Finance Act , 1994

“4A. (1) Subject to the provisions of subsection (3), where tax is chargeable in respect of the letting of immovable goods which is deemed to be a supply of goods in accordance with section 4 and the lessee would, but for the operation of this section, have been entitled to claim a deduction under section 12 (1) (a) (i) for all the said tax borne in relation to that supply, the lessor shall not be liable to pay the said tax and, in that case, the lessee shall be liable to pay the said tax as if the lessee had supplied the goods in the course or furtherance of business.

(2) Where, in relation to a supply, the lessor and the lessee wish the provisions of subsection (1) to apply they 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 the said Commissioners.

(3) Where, in relation to a supply of goods referred to in subsection (1), the lessor and lessee have furnished the particulars referred to in subsection (2), the Revenue Commissioners shall, where they are satisfied that it is in order to apply the provisions in subsection (1) in relation to that supply, notify the lessor and the lessee by notice in writing that the provisions of subsection (1) are to be applied in relation to that supply.

(4) Where the provisions of subsection (1) apply in relation to a supply, the invoice issued by the lessor in accordance with section 17 shall show the following endorsement in lieu of the amount of tax chargeable:

‘In accordance with section 4A of the Value-Added Tax Act, 1972, the lessee is liable for the value-added tax of £X.’,

and, in that endorsement, the lessor shall substitute the amount of tax chargeable in respect of that supply of goods for ‘£X’.

(5) Every notification received by a taxable person, which has been issued to that person by the Revenue Commissioners in accordance with subsection (3), shall be part of the records which that person is required to keep in accordance with section 16.

(6) 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.

(7) In this section—

‘lessee’ means the person who receives the goods referred to in subsection (1);

‘lessor’ means the person who supplies the goods referred to in subsection (1).”.

94 Amendment of section 8 (taxable persons) of Principal Act.

94.—Section 8 of the Principal Act is here by amended—

(a) in subparagraph (iii) of paragraph (e) of subsection (1A) (inserted by the Finance Act, 1993) by the substitution of “specified in the First Schedule” for “specified in paragraph (vi), (vii), (xxii) or (xxiii) of the First Schedule”,

(b) in subsection (3) (inserted by the Act of 1992) by the substitution—

(i) in paragraph (a) of “£20,000” for “£15,000”,

(ii) in paragraph (b) (ii) of the following clause for clause (II):

“(II) supplies of other goods and services the total consideration for which is such that such person would not, because of the provisions of paragraph (c) or (e), be a taxable person if such supplies were the only supplies made by such person,”,

(iii) in paragraph (c) (i) of “£40,000” for “£32,000”, and

(iv) in paragraph (e) of “£20,000” for “£15,000”,

(c) in subsection (3A) (inserted by the Act of 1982) by the substitution of “£20,000” for “£15,000” (inserted by the Act of 1989), and

(d) in subsection (9) (inserted by the Act of 1978), in paragraph (b) of the definition of “farmer” (inserted by the Act of 1982)—

(i) by the substitution in subparagraph (ii) of “£20,000” for “£15,000” (inserted by the Act of 1989),

and

(ii) by the substitution of the following subparagraph for subparagraph (iii):

“(iii) supplies of goods and services other than those referred to in subparagraphs (i) and (ii) or paragraph (a), the total consideration for which is such that such person would not, because of the provisions of paragraph (c) or (e) of subsection (3), be a taxable person if such supplies were the only supplies made by such person.”.

95 Amendment of section 10 (amount on which tax is chargeable) of Principal Act.

95.—Section 10 of the Principal Act is hereby amended in paragraph (c) of subsection (3) by the insertion of the following proviso to that paragraph:

“Provided that in any event this paragraph shall not apply in the case of the letting of immovable goods which is a taxable supply of goods in accordance with section 4.”.

96 Amendment of section 12 (deductions for tax borne or paid) of Principal Act.

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

(a) in paragraph (a) of subsection (1) by the insertion of the following subparagraph after subparagraph (iiia) (inserted by the Finance Act, 1991):

“(iiib) the tax chargeable during the period, being tax for which he is liable by virtue of section 4A (1), in respect of goods received by him,”,

and

(b) in subsection (3)—

(i) in paragraph (a) by the insertion of the following subparagraph after subparagraph (i):

“(ia) expenditure incurred by the taxable person on food or drink, or accommodation or other entertainment services, where such expenditure forms all or part of the cost of providing an advertising service in respect of which tax is due and payable by the taxable person,”,

and

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

“(c) In subparagraph (i) of paragraph (a), reference to the provision of accommodation includes expenditure by the taxable person on a building, including the fitting out of such building, to provide such accommodation.

(d) In subparagraph (ii) of paragraph (a), ‘entertainment expenses’ includes expenditure on a building or facility, including the fitting out of such building or facility, to provide such entertainment.”.

97 Amendment of section 14 (determination of tax due by reference to cash receipts) of Principal Act.

97.—Section 14 (inserted by the Act of 1978) of the Principal Act is hereby amended—

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

“(1) A person who satisfies the Revenue Commissioners that—

(a) taking one period with another, not less than 90 per cent. of such person's turnover is derived from taxable supplies to persons who are not registered persons, or

(b) the total consideration which such person is entitled to receive in respect of such person's taxable supplies has not exceeded and is not likely to exceed £250,000 in any continuous period of twelve months,

may, in accordance with regulations, be authorised to determine the amount of tax which becomes due by such person during any taxable period (or part thereof) during which the authorisation has effect by reference to the amount of the moneys which such person receives during such taxable period (or part thereof) in respect of taxable supplies.”,

and

(b) in subsection (2)—

(i) by the deletion of “paragraph (a) of”, and

(ii) by the substitution of “that subsection” for “the said paragraphs (a)”.

98 Amendment of section 27 (fraudulent returns, etc.) of Principal Act.

98.—Section 27 of the Principal Act is hereby amended by the insertion in subsection (9A) (inserted by the Act of 1992) after paragraph (3) of the following:

“(4) For the purposes of subparagraph (b) of paragraph (1), ‘the declaration of an incorrect registration number’ means—

(a) the declaration by a person of another person's registration number,

(b) the declaration by a person of a number which is not an actual registration number which he purports to be his registration number,

(c) the declaration by a person of a registration number which was obtained from the Revenue Commissioners by supplying incorrect information, or

(d) the declaration by a person of a registration number which was obtained from the Revenue Commissioners for the purposes of acquiring goods without payment of value-added tax referred to in Council Directive No. 77/388/EEC of 17 May, 1977, and not for any bona fide business purpose.”.

99 Amendment of First Schedule to Principal Act.

99.—The First Schedule (inserted by the Act of 1978) to the Principal Act is hereby amended—

(a) in paragraph (ix) by the insertion after “excluding” of “the services of loss adjusters and excluding”, and

(b) in paragraph (xv) (inserted by the Finance Act, 1980) by the insertion after “the Finance Act, 1926,” of “of bets of the kind referred to in section 89 of the Finance Act, 1994,”.

100 Amendment of Second Schedule to Principal Act.

100.—The Second Schedule (inserted by the Finance Act, 1976) to the Principal Act is hereby amended by the substitution of the following paragraph for paragraph (ia) (inserted by the Act of 1992):

“(ia) subject to such conditions and in such amounts as may be specified in regulations, the supply of goods—

(a) to travellers departing the State, in a tax-free shop approved by the Revenue Commissioners, or

(b) to travellers on board vessels or aircraft, where the goods are deemed to be supplied in the State in accordance with section 3 (6) (cc);”

101 Amendment of Sixth Schedule to Principal Act.

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

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

“(vii) amusement services of the kind normally supplied in fairgrounds or amusement parks:

Provided that this paragraph shall not apply to—

(I) services consisting of dances,

(II) services consisting of circuses,

(III) services consisting of gaming, as defined in section 2 of the Gaming and Lotteries Act, 1956 (including services provided by means of a gaming machine of the kind referred to in section 43 of the Finance Act, 1975), or

(IV) services provided by means of an amusement machine of the kind referred to in section 120 of the Finance Act, 1992;”,

(b) in paragraph (x) by the insertion after “services” of “of a kind”, and

(c) in paragraph (xi) by the substitution in subparagraph (ai) of “(other than farm accountancy or farm management services)” for “(not being services of the kind specified in paragraph (xxii) of the Seventh Schedule)”.

PART IV Stamp Duties

102 Definitions (Part IV).

102.—In this Part—

“the Act of 1891” means the Stamp Act, 1891;

“the First Schedule” means the First Schedule (as amended by the Finance Act, 1970, and subsequent enactments) to the Act of 1891.

103 Amendment of section 103 (provision relating to voluntary disposition inter vivos, etc.) of Finance Act, 1991.

103.—(1) Section 103 of the Finance Act, 1991, is hereby amended in subsection (1)—

(a) by the substitution in paragraph (a) of “15 per cent.” for “10 per cent.” and of “25 per cent.” for “50 per cent.”,

(b) by the substitution in paragraph (b) of “equal to 50 per cent. of the total duty” for “equal to the total duty”, and

(c) by the substitution in paragraph (c) of “the total duty” for “double the total duty”.

(2) Subsection (4) of section 103 of the Finance Act, 1991, is hereby repealed.

(3) This section shall have effect as respects instruments executed after the passing of this Act.

104 Amendment of section 105 (valuation of property chargeable with stamp duty) of Finance Act, 1991.

104.—(1) Section 105 of the Finance Act, 1991, is hereby amended in subsection (1) by the substitution of “section 15” for “sections 15, 16 and 17”.

(2) This section shall have effect as respects instruments executed after the passing of this Act.

105 Amendment of section 206 (exemption from stamp duty of certain stocks and marketable securities) of Finance Act, 1992.

105.—Section 206 of the Finance Act, 1992, is hereby amended—

(a) by the addition of the following paragraph after paragraph (a):

“(aa) units in a collective investment scheme which is incorporated or otherwise formed under the law of a territory outside the State:

Provided that such conveyance or transfer of units does not relate to—

(i) any immovable property situate in the State or any right over or interest in such property, or

(ii) any stocks or marketable securities of a company, other than a company which is a collective investment undertaking within the meaning of section 18 of the Finance Act, 1989, which is registered in the State, or”,

(b) by the deletion of the words “and which are dealt in and quoted on a recognised stock exchange” in paragraph (c),

(c) by the substitution of the following paragraph for paragraph (ii) of the proviso to paragraph (c):

“(ii) any stocks or marketable securities of a company, other than a company which is a collective investment undertaking within the meaning of section 18 of the Finance Act, 1989, which is registered in the State,”,

and

(d) by the addition of the following provisions after the existing provisions (as amended by paragraphs (a), (b) and (c)):

“and in paragraph (aa)—

‘collective investment scheme’ means a scheme which is an arrangement made for the purpose, or having the effect, solely or mainly, of providing facilities for the participation by the public or other investors, as beneficiaries, in profits or income arising from the acquisition, holding, management or disposal of securities or any other property whatsoever;

‘units’ includes shares and any other instruments granting an entitlement to shares in the investments or income of, or receive a distribution from, a collective investment scheme.”.

106 Amendment of section 106 (exemption from stamp duty of certain loan capital and securities) of Finance Act, 1993.

106.—Section 106 of the Finance Act, 1993, is hereby amended—

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

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

(b) by the substitution of the words “on the transfer of loan capital of a company or other body corporate” for the words “on the issue or transfer of” in subsection (2), and

(c) by the addition of the following subsection after subsection (2):

“(3) Stamp duty shall not be chargeable on the issue, whether in bearer form or otherwise, of—

(a) any Government loan within the meaning assigned by section 134 (10) of the Finance Act, 1990, or

(b) any other loan capital which is not a charge or incumbrance upon property situate in the State.”.

107 Particulars to be delivered in cases of transfers and leases.

107.—(1) It shall be the duty of the transferor or lessor, on the occasion of any transfer of the fee simple of any land or of any interest in land or on the grant of any lease of any land for a term exceeding 14 years (whether the transfer or lease is on sale or as a voluntary disposition inter vivos), to present to the Commissioners such particulars in relation to such class or category of transfer or lease as they may prescribe by regulations and, without prejudice to the generality of the foregoing, the regulations may make provision in relation to all or any of the following matters—

(a) the form in which the particulars are to be delivered;

(b) the time limits within which the particulars are to be delivered;

(c) the manner in which the land is to be described or classified;

(d) the furnishing of tax reference numbers of the parties to the instrument.

(2) For the purposes of section 14 of the Act of 1891 and notwithstanding anything in section 12 of that Act, any transfer or lease to which regulations made pursuant to subsection (1) apply shall not be deemed duly stamped unless it is stamped with a stamp denoting that all particulars requested by the Commissioners have been delivered.

(3) If the transferor or lessor fails to comply with this provision, such person shall be guilty of an offence and shall be liable on summary conviction to a fine not exceeding £500.

(4) The provisions of this section shall apply to any instrument executed on and from the date on which the regulations under subsection (1) shall first have effect.

(5) Section 4 of the Finance (1909-10) Act, 1910, shall cease to have effect other than in respect of any instrument executed before the date on which regulations under subsection (1) first have effect.

(6) In this section “transferor”, “lessor”, “fee simple”, “interest”, “land” and “lease” have the same meanings, respectively, as they have in section 41 of the Finance (1909-10) Act, 1910.

108 Stamp duty and value-added tax.

108.—(1) As respects any instrument executed on or after the 11th day of April, 1994, the consideration or rent chargeable under the Heading—

(a) “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”, or

(b) “LEASE”

in the First Schedule shall exclude any value-added tax chargeable under section 2 of the Value-Added Tax Act, 1972, on such sale or lease.

(2) Any instrument of sale or lease stamped prior to the 11th day of April, 1994 (whether or not the Commissioners have expressed their opinion with reference to it under the provisions of section 12 of the Act of 1891) shall, notwithstanding that it does not bear stamp duty in respect of any value-added tax charged under section 2 of the Value-Added Tax Act, 1972, on such sale or lease, as respects such unpaid duty, be deemed duly stamped in accordance with the law in force at the time when it was first executed.

109 Right of appeal of persons dissatisfied with assessment.

109.—(1) The Act of 1891 is hereby amended by the substitution of the following section for section 13:

“13.—(1) In this section—

‘Appeal Commissioners’ has the meaning assigned to it by section 156 of the Income Tax Act, 1967;

‘appellant’ means a person who appeals to the Appeal Commissioners under subsection (2) of this section;

‘assessment’ means an expression by the Commissioners of their opinion pursuant to section 12 of this Act and includes a decision of the Commissioners relating to the value, for the purposes of this Act or under Chapter II of Part IV of the Finance Act, 1973, of any stocks, shares or other securities which are not dealt with on a stock exchange and where such a decision leads to such an expression by the Commissioners of their opinion.

(2) Any person who is dissatisfied with the assessment of the Commissioners and who is an accountable person in relation to such assessment may, on payment of duty in conformity therewith, appeal to the Appeal Commissioners against the assessment and the appeal shall be heard and determined by the Appeal Commissioners whose determination shall be final and conclusive unless the appeal is required to be reheard by a judge of the Circuit Court or a case is required to be stated in relation to it for the opinion of the High Court on a point of law.

(3) A person who intends to appeal under this section against an assessment shall, within 30 days after the date of the assessment, give notice in writing to the Commissioners of such intention.

(4) Subject to the provisions of this section, the provisions of Part XXVI (Appeals) of the Income Tax Act, 1967, shall, with any necessary modifications, apply as they apply for the purpose of income tax.”.

(2) Section 19 of the Finance Act, 1923, shall cease to apply to the valuation for the purposes of the Act of 1891 of any stocks, shares or other securities which are not dealt in on a stock exchange.

(3) Section 36 of the Finance Act, 1972, and paragraph (a) of section 74 of the Finance Act, 1973, are hereby repealed.

(4) This section shall have effect as respects instruments executed after the passing of this Act.

110 Exemption from stamp duty on certain transfers to Irish Stock Exchange.

110.—(1) In this section—

“the Exchange” means a limited company incorporated or to be incorporated in the State to operate as the Irish Stock Exchange;

“International Stock Exchange” means the International Stock Exchange of the United Kingdom and Republic of Ireland Limited and its subsidiaries.

(2) Stamp duty shall not be chargeable on any agreement, transfer, conveyance, assignment or lease whereby any business, assets or liabilities owned by the International Stock Exchange in connection with the carrying on of its business as a stock exchange is or are transferred or agreed to be transferred, in whole or in part, to the Exchange:

Provided that such agreement, transfer, conveyance, assignment or lease arises from or is in consequence of the establishment in the State of a stock exchange as a separate legal entity to the International Stock Exchange.

111 Exemption from stamp duty of stocks, etc., of foreign governments.

111.—Stamp duty shall not be chargeable on any conveyance or transfer of stocks or other securities of the government of any territory outside the State.

112 Relief from stamp duty in respect of transfers to young trained farmers.

112.—(1) In this section and the Sixth Schedule—

“land” means agricultural land and includes such farm buildings, farm houses and mansion houses (together with the lands occupied therewith) as are of a character appropriate to the land;

“Teagasc” means Teagasc—The Agricultural and Food Development Authority;

“an interest in land” means an interest which is not subject to any power (whether or not contained in the instrument) on the exercise of which the land, or any part of or any interest in the land, may be revested in the person from whom it was conveyed or transferred or in any person on behalf of such person;

“young trained farmer” means a person in respect of whom it is shown to the satisfaction of the Commissioners—

(a) that such person had not attained the age of 35 years on the date on which the instrument, as respect which relief is being claimed under this section, was executed, and

(b) (i) that such person is the holder of a qualification set out in the Sixth Schedule and, in the case of a qualification set out in subparagraph (c), (d), (e), (f) or (g) of paragraph 3 or paragraph 4 of the said Schedule, is also the holder of a certificate issued by Teagasc certifying that such person has satisfactorily attended a course of training in farm management, the aggregate duration of which exceeded 80 hours, or

(ii) (I) that such person has satisfactorily attended full-time a course at a third-level institution in any discipline for a period of not less than 2 years’ duration, and

(II) is the holder of a certificate issued by Teagasc certifying satisfactory attendance at a course of training in either or both agriculture and horticulture, the aggregate duration of which exceeded 180 hours,

or

(iii) if born before the 1st day of January, 1968, that such person is the holder of a certificate issued by Teagasc certifying that such person—

(I) has had farming as the principal occupation for a period of not less than 3 years, and

(II) has satisfactorily attended a course of training in either or both agriculture and horticulture, the aggregate duration of which exceeded 180 hours:

Provided that where Teagasc certifies that any other qualification corresponds to a qualification which is set out in the Sixth Schedule, the Commissioners shall, for the purposes of this section, treat that other qualification as if it were the corresponding qualification so set out.

(2) The amount of stamp duty chargeable under or by reference to 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 on any instrument to which this section applies shall be reduced by an amount equal to two-thirds of the amount which would otherwise have been chargeable:

Provided that where the amount so obtained is a fraction of a pound that amount shall be rounded up to the next pound.

(3) This section applies to any instrument which operates as a conveyance or transfer (whether on sale or as a voluntary disposition inter vivos) of an interest in land to a young trained farmer where—

(a) the instrument contains a certificate that the provisions of this section apply, and

(b) a declaration made in writing by the young trained farmer, or each of them if there is more than one, is furnished to the Commissioners when the instrument is presented for stamping, confirming, to the satisfaction of the Commissioners, that it is the intention of such person, or each such person, for a period of not less than 5 years from the date of execution of the instrument to—

(i) spend not less than 50 per cent. of that person's normal working time farming the land, and

(ii) retain ownership of the land, and

(c) the identifying reference number, known as the Revenue and Social Insurance (RSI) Number, of the young trained farmer, or each of them if there is more than one, is furnished to the Commissioners when the instrument is presented for stamping:

Provided that this section shall apply where the property is conveyed or transferred into joint ownership where all the joint owners are young trained farmers or where any of the joint owners is a spouse of another joint owner who is a young trained farmer.

(4) Where this section would have applied to the instrument, except for the fact that a person to whom the land is being conveyed or transferred is not a young trained farmer on the date when the instrument was executed, by reason of not being the holder of one of the qualifications, or an equivalent qualification, specified in the Sixth Schedule or, in the case of the requirement in paragraph (b) (ii) (I) of the definition of “young trained farmer” in subsection (1), not having attended full-time for the required 2 years’ duration, but that such person had completed on that date at least one academic year of the prescribed course leading to an award of such qualification, or the course prescribed in paragraph (b) (ii) (I) of the said definition, then—

(a) if such person afterwards becomes a holder of such qualification, or satisfactorily attends such course full-time for a period of 2 years, within a period of 3 years from the date of execution of the instrument, the Commissioners shall, upon production of the stamped instrument to them within 6 months after the date when such person became the holder of such qualification, or completed the required 2 years’ attendance on such course, and upon furnishing satisfactory evidence of compliance with the provisions of this subsection, the declaration and the Revenue and Social Insurance (RSI) Number, as provided for in subsection (3), cancel and refund, without payment of interest thereon, such duty as would not have been chargeable had this section applied to the instrument when it was first presented for stamping, and

(b) the period of 5 years provided for in subsection (3) in relation to the declaration to be made by such person, as it applies to normal working time, shall be reduced by the period of time that elapsed between the date of the instrument and the date on which such person became the holder of such qualification or completed the required 2 years’ attendance on such course.

(5) An instrument to which this section applies and which is stamped with an amount of duty less than the amount which, but for the provisions of this section, would be chargeable thereon shall be deemed not to be duly stamped unless the Commissioners have expressed their opinion thereon in accordance with section 12 of the Act of 1891.

(6) (a) If and to the extent that any person to whom land was conveyed or transferred by any instrument in respect of which relief from duty under this section was allowed—

(i) disposes of such land, or part of such land, within a period of 5 years from the date of execution of the instrument, and

(ii) does not replace such land with other land within a period of 1 year from the date of such disposal,

then such person or, where there is more than one such person, each such person, jointly and severally, shall become liable to pay to the Commissioners a fine equal to the difference between the amount of the duty which would have been charged in the first instance if the land disposed of had been conveyed or transferred by an instrument to which this section had not applied and the amount of duty which was actually charged, together with interest on the amount of such difference as may so become payable charged at a rate of 1.25 per cent. per month or part of a month from the date when the instrument was executed to the date the fine is remitted:

Provided that, where relief under this section was allowed in respect of any instrument, a disposal by a young trained farmer of part of the land to a spouse for the purpose of creating a joint tenancy in the land, or where the instrument conveyed or transferred the land to joint owners, a disposal by one joint owner to another of any part of the land, shall not be regarded as a disposal to which the provisions of this subsection apply, but upon such disposal, such part of the land shall be treated for the purposes of this subsection as if it had been conveyed or transferred immediately to the spouse or other joint owner by the instrument in respect of which relief from duty under this section was allowed in the first instance.

(b) Where any claim for relief from duty under this section has been allowed and it is subsequently found that a declaration made, or a certificate contained in the instrument, in accordance with the provisions of subsection (3) was—

(i) untrue in any material particular which would have resulted in the relief afforded by this section not being granted, and

(ii) was made, or was included, knowing same to be untrue or in reckless disregard as to whether it was true or not,

then any person who made such a declaration, or where a false certificate has been included, the person or persons to whom the land is conveyed or transferred by the instrument, jointly and severally, shall be liable to pay to the Commissioners as a fine an amount equal to the difference between 125 per cent. of the duty which would have been charged on the instrument in the first instance had all the facts been truthfully declared and certified and the amount of duty which was actually charged, together with interest on the amount of such difference as may so become payable charged at a rate of 1.25 per cent. per month or part of a month from the date when the instrument was executed to the date the fine is remitted:

Provided that—

(I) a person shall not be liable to more than one fine under paragraph (b),

(II) a person shall not be liable to a fine under paragraph (a) if and to the extent that such person has paid a fine under paragraph (b), and

(III) a person shall not be liable to a fine under paragraph (b) if and to the extent that such person has paid a fine under paragraph (a).

(7) This section shall have effect as respects instruments executed on or after the 7th day of January, 1994, and on or before the 31st day of December, 1996.

PART V Residential Property Tax

113 Definition (Part V).

113.—In this Part “the Act of 1983” means the Finance Act, 1983.

114 Application (Part V).

114.—This Part shall apply and have effect where tax is chargeable on a valuation date (as defined by section 95 (1) of the Act of 1983) in relation to any year commencing with the year 1994.

115 Amendment of section 95 (interpretation) of Act of 1983.

115.—Section 95 of the Act of 1983 is hereby amended in subsection (1)—

(a) as respects any valuation date (within the meaning assigned by the said subsection (1)) commencing with the year 1983, in the definition of “income”—

(i) by the substitution in paragraph (a) of “sections 340, 353, 354 and 463” for “sections 340, 353 and 354”,

(ii) by the insertion in paragraph (a) of “section 18 of the Finance Act, 1970,” after “section 37 of the Finance Act, 1968,”, and

(iii) by the insertion of the following paragraph after paragraph (e)—

“(ee) income arising from savings bonds duly issued under section 54 of the Finance Act, 1970,”,

and the said definition, as so amended, is set out in the Table to this section,

(b) by the insertion, in the definition of “relevant person” of “a person who has attained the age of 65 years and is not an assessable person, or a person who is permanently incapacitated by reason of mental or physical infirmity from maintaining himself and is not an assessable person, or” after “other than”, and the said definition, as so amended, is set out in the Table to this section, and

(c) by the insertion, in the definition of “residential property” of “, where the Commissioners are satisfied that reasonable access is afforded to the public having regard to subsection (4) (b) (ii) of the said section 19 as amended by the Finance Act, 1994” after “Finance Act, 1982” and the said definition, as so amended, is set out in the Table to this section.

TABLE

“income” means total income from all sources as estimated in accordance with the provisions of the Income Tax Acts but without regard to—

(a) any of the provisions of those Acts (apart from sections 340, 353, 354 and 463 of the Income Tax Act, 1967, section 37 of the Finance Act, 1968, section 18 of the Finance Act, 1970, section 19 of the Finance Act, 1973, and section 9 of the Finance Act, 1982) which provide that any income is exempt from income tax or that any income is to be disregarded for the purposes of those Acts or which otherwise provide that any amount of income or any part thereof is not subject to Irish income tax,

(b) sections 89, 236, 251, 254 and 496 of the Income Tax Act, 1967,

(c) Chapter I of Part IX of the Income Tax Act, 1967,

(d) Chapter I of Part XIX of the Income Tax Act, 1967,

(e) section 11 of the Finance Act, 1967,

(ee) income arising from savings bonds duly issued under section 54 of the Finance Act, 1970,

(f) section 26 of the Finance Act, 1971,

(g) Chapter II of Part I of the Finance Act, 1972,

(h) section 14 of the Finance Act, 1977,

(i) section 25 of the Finance Act, 1978, and

(j) sections 23 and 24 of the Finance Act, 1981;

“relevant person”, in relation to an assessable person, means, as respect any valuation date, any person (other than a person who has attained the age of 65 years and is not an assessable person, or a person who is permanently incapacitated by reason of mental or physical infirmity from maintaining himself and is not an assessable person, or a person who is an employee of the assessable person and whose employment is wholly or mainly connected with the relevant residential property) who in the year ended on that date normally resided at any relevant residential property of the assessable person and who, or whose spouse,—

(a) made no payment of rent or other like payment in respect of such residence, or

(b) made a payment of rent or other like payment in respect of that residence of such amount that, if it had been paid by a person to whom subsection (2) (b) (iv) applies in respect of the relevant residential property under a lease, agreement or licence referred to in subsection (2) (b) (iv), that last-mentioned person would, by virtue of subsection (2) (b) (iv), be the owner in relation to the relevant residential property;

“residential property” means—

(a) a building or part of a building used or suitable for use as a dwelling, and

(b) land (other than a garden such as is specified in section 39 (1) of the Finance Act, 1978) which the occupier of a building or part of a building used as a dwelling has for his own occupation and enjoyment with the said building or part as its garden or grounds of an ornamental nature,

but does not include an approved building within the meaning of section 19 of the Finance Act, 1982, where the Commissioners are satisfied that reasonable access is afforded to the public having regard to subsection (4) (b) (ii) of the said section 19 as amended by the Finance Act, 1994;

116 Amendment of section 96 (charge of residential property tax) of Act of 1983.

116.—Section 96 of the Act of 1983 is hereby amended, as respects any valuation date commencing with the year 1994, by the deletion of “the rate of tax shall be one and one-half per cent. of that net market value” and the substitution of “the tax chargeable on that net market value shall be computed in accordance with the Seventh Schedule to the Finance Act, 1994”.

117 Amendment of section 98 (market value of property) of Act of 1983.

117.—Section 98 of the Act of 1983 is hereby amended by the insertion of the following subsection after subsection (2):

“(2A) (a) Notwithstanding the provisions of subsections (1) and (2), in estimating the market value of any property on the relevant valuation date, a reduction may be made in respect of such value which is attributable on that date to qualifying improvements.

(b) ‘Qualifying improvements’ for the purposes of this subsection, means necessary improvements or alterations to the property for the purposes only of accommodating or facilitating a person who is permanently incapacitated by reason of mental or physical infirmity from maintaining himself.

(c)A reduction shall not be available by virtue of this subsection unless the incapacitated person concerned normally resided at the property in the year ended on the relevant valuation date.”.

118 Amendment of section 100 (market value exemption limit) of Act of 1983.

118.—Section 100 of the Act of 1983 is hereby amended in subsection (1) by the substitution in the definition of “general exemption limit” of “£75,000” for “£90,000” (inserted by the Finance Act, 1992) and of “1994” for “1992” (as so inserted).

119 Amendment of section 101 (income exemption limit) of Act of 1983.

119.—Section 101 of the Act of 1983 is hereby amended—

(a) by the insertion of the following proviso to subsection (1):

“Provided that the income of a relevant person (other than a person who is an assessable person) shall be disregarded in computing aggregate relevant income—

(a) where, in relation to a valuation date, a unit of residential property is comprised in the relevant residential property of one or more persons, and—

(i) any of those persons has attained the age of 65 years, or

(ii) any of those persons is permanently incapacitated by reason of mental or physical infirmity from maintaining himself and the relevant person resides in the unit of residential property as a consequence of that infirmity;

(b) where, in relation to a valuation date, the assessable person is a widowed person and the relevant

person resides in the relevant residential property as a consequence of the assessable person having a qualifying child.”,

and

(b) by the substitution in subsection (2) of “£25,000” for “£27,500” (inserted by the Finance Act, 1992) and of “1994” for “1992” (as so inserted).

120 Amendment of section 102 (marginal reliefs) of Act of 1983.

120.—Section 102 of the Act of 1983 is hereby amended in subsection (1)—

(a) by the substitution of “£10,000” for “£5,000” and of “10,000” for “5,000” in the formula, and

(b) by the addition of the following provisos:

“Provided that—

(a) where, in relation to a valuation date, a unit of residential property is comprised in the relevant residential property of one or more persons and any of those persons has attained the age of 65 years, “£15,000” shall be substituted for “£10,000” and “15,000” shall be substituted for “10,000” in the formula, and

(b) where the amount of the aggregate relevant income is not a multiple of £1,000, it shall, for the purposes of relief under this section, be rounded down to the next £1,000.”,

and the said subsection (1), as so amended, is set out in the Table to this section.

TABLE

(1) Where an assessable person makes a claim in that behalf and proves that his aggregate relevant income as respects any valuation date does not exceed an amount equal to the aggregate of the income exemption limit applying on that valuation date and £10,000, he shall be entitled to have the tax, if any, payable by him in respect of the net market value of his relevant residential property on that valuation date reduced to an amount equal to the amount determined by the formula—

T	A E _ 10,000

where—

A is the amount of the aggregate relevant income,

E is the income exemption limit, and

T is the tax which, apart from this subsection and subsection (2), would be payable:

Provided that—

(a) where, in relation to a valuation date, a unit of residential property is comprised in the relevant residential property of one or more persons and any of those persons has attained the age of 65 years, “£15,000” shall be substituted for “£10,000” and “15,000” shall be substituted for “10,000” in the formula, and

(b) where the amount of the aggregate relevant income is not a multiple of £1,000, it shall, for the purposes of relief under this section, be rounded down to the next £1,000.

121 Amendment of section 104 (assessment and payment of tax) of Act of 1983.

121.—Section 104 of the Act of 1983 is hereby amended by the insertion after subsection (1) of the following subsections:

“(1A) (a) Notwithstanding the provisions of subsection (1) and subject to such regulations as the Commissioners may make in accordance with section 115 (1A), tax which is due and payable in accordance with this section may, at the option of the person delivering the return, be discharged by making an initial payment of 25 per cent. of the tax due on the 1st day of October immediately following the valuation date to which the return relates and the balance of the tax due, together with an amount equal to 5 per cent. of that balance, shall be paid in ten equal monthly instalments, the first of which shall be due on the 15th day of November immediately following such valuation date and the remaining instalments shall be due on the 15th day of each subsequent month.

(b) In the event that a person exercising the option under subsection (1A) (a) fails to make an initial payment by the due date or any subsequent instalment payment in accordance with such regulations as the Commissioners may make under section 115 (1A), the provisions of section 110 of the Finance Act, 1983, as to the recovery of tax shall apply to the outstanding balance of the tax liability as if the said person had not exercised the said option.

(c) This subsection shall not have effect in respect of any tax or additional tax due under an assessment of tax or an amended assessment of tax made by the Commissioners under subsections (2) or (3).

(1B) Where the Commissioners are satisfied that tax payable in respect of any relevant residential property cannot without excessive hardship be paid in accordance with subsection (1) or (1A), as the case may be, they may allow payment to be postponed for such period, to such extent and on such terms as they think fit.

(1C) Where, in the opinion of the Commissioners, the complication of circumstances affecting any relevant residential property are such as to justify them in doing so, they may compound the tax payable on the relevant residential property upon such terms as they shall think fit.”.

122 Amendment of section 105 (interest on tax) of Act of 1983.

122.—Section 105 of the Act of 1983 is hereby amended by the insertion after subsection (1) of the following subsection:

“(1A) Notwithstanding the provisions of subsection (1), interest shall not be chargeable where tax is paid in accordance with the provisions of section 104 (1A) (a) and such regulations as the Commissioners may make under section 115 (1A).”.

123 Amendment of section 115 (regulations) of Act of 1983.

123.—Section 115 of the Act of 1983 is hereby amended by the insertion after subsection (1) of the following subsection:

“(1A) Without prejudice to the generality of subsection (1), the Commissioners may make such regulations as seem to them to be necessary for the purpose of giving effect to the payment of tax by instalments under section 104 (1A) (a).”.

PART VI Capital Acquisitions Tax

Chapter I Business Relief

124 Interpretation (Chapter I).

124.—(1) In this Chapter—

“agricultural property” has the meaning assigned to it by section 19 of the Principal Act (as amended by the Finance Act, 1994);

“associated company” has the meaning assigned to it by section 16 (1) (b) of the Companies (Amendment) Act, 1986;

“business” includes a business carried on in the exercise of a profession or vocation, but does not include a business carried on otherwise than for gain;

“excepted asset” shall be construed in accordance with section 134;

“full-time working officer or employee”, in relation to one or more companies, means any officer or employee who devotes substantially the whole of his time to the service of that company, or those companies taken together, in a managerial or technical capacity;

“holding company” and “subsidiary” have the meanings assigned to them, respectively, by section 155 of the Companies Act, 1963;

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

“quoted”, in relation to any shares or securities, means quoted on a recognised stock exchange and “unquoted”, in relation to any shares or securities, means not so quoted;

“relevant business property” shall be construed in accordance with section 127.

(2) In this Chapter a reference to a gift shall be construed as a reference to a taxable gift and a reference to an inheritance shall be construed as a reference to a taxable inheritance.

(3) For the purposes of this Chapter a company and all its subsidiaries and any associated company of that company or of any of those subsidiaries and any subsidiary of such an associated company are members of a group.

125 Application (Chapter I).

125.—The provisions of this Chapter shall have effect in relation to gifts and inheritances taken on or after the 11th day of April, 1994, but those provisions shall not have effect in relation to an inheritance taken by a relevant trust by virtue of section 110 (1) of the Finance Act, 1993, or to an inheritance taken by a discretionary trust by virtue of section 106 (1) of the Finance Act, 1984, or section 103 (1) of the Finance Act, 1986.

126 Business relief.

126.—(1) Where the whole or part of the taxable value of any gift or inheritance is attributable to the value of any relevant business property, the whole or that part of the taxable value shall, subject to the other provisions of this Chapter, be treated as being reduced—

(a) by 25 per cent., and

(b) by a further 25 per cent. or £62,500, whichever is the lesser.

(2) In relation to the deduction referred to at paragraph (b) of subsection (1), the total amount deductible under that paragraph shall not exceed £62,500, in respect of the aggregate of all gifts and inheritances, which consist in whole or in part of relevant business property, taken on or after the 11th day of April, 1994, by the same person, as donee or successor.

127 Relevant business property.

127.—(1) In this Chapter and subject to the following provisions of this section and to sections 128, 130 and 134 (3) “relevant business property” means, in relation to a gift or inheritance, any one or more of the following, that is to say:

(a) property consisting of a business or interest in a business;

(b) unquoted shares in or securities of a company incorporated in the State to which paragraph (c) does not relate, and which on the valuation date (either by themselves alone or together with other shares or securities in that company in the absolute beneficial ownership of the donee or successor on that date) give control of powers of voting on all questions affecting the company as a whole which if exercised would yield more than 25 per cent. of the votes capable of being exercised thereon;

(c) unquoted shares in or securities of a company incorporated in the State which on the valuation date (either by themselves alone or together with other shares or securities in that company in the absolute beneficial ownership of the donee or successor on that date) have an aggregate nominal value which represents 10 per cent. or more of the aggregate nominal value of the entire share capital and securities of the company, if but only if the company (after the taking of the gift or inheritance) is on that date a company controlled by the donee or successor within the meaning of section 16 of the Principal Act;

(d) unquoted shares in or securities of a company incorporated in the State which do not fall within paragraph (b) or (c) and which on the valuation date (either by themselves alone or together with other shares or securities in that company in the absolute beneficial ownership of the donee or successor on that date) have an aggregate nominal value which represents 10 per cent. or more of the aggregate nominal value of the entire share capital and securities of the company:

Provided that the donee or successor has been a full-time working officer or employee of the company, or if that company is a member of a group, of one or more companies which are members of the group, throughout the period of 5 years ending on the date of the gift or inheritance;

(e) in so far as is situated in the State, any land or building, machinery or plant which, immediately before the gift or inheritance was used wholly or mainly for the purposes of a business carried on by a company of which the disponer then had control or by a partnership of which the disponer then was a partner and for the purposes of this paragraph a person shall be deemed to have control of a company at any time if he then had control of powers of voting on all questions affecting the company as a whole which if exercised would have yielded a majority of the votes capable of being exercised thereon;

(f) quoted shares in or securities of a company which, but for the fact that they are quoted, would be shares or securities to which paragraph (b), (c) or (d) would relate:

Provided that such shares or securities, or other shares in or securities of the same company which are represented by those shares or securities, were in the beneficial ownership of the disponer immediately prior to the disposition and were unquoted at the date of the commencement of that beneficial ownership or at the date of the passing of this Act, whichever is the later date.

(2) Where a company has shares or securities of any class giving powers of voting limited to either or both—

(a) the question of winding-up the company, and

(b) any question primarily affecting shares or securities of that class,

the reference in subsection (1) to all questions affecting the company as a whole shall have effect as a reference to all such questions except any in relation to which those powers are capable of being exercised.

(3) A business or interest in a business, or shares in or securities of a company, shall not be relevant business property in relation to a gift or inheritance if, on the date of the gift or inheritance, the business or, as the case may be, the business carried on by the company was wholly or mainly carried on outside the State, and where the business concerned was carried on by a holding company, the business of that holding company shall be treated as having been carried on wholly or mainly outside the State on that date if that business and the business carried on by any subsidiary of that holding company were, taken as a whole, carried on wholly or mainly outside the State.

(4) A business or interest in a business, or shares in or securities of a company, shall not be relevant business property if the business or, as the case may be, the business carried on by the company consists wholly or mainly of one or more of the following, that is to say, dealing in currencies, securities, stocks or shares, land or buildings, or making or holding investments.

(5) Subsection (4) shall not apply to shares in or securities of a company if the business of the company consists wholly or mainly in being a holding company of one or more companies whose business does not fall within that subsection.

(6) Any land, building, machinery or plant in the beneficial ownership of the disponer and used wholly or mainly for the purposes of a business carried on as mentioned in subsection (1) (e) shall not be relevant business property in relation to a gift or inheritance taken by a donee or successor, unless the disponer's interest in the business is, or shares in or securities of the company carrying on the business immediately before the gift or inheritance are, relevant business property in relation to that gift or inheritance or in relation to a simultaneous gift or inheritance taken by that donee or successor from the same disponer.

128 Minimum period of ownership.

128.—In relation to a gift or an inheritance, property shall not be relevant business property unless it was comprised in the disposition continuously—

(a) in the case of an inheritance, which is taken on the date of death of the disponer, for a period of two years immediately prior to the date of the inheritance, or

(b) in any other case, for a period of five years immediately prior to the date of the gift or inheritance,

and any period immediately before the date of the disposition during which the property was continuously in the beneficial ownership of the disponer, or of the spouse of the disponer, shall be deemed, for the purposes of this Chapter, to be a period or part of a period immediately before the date of the gift or inheritance during which it was continuously comprised in the disposition.

129 Replacements.

129.—(1) Property shall be treated as complying with section 128 if—

(a) the property replaced other property and the said property, that other property and any property directly or indirectly replaced by that other property were comprised in the disposition for periods which together comprised—

(i) in a case referred to at paragraph (a) of section 128, at least two years falling within the three years immediately preceding the date of the inheritance, or

(ii) in a case referred to at paragraph (b) of section 128, at least five years falling within the six years immediately preceding the date of the gift or inheritance, and

(b) any other property concerned was such that, had the gift or inheritance been taken immediately before it was replaced, it would, apart from section 128, have been relevant business property in relation to the gift or inheritance.

(2) In a case to which subsection (1) relates, relief under this Chapter shall not exceed what it would have been had the replacement or any one or more of the replacements not been made.

(3) For the purposes of subsection (2) changes resulting from the formation, alteration or dissolution of a partnership, or from the acquisition of a business by a company controlled (within the meaning of section 16 of the Principal Act) by the former owner of the business, shall be disregarded.

130 Succession.

130.—For the purposes of sections 128 and 129, where a disponer became beneficially entitled to any property on the death of another person the disponer shall be deemed to have been beneficially entitled to it from the date of that death.

131 Successive benefits.

131.—(1) Where—

(a) a gift or inheritance (in this section referred to as “the earlier benefit”) was eligible for relief under this Chapter or would have been so eligible if such relief had been capable of being given in respect of gifts and inheritances taken at that time, and

(b) the whole or part of the property which, in relation to the earlier benefit was relevant business property became, through the earlier benefit, the property of the person or of the spouse of the person who is the disponer in relation to a subsequent gift or inheritance (in this section referred to as “the subsequent benefit”), and

(c) that property, or part, or any property directly or indirectly replacing it, would, apart from section 128, have been relevant business property in relation to the subsequent benefit, and

(d) the subsequent benefit is an inheritance taken on the death of the disponer,

then the property which would have been relevant business property but for section 128 shall be relevant business property notwithstanding that section.

(2) Where the property which, by virtue of subsection (1), is relevant business property replaced the property or part referred to in subsection (1) (c), relief under this Chapter shall not exceed what it would have been had the replacement or any one or more of the replacements not been made, and section 129 (3) shall apply with the necessary modifications for the purposes of this subsection.

(3) Where, in relation to the earlier benefit, the amount of the taxable value of the gift or inheritance which was attributable to the property or part referred to in subsection (1) (c) was part only of its value, a like part only of the value which, apart from this subsection, would fall to be reduced under this Chapter by virtue of this section shall be so reduced.

132 Value of business.

132.—For the purposes of this Chapter—

(a) the value of a business or of an interest in a business shall be taken to be its net value;

(b) subject to paragraph (c), the net value of a business shall be taken to be the market value of the assets used in the business (including goodwill) reduced by the aggregate market value of any liabilities incurred for the purposes of the business;

(c) in ascertaining the net value of an interest in a business, no regard shall be had to assets or liabilities other than those by reference to which the net value of the entire business would fall to be ascertained.

133 Value of certain shares and securities.

133.—(1) Where a company is a member of a group and the business of any other company which is a member of the group falls within section 127 (4), then, unless that business consists wholly or mainly in the holding of land or buildings wholly or mainly occupied by members of the group whose business does not fall within section 127 (4), the value of shares in or securities of the company shall be taken for the purposes of this Chapter to be what it would be if that other company were not a member of the group.

(2) (a) In this subsection “shares” include securities and “shares in a company” include other shares in the same company which are represented by those shares.

(b) Where unquoted shares in a company which is a member of a group are comprised in a gift or inheritance and shares in another company which is also a member of the group are quoted on the valuation date, the value of the first-mentioned shares shall be taken, for the purpose of this Chapter, to be what it would be if that other company were not a member of the group, unless those unquoted shares were in the beneficial ownership of the disponer immediately prior to the disposition and those quoted shares were—

(i) unquoted at some time prior to the gift or inheritance when they were in the beneficial ownership of the disponer or a member of that group, while being a member of such group, or

(ii) at the date of the passing of this Act,

whichever is the later date.

134 Exclusion of value of excepted assets.

134.—(1) In determining for the purposes of this Chapter what part of the taxable value of a gift or inheritance is attributable to the value of relevant business property, so much of the last-mentioned value as is attributable to—

(a) agricultural property,

(b) any excepted assets within the meaning of subsection (2), or

(c) any excluded property within the meaning of subsection (7),

shall be left out of account.

(2) An asset shall be an excepted asset in relation to any relevant business property if it was not used wholly or mainly for the purposes of the business concerned throughout the whole or the last two years of the relevant period, but where the business concerned is carried on by a company which is a member of a group, the use of an asset for the purposes of a business carried on by another company which at the time of the use and immediately prior to the gift or inheritance was also a member of that group shall be treated as use for the purposes of the business concerned, unless that other company's membership of the group falls to be disregarded under section 133:

Provided that the use of an asset for the purposes of farming (within the meaning of section 13 of the Finance Act, 1974) or for the purposes of a business to which section 127 (4) relates shall not be treated as use for the purposes of the business concerned.

(3) Subsection (2) shall not apply in relation to an asset which is relevant business property by virtue only of section 127 (1) (e), and an asset shall not be relevant business property by virtue only of that provision unless either—

(a) it was used in the manner referred to in that provision—

(i) in the case where the disponer's interest in the business or the shares in or securities of the company carrying on the business are comprised in an inheritance taken on the date of death of the disponer, throughout the two years immediately preceding the date of the inheritance, or

(ii) in any other case, throughout the five years immediately preceding the date of the gift or inheritance,

or

(b) it replaced another asset so used and it and the other asset and any asset directly or indirectly replaced by that other asset were so used for periods which together comprised—

(i) in the case referred to at paragraph (a) (i), at least two years falling within the three years immediately preceding the date of the inheritance, or

(ii) in any other case, at least five years falling within the six years immediately preceding the date of the gift or inheritance;

but where section 131 applies paragraphs (a) and (b) shall be deemed to be complied with if the asset, or that asset and the asset or assets replaced by it, was or were so used throughout the period between the earlier and the subsequent benefit mentioned in that section, or throughout the part of that period during which it or they were in the beneficial ownership of the disponer or the disponer's spouse.

(4) Where part but not the whole of any land or building is used exclusively for the purposes of any business and the land or building would, but for this subsection, be an excepted asset, or, as the case may be, prevented by subsection (3) from being relevant business property, the part so used and the remainder shall for the purposes of this section be treated as separate assets, and the value of the part so used shall (if it would otherwise be less) be taken to be such proportion of the value of the whole as may be just.

(5) For the purposes of this section the relevant period, in relation to any asset, shall be the period immediately preceding the gift or inheritance during which the asset or, if the relevant business property is an interest in a business, a corresponding interest in the asset, was comprised in the disposition (within the meaning of section 128) or, if the business concerned is that of a company, was beneficially owned by that company or any other company which immediately before the gift or inheritance was a member of the same group.

(6) For the purposes of this section an asset shall be deemed not to have been used wholly or mainly for the purposes of the business concerned at any time when it was used wholly or mainly for the personal benefit of the disponer or of a relative of the disponer.

(7) Where, in relation to a gift or an inheritance—

(a) relevant business property consisting of shares in or securities of a company are comprised in the gift or inheritance on the valuation date, and

(b) property consisting of a business, or interest in a business, not falling within section 127 (4) (hereinafter in this section referred to as “company business property”) is on that date beneficially owned by that company or, where that company is a holding company of one or more companies within the same group, by any company within that group,

that company business property shall, for the purposes of subsection (1), be excluded property in relation to those shares or securities unless it would have been relevant business property if—

(i) it had been the subject matter of that gift or inheritance, and

(ii) it and any other company business property directly or indirectly replaced by it had been comprised in the disposition for the periods during which they were in the beneficial ownership of any member of that group, while being such a member, or actually comprised in the disposition,

and shares in or securities of a company which replace, or which are replaced by, other such shares or company business property shall be treated as company business property for the purposes of this section if the company was the beneficial owner of the company business property and a member of that group at the time of the replacement:

Provided that where, by virtue of the provisions of this subsection, company business property would have been excluded property but for the conditions of paragraphs (i) and (ii) having been complied with, the provisions of subsection (2) of section 129 shall, with any necessary modifications, apply to that company business property as to a case to which subsection (1) of section 129 relates.

135 Withdrawal of relief.

135.—(1) In this section “relevant period”, in relation to relevant business property comprised in a gift or inheritance, means the period of six years after the valuation date or the period between the date of the gift or inheritance and the date of a subsequent gift or inheritance consisting of the same property or of property representing that property, whichever is the lesser period.

(2) The reduction which would fall to be made under section 126 in respect of relevant business property comprised in a gift or inheritance shall cease to be applicable if and to the extent that the property, or any property which directly or indirectly replaces it—

(a) would not be relevant business property (apart from section 128 and the provisos to paragraphs (d) and (f) of subsection (1) of section 127 and other than by reason of bankruptcy or a bona fide winding-up on grounds of insolvency) in relation to a notional gift of such property taken by the same donee or successor from the same disponer at any time within the relevant period, unless it would be relevant business property (apart from section 128 and the provisos to paragraphs (d) and (f) of subsection (1) of section 127) in relation to another such notional gift taken within a year after the first-mentioned notional gift;

(b) is sold, redeemed or compulsorily acquired within the relevant period and is not replaced, within a year of the sale, redemption or compulsory acquisition, by other property (other than quoted shares or securities or unquoted shares or securities to which section 133 (2) (b) relates) which would be relevant business property (apart from section 128 and the proviso to section 127 (1) (d)) in relation to a notional gift of that other property taken by the same donee or successor from the same disponer on the date of the replacement,

and tax shall be chargeable in respect of the gift or inheritance as if the property were not relevant business property:

Provided that any land, building, machinery or plant which are comprised in the gift or inheritance and which qualify as relevant business property by virtue of section 127 (1) (e) shall, together with any similar property which has replaced such property, continue to be relevant business property for the purposes of this section for so long as they are used for the purposes of the business concerned.

Chapter II Miscellaneous

136 Interpretation (Chapter II).

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

137 Amendment of section 109 (interpretation) of Finance Act, 1993.

137.—(1) Section 109 of the Finance Act, 1993, is hereby amended by the insertion of the following definitions after the definition of “the Act of 1965”:

“‘agricultural property’ has the same meaning as it has in section 19 (as amended by the Finance Act, 1994) of the Principal Act but excluding farm machinery, livestock and bloodstock;

‘agricultural value’ means the market value of agricultural property reduced by 30 per cent. of that value;”.

(2) This section shall have effect in relation to persons dying after the 17th day of June, 1993.

138 Amendment of section 111 (application of Principal Act) of Finance Act, 1993.

138.—(1) Section 111 of the Finance Act, 1993, is hereby amended—

(a) by the deletion of “and” in subparagraph (ii) of paragraph (g) and by the insertion after that subparagraph of the following subparagraph:

“(iia) in so far as the inheritance consists of agricultural property, the reference to market value in subsection (1) of the said section 18 were a reference to agricultural value, and”,

(b) by the insertion of the following proviso to subparagraph (iii) of paragraph (g) of that section—

“Provided that nothing in this subparagraph shall have effect so as to reduce the tax which would but for this subparagraph be borne by property which at the date ofdeath of the deceased represented the share in the estate of the deceased of a person who was not on that date a dependent child or a dependent relative of the deceased;”.

(2) Paragraph (a) of subsection (1) shall have effect in relation to persons dying after the 17th day of June, 1993.

139 Amendment of section 112 (exemptions) of Finance Act, 1993.

139.—(1) Section 112 of the Finance Act, 1993, is hereby amended—

(a) by the deletion of paragraph (c) of that section, and

(b) by the substitution of the following paragraph for paragraph (d) of that section:

“(d) 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 on 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.”.

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

140 Abatement and postponement of tax.

140.—(1) Chapter 1 of Part VI of the Finance Act, 1993, is hereby amended by the insertion after section 115 of the following section—

“115A.—(1) Where the spouse of a deceased survives the deceased, probate tax chargeable by virtue of section 110 which is borne by property which, at the date of death of the deceased, represents the share of that spouse in the estate of the deceased, shall be abated to a nil amount:

Provided that—

(a) where the same property represents more than one person's share in the estate of the deceased and that spouse's interest in that property at that date is not a limited interest to which paragraph (b) relates, only a proportion of the probate tax borne by that property shall be abated to a nil amount and that proportion shall be the proportion which the value of that interest at that date bears to the total value of the property at that date, and for this purpose the value of that interest at that date shall not include the value of any interest in expectancy created by the will or other testamentary disposition of the deceased;

(b) where a limited interest to which that spouse became beneficially entitled in possession on that date was created by the will or other testamentary disposition of the deceased, probate tax borne by the property in which that limited interest subsisted on that date shall not be abated to a nil amount, but, notwithstanding section 117 (a), that tax shall not become due and payable until the date of the cesser of that limited interest and every person who (on the cesser of that limited interest) takes an inheritance which consists of all or part of the property in which that limited interest subsisted immediately prior to that cesser (hereinafter in this proviso referred to as ‘the said property’) and every trustee or other person in whose care the said property or the income therefrom is placed at the date of that cesser and every person in whom the said property is vested after that date, other than a bona fide purchaser or mortgagee for full consideration in money or money's worth, or a person deriving title from or under such a purchaser or mortgagee shall, notwithstanding any other provision to the contrary, be the only persons accountable for the payment of that tax and that tax shall be a charge on the said property in all respects as if the date of the inheritance in respect of which that tax is chargeable were the date of such cesser and the said property were property of which, for the purpose of section 47 of the Principal Act, that inheritance consisted at that date;

(c) if consideration in money or money's worth is paid to that spouse on the coming to an end of the limited interest referred to in paragraph (b) of this proviso before the event on which that interest was limited to cease, an appropriate proportion of the probate tax borne by the said property shall be abated to a nil amount and that proportion shall be the proportion which the value of that consideration bears to the value of the said property at the date of the cesser.

(2) Where the spouse of a deceased survives the deceased, probate tax chargeable by virtue of section 110 which is borne by the dwelling-house, or by any part thereof, shall, notwithstanding subsection (1) and section 117 (a), not become due and payable until the date of death of that spouse and, notwithstanding any provision to the contrary, the only persons who shall be accountable for that tax shall be the following, that is to say—

(a) any person who takes an inheritance under the will or other testamentary disposition of the deceased which consists in whole or in part of the dwelling-house, or part thereof, or which consists of property which represents that dwelling-house or part; and

(b) any trustee in whom the property comprised in any such inheritance is vested at the date of death of that spouse or at any time thereafter and any other person in whom the property comprised in any such inheritance becomes vested for a beneficial interest in possession at any time thereafter, other than a bona fide purchaser or mortgagee for full consideration in money or money's worth, or a person deriving title from or under such a purchaser or mortgagee.

(3) Where the date upon which tax becomes due and payable is postponed by virtue of subsection (1) (b) or subsection (2), then, notwithstanding paragraph (b) of section 117, interest upon that tax shall not be payable in respect of the period commencing on the valuation date and ending 9 months after the date on which that tax actually becomes due and payable.”.

(2) This section shall have effect in relation to persons dying after the 17th day of June, 1993.

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

141.—(1) Section 19 of the Principal Act is hereby amended—

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

“‘agricultural property’ means agricultural land, pasture and woodland situate in the State and crops, trees and underwood growing on such land and also includes such farm buildings, farm houses and mansion houses (together with the lands occupied therewith) as are of a character appropriate to the property, and farm machinery, livestock and bloodstock thereon;”,

(b) by the substitution of the following definition for the definition of “agricultural value”:

“‘agricultural value’ means—

(a) in the case of farm machinery, livestock and bloodstock, 75 per cent. of the market value of such property,

(b) in the case of a gift of agricultural property, other than farm machinery, livestock and bloodstock, 70 per cent. of the market value of the agricultural property comprised in the gift reduced by 50 per cent. of that market value or by a sum of £150,000, whichever is the lesser, and

(c) in the case of an inheritance of agricultural property, other than farm machinery, livestock and bloodstock, 70 per cent. of the market value of the agricultural property comprised in the inheritance reduced by 35 per cent. of that market value or by a sum of £105,000, whichever is the lesser;”,

(c) by the substitution of the following subsection for subsection (4):

“(4) In relation to the deduction, in respect of agricultural property, of—

(a) in the case of a gift, 50 per cent. of its market value, or £150,000, whichever is the lesser, and

(b) in the case of an inheritance, 35 per cent. of its market value, or £105,000, whichever is the lesser,

the amount deductible shall not exceed £150,000 in the case of a gift and £105,000 in the case of an inheritance, in respect of the aggregate of—

(i) all taxable gifts taken on or after the 28th day of February, 1969, and

(ii) all taxable inheritances taken on or after the 1st day of April, 1975, which consist in whole or in part of agricultural property, taken by the same person, as donee or successor, from the same disponer.”,

(d) by the substitution of the following definition for the definition of “farmer”:

“‘farmer’, in relation to a donee or successor, means an individual who is domiciled and ordinarily resident in the State and in respect of whom not less than 80 per cent. of the market value of the property to which the individual is beneficially entitled in possession is represented by the market value of property in the State which consists of agricultural property, and, for the purposes of this definition, no deduction shall be made from the market value of property for any debts or incumbrances.”,

and

(e) in subsection (5), by the substitution of the following paragraph for paragraph (a):

“(a) The agricultural value shall cease to be applicable to agricultural property, other than crops, trees or underwood, if and to the extent that such property, or any agricultural property which directly or indirectly replaces such property—

(i) is sold or compulsorily acquired within the period of six years after the date of the gift or the date of the inheritance; and

(ii) is not replaced, within a year of the sale or compulsory acquisition, by other agricultural property,

and tax shall be chargeable in respect of the gift or inheritance as if the property were not agricultural property:

Provided that this paragraph shall not have effect where the donee or successor dies before the property is sold or compulsorily acquired.”.

(2) This section shall have effect in relation to gifts or inheritances taken on or after the 11th day of April, 1994.

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

142.—(1) The Second Schedule to the Principal Act is hereby amended by the substitution of the following Part for Part II (inserted by section 115 of the Finance Act, 1991):

“PART II

TABLE

Portion of Value	Rate of tax
	Per cent.
The threshold amount	Nil
The next £10,000	20
The next £30,000	30
The balance	40

”.

(2) This section shall have effect in relation to gifts and inheritances taken on or after the 11th day of April, 1994.

143 Amendment of section 109 (computation of tax) of Finance Act, 1984.

143.—(1) In this section—

“earlier relevant inheritance” means a relevant inheritance deemed to be taken on the date of death of the disponer;

“later relevant inheritance” means a relevant inheritance which, after the date of death of the disponer, is deemed to be taken by a discretionary trust by virtue of there ceasing to be a principal object of that trust who is under the age of 21 years;

“relevant inheritance” means an inheritance which, by virtue of section 106 (1) of the Finance Act, 1984, is, on or after the 11th day of April, 1994, deemed to be taken by a discretionary trust;

“the relevant period” means—

(a) in relation to an earlier relevant inheritance, the period of five years commencing on the date of death of the disponer, and

(b) in relation to a later relevant inheritance, the period of five years commencing on the latest date on which a later relevant inheritance was deemed to be taken from the disponer;

“the appropriate trust”, in relation to a relevant inheritance, means the trust by which that inheritance was deemed to be taken.

(2) Section 109 of the Finance Act, 1984, is hereby amended by the substitution of “six per cent.” for “three per cent.”:

Provided that where, in the case of each and every earlier relevant inheritance or each and every later relevant inheritance, as the case may be, taken from one and the same disponer, one or more objects of the appropriate trust became beneficially entitled in possession before the expiration of the relevant period to an absolute interest in the entire of the property of which that inheritance consisted on and at all times after the date of that inheritance (other than property which ceased to be subject to the terms of the appropriate trust by virtue of a sale or exchange of an absolute interest in that property for full consideration in money or money's worth), then, in relation to all such earlier relevant inheritances or all such later relevant inheritances, as the case may be, this section shall cease to apply and tax shall be computed accordingly in accordance with the provisions of the said section 109 as if this section had not been enacted.

(3) Where two or more persons are together beneficially entitled in possession to an absolute interest in property, those persons shall not, by reason only that together they are beneficially so entitled in possession, be regarded for the purposes of subsection (2) as beneficially so entitled in possession.

(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 the provisions of this section.

144 Amendment of section 117 (reduction in estimated value of certain dwellings) of Finance Act, 1991.

144.—(1) Section 117 of the Finance Act, 1991, is hereby amended by the substitution in subsection (1) of “60 per cent.” for “50 per cent.” and “£60,000” for “£50,000”.

(2) This section shall have effect in relation to inheritances taken on or after the 11th day of April, 1994.

145 Amendment of section 128 (amendment of Second Schedule (computation of tax) to Principal Act) of Finance Act, 1990.

145.—Section 128 of the Finance Act, 1990, is hereby amended by the substitution of the following subsection for subsection (1) (including the proviso thereto):

“(1) In computing in accordance with the provisions of the Second Schedule to the Principal Act the tax chargeable on the taxable value of a taxable gift or a taxable inheritance taken by a donee or successor on or after 11th day of April, 1994, the class threshold, as defined in paragraph 1 (inserted by section 111 of the Finance Act, 1984) of Part I of that Schedule, in respect of each taxable gift or taxable inheritance included in any aggregate of taxable values referred to in paragraph 3 (inserted by the said section 111) of Part I shall be adjusted by multiplying each such class threshold by the figure, rounded to the nearest third decimal place, determined by dividing by 133.5 the consumer price index number for the year immediately preceding the year in which that taxable gift or taxable inheritance is taken, and the references to the class threshold (including the reference to the class thresholds) in the definition of ‘revised class threshold’ and the proviso thereto in the said paragraph 1 shall be construed accordingly.”.

146 Certificate relating to registration of title based on possession.

146.—(1) After the passing of this Act a person shall not be registered as owner of property in a register of ownership maintained under the Act of 1964 on foot of an application made to the Registrar on or after the 11th day of April, 1994, which is—

(a) based on possession, and

(b) made under the Rules of 1972, or any other rule made for carrying into effect the objects of the Act of 1964,

unless the applicant produces to the Registrar a certificate issued by the Commissioners to the effect that the Commissioners are satisfied—

(i) that the property did not become charged with gift tax or inheritance tax during the relevant period, or

(ii) that any charge for gift tax or inheritance tax to which the property became subject during that period has been discharged, or will (to the extent that it has not been discharged) be discharged within a time considered by the Commissioners to be reasonable.

(2) In the case of an application for registration in relation to which a solicitor's certificate is produced for the purpose of rule 19 (3), 19 (4) or 35 of the Rules of 1972, the Registrar may accept that the application is not based on possession if the solicitor makes to the Registrar a declaration in writing to that effect.

(3) Where, on application to them by the applicant for registration, the Commissioners are satisfied that they may issue a certificate for the purpose of subsection (1), they shall issue a certificate for that purpose, and the certificate and the application therefor shall be on a form provided by the Commissioners.

(4) A certificate issued by the Commissioners for the purpose of subsection (1) shall be in such terms and subject to such qualifications as the Commissioners think fit, and shall not be a certificate for any other purpose.

(5) In this section—

“the Act of 1964” means the Registration of Title Act, 1964;

“the Registrar” means the Registrar of Titles;

“relevant period”, in relation to a person's application to be registered as owner of property, means the period commencing on the 28th day of February, 1974, and ending on the date as of which the registration was made:

Provided that—

(a) where the certificate referred to in subsection (1) is a certificate for a period ending prior to the date of the registration, the period covered by the certificate shall be deemed to be the relevant period if, at the time of the registration, the Registrar had no reason to believe that a death relevant to the application for registration occurred after the expiration of the period covered by the certificate, and

(b) where the registration of the person (if any) who, at the date of that application, was the registered owner of the property had been made as of a date after the 28th day of February, 1974, the relevant period shall commence on the date as of which that registration was made;

“the Rules of 1972” means the Land Registration Rules, 1972 (S.I. No. 230 of 1972).

147 Provision relating to section 5 (gift deemed to be taken) of Principal Act and section 121 of Finance Act, 1993.

147.—Without prejudice to the meaning of section 5 of the Principal Act as enacted, that section shall have effect and be deemed always to have had effect as if the provisions of section 121 of the Finance Act, 1993, had not been enacted, except where the consideration referred to in the said section 5, being consideration in relation to a disposition, could not reasonably be regarded (taking into account the disponer's position prior to the disposition) as representing full consideration to the disponer for having made such a disposition.

148 Provision relating to section 11 (inheritance deemed to be taken) of Principal Act and section 123 of Finance Act, 1993.