Finance Act , 1985

(viii) articles of personal footwear, other than articles of personal footwear of a kind specified in paragraph (xix) of the Second Schedule;

(ix) sole and upper leather of a kind normally used for the manufacture and repair of footwear, and also soles, heels and insoles of any material;

(x) (a) the national daily newspapers published in the State,

(b) other newspapers, normally published at least weekly, the format, and the range and nature of the contents of which are similar to those of any newspaper referred to in subparagraph (a);

(xi) letting of the kind to which paragraph (iv) (b) of the First Schedule refers;

(xii) the hiring (in this paragraph referred to as ‘the current hiring’) to a person of—

(a) a vehicle designed and constructed, or adapted, for the conveyance of persons by road,

(b) a ship, boat or other vessel designed and constructed for the conveyance of passengers and not exceeding 15 tons gross,

(c) a sports or pleasure craft of any description including a yacht, cabin cruiser, dinghy, canoe, skiff or racing boat, or

(d) a caravan, mobile home, tent or trailer tent,

under an agreement, other than an agreement of the kind referred to in section 3 (1) (b), for any term or part of a term which, when added to the term of any such hiring (whether of the same goods or of other goods of the same kind) to the same person during the period of 12 months ending on the date of the commencement of the current hiring, does not exceed 5 weeks;

(xiii) services consisting of the repair or maintenance of—

(a) mechanically propelled land vehicles including self propelled mobile machinery (other than vehicles and machinery designed, constructed or intended for use on rails),

(b) machinery, plant or equipment of a kind commonly used by farmers in the State for the purposes of their occupation and not commonly used for any other purpose, or

(c) trailers (excluding caravans, mobile homes and trailer tents),

including the provision and installation in the course of supplying such services of goods of a kind normally included as parts of such vehicles, machinery, plant, equipment or trailers when supplied new, but excluding—

(I) the provision in the course of a repair or maintenance service of—

(A) accessories or attachments,

(B) tyres, tyre cases, interchangeable tyre treads, inner tubes and tyre flaps, for wheels of all kinds, or

(C) batteries, and

(II) the repair or maintenance, whether performed separately or in the course of the repair or maintenance of other goods, of articles which are accessories or attachments or goods specified in clause (I) (B) of this paragraph, other than goods to which clauses (b) and (c) and subclause (I) (C) of this paragraph refer, and

(III) washing, cleaning and polishing;

(xiv) agricultural services consisting of—

(a) field work, reaping, mowing, threshing, baling, harvesting, sowing and planting,

(b) disinfecting and ensilage of agricultural products,

(c) destruction of weeds and pests and dusting and spraying of crops and land,

(d) lopping, tree felling and similar forestry services, and

(e) land drainage and reclamation;

(xv) services of an auctioneer, solicitor, estate agent or other agent, directly related to the supply of immovable goods used for the purposes of an Annex A activity;

(xvi) farm accountancy or farm management services.”.

52 Amendment of Fourth Schedule to Principal Act.

52.—The Fourth Schedule (inserted by the Act of 1978) to the Principal Act is hereby amended by the insertion, after paragraph (i), of the following paragraph:

“(ia) hiring out of movable goods other than means of transport;”.

53 Repeals.

53.—Section 89 (2) of the Act of 1983 and section 96 of the Act of 1984 are hereby repealed.

54 Deferment of increase in rate of tax (private dwellings).

54.—(1) For the purposes of this section—

“dwelling” means a house, or an apartment, flat, penthouse or similar unit of accommodation;

“qualifying supply” means the supply on or before the 30th day of April, 1985, to a person, being an individual acting on his own behalf, of a service consisting of the development of immovable goods, being the construction of a dwelling designed for the private use of, and occupation by, such person, and includes a supply of immovable goods to that person on or before the said date in connection with the supply of the said service.

(2) In this section reference to the construction of a dwelling does not include reference to the conversion, reconstruction, alteration or enlargement of any existing building or buildings.

(3) In respect of the taxable period commencing on the 1st day of March, 1985, notwithstanding the provisions of section 11 of the Principal Act (as amended by this Act), value-added tax shall, in relation to a qualifying supply, be, and be deemed to have been, chargeable, at the rate of 5 per cent.

PART IV Stamp Duties

55 Levy on banks.

55.—(1) In this section—

“assessable amount” means the amount arrived at by dividing the specified amount by twelve and deducting £10,000,000 from the quotient;

“bank” means a person who, on the 1st day of January, 1984, was the holder of a licence granted under section 9 of the Central Bank Act, 1971;

“relevant sum”, in relation to a return, means a sum shown in the return other than a sum shown in respect of foreign currency;

“returns”, in relation to a bank, means the returns, entitled “MONTHLY RETURN OF ALL LICENSED BANKS: RESIDENT BRANCHES”, furnished to the Central Bank of Ireland by the bank in respect of the assets and liabilities of the bank as on the 18th day of January, 1984, the 15th day of February, 1984, the 31st day of March, 1984, the 18th day of April, 1984, the 16th day of May, 1984, the 30th day of June, 1984, the 18th day of July, 1984, the 15th day of August, 1984, the 30th day of September, 1984, the 17th day of October, 1984, the 21st day of November, 1984, and the 31st day of December, 1984;

“specified amount”, in relation to a bank, means the amount obtained by deducting the aggregate amount of the relevant sums shown in respect of Item 302.2 in supplement 1 of the returns of the bank from the aggregate amount of the relevant sums shown in the returns in respect of Government deposits and Non-Government deposits and shown as liabilities of the bank in such returns.

(2) A bank shall, not later than the 11th day of September, 1985, deliver to the Revenue Commissioners a statement in writing showing the assessable amount for that bank, the specified amount for that bank and the sums referred to in the definition of “specified amount” in subsection (1) by reference to which that specified amount was calculated.

(3) There shall be charged on every statement delivered pursuant to subsection (2) a stamp duty of an amount equal to the sum of the following:

(a) 0.25 per cent. of that part of the assessable amount shown therein that does not exceed £100,000,000 and

(b) 0.35 per cent. of that part of the assessable amount shown therein that exceeds £100,000,000:

Provided that in the case where the assessable amount shown in the statement does not exceed £100,000,000 stamp duty of an amount equal to 0.25 per cent. of the assessable amount shown therein shall be charged.

(4) The duty charged by subsection (3) upon a statement delivered by a bank pursuant to subsection (2) shall be paid by the bank upon delivery of the statement.

(5) There shall be furnished to the Revenue Commissioners by a bank such particulars as the Revenue Commissioners may deem necessary in relation to any statement required by this section to be delivered by the bank.

(6) In the case of failure by a bank to deliver any statement required by subsection (2) within the time provided for in that subsection or of failure to pay the duty chargeable on any such statement on the delivery thereof, the bank shall, from the date of the passing of this Act until the day on which the duty is paid, be liable to pay, by way of penalty, in addition to the duty, interest thereon at the rate of 15 per cent. per annum and also from the 11th day of September, 1985, by way of further penalty, a sum equal to 1 per cent. of the duty for each day the duty remains unpaid and each penalty shall be recoverable in the same manner as if the penalty were part of the duty.

(7) The delivery of any statement required by subsection (2) may be enforced by the Revenue Commissioners under section 47 of the Succession Duty Act, 1853, in all respects as if such statement were such account as is mentioned in that section and the failure to deliver such statement were such default as is mentioned in that section.

(8) The stamp duty charged by this section shall not be allowed as a deduction for the purposes of the computation of any tax or duty under the care and management of the Revenue Commissioners payable by the bank.

56 Cesser of section 86 (stamp duty on course bets) of Finance Act, 1980.

56.—(1) The Imposition of Duties (No. 275) (Stamp Duties on Course Bets) Order, 1985 (S.I. No. 60 of 1985), is hereby revoked with effect from the date of the passing of this Act.

(2) Section 86 of the Finance Act, 1980, shall cease to have effect in relation to the quarter ending on the 30th day of June, 1985, and each subsequent quarter.

(3) In this section “quarter” has the same meaning as in section 86 of the Finance Act, 1980.

57 Amendment of section 93 (exemption of certain instruments from stamp duty) of Finance Act, 1982.

57.—Subsection (5) of section 93 of the Finance Act, 1982 (as amended by the Finance Act, 1984) is hereby amended by the substitution of “four years” for “three years”, and the said subsection (5), as so amended, is set out in the Table to this section.

TABLE

(5) This section shall have effect with respect to any instrument executed after the date of the passing of this Act and before the expiration of four years after that date.

PART V Capital Acquisition Tax

58 Interpretation (Part V).

58.—In this Part “the Principal Act” means the Capital Acquisitions Tax Act, 1976.

59 Exemption for spouses.

59.—(1) Notwithstanding the provisions of the Principal Act, an inheritance taken by a successor, who is at the date of the inheritance the spouse of the disponer, shall be exempt from tax and shall not be taken into account in computing tax.

(2) This section shall have effect in relation to an inheritance taken on or after the 30th day of January, 1985.

60 Relief in respect of certain policies of insurance.

60.—(1) In this section—

“qualifying insurance policy” means a policy of insurance—

(a) which is in a form approved by the Commissioners for the purposes of this section;

(b) in respect of which annual premiums are paid by the insured during his life; and

(c) which is expressly effected under this section for the purpose of paying relevant tax;

“relevant tax” means inheritance tax payable in respect of an inheritance (excluding, in the computation of such tax, an interest in a qualifying insurance policy) taken under a disposition made by the insured, where the inheritance is taken on or after the date of death of the insured and not later than one year after that death.

(2) (a) An interest in a qualifying insurance policy which is comprised in an inheritance taken under a disposition made by the insured shall, to the extent that the proceeds thereof are applied in paying relevant tax, be exempt from tax in relation to that inheritance and shall not be taken into account in computing tax.

(b) An interest in a qualifying insurance policy which is comprised in an inheritance taken under a disposition made by the insured shall, to the extent that the proceeds thereof are not applied in paying relevant tax, and notwithstanding the provisions of the Principal Act, be deemed to be taken on a day immediately after—

(i) the date of death of the insured; or

(ii) the latest date (if any) on which an inheritance is taken in respect of which that relevant tax is payable,

whichever is the later.

(3) Section 143 of the Income Tax Act, 1967, is hereby amended by the substitution, in subsection (5), of the following paragraphs for paragraph (b)—

“(b) be given in respect of premiums or payments payable during the period of deferment in respect of a policy of deferred assurance; or

(c) be given for the year 1985-86 and subsequent years of assessment in respect of premiums payable in respect of a qualifying insurance policy within the meaning of section 60 of the Finance Act, 1985:”.

61 Relief from double aggregation.

61.—(1) Property in respect of which tax is chargeable more than once on the same event shall not be included more than once in relation to that event in any aggregate referred to in the Second Schedule to the Principal Act.

(2) Paragraph 7 of Part I of the said Second Schedule shall not have effect in ascertaining the tax payable in respect of property which is chargeable to tax as being taken more than once on the same day.

(3) This section shall have effect in relation to gifts and inheritances taken on or after the 2nd day of June, 1982.

(4) Notwithstanding the provisions of section 46 of the Principal Act, interest shall not be payable on any repayment of tax which arises by virtue of this section where such tax was paid prior to the date of the passing of this Act.

62 Allowance for prior tax on the same event.

62.—(1) The Principal Act shall have effect, and shall be deemed always to have had effect, as if the following section were inserted after section 34 of that Act:

“34A.—Where tax is charged more than once in respect of the same property on the same event, the net tax payable which is earlier in priority shall not be deducted in ascertaining the taxable value for the purposes of the tax which is later in priority, but shall be deducted from the tax which is later in priority as a credit against the same, up to the net amount of the same.”.

(2) Notwithstanding the provisions of section 46 of the Principal Act, interest shall not be payable on any repayment of tax which arises by virtue of this section where such tax was paid prior to the date of the passing of this Act.

63 Allowance for capital gains tax on the same event.

63.—(1) Where gift tax or inheritance tax is charged in respect of property on an event happening on or after the 30th day of January, 1985, and the same event constitutes for capital gains tax purposes a disposal of an asset (being the same property or any part of the same property), the capital gains tax, if any, chargeable on the disposal shall not be deducted in ascertaining the taxable value for the purposes of the gift tax or inheritance tax but, in so far as it has been paid, shall be deducted from the net gift tax or inheritance tax as a credit against the same, up to the net amount of the same.

(2) For the purposes of any computation of the amount of capital gains tax to be deducted under this section, any necessary apportionments shall be made of any reliefs or expenditure and the method of apportionment adopted shall be such method as appears to the Commissioners, or on appeal to the Appeal Commissioners, to be just and reasonable.

64 Amendment of section 106 (acquisitions by discretionary trusts) of Finance Act, 1984.

64.—Section 106 (1) of the Finance Act, 1984, shall have effect, and shall be deemed always to have had effect, as if “otherwise than for full consideration in money or money's worth paid by the trustees of the trust” were deleted.

65 Amendment of section 108 (exemptions) of Finance Act, 1984.

65.—Section 108 of the Finance Act, 1984, shall have effect, and shall be deemed always to have had effect, as if the following subsection were added thereto:

“(2) Section 106 shall not apply or have effect—

(a) in relation to a discretionary trust in respect of the property subject to or becoming subject to the trust which, on the termination of the trust, is comprised in a gift or an inheritance taken by the State; or

(b) in respect of an inheritance which, apart from this subsection, would be deemed, by the combined effect of section 31 of the Principal Act and section 106, to be taken by a discretionary trust.”.

PART VI Miscellaneous

66 Capital Services Redemption Account.

66.—(1) In this section—

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

“the 1984 amending section” means section 114 of the Finance Act, 1984;

“the thirty-fifth additional annuity” means the sum charged on the Central Fund under subsection (4);

“the Minister”, “the Account” and “capital services” have the same meanings respectively as they have in the principal section.

(2) In relation to the twenty-nine successive financial years commencing with the financial year ending on the 31st day of December, 1985, subsection (4) of the 1984 amending section shall have effect with the substitution of “£31,351,760” for “£32,706,344”.

(3) Subsection (6) of the 1984 amending section shall have effect with the substitution of “£22,604,148” for “£23,973,750”.

(4) A sum of £40,369,034 to redeem borrowings, and interest thereon, in respect of capital services shall be charged annually on the Central Fund or the growing produce thereof in the thirty successive financial years commencing with the financial year ending on the 31st day of December, 1985.

(5) The thirty-fifth additional annuity shall be paid into the Account in such manner and at such times in the relevant financial year as the Minister may determine.

(6) Any amount of the thirty-fifth additional annuity, not exceeding £31,028,550 in any financial year, may be applied towards defraying the interest on the public debt.

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

67 Payment of certain interest under State Financial Transactions (Special Provisions) Act, 1984.

67.—Payments in respect of interest which arise or have arisen under section 3 (2) of the State Financial Transactions (Special Provisions) Act, 1984, shall be made out of the Central Fund or the growing produce thereof.

68 Financial arrangements relating to, Bord Telecom Éireann.

68.—(1) Notwithstanding anything in the Postal and Telecommunications Services Act, 1983, the Minister for Finance may, after consultation with the Minister for Communications and Bord Telecom Éireann (in this section referred to as “the company”), require payments to be made to him by the company, at such times and in such manner as he may appoint, in respect of moneys to be repaid by the company for the benefit of the Exchequer under that Act, and the company may, with the consent of the Minister for Finance and the Minister for Communications, make any arrangements necessary to finance such payments.

(2) (a) The Minister for Finance may, after consultation with the Minister for Communications, purchase shares in the company to finance capital works, and any shares so purchased shall be issued to the Minister for Communications.

(b) Any moneys required for any such purchase, up to an amount not exceeding £170,000,000, shall be advanced out of the Central Fund or the growing produce thereof.

(3) The Postal and Telecommunications Services Act, 1983, is hereby amended—

(a) by the insertion, after subparagraph (ii) of section 10 (3) (b), of the following:

“and

(iii) the amount of shares issued to the Minister under section 68 of the Finance Act, 1985” and

(b) by the insertion in section 21 after “31” of “, and in section 68 of the Finance Act, 1985”.

69 Securities issued by the Minister for Finance.

69.—(1) In this section—

“control” shall be construed in accordance with subsections (2) to (6) of section 102 of the Corporation Tax Act, 1976, with the substitution in subsection (6) for “five or fewer participators” of “persons resident in a relevant territory”;

“foreign company” means a company—

(a) which is not resident in the State, and

(b) which is under the control of a person or persons resident in a relevant territory;

“relevant territory” means the United States of America or a territory with the government of which arrangements having the force of law by virtue of section 361 of the Income Tax Act, 1967, have been made;

“relevant trade” means a trade carried on wholly or mainly in the State, but does not include a trade consisting wholly or partly of banking within the meaning of the Central Bank Act, 1971, assurance business within the meaning of section 3 of the Insurance Act, 1936, selling goods by retail or dealing in securities:

Provided that goods shall be deemed for the purposes of this definition not to be sold by retail if they are sold—

(a) to a person who carries on a trade of selling goods of the class to which the goods so sold to him belong, or

(b) to a person who uses goods of that class for the purposes of a trade carried on by him, or

(c) to a person, other than an individual, who uses goods of that class for the purposes of an undertaking carried on by him;

“qualifying company” means a company—

(a) (i) which is resident in the State and not resident elsewhere,

(ii) whose business consists wholly or mainly of—

(I) the carrying on of a relevant trade or relevant trades, or

(II) the holding of stocks, shares or securities of a company which exists wholly or mainly for the purpose of the carrying on of a relevant trade or relevant trades,

and

(iii) of which not less than 90 per cent. of its issued share capital is held by a foreign company or foreign companies, or by a person or persons who are directly or indirectly controlled by a foreign company or foreign companies;

or

(b) which is a foreign company carrying on a relevant trade through a branch or agency in the State.

(2) Any security which the Minister for Finance has power to issue for the purpose of raising any money or loan may be issued with a condition that any interest arising on such security shall not be liable to corporation tax so long as the security is held continuously from the date of issue in the beneficial ownership of a qualifying company to which the security was issued.

70 Care and management of taxes and duties.

70.—All taxes and duties (except the excise duties on mechanically propelled vehicles imposed by sections 32 and 33) imposed by this Act are hereby placed under the care and management of the Revenue Commissioners.

71 Short title, construction and commencement.

71.—(1) This Act may be cited as the Finance Act, 1985.

(2) Part I and section 69 (so far as relating to income tax) shall be construed together with the Income Tax Acts and (so far as relating to corporation tax) shall be construed together with the Corporation Tax Acts and (so far as relating to capital gains tax) shall be construed together with the Capital Gains Tax Acts.

(3) Part II (so far as relating to customs) shall be construed together with the Customs Acts and (so far as relating to duties of excise) shall be construed together with the statutes which relate to the duties of excise and to the management of those duties.

(4) Part III shall be construed together with the Value-Added Tax Acts, 1972 to 1984, and may be cited together therewith as the Value-Added Tax Acts, 1972 to 1985.

(5) Part IV shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act.

(6) Part V shall be construed together with the Capital Acquisitions Tax Act, 1976, and the enactments amending or extending that Act and (so far as relating to income tax) shall be construed together with the Income Tax Acts and (so far as relating to capital gains tax) shall be construed together with the Capital Gains Tax Acts.

(7) Part I 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, 1985.

(8) Part III (other than sections 42, 45, 47 and 52) shall be deemed to have come into force and shall take effect as on and from the 1st day of March, 1985.

(9) 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.

(10) In this Act, a reference to a Part, section or Schedule is to a Part or section of, or Schedule to, this Act, unless it is indicated that reference to some other enactment is intended.

(11) In this Act, a reference to a subsection, paragraph or subparagraph is to the subsection, paragraph or subparagraph of the provision (including a Schedule) in which the reference occurs, unless it is indicated that reference to some other provision is intended.

FIRST SCHEDULE Amendment of Enactments

Amendments Consequential on Changes in Personal Reliefs

(a) in section 138—

(i) in paragraph (a), by the substitution of “£3,800” for “£3,600” (inserted by the Finance Act, 1984),

(ii) in paragraph (b), by the substitution of “£2,400” for “£2,300” (inserted by the Finance Act, 1984) and of “£3,800” for “£3,600” (inserted by the Finance Act, 1984), and

(iii) in paragraph (c), by the substitution of “£1,900” for “£1,800” (inserted by the Finance Act, 1984), and

(b) in section 141 (1A), by the substitution, in paragraphs (b) and (c), of “£600” for “£500” (inserted by the Finance Act, 1981) in each place where it occurs.

SECOND SCHEDULE Rates of Excise Duty on Tobacco Products

Description of Product	Rate of Duty
Cigarettes	£33.20 per thousand together with an amount equal to 14.89 per cent. of the price at which the cigarettes are sold by retail.
Cigars	£50.296 per kilogram
Cavendish or negrohead	£50.826 per kilogram
Hard pressed tobacco	£32.504 per kilogram
Other pipe tobacco	£40.858 per kilogram
Other smoking or chewing tobacco	£42.443 per kilogram