Finance Act , 1973

(3) In the case of any transaction specified in section 68 (1) which took place or takes place on or after the 1st day of January, 1973, and before the operative date (in this subsection referred to as the relevant period), and in respect of which statements were required to be delivered under either of the acts referred to in subsection (2) of this section and the stamp duty chargeable thereon has been paid, the company that paid the duty may, at any time before the 1st day of August, 1975, deliver statements of the kind specified in section 69 (1) of this Act in respect of all transactions which took place during the relevant period in relation to the capital company and stamp duty shall be charged thereon as if the 1st day of January, 1973, were substituted for the operative date in section 68 of this Act and, if the stamp duty previously paid exceeds the amount of stamp duty charged on the statement, the amount of the excess shall be repaid to the capital company.

(4) Where, under the provisions of sections 112 or 113 of the Stamp Act, 1891, stamp duty has already been paid in respect of the nominal share capital of any capital company and stamp duty again becomes payable under this Chapter by the capital company in respect of any part of that capital that was not issued on the operative date, there shall be allowed, as a deduction against stamp duty, so much of the stamp duty already paid as bears the same proportion to the total stamp duty already paid as the increase in the issued share capital (in so far as it represents the said share capital which was not issued) bears to the nominal share capital in respect of which the stamp duty has already been paid, and, for the purpose of this section, the nominal share capital in respect of which stamp duty has already been paid shall, in any case where there was a reduction in nominal share capital by way of relief under section 21 of the Finance Act, 1965, be deemed to be such share capital as would have been chargeable to duty if there had been no such reduction.

(5) Where, on the operative date, there is included in the share capital of a capital company referred to in subsection (4) of this section shares which are not fully paid up, the total amount remaining to be paid up on those shares at that date shall be treated, for the purposes of that subsection, as nominal share capital which was not issued at that date.

(6) The statement required to be delivered pursuant to this Chapter in respect of a transaction specified in section 68 (1) (c) of this Act shall, in any case where, within the period of four years immediately before the date of the transaction and on or after the operative date, there has been a reduction in the issued capital of the capital company concerned as a result of losses sustained by the company, be charged at the rate of zero per cent. in respect of so much of the amount determined in accordance with section 70 of this Act as corresponds to the reduction in issued capital or to so much of the reduction in issued capital to which the rate of zero per cent. had not been applied in respect of an earlier transaction occurring since the reduction in capital.

72 Reconstructions or amalgamations of capital companies.

72.—(1) If, in the case of a transaction, a capital company or a capital company which is in the process of being formed (in this section referred to as the transferee company) acquires either—

(a) the undertaking or part of the undertaking of another capital company (in this section referred to as the transferor company), or

(b) share capital of another capital company to an extent that, after that transaction, but not necessarily as a result of that transaction, the transferee company owns at least 75 per cent. of the issued share capital of that other company (in this section referred to as the transferor company),

then, subject to the provisions of this section, stamp duty on the statement delivered in accordance with section 69 (1) shall be charged at the rate of zero per cent. (in this section referred to as the reduced rate):

Provided that, where the percentage referred to in paragraph (b) of this subsection is reached by means of two or more transactions, the reduced rate shall apply only to the transaction whereby this percentage is achieved and to any transaction subsequent to the achievement and retention of that percentage.

(2) Subsection (1) of this section shall apply only where the consideration for the acquisition (except such part thereof as consists of the transfer to or discharge by the transferee company of liabilities of the transferor company) consists—,

(a) where the undertaking or part of the undertaking of the transferor company is acquired, of the issue of shares in the transferee company to the transferor company or to holders of shares in the transferor company; or

(b) where shares of the transferor company are acquired, of the issue of shares in the transferee company to the holders of shares in the transferor company in exchange for shares held by them in the transferor company,

with or without a payment in cash, provided that the payment in cash does not exceed 10 per cent. of the nominal value of the shares in the transferee company which are comprised in the consideration.

(3) The statement, which by virtue of this section is charged at the reduced rate, shall become chargeable with stamp duty at the rate specified in section 69 of this Act if the transferee company does not retain, for a period of five years from the date of the transaction in respect of which stamp duty at the reduced rate was charged, at least 75 per cent. of the issued share capital of the other company and all the shares which it held following that transaction, including the shares acquired whether by way of a transaction or otherwise before that transaction and held at the time thereof:

Provided, however, that the reduced rate shall continue to apply if the transfer, as a result of which the shares in question were not held for a period of five years, was either—

(a) a transfer forming part of a transaction which would of itself qualify for the reduced rate pursuant to subsection (1) of this section, or

(b) a transfer in the course of the liquidation of the transferee company.

(4) Where, by reason of subsection (3) of this section, stamp duty becomes chargeable at the rate specified in section 69 of this Act when the transferee company concerned within a period of five years from the date of any transaction in respect of which stamp duty was charged at the reduced rate—

(a) ceases to retain at least 75 per cent. of the issued share capital of the transferor company concerned, or

(b) disposes of any of the shares of the said transferor company which it held after the transaction to which the reduced rate was applied,

then the statement which was delivered to the registrar pursuant to section 69 (1) of this Act in relation to the transaction in respect of which stamp duty was charged at the reduced rate shall be charged

with stamp duty at the rate which would have been charged in the first instance if subsection (1) of this section had not applied to the transaction and the statement thus charged shall have applied to it the provisions of this Chapter save that, for the purposes of subsections (2) and (3) of section 69 of this Act, the date of the transaction shall be the date on which the event specified in paragraph (a) or (b), as the case may be, of this subsection occurred.

(5) This section shall apply only where the effective centre of management or the registered office of the transferor company concerned is in a Member State.

73 Exemption for certain companies.

73.—Stamp duty shall not be charged in the case of a transaction that is effected by—

(a) a capital company which is formed for the purpose of and carries on exclusively the business of supplying a public service such as public transport or port facilities, or supplying water, gas or electricity, and not less than fifty per cent. of the issued capital of which is owned by the State or a local authority, or

(b) a capital company whose objects are exclusively cultural, charitable or educational:

Provided that the statement which is required to be delivered in pursuance of section 69 (1) of this Act in relation to such transaction shall not be deemed to be duly stamped unless it has, in accordance with the provisions of section 12 of the Stamp Act, 1891, been stamped with a particular stamp denoting that it is not chargeable with stamp duty.

74 Appeals in certain cases.

74.—A person who is dissatisfied with a decision of the Revenue Commissioners under this Chapter on the amount of the actual value of any assets referred to in section 70 of this Act may—

(a) in the case of stocks, shares or other securities which are not dealt in on a stock exchange, appeal to the Appeal Commissioners (within the meaning of section 33 of the Finance Act, 1972) against the decision and the said section 33 shall, with any necessary modifications, apply to an appeal under this paragraph as if the appeal were an appeal under that section,

(b) in the case of land, appeal against the decision in the manner prescribed by section 33 of the Finance (1909-10) Act, 1910; and so much of Part I of that Act as relates to appeals shall, with any necessary modifications, apply to an appeal under this paragraph as if the appeal were an appeal under that section.

75 Recovery of stamp duty and furnishing of information.

75.—(1) Stamp duty and the interest thereon shall be recoverable from the capital company concerned and, in any case where the capital company is not a body corporate, shall be recoverable from the members of the capital company jointly and severally.

(2) All statements used for the purpose of this Chapter shall be in such form and contain such particulars as may be required by the Revenue Commissioners and every person accountable for stamp duty shall, if so required by the Revenue Commissioners, verify such particulars and deliver to them such evidence as they may require relating to any transaction or to any company concerned in any such transaction.

PART V Value-Added Tax

76 Commencement (Part V).

76.—This Part (other than section 90, in so far as it amends the definition of “manufacturer” in section 1 (1) of the Principal Act) shall come into operation on the 3rd day of September, 1973.

77 “Principal Act”.

77.—In this Part “the Principal Act” means the Value-Added Tax Act, 1972.

78 Amendment of section 3 of Principal Act.

78.—Section 3 of the Principal Act is hereby amended by the insertion of the following subsection after subsection (1):

“(1A) Where—

(a) goods of a kind specified in paragraph (xii) of the Second Schedule are supplied in a form suitable for human consumption without further preparation,

(b) the supply is made—

(i) by means of a vending machine, or

(ii) in the course of operating a hotel, restaurant, cafe, refreshment house, canteen, establishment licensed for the sale of intoxicating liquor, catering business or similar business, or

(iii) in the course of operating any other business in connection with the carrying on of which facilities are provided for the consumption of the goods supplied, and

(c) apart from this subsection, the supply would constitute a delivery of the goods,

the supply shall, for all the purposes of this Act, be deemed to be a rendering of services and not a delivery of goods.”.

79 Amendment of section 5 of Principal Act.

79.—Section 5 of the Principal Act is hereby amended—

(a) by the substitution for subsection (2) of the following subsection :

“(2) (a) Services, whether or not rendered for a consideration or for a separate consideration, which, apart from this subsection, would not be regarded as rendered by a person in the course of business, shall, subject to and to the extent provided by regulations, be regarded as rendered by him in the course of business if they are connected with any business activity in which he engages.

(b) For the purposes of this subsection and section 32, services shall be regarded as connected with a business activity in which a person engages if he provides facilities for, or contributes in whole or part towards the cost of, rendering them.”, and

(b) by the insertion in subsection (5) after paragraph (b) of the following paragraph :

“(c) This subsection shall not apply to a supply of goods of a kind specified in paragraph (xii) of the Second Schedule.”.

80 Amendment of section 11 of Principal Act.

80.—Section 11 of the Principal Act is hereby amended—

(a) by the substitution of the following paragraphs for paragraphs (a) and (b) of subsection (1) :

“(a) 6.75 per cent. of the appropriate amount of any consideration, other than consideration to which paragraph (b) applies, which relates to the delivery of goods of a kind specified in Part I of the Third Schedule or the rendering of services of a kind specified in Part II of that Schedule,

(b) 11.11 per cent. of the appropriate amount of any consideration which relates to the promotion of dances and the delivery (if any) of goods of a kind specified in paragraphs (vi) to (viii) and (xii) to (xv) of the Second Schedule or in Part I of the Third Schedule and the rendering (if any) of services which, but for this paragraph, would be chargeable at the rate specified in paragraph (a) delivered or rendered in connection with dances, where payment of the consideration for such delivery or rendering is included in the consideration in respect of admission to the dance or is a condition of admission,”,

(b) by the substitution in subsection (1) (c) of “36.75” for “30.26”,

(c) by the substitution in subsection (1) (e) of “19.50” for “16.37”,

(d) by the insertion of the following subsections after subsection (1):

“(1A) (a) The rate at which tax shall be chargeable shall, in relation to tax chargeable under section 2 (1) (a), be the rate for the time being in force at the time at which the tax becomes due in accordance with subsection (1) or (2), as may be appropriate, of section 19.

(b) Goods or services which are specifically excluded from any paragraph of a Schedule shall, unless the contrary intention is expressed, be regarded as excluded from every other paragraph of that Schedule, and shall not be regarded as specified in that Schedule.

(1B) (a) On receipt of an application in writing from an accountable person, the Revenue Commissioners shall, in accordance with regulations

and after such consultation (if any) as may seem to them to be necessary with such person or body of persons as in their opinion may be of assistance to them, make a determination concerning—

(i) whether an activity of any particular kind carried on by the person is an exempted activity, or

(ii) the rate at which tax is chargeable in relation to the delivery by the person of goods of any kind, the delivery of goods in any particular circumstances or the rendering by the person of services of any kind.

(b) The Revenue Commissioners may, whenever they consider it expedient to do so, in accordance with regulations and after such consultation (if any) as may seem to them to be necessary with such person or body of persons as in their opinion may be of assistance to them, make a determination concerning—

(i) whether an activity of any particular kind is an exempted activity, or

(ii) the rate at which tax is chargeable in relation to the delivery of goods of any kind, the delivery of goods in any particular circumstances or the rendering of services of any kind.

(c) A determination under this subsection shall have effect for all the purposes of this Act, in relation to an accountable person who makes an application therefor, as on and from the date upon which particulars of the determination are communicated to him in accordance with paragraph (e) (i) and, in relation to any other person, as on and from the date of publication of the determination in the Iris Oifigiúil.

(d) The Revenue Commissioners shall not make a determination under this section concerning any matter which has been determined on

appeal under this Act or which is for the time being governed by an order under section 6 (2) or 11 (8), and shall not be required to make such a determination in relation to any of the matters referred to in an application under paragraph (a) if—

(i) a previous determination has been published in regard to the matter, or

(ii) in their opinion the subject matter of the application is sufficiently free from doubt as not to warrant the making and publication of a determination.

(e) (i) A determination under paragraph (a) shall, as soon as may be after the making thereof, be communicated to the person who made the application therefor by the service on him by the Revenue Commissioners of a notice containing particulars of the determination.

(ii) A determination under paragraph (a) may and a determination under paragraph (b) shall be published in the Iris Oifigiúil and, in that event, it shall also be published in at least one daily newspaper published in the State.

(f) A person, aggrieved by a determination under paragraph (a) made pursuant to an application by him, may, on giving notice in writing to the Revenue Commissioners within the period of twenty-one days beginning on the date of service on him of notice of the determination in accordance with paragraph (e) (i), appeal to the Appeal Commissioners.

(g) Any accountable person who, in the course of business, delivers goods or renders services of a kind or in circumstances specified in a determination under paragraph (a) or (b) may, on giving notice in writing to the Revenue Commissioners within the period of twenty-one days beginning on the date of the publication of the determination in the Iris Oifigiúil, appeal to the Appeal Commissioners.”,

(e) by the insertion of the following subsection after subsection (4):

“(4A) Where—

(a) goods of a kind specified in paragraph (xii) of the Second Schedule are used by a person in the course of the rendering by him of taxable services, and

(b) the goods are supplied by the person to whom the services are rendered or by any other person other than the person by whom the services are rendered,

the person who renders the taxable services shall be deemed to have supplied the goods so used in the course of business and shall be liable, in addition to any other liability imposed on him under this Act, to pay tax on the value of the goods so used at the rate specified in section 11 (1) (a).”, and

(f) by the substitution of the following paragraph for paragraph (a) of subsection (8):

“(a) The Minister may by order vary the Second or Third Schedules by adding to or deleting therefrom descriptions of goods or services of any kind or by varying any description of goods or services for the time being specified therein, and may, in like manner, vary the Fourth Schedule by deleting therefrom descriptions of goods of any kind or by varying any description of goods for the time being specified therein, but no order shall be made under this section for the purpose of increasing any of the rates of tax or extending the classes of activities or goods in respect of which tax is for the time being chargeable.”.

81 Amendment of section 12 of Principal Act.

81.—Section 12 of the Principal Act is hereby amended—

(a) by the insertion of the following subsection after subsection (1)—

“(1A) (a) A person who, by election or in accordance with the provisions of section 8 (4) is deemed to become an accountable

person, shall, in accordance with regulations, be entitled, in computing the amount of tax payable by him in respect of the first taxable period for which he is so deemed to be an accountable person, to treat as tax deductible under subsection (1) such part of the value of the stock-in-trade (within the meaning of section 34) held by him immediately before the commencement of that taxable period as could reasonably be regarded as the amount which he would be entitled to claim under the said subsection (1) if he had been an accountable person at the time of the delivery to him of such stock-in-trade.

(b) No claim shall lie under this subsection for a deduction for the tax relating to any stock-in-trade (within the meaning of section 34) if, and to the extent that, a deduction under subsection (1) could be claimed apart from this subsection.

(c) This subsection shall have effect in relation to taxable periods commencing on or after the 3rd day of September, 1973.”, and

(b) by the deletion in subsection (1) of paragraph (e).

82 Amendment of section 19 of Principal Act.

82.—Section 19 of the Principal Act is hereby amended by the substitution of the following subsection for subsection (3):

“(3) (a) Within nine days immediately after the tenth day of the month immediately following a taxable period, an accountable person shall furnish to the Collector-General a true and correct return prepared in accordance with regulations of the amount of tax which became due under section 2 (1) (a) by him during the taxable period and the amount, if any, which may be deducted in accordance with section 12 in computing the amount of tax payable by him in respect of such taxable period, and shall at the same time remit to the Collector-General the amount of tax, if any, payable by him in respect of such taxable period.

(b) Paragraph (a) shall be construed in relation to the taxable period commencing on the first day of July, 1973, as if the reference therein to nine days immediately after the tenth day of the month immediately following a taxable period were a reference to nine days immediately after the tenth day of the month in which the taxable period ends.”.

83 Amendment of section 26 of Principal Act.

83.—Section 26 of the Principal Act is hereby amended—

(a) by the substitution in subsection (1) of “18 (2)” for “18”, and

(b) by the insertion after subsection (3) of the following subsection:

“(3A) A person who does not comply with section 18 (3) shall be liable to a penalty of £100.”.

84 Amendment of section 27 of Principal Act.

84.—Section 27 of the Principal Act is hereby amended by the substitution of the following subsection for subsection (5):

“(5) A person who fraudulently or negligently—

(a) issues an invoice in which an amount of tax is stated, in such circumstances that, apart from his liability under subsection (5) or (6) of section 17, the said amount does not represent the amount of tax (if any) which becomes due by him in respect of the transaction to which the invoice relates, or

(b) issues a credit note showing an amount of tax other than that properly applicable to the transaction to which the credit note relates,

shall be liable to a penalty of—

(i) £100, and

(ii) the amount, or, in the case of fraud, twice the amount of his liability under the said subsection (5) or (6), as the case may be, in respect of the issue of any such invoice or credit note.”.

85 Amendment of section 32 of Principal Act.

85.—Section 32 (1) of the Principal Act is hereby amended by the insertion of the following paragraphs after paragraph (x):

“(xx) the relief (if any) to be given to an accountable person in respect of tax borne or paid by him on stock-in-trade held by him immediately before the commencement of the first taxable period for which he is deemed to become an accountable person;

(xxx) the manner in which a determination may be made for the purposes of section 11 (1B);”.

86 Amendment of section 35 of Principal Act.

86.—Section 35 of the Principal Act is hereby amended by the insertion after subsection (1) of the following subsection:

“(1A) (a) Where, after the making of an agreement for the delivery of goods or the rendering of services and before the date on which under subsection (1) or (2), as may be appropriate, of section 19 any tax in respect of the transaction would, if the proviso to the said subsection (1) were disregarded, fall due, there is a change in the amount of tax chargeable on the delivery or rendering in question, then, in the absence of agreement to the contrary, there shall be added to or deducted from the total amount of the consideration and any tax stated separately under the agreement an amount equal to the amount of the change in the tax chargeable.

(b) References in this subsection to a change in the amount of tax chargeable on the delivery of goods or the rendering of services include references to a change to or from a situation in which no tax is being charged on the delivery or rendering.”.

87 Amendment of First Schedule to Principal Act.

87.—The First Schedule to the Principal Act is hereby amended—

(a) by the substitution for paragraph (ix) of the following paragraph:

“(ix) services of a medical or educational nature rendered by hospitals, nursing homes, schools and similar establishments; and catering services rendered—

(a) to patients of a hospital or nursing home in the hospital or nursing home, and

(b) to students of a school in the school;” and

(b) by the insertion after paragraph (xxiii) of the following paragraphs:

“(xxiv) delivery of live horses;

(xxv) delivery of live greyhounds;

(xxvi) the natural or artificial insemination of livestock.”.

88 Amendment of Second Schedule to Principal Act.

88.—The Second Schedule to the Principal Act is hereby amended—

(a) by the substitution of the following paragraph for paragraph (vii):

“(vii) animal feeding stuff, excluding feeding stuff which is packaged, sold or otherwise designated for the use of dogs, cats, cage birds or domestic pets;”,

and

(b) by the insertion of the following paragraphs after paragraph (x)

“(xi) life saving services provided by the Royal National Lifeboat Institution including the organisation and maintenance of the lifeboat service;

(xii) food and drink of a kind used for human consumption, excluding—

(a) beverages chargeable with any duty of customs or excise specifically charged on spirits, beer, wine, cider, perry or Irish wine, and preparations thereof,

(b) other manufactured beverages, including fruit juices and bottled waters, and syrups, concentrates, essences, powders, crystals or other products for the preparation of beverages, but not including—

(I) tea and preparations thereof,

(II) cocoa, coffee and chicory and other roasted coffee substitutes, and preparations and extracts thereof,

(III) preparations and extracts of meat, yeast, egg or milk,

(c) ice cream, ice lollipops, water ices and similar frozen products, and prepared mixes and powders for making such products,

(d) (I) chocolates, sweets and similar confectionery (including drained, glacé or crystallised fruits), biscuits, crackers and wafers of all kinds, and all confectionery and bakery products other than bread,

(II) for the purposes of this paragraph “bread” means food for human consumption manufactured by baking dough composed exclusively of a mixture of cereal flour and any one or more of the ingredients mentioned in the following subclauses in quantities not exceeding the limitation, if any, specified for each ingredient—

(1) yeast or other leavening or aerating agent, salt, malt extract, milk, water, gluten,

(2) fat, sugar and bread improver, subject to the limitation that the weight of any ingredient specified in this subclause shall not exceed 2 per cent. of the weight of flour included in the dough,

(3) dried fruit, subject to the limitation that the weight thereof shall not exceed 10 per cent. of the weight of flour included in the dough,

other than food packaged for sale as a unit (not being a unit designated as containing only food specifically for babies) containing two or more slices, segments, sections or other similar pieces, having a crust over substantially the whole of their outside surfaces, being a crust formed in the course of baking or toasting,

(e) any of the following when supplied for human consumption without further preparation, namely, potato crisps, potato sticks, potato chips, potato puffs and similar products made from potato, or from potato flour or from potato starch, popcorn, and salted or roasted nuts whether or not in shells;

(xiii) medicine of a kind used for human oral consumption;

(xiv) medicine of a kind used for animal oral consumption, excluding medicine which is packaged, sold or otherwise designated for the use of dogs, cats, cage birds or domestic pets;

(xv) seeds, plants, spores, bulbs, tubers, tuberous roots, corms, crowns and rhizomes, of a kind used for sowing in order to produce food;

(xvi) goods of different kinds which are packaged for sale as a unit (hereinafter in this paragraph referred to as the package) and in relation to which all the following conditions are satisfied—

(a) the package consists of goods in relation to the delivery of some of which for a separate consideration tax would be chargeable at the rate specified in section 11 (1) (d), and in

relation to the delivery of the remainder of which for a separate consideration, tax would be chargeable at the rate specified in section 11 (1) (e),

(b) the consideration for delivery is referable to the package as a whole and not to the different kinds of goods included therein, and

(c) the total tax-exclusive value of the goods included in the package, in relation to the delivery of which for a separate consideration tax would be chargeable at the rate specified in the said section 11 (1) (e), does not exceed 50 per cent. of the total tax-exclusive consideration for the package or 2 new pence, whichever is the lesser.”.

89 Amendment of Third Schedule to Principal Act.

89.—The Third Schedule to the Principal Act is hereby amended—

(a) by the substitution in Part I of the Schedule of the following paragraph for paragraph (i):

“(i) Animal medicine excluding medicine—

(a) of a kind specified in paragraph (xiv) of the Second Schedule, or

(b) which is packaged, sold or otherwise designated for the use of dogs, cats, cage birds or domestic pets;”,

(b) by the addition to Part I of the Schedule of the following paragraph:

“(xxxii) goods of different kinds which are packaged for sale as a unit (hereinafter in this paragraph referred to as the package) and in relation to which all the following conditions are satisfied:

(a) the package consists of goods in relation to the delivery of some of which for a separate consideration tax would be chargeable at the rate specified in section 11 (1) (a), and in relation to the delivery of the remainder of which for such a consideration, tax would be chargeable at any other rate or rates,

(b) the consideration for delivery is referable to the package as a whole and not to the different kinds of goods included therein, and

(c) the total tax-exclusive value of the goods included in the package, in relation to the delivery of which for a separate consideration or separate considerations tax would be chargeable at a rate or rates other than the rate specified in the said section 11 (1) (a), does not exceed 50 per cent. of the total tax-exclusive consideration for the package or 2 new pence, whichever is the lesser,”, and

(c) by the addition to Part II of the Schedule of the following paragraph:

“(vii) the hiring to a person under a contract in writing, other than a contract of a kind referred to in section 3 (1) (b), entered into before the 24th day of October, 1972, of movable goods in the possession of the person on the 1st day of November, 1972, 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) (e).”.

90 Miscellaneous amendments of Principal Act.

90.—The Principal Act is hereby amended as specified in column (3) of the Tenth Schedule to this Act.

PART VI Miscellaneous

91 Capital Services Redemption Account.

91.—(1) In this section—

“the principal section” means section 22 of the Finance Act, 1950;

“the 1972 amending section” means section 40 of the Finance Act, 1972;

“the twenty-third 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) Subsection (4) of the 1972 amending section shall, in relation to the twenty-nine successive financial years commencing with the financial year ending on the 31st day of March, 1974, have effect with the substitution of “£4,647,544” for “£4,650,815”.

(3) Subsection (6) of the 1972 amending section shall have effect with the substitution of “£2,933,771” for “£2,993,830”.

(4) A sum of £5,452,955 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 March, 1974.

(5) The twenty-third 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-third additional annuity, not exceeding £3,510,185 in any financial year, may be applied towards defraying the interest on the public debt.

(7) The balance of the twenty-third additional annuity shall be applied in any one or more of the ways specified in subsection (6) of the principal section.

92 Securities of certain European bodies.

92.—(1) This section applies to any stock or other form of security issued in the State by the European Coal and Steel Community, the European Atomic Energy Community or the European Investment Bank.

(2) Any stock or other form of security to which this section applies shall be deemed—

(a) to be a security issued under the authority of the Minister for Finance within the meaning of section 466 of the Income Tax Act, 1967, and

(b) to be a security to which section 63 of the Finance Act, 1969, applies,

and those sections shall apply and have effect accordingly.

(3) Section 34 of the Finance Act, 1956, is hereby amended by the addition to subsection (1) of “, or of section 92 of the Finance Act, 1973.”.

(4) Section 474 of the Income Tax Act, 1967, is hereby amended by the addition to subsection (1) of “or section 92 of the Finance Act, 1973.”.

(5) Any stock or other form of security to which this section applies shall be exempt from death duties in connection with the death of any person dying after the passing of this Act who was not domiciled or ordinarily resident in the State at the time of his death and section 39 of the Finance Act, 1970, shall apply to any such stock or other form of security.

(6) The First Schedule (as amended by the Finance Act, 1970) to the Stamp Act, 1891, is hereby amended by the insertion in paragraph 1 of the Heading “GENERAL EXEMPTIONS FROM ALL STAMP DUTIES” after subparagraph (i) of the following paragraph :

“(ia) transfers of any stock or other form of security to which section 92 of the Finance Act, 1973, applies,”.

93 Amendment of Finance (Excise Duties) (Vehicles) Act, 1952.

93.—(1) The Finance (Excise Duties) (Vehicles) Act, 1952, shall, as respects licences under section 1 of that Act for periods beginning on or after the 1st day of June, 1973, be amended by the substitution in paragraph 1 (a) of Part I of the Schedule thereto of £2, £5, £8, £12 and £15 as the rates of duty in lieu of £1.50, £3, £4.50, £7.00 and £9.50

(2) The Finance (Excise Duties) (Vehicles) Act, 1952, shall, as respects licences under section 1 of that Act for periods beginning on or after the 1st day of June, 1973, be amended by the substitution in Part I of the Schedule thereto of the following subparagraphs for subparagraphs (b), (c) and (d) of paragraph 4:

“(b) tractors (being tractors designed and constructed primarily for use otherwise than on roads and incapable by reason of their construction of exceeding a speed of 25 miles per hour on a levels road under their own power) and agricultural engines, not being tractors or engines used for hauling on roads any objects except their own necessary gear, threshing appliances, farming implements or supplies of fuel or water required for the purposes of the vehicles or agricultural purposes	£1.
(c) tractors (being tractors designed and constructed primarily for use otherwise than on roads and incapable by reason of their construction of exceeding a speed of 25 miles per hour on a level road under their own power and not being tractors in respect of which a duty is chargeable at the rate specified in subparagraph (b) of this paragraph) which are used for haulage in connection with agriculture and for no other purpose	£5.
Where a tractor is fitted with a detachable platform, container or implement (being a platform, container or implement used primarily for farm work), goods or burden of any other description conveyed on or in the platform, container or implement shall be regarded for the purposes of this subparagraph as being hauled by the tractor.
(d) tractors of any other description	£50.”

(3) The Finance (Excise Duties) (Vehicles) Act, 1952, shall, as respects licences under section 1 of that Act for periods beginning on or after the 1st day of June, 1973, be amended by the substitution in Part I of the Schedule thereto of the following paragraph for paragraph 5:

“5. Vehicles (including tricycles weighing more than 8 cwt. unladen) constructed or adapted for use and used for the conveyance of goods or burden of any other description in the course of trade or business (including agriculture and the performance by a local or public authority of its functions) and vehicles constructed or adapted for use and used for the conveyance of a machine, workshop, contrivance or implement by or in which goods being conveyed by such vehicles are processed or manufactured while the vehicles are in motion:

(a) being vehicles which are electrically propelled and which do not exceed 25 cwt. in weight unladen	£20
(b) being vehicles which are not such electrically propelled vehicles as aforesaid—
(i) not exceeding 12 cwt. in weight unladen	£25
(ii) exceeding 12 cwt. but not exceeding 16 cwt. in weight unladen	£31
(iii) exceeding 16 cwt. but not exceeding 1 ton in weight unladen	£37
(iv) exceeding 1 ton but not exceeding 2 tons in weight unladen	£37, plus £6 for each quarter-ton, or part thereof, of weight unladen in excess of 1 ton
(v) exceeding 2 tons but not exceeding 3 tons in weight unladen	£61, plus £8 for each quarter-ton, or part thereof, of weight unladen in excess of 2 tons
(vi) exceeding 3 tons but not exceeding 4 tons in weight unladen	£93, plus £8 for each quarter-ton, or part thereof, of weight unladen in excess of 3 tons
(vii) exceeding 4 tons but not exceeding 5 tons in weight unladen	£125, plus £10 for each quarter-ton, or part thereof, of weight unladen in excess of 4 tons
(viii) exceeding 5 tons but not exceeding 6 tons in weight unladen	£165, plus £15 for each quarter-ton, or part thereof, of weight unladen in excess of 5 tons
(ix) exceeding 6 tons in weight unladen	£225, plus £20 for each quarter-ton, or part thereof, of weight unladen in excess of 6 tons

with an additional duty, in the case of any vehicle used for drawing a trailer, of—

(I) where the vehicle does not exceed 2 tons in weight unladen	£14
(II) where the vehicle exceeds 2 tons but does not exceed 3 tons in weight unladen	£18
(III) where the vehicle exceeds 3 tons but does not exceed 4 tons in weight unladen	£24
(IV) where the vehicle exceeds 4 tons but does not exceed 5 tons in weight unladen	£32
(V) where the vehicle exceeds 5 tons but does not exceed 6 tons in weight unladen	£42
(VI) where the vehicle exceeds 6 tons in weight unladen	£54.”

(4) Subject to subsection (5) of this section, the Finance (Excise Duties) (Vehicles) Act, 1952, shall, as respects licences under section 1 of that Act for periods beginning on or after the 1st day of June, 1973, be amended by the substitution in Part I of the Schedule thereto of the following subparagraph for subparagraph (d) of paragraph 6:

“(d) other vehicles to which this paragraph applies—	£
not exceeding 8 horse-power or electrically propelled	22
exceeding 8 horse-power but not exceeding 9 horse-power	25.50
exceeding 9 horse-power but not exceeding 10 horse-power	£29
exceeding 10 horse-power but not exceeding 11 horse-power	33
exceeding 11 horse-power but not exceeding 12 horse-power	37.50
exceeding 12 horse-power but not exceeding 13 horse-power	42
exceeding 13 horse-power but not exceeding 14 horse-power	46-50
exceeding 14 horse-power but not exceeding 15 horse-power	51
exceeding 15 horse-power	55.”

(5) Subsection (4) of this section shall not have effect in relation to any vehicle—

(a) which is used as a small public service vehicle within the meaning of the Road Traffic Act, 1961, and for no other purpose,

(b) which is fitted with a taximeter and is lawfully used as a street service vehicle within the meaning of the Road Traffic Act, 1961, or for purposes incidental to such user and for no other purpose, or

(c) which is used as a hearse and for no other purpose.

(6) The proceeds, calculated in such manner as the Minister for Finance may direct, of—

(a) the variations of duties effected by this section and section 95 of this Act,

(b) the duty imposed by section 94 of this Act, and

(c) the increases of fees effected by the Road Traffic (Licensing of Drivers) (Amendment) Regulations, 1973,

shall, notwithstanding section 3 of the Finance (Excise Duties) (Vehicles) Act, 1952, be disregarded in any determination of a sum to be issued out of the Central Fund under section 2 (1) of the Roads Act, 1920.

94 Charge on first licensing of mechanically propelled vehicles.

94.—(1) Subject to the provisions of this section, as on and from the 1st day of June, 1973, before a person proposing to do so takes out a licence under section 1 of the Finance (Excise Duties) (Vehicles) Act, 1952, in respect of a mechanically propelled vehicle specified in subsection (2) of this section not previously the subject of a licence under that section, a duty of excise shall, in addition to the duty of excise chargeable in respect of the vehicle under that section, be charged, levied and paid on and by the person at the appropriate rate specified in the said subsection (2).

(2) The duty imposed by subsection (1) of this section shall be at the following rates:

(a) £1 in relation to a vehicle in respect of which the said duty chargeable under the said section 1 is payable at a rate specified in paragraph 1 of Part I of the Schedule to the said Act;

(b) £5 in relation to any other vehicle (not being a vehicle in respect of which the said duty of excise is not chargeable or leviable).

(3) The duty under this section shall be charged, levied and paid immediately before the taking out of the licence under the said section 1 and shall be collected by and paid to the licensing authority and shall be paid by that authority into the Exchequer in accordance with such directions as may from time to time be given by the Minister for Finance.

(4) For the purpose of levying the duty under this section, a licensing authority shall have within their county or county borough the same powers, duties and liabilities as the Revenue Commissioners and their officers have with respect to duties of excise, and the enactments relating to duties of excise and to punishments and to penalties in connection therewith shall apply accordingly.

(5) Sums paid into the Exchequer and penalties recovered pursuant to this section shall, for the purpose of section 2 of the Roads Act, 1920, be deemed to have been paid into the Exchequer under that Act.

(6) The Road Vehicles (Registration and Licensing) Order, 1958, shall apply in relation to the duty imposed by this section as if it were a duty imposed by section 1 of the Finance (Excise Duties) (Vehicles) Act, 1952.

95 Increase of driving licence duty.

95.—The Finance (Excise Duties) (Vehicles) Act, 1952, shall, as on and from the 1st day of June, 1973, be amended by the substitution in section 4 (1A) (inserted by the Finance Act, 1961) of the following paragraphs for paragraphs (a) and (b):

“(a) two pounds if the period of the licence is one year, and

(b) two pounds for each year of the period of the licence if that period is two or more years.”.

96 Repeals.

96.—(1) Each enactment mentioned in column (2) of the Eleventh Schedule to this Act is hereby repealed to the extent specified in column (3) of that Schedule.

(2) This section shall come into operation on the 1st day of August, 1973, or the date of the passing of this Act, whichever is the later:

Provided that, for the purposes of subsections (1) and (3) of section 71 of this Act, this section shall be deemed to have come into operation on the 1st day of January, 1973.

97 Care and management of taxes and duties.

97.—All taxes and duties (except the excise duties on mechanically propelled vehicles) imposed by this Act are hereby placed under the care and management of the Revenue Commissioners.

98 Short title, construction and commencement.

98.—(1) This Act may be cited as the Finance Act, 1973.

(2) Part I and section 92 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 and sections 93 and 95 of this Act, so far as they relate 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 IV of this Act and (so far as relating to stamp duties) section 92 of this Act shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act.

(5) Part V of this Act shall be construed together with the Value-Added Tax Act, 1972.

(6) Part I of this Act shall, save as is otherwise expressly provided therein, be deemed to have come into force and shall take effect as on and from the 6th day of April, 1973.

(7) 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 Policies of Life Insurance

Rules applicable to endowment policies

(a) the term specified in the policy in relation to survival must be a term ending not earlier than ten years after the making of the insurance,

(b) premiums must be payable under the policy at yearly intervals or at intervals of six months, three months, two months or one month, and—

(i) until the happening of the event upon which the capital sum secured is payable, or

(ii) until the happening of that event, or the earlier expiry of a specified period shorter than the term specified but also ending not earlier than ten years after the making of the insurance, or

(iii) if the policy is to lapse on the death of a specified person, until one of those times or the policy's earlier lapse,

(c) the total amount of the premiums payable under the policy in any period of twelve months must not exceed—

(i) twice the total amount of the premiums payable in any other such period, or

(ii) one-eighth of the total amount of the premiums which would be payable if the policy were to continue in force for the specified term,

(d) the policy must guarantee that the capital sum payable on death will be equal to three-fourths at least of the total premiums which would be payable if the policy were to continue in force for that term, disregarding any amounts included in those premiums by reason of their being payable otherwise than annually, and

(e) the policy must not secure the provision (except by surrender) at any time before the happening of the event aforesaid of any benefit of a capital nature other than benefits attributable to a right to participate in profits or arising by reason of a person's disability.

(a) no account shall be taken of any provision for the waiver of premiums by reason of a person's disability, and

(b) if the term of the policy runs from a date earlier, but not more than three months earlier, than the making of the insurance, the insurance shall be treated as having been made on that date, and any premium paid in respect of the period before the making of the insurance, or in respect of that period and a subsequent period, as having been payable on that date.

Exceptional mortality risk

(a) so much of any premium thereunder as is charged on the grounds that an exceptional risk of death is involved, and

(b) any provision under which, on those grounds, any sum may become chargeable as a debt against the capital sum guaranteed by the policy on death.

Connected policies

Premiums paid out of sums due under previous policies

(2) Liability for the payment of a premium is discharged in accordance with this subparagraph if it is discharged by the retention by the company with which the insurance is made of the whole or a part of any sum which has become payable on the maturity of, or on the surrender more than ten years after its issue of the rights conferred by, a policy—

(a) previously issued by the company to the person making the insurance, or, if it is made by trustees, to them or any predecessors in office, or

(b) issued by a company when the person making the insurance was an infant, and securing a capital sum payable either on a specified date falling not more than one month after his attaining the age of twenty-five years or on the anniversary of the policy immediately following his attainment of that age,

being a policy which was itself a qualifying policy, or which would have been a qualifying policy if issued in respect of an insurance made on or after the 16th day of May, 1973.

Substitution, variations, etc.

(2) The said rules (for the purposes of which, the question whether the old policy was a qualifying policy shall be determined in accordance with this Schedule, whatever the date of the insurance in respect of which it was issued) are as follows—

(a) if the new policy would apart from this paragraph be a qualifying policy, but the old policy was not, the new policy is not a qualifying policy unless the person making the insurance in respect of which it is issued was an infant when the old policy was issued, and the old policy was one securing a capital sum payable either on a specified date falling not later than one month after his attaining the age of twenty-five years or on the anniversary of the policy immediately following his attainment of that age;

(b) if the new policy would apart from this paragraph be a qualifying policy, and the old policy was also a qualifying policy, the new policy is a qualifying policy unless—

(i) it takes effect before the expiry of ten years from the making of the insurance in respect of which the old policy was issued, and

(ii) the highest total of premiums payable thereunder for any period of twelve months expiring before that time is less than one-half of the highest total paid for any period of twelve months under the old policy, or under any related policy issued less than ten years before the issue of the new policy (“related policy” meaning any policy in relation to which the old policy was a new policy within the meaning of this paragraph, any policy in relation to which that policy was such a policy, and so on);

(c) if the new policy would not apart from this paragraph be a qualifying policy, and would fail to be so by reason only of paragraph 1 (b) or 1 (c) it is nevertheless a qualifying policy if the old policy was a qualifying policy and—

(i) the old policy was issued in respect of an insurance made more than ten years before the taking effect of the new policy, and the premiums payable for any period of twelve months under the new policy do not exceed the smallest total paid for any such period under the old policy, or

(ii) the old policy was issued outside the State, and the circumstances are as specified in subparagraph (3).

(3) The said circumstances are—

(a) that the person in respect of whom the new insurance is made became resident in the State during the twelve months ending with the date of its issue,

(b) that the issuing company certify that the new policy is in substitution for the old, and that the old was issued either by a branch or agency of the company outside the State or by a company outside the State with whom the first-mentioned company has arrangements for the issue of policies in substitution for ones held by persons coming to the State, and

(c) that the new policy confers on the holder benefits which are substantially equivalent to those which he would have enjoyed if the old policy had continued in force.

(2) In applying any of those rules by virtue of this paragraph, the question whether a policy after a variation would be a qualifying policy apart from the rule shall be determined as if any reference in paragraphs 1 to 5 to the making of an insurance, or to a policy's term, were a reference to the taking effect of the variation or, as the case may be, to the term of the policy as from the variation.

(3) This paragraph does not apply by reason of—

(a) any variation which, whether or not of a purely formal character, does not affect the terms of a policy in any significant respect, or

(b) any variation effected before the end of the year 1973 for the sole purpose of converting into a qualifying policy any policy issued (but not one treated by virtue of section 23 as issued) in respect of an insurance made on or after the 16th day of May, 1973.

SECOND SCHEDULE Agreement between the Government of Ireland and the Government of the United Kingdom with respect to certain exemptions from tax

The Government of Ireland and the Government of the United Kingdom;

With a view to making such alterations in the Agreement made the 14th April 1926, between the Government of the Irish Free State and the British Government in respect of Double Income Tax as may be necessary in consequence of the alterations in the British Income Tax Acts effected by the British Finance Acts 1971 and 1972;

Have agreed as follows:

(1) In Article 1 (a) of the said Agreement the words “British income tax” shall as respects the year 1973-74 and any subsequent year be construed as meaning the basic rate of income tax and the reference to British surtax shall be construed as meaning the excess of liability to British income tax over what it would be if all British income tax were charged at the basic rate only.

(2) Article 1 (a) of the said Agreement shall be further amended by the addition of:

“Where the income is a dividend derived from a company which is resident in the United Kingdom, such a person shall be entitled to payment of the tax credit in respect thereof to which an individual resident in the United Kingdom would have been entitled had he received that dividend.

Provided that there shall be no such entitlement to the tax credit where the recipient of the dividend is a company which either alone or together with one or more associated companies controls directly or indirectly not less than 10 per cent. of the voting power in the company paying the dividend. For the purpose of this paragraph two companies shall be deemed to be associated if one is controlled directly or indirectly by the other, or both are controlled directly or indirectly by a third company.

The term ‘dividend’ includes any item which under the law of the United Kingdom is treated as a distribution of a company.”.

Article 1 (*b*) of the said Agreement shall be amended by the addition of:

“Where the income is a dividend paid by a company which is resident in Ireland to a company which is resident in the United Kingdom and which controls directly or indirectly not less than 10 per cent. of the voting power in the former company, the exemption shall apply only to income tax in excess of 5 per cent. of the dividend.

The term ‘dividend’ includes any payment or other transaction which under the law of Ireland is deemed to be a dividend.”.

In Article 2 of the said Agreement, as amended by Article 2 of the Agreement of 25th April 1928, any reference to the standard rate of British income tax shall be construed as meaning the basic rate of British income tax and any reference to British surtax shall be construed as meaning the excess of liability to British income tax over what it would be if all British income tax were charged at the basic rate only.

This Agreement shall enter into force on the exchange of Notes confirming that the necessary steps have been taken to give it the force of law in Ireland and the United Kingdom, and shall thereupon have effect:

(a) as respects dividends paid on or after 6th April 1973 and not later than 5th April 1975; and

(b) in other respects for any year of assessment beginning on or after 6th April 1973.

In witness whereof the undersigned, duly authorised thereto by their respective Governments, have signed this Agreement.

Done in two originals at London this 2nd day of May, 1973.

For the Government of Ireland:

DONAL O'SULLIVAN.

For the Government of the United Kingdom:

ANTHONY KERSHAW.

THIRD SCHEDULE Extension of Charge to Tax to Profits and Income Derived from Activities Carried on and Employments Exercised on the Continental Shelf—Supplementary Provisions

Information

(a) transactions in connection with activities authorised by the licence as a result of which any person is or might be liable to tax by virtue of section 33; and

(b) emoluments paid or payable in respect of duties performed in an area in which those activities may be carried on under the licence and the persons to whom they were paid or are payable;

and shall take reasonable steps to obtain the information necessary to enable him to comply with the notice.

Collection

(2) Any amount of tax which a person is required to pay by a notice under this paragraph may be recovered from him as if it were tax due and duly demanded from him; and he may recover any such amount paid by him from the person on whom the assessment was made as a simple contract debt in any court of competent jurisdiction.

FOURTH SCHEDULE Protocol

The Government of Ireland and the Government of the United Kingdom;

Desiring to conclude a Protocol to amend the Agreement between the Contracting Parties for the reciprocal relief of double taxation in respect of Irish Corporation Profits Tax and United Kingdom Profits Tax, signed on 18th May 1949 (hereinafter referred to as “the Agreement”);

Have agreed as follows:

Article 1

In Article VII (1) and (2) of the Agreement for the words “beneficially owns, directly or indirectly, not less than three-quarters of the ordinary share capital of” there shall be substituted the words “controls, directly or indirectly, not less than 10 per cent. of the voting power in”.

Article 2

This Protocol, which shall form an integral part of the Agreement, shall come into force when the last of all such things shall have been done in Ireland and the United Kingdom as are necessary to give the Protocol the force of law in Ireland and the United Kingdom respectively, and shall thereupon have effect in respect of dividends paid on or after 6th April 1973.

In witness whereof the undersigned, duly authorised thereto by their respective Governments, have signed this Protocol.

Done in two originals at London this 2nd day of May, 1973.

For the Government of Ireland:

DONAL O'SULLIVAN.

For the Government of the United Kingdom:

ANTHONY KERSHAW.

FIFTH SCHEDULE

PART I Disallowance of Trading Losses and Restriction of Capital Allowances

Change in ownership of company

(a) if a single person acquires more than half of the ordinary share capital of a company, or

(b) if two or more persons each acquire a holding of 5 per cent. or more of the ordinary share capital of the company and those holdings together amount to more than half of the ordinary share capital of the company, or

(c) if two or more persons each acquire a holding of the ordinary share capital of the company, and the holdings together amount to more than half of the ordinary share capital of the company, but disregarding a holding of less than 5 per cent. unless it is an addition to an existing holding and the two holdings together amount to 5 per cent. or more of the ordinary share capital of the company.

(a) the circumstances at any two points of time with not more than three years between may be compared, and a holder at the later time may be regarded as having acquired whatever he did not hold at the earlier time, irrespective of what he has acquired or disposed of in between,

(b) so as to allow for any issue of shares or other re-organisation of capital, the comparison referred to in subparagraph (a) may be made in terms of percentage holdings of the total ordinary share capital at the respective times, so that a person whose percentage holding is greater at the later time may be regarded as having acquired a percentage holding equal to the increase,

(c) in deciding for the purposes of subparagraphs (b) and (c) of paragraph 1, whether any person has acquired a holding of at least 5 per cent. or a holding which makes at least 5 per cent. when added to an existing holding, acquisitions by, and holdings of, persons who are connected with each other shall be aggregated as if they were acquisitions by, and holdings of, one and the same person, and for the purposes of this subparagraph persons shall be regarded as connected with each other if they would be so regarded for the purposes of section 16 of the Finance (Miscellaneous Provisions) Act, 1968,

(d) any acquisition of shares under the will or on the intestacy of a deceased person and any gift of shares, if it is shown that the gift is unsolicited and made without regard to the provisions of section 39, shall be left out of account.

for whose benefit the losses or capital allowances may ultimately enure, then in considering whether there has been a change in ownership of the company for the purposes of section 39, holdings of all kinds of share capital, including preference shares, or of any particular category of share capital, or voting power or any other special kind of power, may be taken into account instead of ordinary share capital.

Groups of companies

(a) immediately before the change, the company is the 75 per cent. subsidiary of another company, and

(b) that other company continues after the change, despite a change in the direct ownership of the first-mentioned company, to own that first-mentioned company as a 75 per cent. subsidiary.

(2) If there is a change in the ownership of a company which has a 75 per cent. subsidiary, whether owned directly or indirectly, then section 39 shall apply as if there had also been a change in the ownership of the said subsidiary unless under subparagraph (1) the change in ownership of the first-mentioned company is to be disregarded.

Provisions as to ownership

(a) references to ownership shall be construed as references to beneficial ownership, and references to acquisition shall be construed accordingly,

(b) the expression “ordinary share capital” has the meaning assigned to it by section 226 (2) (b) of the Income Tax Act, 1967,

(c) a company shall be deemed to be a 75 per cent. subsidiary of another company if and so long as not less than 75 per cent. of its ordinary share capital is owned by that other company, whether directly or through another company or other companies, or partly directly and partly through another company or other companies,

(d) the amount of ordinary share capital of one company owned by a second company through another company or other companies, or partly directly and partly through another company or other companies, shall be determined in accordance with the provisions of Part II of this Schedule,

(e) “share” includes “stock”.

Time of change in ownership

Time allowed for making assessments

(a) in case it is an assessment to income tax, within ten years from the end of the year of assessment within which that time or the latest of those times occurs, or

(b) in case it is an assessment to corporation profits tax, within ten years from the end of the accounting period within which that time or the latest of those times occurs.

Information

PART II Provisions for Determining the Amount of Capital held in a Company Through other Companies

(a) any number of companies of which the first company directly owns ordinary share capital of the next and the next directly owns ordinary share capital of the next but one and so on, and, if there are more than three, any three or more of them, are referred to as a series;

(b) in any series—

(i) that company which owns ordinary share capital of another through the remainder is referred to as the first owner;

(ii) that other company the ordinary share capital of which is so owned is referred to as the last owned company;

(iii) the remainder, if one only, is referred to as an intermediary and, if more than one, are referred to as a chain of intermediaries;

(c) a company in a series which directly owns ordinary share capital of another company in the series is referred to as an owner;

(d) any two companies in a series of which one owns ordinary share capital of the other directly, and not through one or more of the other companies in the series, are referred to as being directly related to one another.

(a) each of two or more of the owners in a series owns a fraction, and every other owner in the series owns the whole, of the ordinary share capital of the company to which it is directly related; or

(b) every owner in a series owns a fraction of the ordinary share capital of the company to which it is directly related;

the first owner shall be deemed to own through the intermediary or chain of intermediaries such fraction of the ordinary share capital of the last owned company as results from the multiplication of those fractions.

(a) directly, or

(b) through an intermediary or intermediaries which is not a member or are not members of that series, or

(c) through a chain or chains of intermediaries of which one or some or all is not a member or are not members of that series, or

(d) in a case where the series consists of more than three companies, through an intermediary or intermediaries which is a member or are members of the series, or through a chain or chains of intermediaries consisting of some but not all of the companies of which the chain of intermediaries in the series consists,

then, for the purpose of ascertaining the amount of the ordinary share capital of the last owned company owned by the first owner, all those fractions shall be aggregated and the first owner shall be deemed to own the sum of those fractions.

SIXTH SCHEDULE Spirits (Rates of Ordinary Customs Duty)

Part I

Description of Spirits	Preferential Rates	Full Rates
(1)	(2)	(3)
	£	£
For every gallon of Perfumed Spirits entered in such manner as to indicate that the strength is not to be tested	36.236	36.436
For 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	30.573	30.740
For every gallon computed at proof of spirits of any description not heretofore mentioned and mixtures and preparations containing spirits	22.647	22.772

Part II

Description of Spirits	United Kingdom Rate
	£
For every gallon of Perfumed Spirits entered in such manner as to indicate that the strength is not to be tested	28.765
For 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	24.270
For every gallon computed at proof of spirits of any description not heretofore mentioned and mixtures and preparations containing spirits	17.978

SEVENTH SCHEDULE Duties on Tobacco

Part I Customs

Unmanufactured:				£
if stripped or stemmed:
containing 10 per cent. or more by weight of moisture		the	lb.	5.045
containing less than 10 per cent. by weight of moisture		”	”	5.245
if unstripped or unstemmed:
containing 10 per cent. or more by weight of moisture		”	”	5.043
containing less than 10 per cent. by weight of moisture		”	”	5.243
			Full	Preferential
			£	£
Manufactured:
cigars	the	lb.	5.985	5.193
cigarettes	”	”	5.870	5.097
cavendish or negrohead	”	”	5.955	5.168
cavendish or negrohead manufactured in bond	”	”	5.925	5.143
reconstituted or homogenised tobacco containing 10 per cent. or more by weight of moisture	”	”	5.043	5.043
reconstituted or homogenised tobacco containing less than 10 per cent. by weight of moisture	the	lb.	5.243	5.243
other manufactured tobacco	”	”	5.855	5.085
snuff containing more than 13 per cent. by weight of moisture	”	”	5.835	5.068
snuff containing 13 per cent. or less by weight of moisture	”	”	5.955	5.168

Part II Customs

Unmanufactured:			£
if stripped or stemmed:
containing 10 per cent. or more by weight of moisture	the	lb.	5.043
containing less than 10 per cent by weight of moisture	”	”	5.243
if unstripped or unstemmed:
containing 10 per cent. or more by weight of moisture	”	”	5.043
containing less than 10 per cent. by weight of moisture	”	”	5.243

Part III Customs

			Full	Preferential
			£	£
Manufactured:
cigars	the	lb.	5.400	5.193
cigarettes	”	”	5.298	5.097
cavendish or negrohead	”	”	5.374	5.168
cavendish or negrohead manufactured in bond	”	”	5.348	5.143
reconstituted or homogenised tobacco containing 10 per cent. or more by weight of moisture	”	”	5.043	5.043
reconstituted or homogenised tobacco containing less than 10 per cent. by weight of moisture	”	”	5.243	5.243
other manufactured tobacco:
hard pressed tobacco	”	”	4.455	4.254
other pipe tobacco	”	”	5.129	4.928
other manufactured tobacco	”	”	5.286	5.085
snuff containing more than 13 per cent. by weight of moisture	”	”	5.268	5.068
snuff containing 13 per cent. or less by weight of moisture	”	”	5.374	5.168

Part IV Excise

			£
Unmanufactured:
containing 10 per cent. or more by weight of moisture	the	lb.	5.043
containing less than 10 per cent. by weight of moisture	”	”	5.243
Manufactured:
cavendish or negrohead manufactured in bond	”	”	5.143

EIGHTH SCHEDULE Scale of Rates of Estate Duty

Principal Value of the Estate						Rate per cent. of duty
	£				£
Exceeding	10,000	and	not	exceeding	11,000	4
”	11,000	”	”	”	12,500	6
”	12,500	”	”	”	15,000	8
”	15,000	”	”	”	17,500	10
”	17,500	”	”	”	20,000	12
”	20,000	”	”	”	25,000	14
”	25,000	”	”	”	30,000	16
”	30,000	”	”	”	35,000	18
”	35,000	”	”	”	40,000	21
”	40,000	”	”	”	45,000	24
”	45,000	”	”	”	50,000	27
”	50,000	”	”	”	55,000	30
”	55,000	”	”	”	60,000	33
”	60,000	”	”	”	75,000	37
”	75,000	”	”	”	100,000	41
”	100,000	”	”	”	150,000	45
”	150,000	”	”	”	200,000	50
”	200,000					55

NINTH SCHEDULE Stamp Duties on Instruments

Part I Bond, Covenant or Instrument of any kind whatsoever.

(1) Being the only or principal or primary security for any annuity (except upon the original creation thereof by way of sale or security, and except a superannuation annuity), or for any sum or sums of money at stated periods, not being interest for any principal sum secured by a duly stamped instrument, nor rent reserved by a lease.
For a definite and certain period, so that the total amount to be ultimately payable can be ascertained.
Where the total amount does not exceed ten thousand pounds	Exempt
Where the total amount exceeds ten thousand pounds
For every £200 or any fractional part of £200 of the amount secured	25p
For the term of life or any other indefinite period. For every £10, and also for any fractional part of £10, of the annuity or sum periodically payable	25p
(2) Being a collateral or auxiliary or additional or substituted security for any of the above-mentioned purposes where the principal or primary instrument is duly stamped.
Where the amount secured does not exceed ten thousand pounds	Exempt
Where the total amount to be ultimately payable can be ascertained and exceeds ten thousand pounds	50p
In any other case:
For every £10, and also for any fractional part of £10, of the annuity or sum periodically payable	5p
(3) Being a grant or contract for payment of a superannuation annuity, that is to say a deferred life annuity granted or secured to any person in consideration of annual premiums payable until he attains a specified age and so as to commence on his attaining that age.
For every £10, and also for any fractional part of £10, of the annuity	5p

Part II Conveyance or Transfer on sale of any property other than stocks or marketable securities.