour of the deceased until his death, exceeds the aggregate of the income derived from the deceased by virtue of the disposition for the period from the date of the disposition until his death; and

(b) simple interest on so much, if any, of the amount aforesaid, and for such period, as, in the opinion of the Revenue Commissioners, is in all the circumstances just, at the rates from time to time payable during that period on death duties in arrear.

In this subsection, the expression “the aggregate of the income derived from the deceased by virtue of the disposition” means—

(i) in relation to so much of the property which was the subject matter of the disposition as did not consist of a debt or incumbrance created by the deceased, such amount as, in the opinion of the Revenue Commissioners, is in all the circumstances equal to a reasonable return from the property; and

(ii) in relation to so much of the property which was the subject matter of the disposition as did consist of a debt or incumbrance created by the deceased, the aggregate amount of the interest paid or payable by the deceased in respect of that debt or incumbrance.

(3) The amount to be allowed as a deduction under subsection (2) of this section shall, in the circumstances specified in the provisions of the Fourth Schedule to this Act, be limited to the extent specified in those provisions respectively.

In the said Schedule, the expression “the disposition” has the same meaning as in this section, the expression “the annuity payments” means the payments specified in paragraph (a) of subsection (2) of this section, and the expression “the amount allowed” means the amount to be allowed as a deduction under this section.

(4) In this section, the word “relative” has the meaning assigned to it by subsection (4) of section 31 of the Finance Act, 1941, and section 27 of that Act shall apply for the interpretation of this section and the said Fourth Schedule as it applies for the interpretation of Part IV of that Act.

(5) This section shall be deemed to have had effect as respects persons dying after the 7th day of May, 1941.

20 Estate duty where policies are kept up or effected under settlements.

20.—(1) For the purposes of the last paragraph of subsection (1) of section 11 of the Customs and Inland Revenue Act, 1889 (which, as applied for the purposes of estate duty, provides that money received under a policy of assurance effected by the deceased person on his life and kept up by him shall be treated as passing on his death), so much of the premiums paid on any policy of assurance as was, by virtue or in consequence of a settlement made by the deceased, paid out of property, whether or not provided by the deceased, comprised in the settlement, or out of income, whether or not provided by the deceased, arising under the settlement, shall, subject to subsection (2) of this section, be treated as having been paid by the deceased.