Finance Act , 1966

PART I Income Tax

1 Income tax and sur-tax for the year 1966-67.

1.—(1) Income tax shall be charged for the year beginning on the 6th day of April, 1966, at the rate of seven shillings in the pound.

(2) Sur-tax for the year beginning on the 6th day of April, 1966, shall be charged in respect of the income of any individual the total of which from all sources exceeds two 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, 1965.

(3) The several statutory and other provisions which were in force on the 5th day of April, 1966, 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, 1966.

2 Amendment of section 21 of Finance Act, 1920.

2.—Section 21 of the Finance Act, 1920, is hereby amended—

(a) by the insertion in subsection (1) of “and such deduction, in the case of a child shown by the claimant to have been over the age of eleven years at the commencement of the year of assessment, shall be of the amount of one hundred and fifty pounds and, in any other case, shall be of the amount” before “of one hundred and twenty pounds”, and

(b) by the substitution in subsection (3) of “exceeding eighty pounds a year, except that if the amount of the excess is less than the deduction which apart from this subsection would be allowable, a deduction reduced by that amount shall be allowed” for the words from “of two hundred pounds” to “the amount of the excess”.

3 Amendment of section 21 of Finance Act, 1922.

3.—(1) Any company to which section 21 of the Finance Act, 1922, applies, may at any time after the general meeting at which the accounts of the company made up for any year or other period are adopted, forward to the Special Commissioners for their consideration a copy of the said accounts, together with a copy of the report, if any, of the directors for that year or period, and such further information, if any, as it may think fit, and the Special Commissioners shall, subject to the provisions of this section, on receiving the said accounts and other documents, if any, proceed to consider the position of the company in relation to the said section 21.

(2) The Special Commissioners may as soon as reasonably may be, but not later than twenty-eight days after the receipt of the said accounts and other documents, if any, call upon the company to furnish to them within twenty-eight days, or such extended period as they may subsequently allow, such further particulars as they may reasonably require:

Provided that, if the particulars so required are not furnished to the Commissioners within the period or extended period allowed for the purpose, they may proceed under this section upon the information before them.

(3) Where a company has under subsection (1) of this section forwarded to the Special Commissioners the accounts of the com pany for any year or other period, whether with or without any other documents, the following provisions shall have effect:—

(a) unless within three months after the receipt of the said accounts and other documents, or, if further particulars have been required as aforesaid, within three months after the receipt of those particulars, or the expiration of the period within which those particulars are to be furnished, as the case may be, the Special Commissioners intimate to the company their intention to take further action in the case of the company under the said section 21 in respect of that year or other period, the power of the Commissioners to take any such further action in respect of that year or other period shall absolutely cease and determine; and

(b) notwithstanding that the Special Commissioners have given such an intimation as aforesaid, they shall not after the expiration of six months from the date of the intimation have power in relation to that company to issue a notice under paragraph 4 of the First Schedule to the Finance Act, 1922, with respect to that year or period, or, unless such a notice has been issued before the expiration of the said period of six months, to give a direction in relation to the company under section 21 (1) of the said Act.

4 Allowance of United Kingdom corporation tax as a credit against income tax.

4.—(1) In this section and the First Schedule to this Act—

“company” means any body corporate;

“corporation tax” means the tax in the United Kingdom known as corporation tax;

“profits” in relation to income tax means income;

“United Kingdom” means Great Britain and Northern Ireland, excluding the Channel Islands and the Isle of Man.

(2) Subject to the provisions of the First Schedule to this Act, corporation tax payable in respect of profits arising in the United Kingdom shall, to the extent to which it is to be taken into account for the purposes of this section, be allowed as a credit against the income tax chargeable for any year of assessment by reference to those profits.

(3) Where a dividend is paid by a company resident in the United Kingdom to a company which beneficially owns, directly or indirectly, not less than three-quarters of the ordinary share capital of the former company, the credit shall take into account the corporation tax payable by the former company in respect of its profits.

(4) The corporation tax payable in respect of any profits shall be taken into account for the purposes of this section—

(a) where the profits are subject to corporation profits tax, only to the extent that it cannot, on due claim having been made in that behalf, be allowed as a credit against corporation profits tax, or

(b) where the profits are not subject to corporation profits tax, only to the extent that it could not, on due claim having been made in that behalf, have been allowed as a credit against corporation profits tax if the profits had been subject to that tax as profits of a company incorporated by or under the laws of the State.

(5) (a) The definition of “double taxation relief” in section 13 (2) of the Finance Act, 1950, is hereby amended by the insertion after “by virtue” of “of section 4 of the Finance Act, 1966, or”.

(b) In a case in which relief is allowed under this section, section 13 (4) of the Finance Act, 1950, shall have effect in relation to a dividend paid before the passing of this Act as it has effect in relation to a dividend paid before the passing of the Finance Act, 1950.

5 Application of Rule 4 of Rules applicable to Cases I and II of Schedule D.

5.—(1) Section 7 (a) of the Finance Act, 1961, is hereby amended by the insertion of “ending before the 6th day of April, 1966,” after “any subsequent year of assessment”.

(2) In relation to the computation of profits or gains for the purposes of income tax for 1966-67 or for any subsequent year of assessment, Rule 4 (1) of the Rules applicable to Cases I and II of Schedule D shall have effect subject to the following provisions:

(a) references therein to an accounting period shall be construed as references to an accounting period ending on or after the 1st day of April, 1966, and

(b) there shall be disregarded for the purposes thereof so much of the corporation profits tax paid in respect of any such accounting period which began before the 1st day of April, 1966, as is referable to profits apportioned under section 21 (2) of this Act to the part of the accounting period before that day.

6 Cesser of section 4 (b) of Finance Act, 1964.

6.—(1) Section 4 (b) of the Finance Act, 1964, shall not apply in relation to foreign tax in respect of income arising on or after the 1st day of April, 1966, and, accordingly, the words deleted thereby shall be taken as being restored in relation to such foreign tax.

(2) For the purposes of the foregoing subsection, in a case in which the foreign tax is chargeable in respect of income arising in a period of which a part is before the 1st day of April, 1966, and a part after the 31st day of March, 1966, the foreign tax shall be apportioned in proportion to the respective lengths of those parts.

7 Amendment of repairs allowance.

7.—Section 2 (1) of the Finance Act, 1934, and Rule 5 (3) (a) (i) of the Rules applicable to Cases I and II of Schedule D are each hereby amended by the insertion after “Finance Act, 1959,” of “and section 28 of the Finance Act, 1966,”.

PART II Customs and Excise

8 Beer.

8.—(1) In lieu of the duty of excise imposed by section 12 (1) of the Finance Act, 1965, there shall be charged, levied and paid on all beer brewed within the State on or after the 10th day of March, 1966, a duty of excise at the rate of seventeen pounds, nineteen shillings and five pence for every thirty-six gallons of worts of a specific gravity of one thousand and fifty-five degrees.

(2) In lieu of the duty of customs imposed by section 12 (2) of the Finance Act, 1965, there shall, as on and from the 10th day of March, 1966, be charged, levied and paid on all beer of any description imported into the State, a duty of customs at the rate of seventeen pounds, nineteen shillings and eleven pence 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.

(3) 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 (1) or subsection (2) of this section has been paid, a drawback calculated according to the original specific gravity of the beer, at the rate of seventeen pounds, nineteen shillings and eight pence on every thirty-six gallons of beer of which the original specific gravity was one thousand and fifty-five degrees.

(4) Where, in the case of beer which is chargeable with the duty imposed by subsection (1) or subsection (2) of this section or in the case of beer on which drawback under subsection (3) 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.

(5) Section 24 of the Finance Act, 1933, shall not apply or have effect in relation to the duty of customs imposed by this section.

9 Spirits.

9.—(1) The Finance Act, 1920, shall, as on and from the 10th day of March, 1966, be amended by the substitution in Part I of the First Schedule thereto of the matter set out in the Second Schedule to this Act for the matter inserted in that Part by section 13 of the Finance Act, 1965, and section 3 (1) of the said Finance Act, 1920, shall have effect accordingly.

(2) (a) This subsection applies to spirits known as whiskey which at importation are shown to the satisfaction of the Revenue Commissioners to have been wholly manufactured in Northern Ireland and to have been bottled and consigned by the distiller.

(b) The duties of customs to which subsection (1) of this section relates shall, as on and from the 10th day of March, 1966, be charged, levied and paid on spirits to which this subsection applies at the rate of eleven pounds, fifteen shillings and eleven pence the gallon (computed at proof) in lieu of the rate chargeable under subsection (1) of this section.

(c) Subsection (2) of section 13 of the Finance Act, 1965, is hereby repealed as on and from the 10th day of March, 1966.

(3) The duty of excise imposed by section 3 (2) of the Finance Act, 1920, shall, as on and from the 10th day of March, 1966, be charged, levied and paid at the rate of eleven pounds, fifteen shillings and sixpence the gallon (computed at proof) in lieu of the rate chargeable by virtue of section 13(3) of the Finance Act, 1965.

(4) 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.

10 Hydrocarbon oils.

10.—(1) In this section—

“the Act of 1935” means the Finance Act, 1935;

“the Act of 1965” means the Finance Act, 1965.

(2) (a) Subject to the next paragraph, the duty of customs imposed by section 1 of the Finance (Customs Duties) (No. 4) Act, 1931, shall, in respect of mineral hydrocarbon light oil chargeable with that duty, be charged, levied and paid as on and from the 10th day of March, 1966, at the rate of 3s. 8d. the gallon in lieu of the rate specified in section 14 (2) of the Act of 1965.

(b) The said duty shall, as on and from the 15th day of June, 1966, be charged, levied and paid at the rate of 3s. 9 d. the gallon in lieu of the rate specified in the foregoing paragraph.

(3) (a) Subject to the next paragraph, the duty of excise imposed by section 1 of the Finance (Miscellaneous Provisions) Act, 1935, shall, in respect of mineral hydrocarbon light oil chargeable with that duty which is sent out, on or for sale or otherwise, from the premises of the manufacturer thereof on or after the 10th day of March, 1966, or is used by such manufacturer on or after that date for any purpose other than the manufacture or production of mineral hydrocarbon oil, be charged, levied and paid at the rate of 3s. 7d. the gallon in lieu of the rate specified in section 14 (3) of the Act of 1965.

(b) The said duty shall, in respect of mineral hydrocarbon light oil, chargeable with that duty, which is sent out, on or for sale or otherwise, from the premises of the manufacturer thereof on or after the 15th day of June, 1966, or is used by such manufacturer on or after that date for any purpose other than the manufacture or production of mineral hydrocarbon oil, be charged, levied and paid at the rate of 3s. 8d. the gallon in lieu of the rate specified in the foregoing paragraph.

(4) (a) Subject to the next paragraph, the duty of customs imposed by section 21 of the Act of 1935 shall, in respect of hydrocarbon oil chargeable with that duty, be charged, levied and paid as on and from the 10th day of March, 1966, at the rate of 3s. 0d. the gallon in lieu of the rate specified in section 14 (4) of the Act of 1965.

(b) The said duty shall, as on and from the 15th day of June, 1966, be charged, levied and paid at the rate of 3s. 2d. the gallon in lieu of the rate specified in the foregoing paragraph.

(5) (a) Subject to the next paragraph, as on and from the 10th day of March, 1966, the rate of any rebate allowed under section 21 (2) of the Act of 1935 shall—

(i) in respect of hydrocarbon oil on which such rebate is allowable and on which the duty of customs mentioned in subsection (4) of this section was paid at the rate of 3s. 0d. the gallon, be 3s. 0d. the gallon, and

(ii) in respect of hydrocarbon oil on which such rebate is allowable and on which the duty of customs mentioned in subsection (4) of this section was, by virtue of paragraph 6 of the Imposition of Duties (No. 84) (Hydrocarbon Oils) (Customs Duties) Order, 1959, paid at the rate of 2s. 11d. the gallon, be 2s. 11d. the gallon,

in lieu of the rate allowable immediately before the 10th day of March, 1966, by virtue of section 14 (5) of the Act of 1965.

(b) As on and from the 15th day of June, 1966, the rate of any rebate allowed under section 21 (2) of the Act of 1935 shall—

(i) in respect of hydrocarbon oil on which such rebate is allowable and on which the duty of customs mentioned in subsection (4) of this section was paid at the rate of 3s. 2d. the gallon, be 3s. 2d. the gallon, and

(ii) in respect of hydrocarbon oil on which such rebate is allowable and on which the duty of customs mentioned in subsection (4) of this section was, by virtue of paragraph 6 of the Imposition of Duties (No. 84) (Hydrocarbon Oils) (Customs Duties) Order, 1959, paid at the rate of 3s. 1d. the gallon, be 3s. 1d. the gallon,

in lieu of the rate allowable immediately before the 15th day of June, 1966, by virtue of the foregoing paragraph.

(6) (a) Subject to the next paragraph, the duty of excise imposed by section 21 of the Act of 1935 shall, in respect of hydrocarbon oil chargeable with that duty which is sent out, on or for sale or otherwise, from the premises of the manufacturer thereof on or after the 10th day of March, 1966, or is used by such manufacturer on or after that date for any purpose other than the manufacture or production of hydrocarbon oil, be charged, levied and paid at the rate of 2s. 11d. the gallon in lieu of the rate specified in section 14 (6) of the Act of 1965.

(b) The said duty shall, in respect of hydrocarbon oil chargeable with that duty which is sent out, on or for sale or otherwise, from the premises of the manufacturer on or after the 15th day of June, 1966, or is used by such manufacturer on or after that date for any purpose other than the manufacture or production of hydrocarbon oil, be charged, levied and paid at the rate of 3s. 1d. the gallon in lieu of the rate specified in the foregoing paragraph.

(7) (a) Subject to the next paragraph, as on and from the 10th day of March, 1966, the rate of any rebate allowed under section 21 (4) of the Act of 1935, in respect of hydrocarbon oil on which such rebate is allowable and on which the excise duty mentioned in subsection (6) of this section was paid at the rate of 2s. 11d. the gallon, shall be 2s. 11d. the gallon in lieu of the rate allowable immediately before the 10th day of March, 1966, by virtue of section 14 (7) of the Act of 1965.

(b) As on and from the 15th day of June, 1966, the rate of any rebate allowed under section 21 (4) of the Act of 1935, in respect of hydrocarbon oil on which such rebate is allowable and on which the excise duty mentioned in subsection (6) of this section was paid at the rate of 3s. 1d. the gallon, shall be 3s. 1d. the gallon in lieu of the rate allowable immediately before the 15th day of June, 1966, by virtue of the foregoing paragraph.

(8) (a) Subject to the next paragraph, as on and from the 10th day of March, 1966, the rate of any repayment allowed under section 10 (8) of the Finance Act, 1957, in respect of hydrocarbon oil on which such repayment is allowable and on which either—

(i) the excise duty mentioned in subsection (6) of this section was paid at the rate of 2s. 11d. the gallon, or

(ii) the customs duty mentioned in subsection (4) of this section was paid at the rate of 2s. 11d. the gallon or 3s. 0d. the gallon,

shall be 1s. 4d. the gallon in lieu of the rate allowable immediately before the 10th day of March, 1966.

(b) As on and from the 15th day of June, 1966, the rate of any repayment allowed under section 10 (8) of the Finance Act, 1957, in respect of hydrocarbon oil on which such repayment is allowable and on which either—

(i) the excise duty mentioned in subsection (6) of this section was paid at the rate of 3s. 1d. the gallon, or

(ii) the customs duty mentioned in subsection (4) of this section was paid at the rate of 3s. 1d. the gallon or 3s. 2d. the gallon,