Finance Act , 1993

Provided that the turnover from a supply of goods to a taxable person which are subsequently leased back from that person is excluded from the total annual turnover for the purposes of establishing whether the person is a qualifying person;

‘qualifying goods’ means all taxable goods excluding motor vehicles within the meaning of section 12 (3) (b) and petrol;

‘qualifying services’ means all taxable services excluding the provision of food or drink, accommodation, other personal services, entertainment services or the hire of motor vehicles within the meaning of section 12 (3) (b).

(2) A person who wishes to become an authorised person shall—

(a) complete such application form as may be provided by the Revenue Commissioners for that purpose,

(b) certify the particulars shown on such form to be correct, and

(c) submit to the Revenue Commissioners the completed and certified application form, together with such further information in support of the application as may be requested by them.

(3) (a) Where a person has furnished the particulars required under subsection (2), the Revenue Commissioners shall, where they are satisfied that he is a qualifying person, issue to that person in writing an authorisation certifying him to be an authorised person.

(b) An authorisation issued in accordance with paragraph (a) shall be valid for such period as may be determined by the Revenue Commissioners.

(c) Where a person who has been authorised in accordance with paragraph (a) ceases to be a qualifying person, he shall, by notice in writing, advise the Revenue Commissioners accordingly not later than the end of the taxable period during which he ceased to be a qualifying person.

(d) The Revenue Commissioners shall, by notice in writing, cancel an authorisation issued to a person in accordance with paragraph (a) where they are satisfied that he is no longer a qualifying person and such cancellation shall have effect from the date specified in the notice.

(4) An authorised person shall furnish a copy of the authorisation referred to in subsection (3) to each taxable person in the State who supplies taxable goods or taxable services to him.

(5) A taxable person who supplies goods or services in circumstances where the provisions of paragraph (via) of the Second Schedule apply, shall, in addition to the details to be included on each invoice, credit note or other document required to be issued in accordance with section 17, include on such invoice, credit note or other document a reference to the number of the authorisation issued to the authorised person in accordance with subsection (3).

(6) In relation to each consignment of goods to be imported by an authorised person at the rate specified in section 11 (1) (b) by virtue of paragraph (via) of the Second Schedule the following conditions shall be complied with:

(a) a copy of the authorisation referred to at subsection (3) shall be produced with the relevant customs entry; and

(b) the relevant customs entry shall incorporate—

(i) a declaration by the authorised person, or by his representative duly authorised in writing for that purpose, that he is an authorised person in accordance with this section for the purposes of paragraph (via) of the Second Schedule, and

(ii) a claim for importation at the rate specified in section 11 (1) (b).

(7) For the purposes of subsections (1) (a) (ii) and (6) (a) of section 4, the tax charged at the rate specified in section 11 (1) (b) by virtue of paragraph (via) of the Second Schedule shall be deemed to be tax which is deductible under section 12.

(8) Where an authorised person is in receipt of a service in respect of which, had the provisions of paragraph (via) of the Second Schedule not applied, tax would have been chargeable at a rate other than the rate specified in section 11 (1) (b) and all or part of such tax would not have been deductible by him under section 12, then the authorised person shall, in relation to such service, be liable to pay tax as if he himself had supplied the service for consideration in the course or furtherance of his business to a person who is not an authorised person.

(9) For the purposes of this section, and subject to the direction and control of the Revenue Commissioners, any power, function or duty conferred or imposed on them may be exercised or performed on their behalf by an officer of the Revenue Commissioners.”.

91 Amendment of section 17 (invoices) of Principal Act.

91.—Section 17 of the Principal Act is hereby amended—

(a) in subsection (1) (inserted by the Act of 1992) by the insertion after “section 11 (1)”, of “or who supplies goods to a person in another Member State of the Community in the circumstances referred to in section 3 (6) (d) (ii),” and

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

“(3A) Notwithstanding subsections (5) and (9), where a person issues an invoice in accordance with subsection (1) which indicates a rate of tax and subsequent to the issue of that invoice it is established that a lower rate of tax applied, then—

(a) the amount of consideration stated on that invoice shall be deemed to have been reduced to nil,

(b) the provisions of subsection (3) (b) shall have effect, and

(c) following the issue of a credit note in accordance with the provisions of subsection (3) (b), the person shall issue another invoice in accordance with this Act and regulations made thereunder.”.

92 Amendment of section 19 (tax due and payable) of Principal Act.

92.—Section 19 of the Principal Act is hereby amended—

(a) by the insertion of the following proviso to paragraph (a) of subsection (3):

“Provided that—

(a) where the taxable period is the period ending on the 31st day of December, the amount of tax payable for such period shall be reduced by the amount paid, if any, in accordance with subsection (6) (a) where that amount was due during that taxable period;

(b) the Revenue Commissioners shall refund the amount of the excess where—

(i) the taxable period is the period ending on the 31st day of December, and

(ii) the amount paid in accordance with subsection (6) (a) and which was due during that taxable period exceeds the amount of tax which would be so payable before such reduction.”,

(b) by the substitution of the following subsection for subsection (4) (inserted by the Act of 1992):

“(4) (a) Notwithstanding subsection (3), where—

(i) a person makes an intra-Community acquisition of a new means of transport, other than a vessel or aircraft, in respect of which he is not entitled to a deduction under section 12, then—

(I) the tax shall be payable at the time of payment of vehicle registration tax or, if no vehicle registration tax is payable, at the time of registration of the vehicle,

(II) the person shall complete such form as may be provided by the Revenue Commissioners for the purpose of this subsection, and

(III) the provisions relating to recovery and collection of vehicle registration tax shall apply, with such exceptions and modifications (if any) as may be specified in regulations, to tax referred to in this subparagraph as if it were vehicle registration tax,

and

(ii) a person makes an intra-Community acquisition of a new means of transport which is a vessel or aircraft, in respect of which he is not entitled to a deduction under section 12, then—

(I) the tax shall be payable at a time and in a manner to be determined by regulations, and

(II) the provisions relating to the recovery and collection of a duty of customs shall apply, with such exceptions and modifications (if any) as may be specified in regulations, to tax referred to in this subparagraph as if it were a duty of customs.

(b) In this subsection—

‘registration of the vehicle’ means the registration of the vehicle in accordance with section 131 of the Finance Act, 1992;

‘vehicle registration tax’ means the tax referred to in section 132 of the Finance Act, 1992.”,

and

(c) by the substitution of the following subsections for subsection (5):

“(5) Notwithstanding the provisions of subsection (3), where the provisions of section 8 (2B) (b) apply, the tax shall be payable at the time of payment of the duty of excise on the goods and the provisions relating to recovery and collection of that duty of excise shall apply, with such exceptions and modifications (if any) as may be specified in regulations, to tax referred to in this subsection as if it were that duty of excise.

(6) (a) Notwithstanding the provisions of subsection (3), a taxable person shall on the 1st day of December, 1993, and on each 1st day of December thereafter pay to the Collector-General an amount (hereafter referred to in this subsection as the ‘advance payment’) equal to one-twelfth of the total net tax due by the taxable person for the relevant period:

Provided that as respects any such 1st day of December, this paragraph shall not apply so as to require an advance payment from a taxable person if the total net tax due by the taxable person for the relevant period does not exceed £120,000 (hereafter referred to in this subsection as the ‘threshold’).

(b) Where a taxable person is required by the provisions of paragraph (a) to pay an advance payment to the Collector-General by the due date in any year and fails to pay the advance payment by that date, he shall be liable to an additional amount (hereafter referred to in this subsection as the ‘surcharge’) calculated in accordance with paragraph (d):

Provided that no surcharge shall be payable under this paragraph in respect of a failure to pay the advance payment by the due date where, prior to that date, the taxable person by whom the advance payment is payable enters into an arrangement, by agreement with the Collector-General, which guarantees payment of the advance payment by the immediately following 21st day of December and the taxable person pays the advance payment by that 21st day of December.

(c) Notwithstanding the provisions of paragraph (b), where a taxable person has complied with the provisions of paragraph (a) as respects any advance payment due by the due date in any year, he shall nevertheless be liable to the surcharge, calculated in accordance with paragraph (d), as if he had not paid the advance payment, if he has failed to pay to the Collector-General—

(i) any amount of tax payable by him,

(ii) any amount payable by him pursuant to Chapter IV of Part V of the Income Tax Act, 1967, and the regulations made thereunder, or

(iii) any amount of employment contributions payable by him under the Social Welfare Acts,

where the date for payment of such amount fell on or before the 21st day of December immediately following the due date, unless any such amount referred to in subparagraph (i), (ii) or (iii) is the subject of an agreed payment arrangement with the Collector-General and the terms of that arrangement have been complied with by the taxable person as of the 21st day of December following the due date:

Provided that where the only amount payable referred to in—

(I) subparagraph (i) is consequent to an assessment under section 23, or

(II) subparagraph (ii) or (iii) is consequent to an estimate under section 8 of the Finance Act, 1968,

determined after the 21st day of December immediately following the due date, no surcharge shall be payable under this paragraph where the amount payable referred to in subparagraph (i), (ii) or (iii) is less than 10 per cent. of the advance payment due at that due date, or where the Revenue Commissioners consider that, having regard to the circumstances of the case, the adjustment arose from an accidental or genuine misunderstanding or error and should be disregarded for the purposes of the application of the provisions relating to the advance payment and to the application of the surcharge.

(d) The surcharge referred to in paragraphs (b) and (c) shall be calculated at the rate of 0.25 per cent. per day on the amount of the advance payment with effect from and including the due date until the day immediately preceding the day which is—

(i) the day on which the advance payment is paid,

(ii) the day on which the Collector-General receives a return for the taxable period during which the advance payment is due together with the tax, if any, payable for that period, or

(iii) the 20th day of January immediately following the date on which the advance payment is due,

whichever is the earliest:

Provided that the provisions of subparagraph (i) or (ii) shall only apply where the provisions of paragraph (c) do not apply.

(e) The Revenue Commissioners may, where they consider that an advance payment is payable by a taxable person and where they consider it appropriate to do so, estimate the amount of the advance payment and serve notice on him of the amount so estimated, and the Commissioners may, where they consider it appropriate to do so, vary the amount originally estimated.

(f) All the provisions of this Act shall apply to an estimate under paragraph (e) as if it were the advance payment and, where at any time after the service of the notice the taxable person declares the actual advance payment, the declared amount shall supersede the estimated amount for the purposes of the application of the provisions of this Act.

(g) The provisions of this Act in relation to the recovery of tax shall apply to the advance payment and the surcharge as if they were tax.

(h) (i) The Minister may, as respects any due date, by order—

(I) increase the threshold to be applied for the purposes of this subsection to that due date, or

(II) increase, reduce or revoke an increase in the threshold resulting from any previous order under this subparagraph, including an order relating to this clause:

Provided that where the threshold is so reduced, it shall not be reduced below £120,000.

(ii) An order under subparagraph (i) shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the order is passed by Dáil Éireann within the next twenty-one sitting days on which Dáil Éireann has sat after the order is laid before it, the order shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

(i) Following payment of the advance payment, any subsequent increase of a taxable person's total net tax, whether by way of assessment or otherwise, for the relevant period shall be disregarded for the purposes of the application of the provisions relating to the advance payment and to the application of the surcharge where—

(i) the effect of such increase is to increase the amount of the advance payment by less than 10 percent., or

(ii) the Revenue Commissioners consider that, having regard to the circumstances of the case, the adjustment arose from an accidental or genuine misunderstanding or error and should be disregarded for the purposes of the application of the provisions relating to the advance payment and to the application of the surcharge.

(j) For the purposes of this subsection and subject to the direction and control of the Revenue Commissioners, any power, function or duty conferred or imposed on them may be exercised or performed on their behalf by an officer of the Revenue Commissioners.

(k) In this subsection—

‘due date’ means the date on which, in accordance with paragraph (a), the advance payment is due;

‘relevant period’ means, as respects a taxable person in relation to the 1st day of December in any year, the period ending on the 30th day of June in that year and commencing on the 1st day of July in the immediately preceding year:

Provided that where a person became a taxable person in that period, the relevant period shall be deemed to commence on the date on which the person first became a taxable person;

‘total net tax’ means the total tax payable by the taxable person on supplies, importations and intra-Community acquisitions less the amount which may be deducted by him in accordance with section 12.”.

93 Amendment of section 20 (refund of tax) of Principal Act.

93.—Section 20 of the Principal Act is hereby amended in subsection (1) (inserted by the Act of 1981) by the insertion of the following proviso to that subsection:

“Provided that where the taxable period is the period ending on the 31st day of December in any year, the amount of tax to be refunded shall be increased by the amount paid, if any, in accordance with paragraph (a) of subsection (6) of section 19 where that amount was due during that taxable period.”.

94 Amendment of First Schedule to Principal Act.

94.—The First Schedule (inserted by the Act of 1978) to the Principal Act, is hereby amended by the substitution in subparagraph (b) of paragraph (iv) (inserted by the Act of 1991) of “paragraph (ii) of the Third Schedule or paragraph (xiii) of the Sixth Schedule” for “paragraph (vi) of the Third Schedule”.

95 Amendment of Second Schedule to Principal Act.

95.—The Second Schedule (inserted by the Act of 1976) to the Principal Act is hereby amended—

(a) by the insertion of the following paragraph after paragraph (va) (inserted by the Act of 1992):

“(vb) the supply of goods for the fuelling and provisioning of sea-going vessels and aircraft of the kind specified in paragraph (v);”,

and

(b) by the insertion of the following paragraph after paragraph (vi) (inserted by the Act of 1978):

“(via) subject to and in accordance with section 13A, the supply of qualifying goods and qualifying services to, or the intra-Community acquisition or importation of qualifying goods by, an authorised person in accord ance with that section, excluding supplies of goods within the meaning of paragraph (e) or (f) of subsection (1) of section 3;”.

96 Goods and services chargeable at the rate specified in section 11 (1) (c) of Principal Act.

96.—The Principal Act is hereby amended by the substitution of the following Schedule for the Third Schedule (inserted by the Act of 1991):

“THIRD SCHEDULE

(i) Immovable goods being a domestic dwelling for which a contract with a private individual has been entered into before the 25th day of February, 1993, for such supply;

(ii) services specified in paragraph (xiii) of the Sixth Schedule, under an agreement made before the 25th day of February, 1993, and at charges fixed at the time of the agreement for such supply;

(iii) services specified in subparagraph (a) of paragraph (xv) of the Sixth Schedule, under an agreement made before the 25th day of February, 1993, and at charges fixed at the time of the agreement for such supply.”.

97 Amendment of Sixth Schedule to Principal Act.

97.—(1) The Sixth Schedule (inserted by the Act of 1992) to the Principal Act is hereby amended—

(a) by the substitution in subparagraph (c) of paragraph (i) of “motor vehicle gas within the meaning of section 42 (1) of the Finance Act, 1976” for “gas of a kind specified in paragraph (i) of the Seventh Schedule”,

(b) by the substitution in paragraph (xi) of the following subparagraph for subparagraph (d):

“(d) lopping, tree felling and similar forestry services;”,

(c) by the insertion of the following paragraphs after paragraph (xi):

“(xii) newspapers and periodicals, normally published at least fortnightly, the contents of each issue of which consist, wholly or mainly, as regards the quantity of printed matter contained in them, of information on the principal current events and topics of general public interest;

(xiii) (a) letting of immovable goods (other than in the course of the provision of facilities of the kind specified in paragraph (viia))—

(I) by a hotel or guesthouse, or by a similar establishment which provides accommodation for visitors or travellers,

(II) in a house, apartment or other similar establishment which is advertised or held out as being holiday accommodation or accommodation for visitors or travellers, or

(III) in a caravan park, camping site or other similar establishment,

or

(b) the provision of accommodation which is advertised or held out as holiday accommodation;

(xiv) tour guide services;

(xv) 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 tonnes gross,

(c) a sports or pleasure boat of any description, 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;

(xvi) every work of art being—

(a) a painting, drawing or pastel, or any combination thereof, executed entirely by hand, excluding hand-decorated manufactured articles and plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes,

(b) an original lithograph, engraving, or print, or any combination thereof, produced directly from lithographic stones, plates or other engraved surfaces, which are executed entirely by hand,

(c) an original sculpture or statuary, excluding mass-produced reproductions and works or craftsmanship of a commercial character, or

(d) subject to and in accordance with regulations, an article of furniture, silver, glass or porcelain, whether hand-decorated or not, specified in the said regulations, where it is shown to the satisfaction of the Revenue Commissioners to be more than 100 years old, other than goods specified in subparagraph (a), (b) or (c);

(xvii) literary manuscripts certified by the Director of the National Library as being of major national importance and of either cultural or artistic importance;

(xviii) services consisting of—

(a) the repair or maintenance of movable goods, or

(b) the alteration of second-hand movable goods, other than such services specified in paragraph (v), (va) or (xvi) of the Second Schedule, but excluding the provision in the course of any such repair, maintenance or alteration service of—

(I) accessories, attachments or batteries, or

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

(xix) services consisting of the care of the human body, excluding such services specified in the First Schedule, but including services supplied in the course of a health studio business or similar business;

(xx) services supplied in the course of their profession by jockeys;

(xxi) the supply to a person of photographic prints (other than goods produced by means of a photocopying process), slides or negatives, which have been produced from goods provided by that person;

(xxii) goods being—

(a) photographic prints (other than goods produced by means of a photocopying process), mounted or unmounted, but unframed,

(b) slides and negatives, and

(c) cinematographic and video film,

which record particular persons, objects or events, supplied under an agreement to photograph those persons, objects or events;

(xxiii) the supply by a photographer of—

(a) negatives which have been produced from film exposed for the purpose of his business, and

(b) film which has been exposed for the purposes of his business;

(xxiv) photographic prints produced by means of a vending machine which incorporates a camera and developing and printing equipment;

(xxv) services consisting of—

(a) the editing of photographic, cinematographic and video film, and

(b) microfilming;

(xxvi) agency services in regard to a supply specified in paragraph (xxi);

(xxvii) instruction in the driving of mechanically propelled road vehicles, not being education, training or retraining of the kinds specified in paragraph (ii) of the First Schedule;

(xxviii) immovable goods;

(xxix) services consisting of the development of immovable goods and work on immovable goods including the installation of fixtures, where the value of movable goods (if any) provided in pursuance of an agreement in relation to such services does not exceed two-thirds of the total amount on which tax is chargeable in respect of the agreement;

(xxx) services consisting of the routine cleaning of immovable goods;

(xxxi) (a) cakes, crackers and wafers and other flour-based bakery products other than those included in paragraph (xii) of the Second Schedule;

(b) biscuits, other than biscuits wholly or partly covered or decorated with chocolate or some other similar product similar in taste and appearance.”.

(2) The Sixth Schedule to the Principal Act is hereby further amended by the substitution of the following paragraphs for paragraph (xxxi) (inserted by this Act):

“(xxxi) food of a kind used for human consumption, other than that included in paragraph (xii) of the Second Schedule, being flour or egg based bakery products including cakes, crackers, wafers and biscuits, but excluding—

(a) wafers and biscuits wholly or partly covered or decorated with chocolate or some other product similar in taste and appearance,

(b) food of a kind specified in subparagraph (c) or (e) (II) of paragraph (xii) of the Second Schedule, and

(c) chocolates, sweets and similar confectionery;

(xxxii) concrete ready to pour;

(xxxiii) blocks, of concrete, of a kind which comply with the specification contained in the Standard Specification (Concrete Building Blocks, Part 1, Normal Density Blocks) Declaration, 1987 (Irish Standard 20: Part 1: 1987).”.

98 Repeal of Seventh Schedule to Principal Act.

98.—The Seventh Schedule (inserted by the Act of 1992) to the Principal Act is hereby repealed.

99 Amendment of section 113 (use of electronic data processing) of Finance Act, 1986.

99.—Section 113 of the Finance Act, 1986, is hereby amended in subsection (1) by the substitution of the following paragraph for paragraph (c) of the definition of “the Acts”:

“(c) the Value-Added Tax Act, 1972,”.

PART IV Stamp Duties

100 Amendment of section 112 (stamp duty on transfers of building land) of Finance Act, 1990.

100.—Section 112 of the Finance Act, 1990, is hereby amended as respects a conveyance, transfer or lease of any land executed on or after the 25th day of February, 1993—

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

“(a) in the case of such sale, under the Heading ‘CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities, or a policy of insurance, or a policy of life insurance.’ in the First Schedule (as amended by the Finance Act, 1970, and subsequent enactments) to the Stamp Act, 1891, on an amount which is the greater of—

(i) any consideration paid in respect of the sale of that land, and

(ii) 25 per cent. of the aggregate of the consideration at subparagraph (i) and the consideration paid, or to be paid, in respect of the building of the dwelling-house or apartment on that land;

(b) in the case of such lease, under the Heading ‘LEASE’ in the First Schedule (as amended by the Finance Act, 1970, and subsequent enactments) to the Stamp Act, 1891, on an amount which is the greater of—

(i) any consideration (other than rent) paid in respect of the lease of that land, and

(ii) 25 per cent. of the aggregate of the consideration at subparagraph (i) and the consideration paid, or to be paid, in respect of the building of the dwelling-house or apartment on that land.”,

and

(b) by the substitution in paragraph (a) of subsection (3) of “such aggregate consideration” for “the aggregate consideration which is chargeable under subsection (1)”.

101 Exemption from stamp duty of certain instruments.

101.—(1) Subject to subsection (2), stamp duty shall not be chargeable on—

(a) a shared ownership lease, or

(b) an instrument whereby the lessee of a shared ownership lease exercises the right referred to in section 2 (1) (c) of the Housing (Miscellaneous Provisions) Act, 1992,

other than such a lease or instrument where such lease was granted upon the erection of a house which at that time exceeded the maximum floor area then standing specified in regulations made under section 4 (2) (b) of the Housing (Miscellaneous Provisions) Act, 1979.

(2) The provisions of subsection (1) shall apply where—

(a) it is shown to the satisfaction of the Revenue Commissioners that the instrument whereby the lessor acquired his interest in the house has been duly stamped, and

(b) the shared ownership lease concerned has been granted by an appropriate person.

(3) In this section—

“appropriate person” means—

(a) a person who holds a licence granted by the Central Bank of Ireland under section 9 of the Central Bank Act, 1971, or under section 10 of the Trustee Savings Banks Act, 1989, or

(b) where there are subsisting regulations under section 4 of the ACC Bank Act, 1992, for the supervision by the Central Bank of Ireland of the ACC Bank public limited company, that bank, or

(c) where there are subsisting regulations under section 3 of the ICC Bank Act, 1992, for the supervision by the Central Bank of Ireland of the ICC Bank public limited company, that bank, or

(d) a building society which has been incorporated under the Building Societies Act, 1989, or which is deemed by virtue of section 124 (2) of that Act to be so incorporated, or

(e) the holder of an authorisation for the purposes of the European Communities (Non-Life Insurance) Regulations, 1976 (S.I. No. 115 of 1976), as amended by the European Communities (Non-Life Insurance) (Amendment) Regulations, 1991 (S.I. No. 142 of 1991), or

(f) the holder of an authorisation granted under the European Communities (Life Assurance) Regulations, 1984 (S.I. No. 57 of 1984), or

(g) a body approved of by the Minister for the Environment for the purposes of section 6 of the Housing (Miscellaneous Provisions) Act, 1992, or

(h) the National Building Agency Limited, or

(i) a company within the meaning of section 2 of the Companies Act, 1963, which the Minister for the Environment has certified to the satisfaction of the Revenue Commissioners to be a company incorporated with the principal object of providing assistance on a non-profit making basis with a view to enabling persons to acquire housing for themselves, or

(j) a society registered under the Industrial and Provident Societies Acts, 1893 to 1978, in respect of which the Minister for the Environment has certified to the satisfaction of the Revenue Commissioners to be a society established with the principal object of providing assistance on a non-profit making basis with a view to enabling persons to acquire housing for themselves;

“shared ownership lease” has the meaning assigned to it by section 2 of the Housing (Miscellaneous Provisions) Act, 1992.

(4) The provisions of this section shall be deemed to have come into operation on the 1st day of September, 1992.

102 Amendment of section 203 (stamp duty in respect of cash cards) of Finance Act, 1992.

102.—Section 203 of the Finance Act, 1992, is hereby amended—

(a) in subsection (1)—

(i) by the substitution of the following definition for the definition of “bank”:

“‘bank’ means—

(a) a person who holds a licence granted by the Central Bank of Ireland under section 9 of the Central Bank Act, 1971, or under section 10 of the Trustee Savings Banks Act, 1989, or

(b) where there are subsisting regulations under section 4 of the ACC Bank Act, 1992, for the supervision by the Central Bank of Ireland of the ACC Bank public limited company, that bank, or,

(c) where there are subsisting regulations under section 3 of the ICC Bank Act, 1992, for the supervision by the Central Bank of Ireland of the ICC Bank public limited company, that bank;”,

and

(ii) by the deletion in the definition of “building society” of “, on the 15th day of June in any year (being the year 1992 or a subsequent year),”,

and

(b) by the addition of the following subsection after subsection (9):

“(10) Where a promoter changes its accounting period and, as a result, stamp duty under this section would not be chargeable or payable in the year 1993 or in any subsequent year (in this section referred to as ‘the relevant year’), then the following provisions shall apply:

(a) duty shall be chargeable and payable in the relevant year as if the accounting period had not been changed,

(b) duty shall also be chargeable and payable within one month of the date of the end of the accounting period ending in the relevant year, and

(c) the duty chargeable and payable by virtue of paragraph (b) shall, subject to the proviso contained in subsection (2), be chargeable and payable in respect of cash cards issued at any time by the promoter and which are valid at any time during the period from the due date as determined by paragraph (a) to the due date as determined by paragraph (b).”.

103 Amendment of section 92 (levy on certain premiums of insurance) of Finance Act, 1982.

103.—(1) Subject to subsection (2), section 92 of the Finance Act, 1982, is hereby amended as respects so much of the assessable amount as is comprised of premiums received in respect of offers of insurance or notices of renewal of insurance issued by an insurer on or after the 25th day of February, 1993, by the substitution in subsection (3) of “two per cent.” for “one per cent.”.

(2) This section shall apply to so much of the assessable amount as is comprised of premiums received on or after the 1st day of May, 1993, without regard to the date of such offer or notice.

104 Exchanges.

104.—(1) In this section “the First Schedule” means the First Schedule (as amended by the Finance Act, 1970, and subsequent enactments) to the Stamp Act, 1891.

(2) Any instrument executed on or after the passing of this Act and effecting a conveyance or transfer of any immovable property in exchange for any other property, wherever situated, whether movable or immovable and with or without the payment of any consideration, shall be chargeable in respect of such conveyance or transfer under the Heading “CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities, or a policy of insurance, or a policy of life insurance.” in the First Schedule, with the substitution of the value of immovable property situated in the State thereby conveyed or transferred for the amount or value of the consideration for the sale.

(3) The First Schedule is hereby amended by the substitution in the Heading “EXCHANGE — instruments effecting.” of “section 104 of the Finance Act, 1993” for “section 12 of the Finance Act, 1953”.

(4) Section 73 of the Stamp Act, 1891, shall not apply to any exchange to which this section applies.

(5) Section 12 of the Finance Act, 1953, is hereby repealed.

105 Amendment of section 34 (stamp duty on certain conveyances and transfers) of Finance Act, 1978.

105.—Section 34 of the Finance Act, 1978, is hereby amended in subsection (5) by the substitution of the following paragraphs for paragraph (b):

“(b) any annuity or other periodic payment reserved out of the property or any part of it, or any life or other interest so reserved, being an interest which is subject to forfeiture, or

(c) any right of residence, support, maintenance, or other right of a similar nature which the property is subject to or charged with, except where such rights are reserved in favour of the transferor or the spouse of the transferor and in any such case regard shall be had to such rights only to the extent that their value does not exceed 10 per cent. of the unencumbered value of the property.”.

106 Exemption from stamp duty of certain loan capital and securities.

106.—(1) In this section “loan capital” means any debenture stock, bonds or funded debt, by whatever name known, of a company or other body corporate or any capital raised by a company or other body corporate which is borrowed or has the character of borrowed money, whether it is in the form of stock or in any other form.

(2) Stamp duty shall not be chargeable on the issue or transfer of—

(a) loan capital which—

(i) is dealt in and quoted on a recognised stock exchange,

(ii) does not carry a right of conversion into—

(I) the stocks or marketable securities of a company having a register in the State, or

(II) any stocks or marketable securities which are not dealt in and quoted on a recognised stock exchange,

including loan capital having such a right,

(iii) does not carry rights of the same kind as shares in the capital of a company, including rights such as voting rights, a share in the profits or a share in the surplus upon liquidation,

(iv) is redeemable within 30 years of the date of issue and not thereafter,

(v) is issued for a price which is not less than 90 per cent. of its nominal value, and

(vi) does not carry a right to a sum in respect of repayment or interest which is related to certain movements in an index or indices specified in any instrument or other document relating to the loan capital,

and

(b) securities issued by a qualifying company within the meaning of section 31 of the Finance Act, 1991, where the money raised by such securities is used in the course of its business.

PART V Residential Property Tax

107 Clearance on sale of certain residential property.

107.—Part VI of the Finance Act, 1983, is hereby amended by the insertion after section 110 of the following section—

“110A.—(1) in this section—

‘consideration’ means the amount of consideration in a sale which is attributable to residential property;

‘prior owner’, in relation to the sale of an estate or interest in residential property, means a person who, in addition to being the owner of that property, occupied that property immediately prior to the contract for sale;

‘the purchaser’ has the meaning assigned to it by subsection (2);

‘relevant valuation date’ means—

(a) where the date of the contract for sale is the 5th day of April in a year, that date, and

(b) in any other case, the 5th day of April immediately preceding the date of the contract for sale;

‘sale’ includes a transaction whereby more than one estate or interest in a unit of residential property is sold to the same purchaser;

‘the specified amount’, in relation to the consideration in a sale of an estate or interest in residential property, means the amount of the money consideration in the sale, or, if less, the amount determined by the following formula—

B (1.5 per cent. A)

where—

A is the difference between the consideration and the general exemption limit on the relevant valuation date, and

B is 5 or, where the number of valuation dates concerned is less than 5, the number of valuation dates, after the 4th day of April, 1983, on which such beneficial ownership in possession in that property of which the purchaser would have notice, being notice within the meaning of section 3 (1) of the Conveyancing Act, 1882, is wholly or partly the beneficial ownership of a person who the purchaser has reason to believe may be a prior owner;

‘tax due and payable’ means tax and interest due and payable in respect of every valuation date occurring on or before the date of the contract for sale referred to in subsection (2);

‘the vendor’ has the meaning assigned to it by subsection (2).

(2) In the event of a sale of an estate or interest in residential property—

(a) the date of the contract for which is on or after the 1st day of August, 1993, and

(b) the consideration for which exceeds the general exemption limit applying on the relevant valuation date,

the person by or through whom such consideration falls to be paid (in this section referred to as ‘the purchaser’) shall, subject to subsection (6), deduct from that consideration an amount equal to the specified amount, and pay it to the Commissioners forthwith, and the person to whom the consideration falls to be paid (in this section referred to as ‘the vendor’) shall allow such deduction upon receipt of the residue of the consideration, and the purchaser shall, on proof of payment to the Commissioners of the amount so deducted, be acquitted and discharged of so much money as is represented by the deduction as if that sum had been actually paid to the vendor on the day on which payment was made to the Commissioners.

(3) Upon making a deduction under subsection (2), the purchaser shall forthwith deliver to the Commissioners, on a form provided by them, a return of the consideration and of the amount deducted therefrom.

(4) Any deduction to be made by a purchaser under subsection (2) may at any time, so far as it has not been paid to the Commissioners, be collected and recovered from the purchaser by the Commissioners as if it were tax and, accordingly, the provisions of section 110 shall apply to any such deduction.

(5) (a) Where, in the opinion of the Commissioners, the purchaser in a sale referred to in subsection (2) has failed in his obligation to pay in full to the Commissioners the amount to be deducted under that subsection, the Commissioners shall, to the best of their knowledge, information and belief, estimate the amount of the deduction which fell to be made under that subsection, and the amount of that estimate shall, for the purposes of subsection (4), be deemed to be the actual amount of the deduction which fell to be made under subsection (2).

(b) Any purchaser who is aggrieved by an estimate made by the Commissioners under this subsection may appeal to the Appeal Commissioners against that estimate, and the provisions of section 109 shall, with any necessary modifications, apply to an appeal under this subsection as if it were an appeal against an assessment to tax.

(6) (a) Where, before a specified amount falls to be deducted under subsection (2), application to the Commissioners on a form provided by them is made by a vendor, and the Commissioners are satisfied that there is no tax due and payable by that vendor in respect of any property, they shall issue a certificate that the appropriate proportion of the specified amount shall not be deducted under subsection (2), and for this purpose appropriate proportion means the proportion which that vendor's share of the total consideration bears to the total consideration.

(b) Where a certificate has issued in respect of any vendor under paragraph (a), no reduction in the interest of that vendor in the consideration shall be made by virtue of any balance of a specified amount falling to be deducted in respect of any other vendor.

(7) An appropriate proportion of any payment made to the Commissioners under subsection (2) shall be regarded as having come out of each appropriate vendor's interest in the total consideration, and where the Commissioners are satisfied in respect of any appropriate vendor that there is no tax due and payable by that vendor in respect of any property, they shall, save to the extent of any relief given under subsection (8) (b), repay to that vendor his appropriate proportion of the payment made, and for the purposes of this section an appropriate vendor shall be any vendor in respect of whom a certificate has not issued under subsection (6), and his appropriate proportion of the payment shall be the proportion which his share of the total consideration bears to the aggregate of his share and the shares of all other appropriate vendors (if any) in the total consideration, and the provisions of section 107 (2) shall apply, with any necessary modifications, to any repayment which so falls to be made.

(8) Where any estate or interest in residential property, the subject matter of a sale referred to in subsection (2), is held by a vendor—

(a) as trustee for another person absolutely entitled as against the trustee, or for any person who would be so entitled but for being an infant or other person under disability (or for two or more persons who are or would be jointly so entitled), this section shall apply as if the estate or interest were vested in, and the acts of the trustee in relation to the estate or interest were the acts of, the person or persons for whom he is the trustee, or

(b) as trustee for one or more prior owners not absolutely entitled as against the trustee, subsections (6) and (7) shall apply as if the reference to tax due and payable by a vendor were a reference to the tax due and payable by all of those prior owners, and, where a payment has been made to the Commissioners under subsection (2)—

(i) if the Commissioners are satisfied that there is no tax due and payable by any one or more of those prior owners, they shall, in relation to each prior owner in respect of whom they are so satisfied, give to that vendor, on an application to them in that behalf on a form provided by them, a certificate to that effect,

(ii) that vendor shall be entitled to recover an equal share of his appropriate proportion of the payment from each of those prior owners in respect of whom the Commissioners have refused to issue such a certificate and to so recover in any court of competent jurisdiction as if it were a simple contract debt, and

(iii) appropriate relief shall, on a claim being made in that behalf, be given to any prior owner in respect of whom the vendor has made recovery, or, where the Commissioners are satisfied that the vendor is unable to make full recovery, to that vendor, whether by discharge, or repayment or otherwise.

(9) Where, on or after the date of the passing of the Finance Act, 1993, a person (in this subsection referred to as ‘the transferor’) transfers to his spouse (in this subsection, and in subsection (10), referred to as ‘the transferee’) by sale or other inter vivos disposition, an estate or interest in residential property, any tax and interest due and outstanding from the transferor on the date of such transfer shall be and remain for 12 years from that date a first charge on that estate or interest, and such tax and interest shall have priority over all charges and interests created by the transferee or any person claiming in the right or on the behalf of the transferee:

Provided that—

(a) where, subsequent to the transfer, there is a bona fide sale for full consideration in money or money's worth or a mortgage of the estate or interest transferred, that estate or interest shall not remain charged as against the purchaser or mortgagee unless the amount of the consideration or the amount of the mortgage debt exceeds the general exemption limit applying on the valuation date immediately preceding the date of the agreement for sale or mortgage;

(b) tax or interest shall not be a charge on property as against a bona fide purchaser or mortgagee for full consideration in money or money's worth without notice, or a person deriving title from or under such a purchaser or mortgagee.

(10) Where the tax and interest charged on property under subsection (9) has been paid, the Commissioners shall, on request, give a certificate to that effect to the transferee or to a person deriving title from him, which shall discharge that property from such tax and interest.

(11) Section 72 of the Registration of Title Act, 1964, shall be construed and have effect as if there were included in subsection (1) (a) of that section a reference to residential property tax.”.

108 Amendment of section 112 (penalties) of Finance Act, 1983.

108.—Section 112 of the Finance Act, 1983, is hereby amended by the insertion in subsection (1) (a) after “section 103 (1)” of “or section 110A (3)”.

PART VI Capital Acquisitions Tax

Chapter I Taxation of Assets Passing on Inheritance (Probate Tax)

109 Interpretation (Chapter I).

109.—(1) In this Chapter, except where the context otherwise requires—

“the Act of 1965” means the Succession Act, 1965;

“the consumer price index number” means the All Items Consumer Price Index Number for a year as compiled by the Central Statistics Office and expressed on the basis that the consumer price index number at mid-November, 1989, is 100;

“the deceased”, in relation to the disposition referred to in section 110 (1), means the disponer;

“dependent child”, in relation to the deceased, means a child who at the time of the deceased's death—

(a) was living and had not attained the age of 18 years, or

(b) was receiving full-time education or instruction at any university, college, school or other educational establishment and was under the age of 21 years or, if over the age of 21 years, was receiving such full-time education or instruction continuously since before attaining the age of 21 years;

“dependent relative”, in relation to the deceased, has the meaning assigned to it by subsection (9A) (a) (inserted by the Finance Act, 1979) of section 25 of the Capital Gains Tax Act, 1975;

“the dwelling-house” means—

(a) a dwelling-house, or part of a dwelling-house, which was occupied by the deceased as his only or principal place of residence, at the date of his death,

(b) the curtilage of the dwelling-house which the deceased had for his own use and enjoyment with that dwelling-house up to an area (exclusive of the site of the dwelling-house) of one acre, and

(c) furniture and household effects being the normal contents of the dwelling-house:

Provided that—

(i) in the case of a dwelling-house, part of which was used mainly for the purpose of a trade, business, profession or vocation or was let, this definition shall not apply to the part so used or let, and

(ii) in a case where more than one dwelling-house is included in the estate of the deceased, and more than one such dwelling-house is used equally as a place of residence this definition shall apply only to one dwelling-house so used;

“the estate of the deceased” means the real and personal estate of the deceased as defined by section 10 (4) of the Act of 1965;

“the net market value of the dwelling-house” means the market value of the dwelling-house at the date of death of the deceased or, if less, that market value less the market value at that date of any sum which is charged or secured on the dwelling-house by the will, or other testamentary disposition, of the deceased and which is comprised in the share of an object of the relevant trust in the estate of the deceased, other than the share of a person whose place of normal residence was at that date the dwelling-house and who was on that date a dependent child or dependent relative of the deceased;

“object”, in relation to a relevant trust, means a person entitled to a share in the estate of the deceased (otherwise than as a creditor);

“occupied”, in relation to a dwelling-house or part of a dwelling-house, means having the use thereof, whether actually used or not;

“the Principal Act” means the Capital Acquisitions Tax Act, 1976;

“relevant threshold” means £10,000 multiplied by the figure, rounded to the nearest third decimal place, determined by dividing by 108.2 the consumer price index number for the year immediately preceding the year in which the death of the deceased occurred;

“relevant trust” means—

(a) any trust under which, by virtue of the provisions of section 10 (3) of the Act of 1965, the executors of a deceased person hold the estate of the deceased as trustees for the persons by law entitled thereto, or

(b) any trust of which, by virtue of section 110 (3), the President of the High Court is deemed to be a trustee;

“share”, in relation to the estate of the deceased, includes any share or interest, whether arising—

(a) under a will or other testamentary disposition, or

(b) on intestacy, or

(c) as a legal right under section 111 of the Act of 1965, or

(d) as the subject of an order under section 117 (as amended by the Status of Children Act, 1987) of the Act of 1965, or

(e) in accordance with the law of another country,

and includes also the right to the entire of the estate of the deceased.

(2) A reference in this Act or in any Act of the Oireachtas passed after the passing of this Act to probate tax shall, unless the contrary intention appears, be construed as a reference to the tax chargeable on the taxable value of a taxable inheritance which is charged to tax by virtue of section 110.

110 Acquisitions by relevant trusts.

110.—(1) Where, under or in consequence of any disposition, property becomes subject to a relevant trust on the death of a person dying after the date of the passing of this Act (in this section referred to as “the disponer”), the trust shall be deemed on the date of death of the disponer to become beneficially entitled in possession to an absolute interest in that property and to take an inheritance accordingly as if the trust, and the trustees as such for the time being of the trust, were together a person for the purposes of the Principal Act, and that date shall be the date of the inheritance.

(2) The provisions of subsection (1) shall not prejudice any charge for tax in respect of any inheritance affecting the same property or any part of it taken under the disposition referred to in subsection (1)—

(a) by an object of the relevant trust referred to in subsection (1), or

(b) by a discretionary trust by virtue of section 106 (1) of the Finance Act, 1984,

and any such inheritance shall, except for the purposes of subsections (3) and (4) of section 55 of the Principal Act, be deemed to be taken after the inheritance referred to in subsection (1).

(3) Where, under the provisions of section 13 of the Act of 1965, the estate of a deceased person vests on the date of death of the deceased in the President of the High Court, then, for the purpose of subsection (1), the President of the High Court shall be deemed to hold that estate as a trustee in trust for the persons by law entitled thereto, and the estate of the deceased shall be deemed to be property which became subject to that trust on that date.

(4) The provisions of sections 10 and 13 of the Act of 1965, shall, for the purposes of subsection (1), be deemed to apply irrespective of the domicile of the deceased or the locality of the estate of the deceased.

111 Application of Principal Act.

111.—In relation to a charge for tax arising by virtue of section 110—

(a) the valuation date of the taxable inheritance shall be the date of the inheritance;

(b) a reference in section 16 of the Principal Act (as amended by the Finance Act, 1993) to a company controlled by the successor and the definition in that section of “group of shares” shall be construed as if (for the purpose of that reference) the list of persons contained in subsection (3) of that section and (for the purpose of that definition) the list of persons contained in that definition included the following persons, that is to say, the trustees of the relevant trust, the relatives of the deceased, the nominees of those trustees or of those relatives, and the trustees of a settlement whose objects include the relatives of the deceased;

(c) a person who is a personal representative of the deceased shall be a person primarily accountable for the payment of the tax;

(d) every person entitled for an interest in possession to a share in the estate of the deceased, and every person to whom or for whose benefit any of the property subject to the relevant trust is applied or appointed, shall also be accountable for the payment of the tax and the Principal Act shall have effect, in its application to that charge for tax, as if each of those persons were a person referred to in section 35 (2) of the Principal Act;

(e) where the total taxable value referred to in paragraph (a) of the proviso to section 113 exceeds the relevant threshold, section 36 (2) of the Principal Act (inserted by the Finance Act, 1989) shall have effect, in the application of the Principal Act to any such charge for tax as aforesaid, as if—

(i) the reference in that subsection to four months were construed as a reference to nine months, and

(ii) the reference in that subsection to a person primarily accountable for the payment of tax were construed as including a reference to a person primarily accountable by virtue of paragraph (c) of this section;

(f) sections 19, 21, 35 (1), 36 (4) and 40, subsections (1) to (3) of section 41, and section 43 of, and the Second Schedule to, the Principal Act shall not apply;

(g) section 18 of the Principal Act shall have effect, in the application of the Principal Act to any such charge for tax as aforesaid, as if—

(i) liabilities, costs or expenses incurred after the death of the deceased, other than reasonable funeral expenses, were not an allowable deduction,

(ii) any bona fide consideration paid prior to the death of the deceased by an object of the relevant trust, in return for a share in the estate of the deceased, were consideration paid by the relevant trust on the date on which it was paid by the object, and

(iii) where the property which is exempt from such tax is the dwelling-house, or a part thereof, the restriction on the deduction of any liability referred to in subsection (5) (e) of the said section 18 did not apply;

(h) section 60 of the Principal Act shall apply with the modification that, notwithstanding subsection (3) of that section, the Commissioners may refuse to issue the certificate referred to in subsection (1) of that section—

(i) in a case where the tax is being wholly or partly paid by the transfer of securities to the Minister for Finance under the provisions of section 45 of the Principal Act, until such security as they think fit has been given for the completion of the transfer of the securities to the Minister for Finance, or

(ii) in a case where payment of such tax has been postponed under the provisions of section 44 (1) of the Principal Act, or under section 118, until such tax as has not been so postponed has been paid together with the interest, if any, thereon, or

(iii) in any other case, until the tax has been paid together with the interest, if any, thereon;

(i) section 2 (a) of section 57 of the Principal Act (inserted by the Finance Act, 1978) shall not apply and subsection (2) (c) of that section shall be construed as if the reference therein to the donee or successor were a reference to the deceased;

(j) subsection (6) of section 36 of the Principal Act (inserted by the Finance Act, 1989) shall have effect, in the application of the Principal Act to any such charge for tax as aforesaid, as if the reference in that subsection to a person primarily accountable for the payment of tax by virtue of section 35 (1) were a reference to a person primarily accountable by virtue of paragraph (c) of this section;

(k) section 55 of the Principal Act shall be construed as if the reference in subsection (4) of that section to the successor were a reference to the person who would be the successor for the purpose of that subsection if this Chapter had not been enacted; and

(l) section 63 of the Principal Act (as amended by the Finance Act, 1989) shall have effect, in the application of the Principal Act to any such charge for tax as aforesaid, as if—

(i) £1,000 were substituted for £5,000 in subsection (3) of that section,

(ii) £400 were substituted for £2,000 in subsection (1) (a) of that section,

(iii) £200 were substituted for £1,000 in subsections (2) and (7) of that section, and

(iv) £5 were substituted for £25 in subsection (1) (b) of that section.

112 Exemptions.

112.—The following property shall be exempt from tax (and shall not be taken into account in computing tax) in relation to a charge for tax arising by virtue of section 110—

(a) any right to receive any benefit—

(i) under—

(A) any sponsored superannuation scheme within the meaning of section 235 (9) of the Income Tax Act, 1967, but excluding any scheme or arrangement which relates to matters other than service in particular offices or employments, or

(B) a trust scheme or part of a trust scheme approved under the said section 235 or section 235A of the said Act;

or

(ii) under any scheme for the provision of superannuation benefits on retirement established by or under any enactment; or

(iii) under a contract approved by the Commissioners for the purposes of granting relief for the purposes of section 236 of the Income Tax Act, 1967, in respect of the premiums payable in respect thereof;

(b) property given by the will of the deceased for public or charitable purposes to the extent that the Commissioners are satisfied that it has been, or will be, applied to purposes which, in accordance with the law of the State, are public or charitable;

(c) the dwelling-house, in a case where the deceased is survived by his spouse;

(d) in the case where the deceased is not survived by his spouse, the dwelling-house comprised in an inheritance which, on the date of death of the deceased, is taken under the will or other testamentary disposition or under the intestacy of the deceased, by a person who was on that date a dependent child of the deceased or a dependent relative of the deceased and whose place of normal residence was at that date the dwelling-house:

Provided that—

(i) the total income from all sources of that dependent child or that dependent relative, for income tax purposes, in the year of assessment ending on the 5th day of April next before that date, did not exceed the “specified amount” referred to in subsection (1A) of section 142 of the Income Tax Act, 1967,

(ii) the amount of the exemption shall (subject, with any necessary modifications, to the provisions of section 18 (4) (a) of the Principal Act in the case of a limited interest, and to the provisions of section 20 of that Act in the case of a contingency) be the whole or, as the case may be, the appropriate part (within the meaning of section 5 (5) of the Principal Act) of the net market value of the dwelling-house, and

(iii) the amount of the exemption shall not be reduced by virtue of the provisions of section 20 of the Principal Act where an entitlement ceasing within the meaning of that section ceases because of an enlargement of that entitlement.

113 Computation of tax.

113.—The tax chargeable on the taxable value of a taxable inheritance which is charged to tax by virtue of section 110 shall be computed at the rate of two per cent. of such taxable value:

Provided that—

(a) where the total taxable value on which tax is chargeable by virtue of section 110 on the death of the deceased does not exceed the relevant threshold, that tax shall be nil, and

(b) where that total taxable value exceeds the relevant threshold, that tax shall not exceed the amount by which that total taxable value exceeds the relevant threshold.

114 Relief in respect of quick succession.

114.—Where by virtue of section 110 tax is payable in respect of any property on the death of one party to a marriage, then a charge to tax shall not arise by virtue of that section in respect of that property, or in respect of any property representing that property, on the death of the other party to the marriage within—

(a) one year after the death of the first-mentioned party, or

(b) 5 years after the death of the first-mentioned party, if that other party is survived by a dependent child of that other party.

115 Incidence.

115.—In relation to a charge for tax arising by virtue of section 110, property which, at the date of death of the deceased, represents any share in the estate of the deceased, shall, save to the extent that it is exempt from or not chargeable to such tax, bear its due proportion of such tax, and any dispute as to the proportion of tax to be borne by any such property, or by property representing any such property, may be determined upon application by any person interested in manner directed by rules of court, either by the High Court, or, where the amount in dispute is less than £15,000, by the Circuit Court in whose circuit the person recovering the same resides, or the property in respect of which the tax is paid is situate.

116 Payment of tax.

116.—(1) The person applying for probate or letters of administration of the estate of the deceased shall—

(a) notwithstanding the provisions of section 36 (inserted by the Finance Act, 1989) or section 39 of the Principal Act, make, on a form provided by the Commissioners, an assessment of the tax arising on the death of the deceased by virtue of section 110, and that assessment shall include the interest, if any, payable on the tax in accordance with paragraph (b) of section 117, and shall be of such amount as to the best of the said person's knowledge, information and belief, ought to be charged, levied and paid, and the form on which the assessment is made shall accompany the Inland Revenue Affidavit which is required to be delivered to the Commissioners, and

(b) on delivering the Inland Revenue Affidavit to the Commissioners, duly pay the amount of such tax and interest,

and the Inland Revenue Affidavit and the form on which the assessment is made shall together, for the purpose of section 36 (2) of the Principal Act, be deemed, in relation to the tax arising by virtue of section 110, to be a return delivered by a person primarily accountable.

(2) The provisions of section 36 (3) (b) of the Principal Act (inserted by the Finance Act, 1989) shall, with any necessary modifications, apply to any payment required by virtue of this section.

117 Interest on tax.

117.—In relation to a charge for tax arising by virtue of section 110—

(a) the tax shall be due and payable on the valuation date;

(b) simple interest to the date of payment of the tax shall, from the first day after the expiration of the period of 9 months commencing on the valuation date, be payable upon the tax at the rate of one and one-quarter per cent. per month or part of a month, without deduction of Income Tax, and shall be chargeable and recoverable in the same manner as if it were part of the tax;

(c) notwithstanding the provisions of paragraph (a), where, during the said period of 9 months, a payment is made on foot of the tax, the tax due at the time of the payment shall be discounted by an amount appropriate to the payment, such discount being calculated on tax at a rate per cent. equal to one and one-quarter per cent. multiplied by the number of months in the period from the date of payment to the date of the expiration of the said period of 9 months, and for this purpose a month shall include a part of a month:

Provided that insofar as the payment is repaid by the Commissioners in accordance with the provisions of section 46 of the Principal Act, no discount shall be appropriate to the payment;

(d) notwithstanding the provisions of paragraph (b), the interest payable upon the tax shall not exceed the amount of the tax.

118 Postponement of tax.

118.—Where the Commissioners are satisfied that there are insufficient liquid assets comprised in the estate of the deceased to meet any tax arising by virtue of section 110, they may allow payment to be postponed for such period, to such extent and on such terms as they think fit.

119 Application of section 85 of Finance Act, 1989, and section 133 of Finance Act, 1993.

119.—In relation to a charge for tax arising by virtue of section 110, section 85 (2) (b) (iii) of the Finance Act, 1989, and section 133 (2) (b) (iii) shall not apply.

Chapter II Miscellaneous Amendments, etc.

120 Interpretation (Chapter II).

120.—In this Chapter “the Principal Act” means the Capital Acquisitions Tax Act, 1976.

121 Amendment of section 5 (gift deemed to be taken) of Principal Act.

121.—(1) Where, on or after the 24th day of February, 1993, a person becomes beneficially entitled in possession to a benefit, and the property in which the benefit is taken consists wholly or partly of shares in a private company, section 5 of the Principal Act shall have effect as if “otherwise than for full consideration in money or money's worth paid by him” were deleted in subsection (1) thereof.

(2) In subsection (1) the expression “shares in a private company” shall be construed by reference to the meanings that “share” (as amended by this Act) and “private company” have, respectively, in section 16 of the Principal Act.

122 Amendment of section 6 (taxable gift) of Principal Act.

122.—(1) Section 6 of the Principal Act is hereby amended by the substitution of the following subsection for subsection (1):

“(1) In this Act ‘taxable gift’ means—

(a) in the case of a gift, other than a gift taken under a discretionary trust, where the disponer is domiciled in the State at the date of the disposition under which the donee takes the gift, the whole of the gift;

(b) in the case of a gift taken under a discretionary trust where the disponer is domiciled in the State at the date of the disposition under which the donee takes the gift or at the date of the gift or was (in the case of a gift taken after his death) so domiciled at the time of his death, the whole of the gift; and

(c) in any other case, so much of the property of which the gift consists as is situate in the State at the date of the gift.”.

(2) This section shall have effect in relation to a gift taken on or after the date of the passing of this Act.

123 Amendment of section 11 (inheritance deemed to be taken) of Principal Act.

123.—(1) Where, on or after the 24th day of February, 1993, a person becomes beneficially entitled in possession to a benefit, and the property in which the benefit is taken consists wholly or partly of shares in a private company, section 11 of the Principal Act shall have effect as if “otherwise than for full consideration in money or money's worth paid by him” were deleted in subsection (1) thereof.

(2) In subsection (1) the expression “shares in a private company” shall be construed by reference to the meanings that “share” (as amended by this Act) and “private company” have, respectively, in section 16 of the Principal Act.

124 Amendment of section 12 (taxable inheritance) of Principal Act.

124.—(1) Section 12 of the Principal Act is hereby amended by the substitution of the following paragraph for paragraph (a) of subsection (1):

“(a) in the case where the disponer is domiciled in the State at the date of the disposition under which the successor takes the inheritance, the whole of the inheritance; and”.

(2) This section shall have effect in relation to an inheritance taken on or after the date of the passing of this Act.

125 Amendment of section 16 (market value of certain shares) of Principal Act.

125.—(1) Section 16 of the Principal Act is hereby amended—

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

“(1) (a) The market value of each share in a private company which (after the taking of the gift or of the inheritance) is, on the date of the gift or on the date of the inheritance, a company controlled by the donee or successor, shall be ascertained by the Commissioners, for the purposes of tax, as if, on the date on which the market value is to be ascertained, it formed an apportioned part of the market value of a group of shares in that company, such apportionment, as between shares of a particular class, to be by reference to nominal amount, and, as between different classes of shares, to have due regard to the rights attaching to each of the different classes.

(b) For the purpose of ascertaining the market value of a share in a private company in the manner described in paragraph (a), the benefit to any private company (in this paragraph referred to as ‘the first-mentioned company’) by virtue of its ownership of an interest in shares in another private company (in this paragraph referred to as ‘the second-mentioned company’), shall, where each of the companies so connected is a company which (after the taking of the gift or of the inheritance) is, on the date of the gift or on the date of the inheritance, a company controlled by the donee or successor, be deemed to be—

(i) such benefit as would be appropriate to the ownership of that interest if the second-mentioned company were under the control of the first-mentioned company in the same manner as (on the date on which the market value is to be ascertained) the second-mentioned company is under the control of the following, that is to say, the first-mentioned company, the donee or successor, the relatives of the donee or successor, nominees of the donee or successor, nominees of relatives of the donee or successor, and the trustees of a settlement whose objects include the donee or successor or relatives of the donee or successor, or

(ii) the actual benefit appropriate to the ownership of that interest,

whichever is the greater.”,

and

(b) in subsection (2)—

(i) by the insertion of the following definition before the definition of “nominee”:

“‘group of shares’, in relation to a private company, means the aggregate of the shares in the company of the donee or successor, the relatives of the donee or successor, nominees of the donee or successor, nominees of relatives of the donee or successor, and the trustees of a settlement whose objects include the donee or successor or relatives of the donee or successor;”,

(ii) by the deletion of the definition of “private trading company”, and

(iii) by the insertion of the following definition after the definition of “private company”:

“‘share’, in relation to a private company and in addition to the interpretation of ‘share’ in section 2 (1), includes every debenture, or loan stock, issued otherwise than as part of a transaction which is wholly and exclusively a bonafide commercial transaction.”.

(2) This section shall have effect in relation to gifts or inheritances taken on or after the 24th day of February, 1993.

126 Amendment of section 90 (arrangements reducing value of company shares) of Finance Act, 1989.

126.—(1) Section 90 of the Finance Act, 1989, is hereby amended—

(a) in subsection (1), by the deletion of “or 17” in paragraph (a) of the definition of “specified amount”, and

(b) by the insertion after subsection (11) of the following subsection:

“(12) Where, immediately after and as a result of an arrangement, shares in a company have been redeemed, the redeemed shares shall, for the purpose of the references to property representing shares in subsection (1) and subsection (2), (3) or (4), except a reference in relation to which the redeemed shares are actually represented by property, be deemed, immediately after the arrangement, to be represented by property, and the market value of the property so deemed to represent the redeemed shares shall be deemed to be nil.”.

(2) This section shall apply where—

(a) as respects subsection (1) (a), the time referred to in paragraph (a) of the definition of “specified amount” is on or after the 24th day of February, 1993, and

(b) as respects subsection (1) (b), the arrangement to which the said subsection relates is made on or after the 6th day of May, 1993.

127 Construction of certain references in section 16 of Principal Act for purposes of “specified amount” in section 90 of Finance Act, 1989.

127.—(1) For the purpose of paragraph (a) of the definition of “specified amount” in subsection (1) of section 90 of the Finance Act, 1989, section 16 of the Principal Act shall have effect as if—

(a) the references therein to the donee or successor were references to the person who, for the purposes of section 90 of the Finance Act, 1989, is the disponer of the specified amount,

(b) the references therein to the time at which a company is controlled were references to the time referred to in the said paragraph, and

(c) the shares referred to in the said paragraph were, at the time referred to therein, the absolute property of the aforesaid disponer.

(2) This section shall apply where the time referred to in paragraph (a) of the definition of “specified amount” in subsection (1) of section 90 of the Finance Act, 1989, is on or after the 6th day of May, 1993.

128 Amendment of section 19 (value of agricultural property) of Principal Act.

128.—Section 19 of the Principal Act shall, in so far as it relates to a gift taken on or after the passing of this Act, be construed as if—

(a) in the definition of “agricultural value” the reference to 55 per cent. (inserted by the Finance Act, 1991) were a reference to 75 per cent., and

(b) the references to £200,000 (inserted by the Finance Act, 1982) were references to £250,000.

129 Amendment of section 34 (disposition by or to a company) of Principal Act.

129.—(1) Section 34 of the Principal Act is hereby amended by the substitution of the following subsections for subsections (1) and (2):

“(1) For the purposes of this Act—

(a) consideration paid by, or a disposition made by, a company shall be deemed to be consideration, or a disposition (as the case may be) paid or made, and

(b) consideration, or a gift, or an inheritance taken by a company shall be deemed to be consideration, or a gift or an inheritance (as the case may be) taken,

by the beneficial owners of the shares in the company and the beneficial owners of the entitlements under any liability incurred by the company (otherwise than for the purposes of the business of the company, wholly and exclusively) in the same proportions as the specified amounts relating to their respective beneficial interests in the shares and entitlements bear to each other.

(2) In this section—

‘company’ means a private company within the meaning of section 16 (2);

‘market value’ means—

(a) in the case of a person's beneficial interest in shares and entitlements, the market value of that interest on the date of the payment, disposition, gift or inheritance, as the case may be, ascertained by reference to the market value on that date of the shares and entitlements in which the interest subsists, and

(b) in the case of a share in which a beneficial interest subsists, the market value of that share ascertained in the manner described in section 16 as if, on the date on which the market value is to be ascertained, it formed an apportioned part of the market value of a group of shares consisting of all the shares in the company issued and outstanding at that date;

‘share’ has the same meaning as it has in section 16 (as amended by the Finance Act, 1993);

‘specified amount’, in relation to a person's beneficial interest in shares and entitlements, means—

(a) in the case of consideration paid, or a disposition made, by the company, a nil amount or, if greater, the amount by which the market value of the beneficial interest was decreased as a result of the payment of the consideration or the making of the disposition, and

(b) in the case of consideration, or a gift, or an inheritance taken by the company, a nil amount or, if greater, the amount by which the market value of the beneficial interest was increased as a result of the taking of the consideration, gift or inheritance.”.

(2) This section shall apply where the date of the payment, disposition, gift, or inheritance, to which subsection (1) relates, is on or after the 24th day of February, 1993.

130 Amendment of Second Schedule (computation of tax) to Principal Act.

130.—As respects gifts or inheritances taken on or after the 24th day of February, 1993, paragraph 9 (inserted by the Finance Act, 1989) of Part I of the Second Schedule to the Principal Act is hereby amended—

(a) by the substitution of the following definition for the definition of “company”:

“‘company’ means a private company which, for the relevant period—

(a) is a private company controlled by the disponer and of which the disponer is a director, and

(b) is not a private non-trading company;”,

(b) by the deletion of the definition of “ompany controlled by the disponer”,

(c) by the insertion of the following definition after the definition of “control”:

“‘investment income’, in relation to a private company, means income which, if the company were an individual, would not be earned income within the meaning of section 2 of the Income Tax Act, 1967;”,

and

(d) by the insertion of the following definitions after the definition of “nominee”:

“‘private company’ has the meaning assigned to it by section 16 (2);

‘private company controlled by the disponer’ means a private company that is under the control of any one or more of the following, that is to say—

(a) the disponer,

(b) nominees of the disponer,

(c) the trustees of a settlement made by the disponer;

‘private non-trading company’ means a private company—

(a) whose income (if any) in the twelve months preceding the date at which a share therein is to be valued consisted wholly or mainly of investment income; and

(b) whose property, on the date referred to in paragraph (a), consisted wholly or mainly of property from which investment income is derived;”.

131 Amendment of section 107 (application of Principal Act) of Finance Act, 1984.

131.—(1) Section 107 of the Finance Act, 1984, is hereby amended by the substitution of the following paragraph for paragraph (a):

“(a) a reference in section 16 of the Principal Act to a company controlled by the successor and the definition in that section of ‘group of shares’ shall be construed as if (for the purpose of that reference) the list of persons contained in subsection (3) of that section and (for the purpose of that definition) the list of persons contained in that definition included the following, that is to say, the trustees of the discretionary trust, the living objects of the discretionary trust, the relatives of those objects, nominees of those trustees or of those objects or of the relatives of those objects, and the trustees of a settlement whose objects include the living objects of the discretionary trust or relatives of those living objects;”.

(2) This section shall have effect in relation to an inheritance taken on or after the 24th day of February, 1993.

132 Amendment of section 104 (application of Principal Act) of Finance Act, 1986.

132.—(1) Section 104 of the Finance Act, 1986, is hereby amended by the substitution of the following paragraph for paragraph (a):

“(a) a reference in section 16 of the Principal Act to a company controlled by the successor and the definition in that section of ‘group of shares’ shall be construed as if (for the purpose of that reference) the list of persons contained in subsection (3) of that section and (for the purpose of that definition) the list of persons contained in that definition included the following, that is to say, the trustees of the discretionary trust, the living objects of the discretionary trust, the relatives of those objects, nominees of those trustees or of those objects or of the relatives of those objects, and the trustees of a settlement whose objects include the living objects of the discretionary trust or relatives of those living objects;”.

(2) This section shall have effect in relation to an inheritance taken on or after the 24th day of February, 1993.

133 Exemption of certain policies of assurance.

133.—(1) In this section “policy” means a contract entered into by a company in the course of carrying on a foreign life assurance business within the meaning of section 36 of the Finance Act, 1988.

(2) Where any interest in a policy is comprised in a gift or an inheritance, then any such interest—

(a) shall be exempt from tax, and

(b) shall not be taken into account in computing tax on any gift or inheritance taken by a donee or successor,

if, but only if, it is shown to the satisfaction of the Commissioners that—

(i) such interest is comprised in the gift or inheritance at the date of the gift or at the date of the inheritance;

(ii) at the date of the disposition—

(I) the disponer is neither domiciled nor ordinarily resident in the State, or

(II) the proper law of the disposition is not the law of the State;

(iii) at the date of the gift or at the date of the inheritance, the donee or successor is neither domiciled nor ordinarily resident in the State.

(3) This section shall apply to any interest in a policy issued on or after the 1st day of December, 1992.

134 Repeal, etc. (Chapter II).

134.—(1) Section 17 of the Principal Act is hereby repealed.

(2) This section shall have effect in relation to gifts or inheritances taken on or after the 24th day of February, 1993.

PART VII Miscellaneous

135 Capital Services Redemption Account.

135.—(1) In this section—

“the 1992 amending section” means section 249 of the Finance Act, 1992;

“capital services” has the same meaning as it has in the principal section;

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

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

(2) In relation to the twenty-nine successive financial years commencing with the financial year ending on the 31st day of December, 1993, subsection (4) of the 1992 amending section shall have effect with the substitution of “£50,601,870” for “£50,386,760”.

(3) Subsection (6) of the 1992 amending section shall have effect with the substitution of “£38,308,332” for “£38,728,400”.

(4) A sum of £60,543,110 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, 1993.

(5) The forty-third additional annuity shall be paid into the Capital Services Redemption Account in such manner and at such times in the relevant financial year as the Minister for Finance may determine.

(6) Any amount of the forty-third additional annuity, not exceeding £46,534,800 in any financial year, may be applied towards defraying the interest on the public debt.

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

136 Repeal of certain reporting provisions relating to national debt.

136.—Section 17 of the Customs, Inland Revenue, and Savings Banks Act, 1877, and section 9 (1) of the Savings Banks Act, 1904, are hereby repealed.

137 Amendment of section 54 (creation and issue of securities by Minister for Finance) of Finance Act, 1970.

137.—Section 54 of the Finance Act, 1970, is hereby amended by the addition after subsection (8) (inserted by the Finance Act, 1988) of the following subsection:

“(9) (a) If the amount of principal of any moneys borrowed or otherwise raised under this section are, by means of a transaction entered into pursuant to subsection (7) of this section—

(i) converted into a currency or currencies other than the currency in which such moneys were originally borrowed or raised, or

(ii) subsequent to being converted in accordance with subparagraph (a) of this paragraph, converted into any currency or currencies,

the proceeds of such conversion shall, notwithstanding the provisions of section 67 (8) of the Finance Act, 1988, be placed to the credit of the account of the Exchequer and be available in the manner prescribed by subsection (3) of this section.

(b) For the purposes of this section, references in section 4 (as amended by the Appropriation Act, 1969) of the Appropriation Act, 1965, to a ‘sum borrowed’ shall be construed as including the proceeds of conversion of moneys borrowed to which paragraph (a) of this subsection relates and the reference in subsection (2) (d) of the said section 4 to ‘the amount to be taken as borrowed in the case of a borrowing’ shall be construed accordingly.”.

138 Holding and investment of moneys of Post Office Savings Bank Fund, etc.

138.—(1) The following provisions shall have effect in relation to moneys of the Post Office Savings Bank Fund (in this section referred to as “the Fund moneys”):

(a) Fund moneys, as well as being capable of being held in the currency of the State, may also be held in one or more than one other currency which is not the currency of the State;

(b) Fund moneys may be applied towards the acquisition, holding or disposal of any rights or interests, direct or indirect, in any one or more of the following, that is to say:

(i) any securities issued by the State;

(ii) any securities the capital and interest of which is guaranteed by the Minister for Finance;

(iii) any securities issued by any other State;

(iv) any financial product, commodity or property traded on a financial futures and options exchange, the rules of which exchange have been approved by the Central Bank of Ireland under Chapter VIII of Part II of the Central Bank Act, 1989;

(c) Fund moneys may also be held in an interest bearing deposit account with any bank or financial institution duly incorporated or otherwise established within or outside the State;

(d) Where Fund moneys are in an interest bearing deposit account outside the State which is denominated in a currency other than the currency of the State, such moneys shall be converted into the currency of the State within one year of the placing of such moneys in the said account;

(e) The accounts of the Post Office Savings Fund to be kept and laid before each House of the Oireachtas in pursuance of section 12 of the National Treasury Management Agency Act, 1990, by virtue of the National Treasury Management Agency Act, 1990 (Delegation of and Declaration as to Functions) Order, 1990 (S.I. No. 277 of 1990), shall include a statement of any Fund moneys on deposit in an interest bearing deposit account with any bank or financial institution outside the State at the close of each financial year of the National Treasury Management Agency.

(2) Section 63 of the Finance Act, 1958, is hereby repealed.