Finance Act 1998

(2) Subsection (8) (inserted by the Finance Act, 1984) of section 92 of the Finance Act, 1982, is hereby repealed.

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

122.—Section 203 of the Finance Act, 1992, is hereby amended in subsection (2):

(a) by the substitution in subparagraph (B) of paragraph (II) of the proviso of “paragraph (a), (b) or (c), or” for “paragraph (a), (b) or (c),”, and

(b) by the insertion in the proviso of the following paragraph after paragraph (II):

“(III) if the cash card is a replacement for a cash card which is already included in the relevant statement,”.

123 Amendment of section 107 (relief for member firms) of Finance Act, 1996.

123.—(1) Section 107 of the Finance Act, 1996, is hereby amended in subsection (1) by the substitution of the following proviso for the proviso to that subsection:

“Provided that:

(a) if and to the extent that the member firm does not transfer those securities to a bona fide purchaser before the expiration of the period of one month from the date of transfer, hereinafter in this section referred to as ‘the specified period’, the member firm shall pay to the Commissioners within 14 days after the expiration of the specified period the amount of ad valorem duty which would have been chargeable on the transfer if this section had not been enacted;

(b) the member firm may, in relation to any such sale with a completion date not later than 30 days from the date of the contract for sale and prior to the date of the contract, elect to have such completion date treated as the date of the second-mentioned transfer referred to in paragraph (a) and, in that event, that completion date shall be deemed, for the purposes of paragraph (a), to be the date of that second-mentioned transfer.”.

(2) This section shall have effect as respects instruments executed on or after the date of the passing of this Act in pursuance of contracts for sale entered into on or after the date of the passing of this Act.

124 Interest on unpaid or overpaid stamp duty.

124.—(1) (a) This subsection applies to—

(i) section 15(1) (inserted by the Finance Act, 1991) of the Stamp Act, 1891,

(ii) section 69(2) (inserted by the Finance Act, 1979) of the Finance Act, 1973,

(iii) sections 16(6) and 17(5)(b) of the Finance (No. 2) Act, 1981,

(iv) sections 91(6) and 92(6) of the Finance Act, 1982,

(v) section 90(6) of the Finance Act, 1983,

(vi) section 97(6) of the Finance Act, 1984,

(vii) section 55(6) of the Finance Act, 1985,

(viii) sections 92(6) and 93(6) of the Finance Act, 1986,

(ix) section 48(6) of the Finance Act, 1987,

(x) section 64(6) of the Finance Act, 1988,

(xi) section 64(6) of the Finance Act, 1989,

(xii) sections 108(6), 109(5) and 113(4) of the Finance Act, 1990,

(xiii) section 89(6) of the Finance Act, 1991,

(xiv) sections 200(6) and 203(6) of the Finance Act, 1992,

(xv) section 112(6) of the Finance Act, 1994,

(xvi) sections 142(6) and 150(3) of the Finance Act, 1995, and

(xvii) section 107(2) of the Finance Act, 1996.

(b) Where any interest to which this subsection applies is chargeable, for any period commencing on or after the date of the passing of this Act, in respect of stamp duty due to be paid whether before, on or after such date, such interest shall be chargeable at the rate of 1 per cent per month or part of a month in the case of interest which, but for this paragraph, would be chargeable at the rate of 1.25 per cent per month or part of a month, or 15 per cent per annum, as the case may be, specified in those sections and those sections shall have effect as if the rate of 1 per cent per month or part of a month were substituted for the rate so specified.

(2) As respects any month, or part of a month, commencing on or after the date of the passing of this Act, section 69 of the Finance Act, 1973, is hereby amended by the substitution in paragraph (ii) of the second proviso to subsection (1) for “9 per cent. per annum” of “6 per cent per annum”.

(3) As respects any month, or part of a month, commencing on or after the date of the passing of this Act, section 112 of the Finance Act, 1990, is hereby amended—

(a) in subsection (3)(b) by the substitution for “one per cent.” of “0.5 per cent”, and

(b) in subsection (6) by the substitution for “one per cent.” of “0.5 per cent”.

125 Repeals (Part 4).

125.—Each enactment mentioned in column (2) to Schedule 8 to this Act is hereby repealed to the extent specified opposite that mention in column (3) of that Schedule.

PART 5 Capital Acquisitions Tax

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

126.—(1) The Finance Act, 1991, is hereby amended by the substitution of the following section for section 117:

“117.—(1) In so far as an inheritance consists of a house or the appropriate part of a house—

(a) at the date of the inheritance, and

(b) at the valuation date,

and is taken by a successor who, at the date of the inheritance, is a lineal ancestor, a lineal descendant (other than a child, or a minor child of a deceased child), a brother or a sister, or a child of a brother or of a sister, of the disponer, and

(i) has resided continuously with the disponer in the house or, where that house has directly or indirectly replaced other property, in that house and in that other property, for periods which together comprised—

(I) in the case where the successor is a brother or a sister of the disponer and has, at the date of the inheritance, attained the age of 55 years, the 5 years immediately preceding the date of the inheritance, and

(II) in any other case, the 10 years immediately preceding the date of the inheritance, and

(ii) is not beneficially entitled in possession to any other house or the appropriate part of any other house,

the estimated market value of the house or the appropriate part of the house shall, notwithstanding anything to the contrary in section 15 of the Principal Act, be reduced by 80 per cent or £150,000, whichever is the lesser:

Provided that where the house or the appropriate part of the house comprised in the inheritance is, on both of those dates, agricultural property within the meaning of section 19(1) of the Principal Act and the successor is, at the valuation date and after taking the inheritance, a farmer within the meaning of that section, the provisions of this section shall not apply.

(2) In this section—

‘appropriate part’, in relation to a house, has the meaning assigned to it in relation to property by subsection (5) of section 5 of the Principal Act;

‘house’ means a building, or a part of a building used by the disponer as his main or only dwelling together with its garden or grounds of an ornamental nature.”.

(2) This section shall have effect in relation to inheritances taken on or after the 3rd day of December, 1997.

127 Amendment of section 117 (interest on tax) of Finance Act, 1993.

127.—(1) Section 117 of the Finance Act, 1993, is hereby amended—

(a) in paragraph (b), by the substitution of “one per cent” for “one and one-quarter per cent.”, and

(b) in paragraph (c), by the substitution of “one per cent” for “one and one-quarter per cent.”.

(2) This section shall have effect in relation to probate tax due before, on or after the date of the passing of this Act where the period in respect of which interest is to be charged, or a discount falls to be made, commences on or after that date.

128 Amendment of section 134 (exclusion of value of excepted assets) of Finance Act, 1994.

128.—Section 134 of the Finance Act, 1994, shall have effect and be deemed always to have had effect as if the following subsections were substituted for subsection (7):

“(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, apart from section 127(3), have been relevant business property if—

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

(ii) it had been comprised in the disposition for the periods during which it was in the beneficial ownership of that first-mentioned company or of any member of that group, while being such a member, or actually comprised in the disposition.

(8) In ascertaining whether or not company business property complies with paragraphs (i) and (ii) of subsection (7), the provisions 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.”.

129 Conditions before appeal may be made.

129.—(1) The Capital Acquisitions Tax Act, 1976, is hereby amended by the insertion of the following section after section 52 of that Act:

“52A.—No appeal shall lie under section 51 or 52 until such time as the person aggrieved by the decision or assessment (as the case may be) complies with section 36(2) in respect of the gift or inheritance in relation to which the decision or assessment is made, as if there were no time-limit for complying with section 36(2) and that person were a person primarily accountable for the payment of tax by virtue of section 35(1) and required by notice in writing by the Commissioners to deliver a return.”.

(2) This section shall have effect in relation to gifts or inheritances taken on or after the 12th day of February, 1998.

PART 6 Miscellaneous

130 Capital Services Redemption Account.

130.—(1) In this section—

“the 1997 amending section” means section 164 of the Finance Act, 1997;

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

“the forty-eighth 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, 1998, subsection (4) of the 1997 amending section shall have effect with the substitution of “£95,826,511” for “£94,679,697”.

(3) Subsection (6) of the 1997 amending section shall have effect with the substitution of “£72,545,813” for “£72,772,950”.

(4) A sum of £120,289,536 to redeem borrowings, and interest thereon, in respect of capital services shall be charged annually on the Central Fund or growing produce thereof in the thirty successive financial years commencing with the financial year ending on the 31st day of December, 1998.

(5) The forty-eighth 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-eighth additional annuity, not exceeding £92,457,250 in any financial year, may be applied towards defraying the interest on the public debt.

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

131 Interest payments by certain deposit takers.

131.—(1) The Taxes Consolidation Act, 1997, is hereby amended—

(a) in section 256(1), by the substitution of the following paragraph for paragraph (a) of the definition of “appropriate tax”:

“(a) in the case of a relevant deposit or relevant deposits held in a special savings account, at the rate of 20 per cent, and”,

and

(b) in section 891, by the insertion of the following subsection after subsection (1):

“(1A) (a) In this subsection, ‘credit union’ means a society registered under the Credit Union Act, 1997, including a society deemed to be so registered under section 5(3) of that Act.

(b) This section shall not apply in relation to any interest paid or credited by a credit union in respect of money received or retained by it.”.

(2) (a) Paragraph (a) of subsection (1) shall apply as on and from the 6th day of April, 1998.

(b) Paragraph (b) of subsection (1) shall apply as respects chargeable periods (within the meaning of section 321(2) of the Taxes Consolidation Act, 1997) beginning on or after the 1st day of October, 1997.

132 Tax clearance for criminal legal aid scheme.

132.—The Criminal Justice (Legal Aid) Act, 1962, is hereby amended, in section 10(1), by the addition of the following after paragraph (c):

“(d) (i) a requirement that a solicitor who has notified a county registrar in accordance with the Criminal Justice (Legal Aid) Regulations, 1965 (S.I. No. 12 of 1965), of his willingness to act for persons to whom legal aid certificates are granted must, when required to do so by the Minister, furnish to the County Registrar a certificate issued by the Collector-General (within the meaning of section 851 of the Taxes Consolidation Act, 1997) in respect of that solicitor certifying that he has complied with all the obligations imposed on him by the Tax Acts, the Capital Gains Tax Acts and the Value-Added Tax Act, 1972, and the enactments amending or extending that Act (and any instruments made under those Acts) in relation to—

(I) the payment or remittance of the taxes, interest and penalties required to be paid or remitted, and

(II) the delivery of returns,

(ii) a requirement that a barrister, the willingness of whom to act for persons to whom legal aid certificates are granted has been notified to the Minister by the General Council of the Bar of Ireland in accordance with the Criminal Justice (Legal Aid) Regulations, 1965, must, when required to do so by the Minister, furnish to the Minister a certificate issued by the Collector-General (within the meaning of section 851 of the Taxes Consolidation Act, 1997) in respect of that barrister certifying that he has complied with all the obligations imposed on him by the Tax Acts, the Capital Gains Tax Acts and the Value-Added Tax Act, 1972, and the enactments amending or extending that Act (and any instruments made under those Acts) in relation to—

(I) the payment or remittance of the taxes, interest and penalties required to be paid or remitted, and

(II) the delivery of returns,

(e) the conditions that must be satisfied before a certificate referred to in paragraph (d) of this subsection may be issued by the Collector-General (within the meaning aforesaid),

(f) matters consequential on, or incidental to, a requirement or condition prescribed under paragraph (d) or (e) of this subsection (which may include a provision enabling the deletion from any list kept pursuant to regulations under this subsection of the name of a solicitor or barrister who has failed to comply with a requirement prescribed under the said paragraph (d)).”.

133 Interest on unpaid or overpaid taxes.

133.—(1) The Taxes Consolidation Act, 1997, is hereby amended—

(a) in sections 240(3)(a), 531(9) and 991(1) and paragraphs (a) and (b) of section 1080(1), by the substitution of “1 per cent” for “1.25 per cent” in each place where it occurs, and

(b) in section 953(7), by the substitution of “0.5 per cent” for “0.6 per cent”.

(2) The Finance Act, 1983, is hereby amended—

(a) in section 105(1), by the substitution of “1 per cent” for “1.25 per cent.”, and

(b) in section 107(2), notwithstanding Regulation 3 of the Payment of Interest on Overpaid Tax Regulations, 1990 (S.I. No. 176 of 1990), by the substitution of “0.5 per cent” for “1.25 per cent.”.

(3) Section 46 of the Finance Act, 1978, is hereby repealed in so far as it relates to value-added tax.

(4) The Capital Acquisitions Tax Act, 1976, is hereby amended—

(a) in section 41(2), as construed by reference to section 43 of the Finance Act, 1978, by the substitution of “1 per cent” for “1.25 per cent.”, and

(b) in section 46(1), notwithstanding Regulation 3 of the Payment of Interest on Overpaid Tax Regulations, 1990, by the substitution of “0.5 per cent” for “one per cent.”.

(5) The Wealth Tax Act, 1975, is hereby amended—

(a) in section 18(2), by the substitution of “1 per cent” for “1.5 per cent.”, and

(b) in section 22(2), by the substitution of “0.5 per cent” for “1.5 per cent.”.

(6) This section shall apply as respects interest chargeable or payable under—

(i) sections 240, 531, 953, 991 and 1080 of the Taxes Consolidation Act, 1997,

(ii) sections 105 and 107 of the Finance Act, 1983,

(iii) sections 41 and 46 of the Capital Acquisitions Tax Act, 1976,

(iv) sections 18 and 22 of the Wealth Tax Act, 1975, and

(v) section 21 of the Value-Added Tax Act, 1972,

for any month, or any part of a month, commencing on or after the date of the passing of this Act, in respect of an amount due to be paid or remitted or an amount due to be repaid or retained, as the case may be, whether before, on or after that date in accordance with those provisions.

134 Appeals.

134.—(1) Part 40 of the Taxes Consolidation Act, 1997, is hereby amended—

(a) in Chapter 1, by the insertion of the following section after section 944:

“Publication of determinations of Appeal Commissioners.

944A.—The Appeal Commissioners may make arrangements for the publication of reports of such of their determinations as they consider appropriate, but they shall ensure that any such report is in a form which, in so far as possible, prevents the identification of any person whose affairs are dealt with in the determination.”,

and

(b) in Chapter 2, by the insertion, in subsection (2) of section 945, of the following paragraph after paragraph (e):

“(ee) the publication of reports of determinations of the Appeal Commissioners,”.

(2) Section 25(2) of the Value-Added Tax Act, 1972, is hereby amended by the insertion of the following paragraph after paragraph (e):

“(ee) the publication of reports of determinations of the Appeal Commissioners;”.

(3) Section 52(5) of the Capital Acquisitions Tax Act, 1976, is hereby amended by the insertion, in paragraph (a), of the following subparagraph after subparagraph (v):

“(va) the publication of reports of determinations of the Appeal Commissioners;”.

(4) This section shall apply to appeals determined by the Appeal Commissioners after the date of the passing of this Act.

135 Amendment of Freedom of Information Act, 1997.

135.—The Freedom of Information Act, 1997, is hereby amended in the Third Schedule thereto by the addition to Part I at the end thereof—

(a) in column (1), of “No. 39 of 1997”,

(b) in column (2), of “Taxes Consolidation Act, 1997”, and

(c) in column (3), of “Section 857”.

136 Post-consolidation amendments.

136.—(1) The provisions of the Taxes Consolidation Act, 1997, referred to in Schedule 9 shall apply subject to the amendments specified in that Schedule.

(2) This section shall be deemed to have come into force on the 6th day of April, 1997.

137 Care and management of taxes and duties.

137.—All taxes and duties imposed by this Act are hereby placed under the care and management of the Revenue Commissioners.

138 Short title, construction and commencement.

138.—(1) This Act may be cited as the Finance Act, 1998.

(2) Part 1 (so far as relating to income tax) shall be construed together with the Income Tax Acts and (so far as relating to corporation tax) shall be construed together with the Corporation Tax Acts and (so far as relating to capital gains tax) shall be construed together with the Capital Gains Tax Acts.

(3) Part 2 (so far as relating to customs) shall be construed together with the Customs Acts and (so far as relating to duties of excise) shall be construed together with the statutes which relate to the duties of excise and to the management of those duties.

(4) Part 3 shall be construed together with the Value-Added Tax Acts, 1972 to 1997, and may be cited together therewith as the Value-Added Tax Acts, 1972 to 1998.

(5) Part 4 shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act.

(6) Part 5 (so far as relating to capital acquisitions tax) shall be construed together with the Capital Acquisitions Tax Act, 1976, and the enactments amending or extending that Act.

(7) Part 6 (so far as relating to income tax) shall be construed together with the Income Tax Acts and (so far as relating to corpor ation tax) shall be construed together with the Corporation Tax Acts and (so far as relating to capital gains tax) shall be construed together with the Capital Gains Tax Acts and (so far as relating to value-added tax) shall be construed together with the Value-Added Tax Acts, 1972 to 1998, and (so far as relating to residential property tax) shall be construed together with Part VI of the Finance Act, 1983, and the enactments amending or extending that Part and (so far as relating to gift tax or inheritance tax) shall be construed together with the Capital Acquisitions Tax Act, 1976, and the enactments amending or extending that Act and (so far as relating to wealth tax) shall be construed together with the Wealth Tax Act, 1975, and the enactments amending or extending that Act.

(8) Part 1 shall, save as is otherwise expressly provided therein, apply as on and from the 6th day of April, 1998.

(9) In relation to Part 3:

(a) sections 104, 110 and 112 and paragraph (a) of section 116 shall be deemed to have come into force and shall take effect as on and from the 1st day of March, 1998;

(b) sections 107 and 109, paragraph (b) of section 116, paragraph (xid) of the Sixth Schedule to the Value-Added Tax Act, 1972, as inserted by paragraph (a) of section 117 and paragraph (b) of section 117 shall take effect as on and from the 1st day of May, 1998;

(c) section 108 and paragraphs (xib) and (xic) of the Sixth Schedule to the Value-Added Tax Act, 1972, as inserted by paragraph (a) of section 117 shall take effect as on and from the 1st day of July, 1998;

(d) the provisions of this Part, other than those specified in paragraphs (a), (b) and (c), shall have effect as on and from the date of passing of this Act.

(10) Any reference in this Act to any other enactment shall, except so far as the context otherwise requires, be construed as a reference to that enactment as amended by or under any other enactment including this Act.

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

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

SCHEDULE 1 Amendments Consequential on Changes in Personal Reliefs

As respects the year of assessment 1998-99 and subsequent years of assessment, the Taxes Consolidation Act, 1997, is hereby amended in accordance with the following provisions:

(a) in section 461—

(i) in paragraph (a), by the substitution of “£6,300” for “£5,800”,

(ii) in paragraph (b), by the substitution of “£3,650” and “£6,300”, respectively, for “£3,400” and “£5,800”, and

(iii) in paragraph (c), by the substitution of “£3,150” for “£2,900”,

(b) in subsection (2) of section 462, by the substitution of “£2,650” and “£3,150”, respectively, for “£2,400” and “£2,900”,

(c) in section 465, by the substitution of “£800” for “£700” in each place where it occurs,

(d) in subsection (1) of section 467, by the substitution of “£8,500” for “£7,500” in each place where it occurs,

and

(e) in subsection (2) of section 468, by the substitution of “£1,000” for “£700” in each place where it occurs and of “£2,000” for “£1,600”.

SCHEDULE 2 Provisions Amending Principal Act in Consequence of a Change in the Currency of Certain States

The Taxes Consolidation Act, 1997, is hereby amended in accordance with the following provisions of this Schedule.

“(c) For the purposes of this section a gain or loss arising to a company which results directly from a change in a rate of exchange shall include a gain or loss which results directly from an event which substitutes for the currency of a State another currency of that State where the other currency, as a result of the event, becomes the functional currency (within the meaning of section 402) of the company.”.

“(a) the rate known as the 3 month European Interbank Offered Rate, or”.

“(i) which consists of, or of an interest in or a contractual right to, any loan, lease, trade or consumer receivable or other debt or receivable whether secured or unsecured, and”.

(a) in paragaph (b), for “the rate known as the 3 month Dublin Interbank Offered Rate on Irish pounds (in this subsection referred to as the “3 month Dublin Interbank Offered Rate”) a record of which is maintained by the Central Bank of Ireland” there shall be substituted “the rate known as the 3 month European Interbank Offered Rate”,

(b) in paragraph (c)—

(i) in subparagraph (i),

and

(ii) in subparagraph (iii),

for “the 3 month Dublin Interbank Offered Rate” in each case, there shall be substituted “the rate known as the 3 month European Interbank Offered Rate”.

“(d) In this section references to an amount having been incurred in, or computed in terms of, a currency other than the functional currency of a company shall not include a reference to an amount having been incurred in, or computed in terms of, the currency of a state, which currency has been substituted by another currency of that state, where that other currency is the functional currency of the company.

(e) For the purposes of this section where at any time, in relation to a state, the currency (hereafter in this paragraph referred to as ‘the old currency’) is substituted by another currency, the representative rate of exchange of the currency of that state for the currency of another state at any previous time shall mean the representative rate of exchange of the old currency of that state for the currency of that other state.”.

(a) in paragraph (a), in the definition of “relevant lease payment”, in paragraph (ii), for “a rate known as the Dublin Interbank Offered Rate and a record of which is kept by the Central Bank of Ireland” there shall be substituted “a rate known as the European Interbank Offered Rate”,

and

(b) in paragraph (b)(ii), for “the rate known as the 6 month Dublin Interbank Offered Rate and a record of which is maintained by the Central Bank of Ireland” there shall be substituted “the rate known as the 6 month European Interbank Offered Rate”.

“(2A) An operation which would fall within any class or kind of operation specified in a certificate under subsection (2) to be a relevant trading operation but for the fact that it involves the currency of the State shall, with effect from the commencement of section 47 of the Finance Act, 1998, in relation to paragraph 7 of Schedule 2 to that Act, be deemed to fall within that class or kind of operation and to have been specified in that certificate as a relevant trading operation.”.

(a) after subsection (2) there shall be inserted the following:

“(2A) An operation which would fall within any class or kind of operation specified in a certificate under subsection (2) to be a relevant trading operation but for the fact that it involves the currency of the State shall, with effect from the commencement of section 47 of the Finance Act, 1998, in relation to paragraph 8 of Schedule 2 to that Act, be deemed to fall within that class or kind of operation and to have been specified in that certificate as a relevant trading operation.”,

and

(b) in subsection (7)(c)—

(i) for subparagraph (i) there shall be substituted the following subparagraph:

“(i) the provision for persons not ordinarily resident in the State of services which are of a type normally provided by a bank in the ordinary course of its trade,”,

(ii) in subparagraph (ii)—

(I) for clause (II) there shall be substituted the following clause:

“(II) international dealings in currencies and in futures, options and similar financial assets,”,

and

(II) for clause (III) there shall be substituted the following clause:

“(III) dealings in bonds, equities and similar instruments,”.

“Treatment of debts on a change in currency.

541A.— (1) Where on any day a debt (to which section 541 does not apply by virtue of subsection (6) of that section) owed to a person in a currency other than Irish currency, becomes a debt in Irish currency as a result of the currency of a State being substituted by another currency, which other currency also on that day becomes Irish currency, then, subject to subsection (2), that debt shall be deemed, for the purposes of the Capital Gains Tax Acts, on the day preceding that day, to be disposed of by the person and immediately reacquired by the person at its market value.

(2) Notwithstanding any other provision of the Capital Gains Tax Acts, where in respect of a debt a chargeable gain accrues to a person by virtue of subsection (1), that chargeable gain shall be assessed and charged as if it were a chargeable gain which accrued to the person at the time of the disposal of the debt and shall not be assessed and charged otherwise.

(3) For the purposes of subsection (2), in relation to a debt owed to a person, the satisfaction of the debt or part of the debt shall be treated as a disposal of the debt or of that part at the time when the debt or that part is satisfied.”.

“(1A)(a) In this subsection ‘rate of exchange’ means a rate at which 2 currencies might reasonably be expected to be exchanged for each other by persons dealing at arm's length.

(b) For the purposes of subsection (1) where a sum allowable as a deduction was incurred in a currency other than the currency of the State, it shall be expressed in terms of the currency of the State by reference to the rate of exchange of the currency of the State for the other currency at the time that the sum was incurred.”.

SCHEDULE 3 Amendment of Principal Act in Consequence of Convention with United States of America relating to Double Taxation, etc.

The Taxes Consolidation Act, 1997, is hereby amended in accordance with the following provisions of this Schedule.

(a) in paragraph (a)(ii)(II) there shall be deleted “of the United States of America or”, and

(b) in paragraph (b) there shall be deleted—

(i) the definition of “resident of the United States of America”, and

(ii) “, other than the United States of America,”.

(a) in subparagraph (i) there shall be deleted “of the United States of America or”, and

(b) in subparagraph (ii) there shall be deleted—

(i) the definition of “resident of the United States of America”, and

(ii) “other than the United States of America”.

(a) in subsection (1)—

(i) in paragraph (a) there shall be deleted the definition of “resident of the United States of America”, and

(ii) in paragraph (b) there shall be deleted “, other than the United States of America,”,

and

(b) in subsection (2)(c) there shall be deleted “of the United States of America or”.

“‘relevant territory’ means a territory with the government of which arrangements having the force of law by virtue of section 826 have been made.”.

(a) in paragraph (c) “of the United States of America or”,

(b) “‘resident of the United States of America’ has the meaning assigned to it by the Convention set out in Schedule 25, and”, and

(c) “, other than the United States of America,”.

“(b) is not entitled to, or disclaims, by notice in writing to the appropriate inspector (within the meaning of section 950(1)), relief in respect of the distribution under arrangements made under section 826 as applied for corporation tax,”.

“(2) This section shall apply to every territory other than a territory with the government of which arrangements are for the time being in force by virtue of section 826.”.

SCHEDULE 4 Amendments Consequential on Changes in Amounts of Tax Credits in Respect of Distributions

The Taxes Consolidation Act, 1997, is hereby amended in accordance with the following provisions of this Schedule.

“(b) The reference to certain tax credits in the definition of ‘B’ in paragraph (a) shall, in relation to distributions received by a company which makes a distribution to which this section applies, be construed—

(i) as a reference to such tax credits multiplied by .2295 in so far as they are tax credits in respect of distributions made before the 6th day of April, 1978, or made after the 5th day of April, 1983, and before the 6th day of April, 1988,

(ii) as a reference to such tax credits multiplied by .2883 in so far as they are tax credits in respect of distributions made after the 5th day of April, 1978, and before the 6th day of April, 1983,

(iii) as a reference to such tax credits multiplied by .2626 in so far as they are tax credits in respect of distributions made after the 5th day of April, 1988, and before the 6th day of April, 1989,

(iv) as a reference to such tax credits multiplied by .3178 in so far as they are tax credits in respect of distributions made after the 5th day of April, 1989, and before the 6th day of April, 1991,

(v) as a reference to such tax credits multiplied by .3707 in so far as they are tax credits in respect of distributions made after the 5th day of April, 1991, and before the 6th day of April, 1995,

(vi) as a reference to such tax credits multiplied by .4137 in so far as they are tax credits in respect of distributions made after the 5th day of April, 1995, and before the 6th day of April, 1997, and

(vii) as a reference to such tax credits multiplied by .4649 in so far as they are tax credits in respect of distributions made after the 5th day of April, 1997, and before the 3rd day of December, 1997.”.

(b) This paragraph shall apply as respects a distribution made or treated as having been made by a company on or after the 3rd day of December, 1997.

“(7) For the purposes of subsection (5)—

(a) where an accounting period begins before the 6th day of April, 1997, and ends on or after that date, it shall be divided into one part beginning on the day on which the accounting period begins and ending on the 5th day of April, 1997, and another part beginning on the 6th day of April, 1997, and ending on the day on which the accounting period ends and both parts shall be treated as separate accounting periods, and

(b) where an accounting period, including a part of an accounting period treated under paragraph (a) as a separate accounting period, begins before the 3rd day of December, 1997, and ends on or after that date, it shall be divided into one part beginning on the day on which the accounting period, or the part of an accounting period, as the case may be, begins and ending on the 2nd day of December, 1997, and another part beginning on the 3rd day of December, 1997, and ending on the day on which the accounting period, or the part of an accounting period, as the case may be, ends and both parts shall be treated as separate accounting periods.”.

SCHEDULE 5 Abolition of Tax Credits

The Taxes Consolidation Act, 1997, is hereby amended in accordance with the following provisions.

(a) in subsection (2) after “distribution made” there shall be inserted “before the 6th day of April, 1999,”,

(b) in subsection (5) after “tax credit” there shall be inserted “, if any,”, and

(c) in subsection (7) after “50 per cent, and” there shall be inserted “, where the distribution is made before the 6th day of April, 1999,”.

“Franked investment income and franked payments.

156.—(1) Income of a company resident in the State which consists of a distribution made by another company resident in the State shall be referred to in the Corporation Tax Acts as ‘franked investment income’ of the company, and the amount of the franked investment income of such a company shall be—

(a) in a case where the company is entitled to a tax credit in respect of the distribution, an amount equal to the aggregate of the amount or value of the distribution and the amount of the credit, and

(b) in any other case, the amount or value of the distribution.

(2) A reference in the Corporation Tax Acts to ‘a franked payment’ in relation to a company resident in the State which makes a distribution shall be construed as a reference to—

(a) in a case where a recipient of the distribution is entitled to a tax credit in respect of the distribution, the sum of the amount or value of the distribution and the amount of the tax credit, and

(b) in any other case, the amount or value of the distribution,

and references to any accounting or other period in which a franked payment is made are references to the period in which the distribution in question is made.”.

SCHEDULE 6 Change in Rate of Corporation Tax: Further Provisions

The Taxes Consolidation Act, 1997, is hereby amended in accordance with the following provisions of this Schedule.

(a) in paragraph (a) there shall be substituted for “twenty-six thirty-sixths”, “twenty-two thirty-seconds” as respects any accounting period beginning on or after the 1st day of January, 1998, and

(b) for paragraph (b) there shall be substituted the following paragraph:

“(b) Where a company which carries on a trade which consists of or includes the manufacture of goods claims and proves as respects a relevant accounting period (being an accounting period which falls wholly or partly into the period beginning on the 1st day of April, 1996, and ending on the 31st day of December, 1998) that during that accounting period any amount was receivable in respect of the sale in the course of the trade of goods, corporation tax payable by the company for that accounting period, in so far as it is referable to the income from the sale of those goods, shall be reduced—

(i) by twenty-eight thirty-eighths, in so far as it is corporation tax charged on profits which under section 26(3) are apportioned to the period beginning on the 1st day of January, 1996, and ending on the 31st day of March, 1997,

(ii) by twenty-six thirty-sixths, in so far as it is corporation tax charged on profits which under section 26(3) are apportioned to the period beginning on the 1st day of April, 1997, and ending on the 31st day of December, 1997, and

(iii) by twenty-two thirty-seconds, in so far as it is corporation tax charged on profits which under section 26(3) are apportioned to the financial year 1998,

and the corporation tax referable to the income from the sale of those goods—

(I) shall, for the purposes of subparagraph (i), be such an amount as bears to the part of the relevant corporation tax charged on profits which under section 26(3) are apportioned to the period beginning on the 1st day of January, 1996, and ending on the 31st day of March, 1997, the same proportion as the income from the sale of those goods bears to the total income brought into charge to corporation tax for the relevant accounting period, and

(II) shall, for the purposes of subparagraph (ii), be such an amount as bears to the part of the relevant corporation tax charged on profits which under section 26(3) are apportioned to the period beginning on the 1st day of April, 1997, and ending on the 31st day of December, 1997, the same proportion as the income from the sale of those goods bears to the total income brought into charge to corporation tax for the relevant accounting period, and

(III) shall, for the purposes of subparagraph (iii), be such an amount as bears to the part of the relevant corporation tax charged on profits which under section 26(3) are apportioned to the financial year 1998, the same proportion as the income from the sale of those goods bears to the total income brought into charge to corporation tax for the relevant accounting period.”.

(a) in paragraph 5—

(i) in subparagraph (2)—

(I) for the definition of “S” in clause (i) there shall be substituted the following:

“S is—

(A) as respects accounting periods beginning before the 1st day of April, 1997, 38/28,

(B) as respects accounting periods beginning on or after the 1st day of April,1997, and before the 1st day of January, 1998, 36/26, and

(C) as respects accounting periods beginning on or after the 1st day of January,1998, 32/22,”,

(II) for the definition of “S” in clause (ii) there shall be substituted the following:

“S is—

(I) as respects accounting periods beginning before the 1st day of April, 1997, 10/28,

(II) as respects accounting periods beginning on or after the 1st day of April, 1997, and before the 1st day of January, 1998, 10/26, and

(III) as respects accounting periods beginning on or after the 1st day of January, 1998, 10/22.”,

and

(ii) in subparagraph (3) for clause (a) there shall be substituted the following clause:

“(a) For the purposes of subparagraph (2)—

(i) where an accounting period begins before the 1st day of April, 1997, and ends on or after that day, it shall be divided into one part beginning on the day on which the accounting period begins and ending on the 31st day of March, 1997, and another part beginning on the 1st day of April, 1997, and ending on the day on which the accounting period ends, and both parts shall be treated as if they were separate accounting periods, and

(ii) where an accounting period, including a period treated under subclause (i) as an accounting period, begins before the 1st day of January, 1998, and ends on or after that day, it shall be divided into one part beginning on the day on which the accounting period begins and ending on the 31st day of December, 1997, and another part beginning on the 1st day of January, 1998, and ending on the day on which the accounting period ends, and both parts shall be treated as if they were separate accounting periods.”,

(b) in paragraph 6—

(i) in subparagraph (2) for the definition of “S” in clause (ii) there shall be substituted the following—

“S is—

(a) as respects accounting periods beginning before the 1st day of April, 1997, 10/28,

(b) as respects accounting periods beginning on or after the 1st day of April, 1997, and before the 1st day of January, 1998, 10/26, and

(c) as respects accounting periods beginning on or after the 1st day of January, 1998, 10/22.”,

and

(ii) in subparagraph (3) for clause (a) there shall be substituted the following clause:

“(a) For the purposes of subparagraph (2)—

(i) where an accounting period begins before the 1st day of April, 1997, and ends on or after that day, it shall be divided into one part beginning on the day on which the accounting period begins and ending on the 31st day of March, 1997, and another part beginning on the 1st day of April, 1997, and ending on the day on which the accounting period ends and both parts shall be treated as if they were separate accounting periods, and

(ii) where an accounting period, including a period treated under subclause (i) as an accounting period, begins before the 1st day of January, 1998, and ends on or after that day, it shall be divided into one part beginning on the day on which the accounting period begins and ending on the 31st day of December, 1997, and another part beginning on the 1st day of January, 1998, and ending on the day on which the accounting period ends, and both parts shall be treated as if they were separate accounting periods.”,

(c) in paragraph 16—

(i) for clauses (a) and (b) of subparagraph (3) there shall be substituted the following clauses:

“(a) as respects accounting periods beginning before the 1st day of April, 1997, 23 per cent,

(b) as respects accounting periods beginning on or after the 1st day of April, 1997, and before the 1st day of January, 1998, 21 per cent, and

(c) as respects accounting periods beginning on or after the 1st day of January, 1998, 17 per cent;”

and

(ii) for subparagraph (5) there shall be substituted the following subparagraph:

“(5) For the purposes of this paragraph—

(a) where an accounting period begins before the 1st day of April, 1997, and ends on or after that day, it shall be divided into one part beginning on the day on which the accounting period begins and ending on the 31st day of March, 1997, and another part beginning on the 1st day of April, 1997, and ending on the day on which the accounting period ends, and both parts shall be treated as if they were separate accounting periods, and

(b) where an accounting period, including a period treated under clause (a) as an accounting period, begins before the 1st day of January, 1998, and ends on or after that day, it shall be divided into one part beginning on the day on which the accounting period begins and ending on the 31st day of December, 1997, and another part beginning on the 1st day of January, 1998, and ending on the day on which the accounting period ends, and both parts shall be treated as if they were separate accounting periods.”,

and

(d) in paragraph 18—

(i) for clause (b) of subparagraph (4) there shall be substituted the following clause:

“(b) Subject to clause (c), relief for an accounting period shall be an amount determined by the formula—

(A B) (C D)

where—

A is the amount of corporation tax which, apart from paragraph 16, this paragraph and section 448, is chargeable for the accounting period,

B is an amount determined by applying a rate equal to—

(a) as respects accounting periods beginning before the 1st day of April, 1997, 23 per cent,

(b) as respects accounting periods beginning on or after the 1st day of April, 1997, and before the 1st day of January, 1998, 21 per cent, and

(c) as respects accounting periods beginning on or after the 1st day of January, 1998, 17 per cent,

to the amount of the company's income for the accounting period,

C is the amount of corporation tax which, apart from paragraph 16, this paragraph and section 448, would be chargeable for the accounting period if the amount of the company's income for the accounting period were reduced by the appropriate amount, and

D is an amount determined by applying a rate equal to—

(a) as respects accounting periods beginning before the 1st day of April, 1997, 23 per cent,

(b) as respects accounting periods beginning on or after the 1st day of April, 1997, and before the 1st day of January, 1998, 21 per cent, and

(c) as respects accounting periods beginning on or after the 1st day of January, 1998, 17 per cent,

to the amount of the company's income for the accounting period as reduced by the appropriate amount.”,

and

(ii) in subparagraph (6) for clause (a) there shall be substituted the following clause:

“(a) For the purposes of this paragraph—

(i) where an accounting period begins before the 1st day of April, 1997, and ends on or after that day, it shall be divided into one part beginning on the day on which the accounting period begins and ending on the 31st day of March, 1997, and another part beginning on the 1st day of April, 1997, and ending on the day on which the accounting period ends, and both parts shall be treated as if they were separate accounting periods, and

(ii) where an accounting period, including a period treated under subclause (i) as an accounting period, begins before the 1st day of January, 1998, and ends on or after that day, it shall be divided into one part beginning on the day on which the accounting period begins and ending on the 31st day of December, 1997, and another part beginning on the 1st day of January, 1998, and ending on the day on which the accounting period ends, and both parts shall be treated as if they were separate accounting periods.”.

SCHEDULE 7 Rates of Excise Duty on Tobacco Products

Description of Product	Rate of Duty
Cigarettes	£65.01 per thousand together with an amount equal to 17.53 per cent of the price at which the cigarettes are sold by retail
Cigars	£99.115 per kilogram
Fine-cut tobacco for the rolling of cigarettes	£83.638 per kilogram
Other smoking tobacco	£68.762 per kilogram

SCHEDULE 8 Stamp Duty Enactments Repealed

Session and Chapter or Number and Year	Short Title	Extent of Repeal
(1)	(2)	(3)
11 Geo. 4 & 1 Will. 4, c. 68.	Carriers Act, 1830.	In section 3 the words “, which receipt shall not be liable to any stamp duty”.
14 & 15 Vict., c. 93.	Petty Sessions (Ireland) Act, 1851.	Section 40.
38 & 39 Vict., c. 82.	National School Teachers Residences (Ireland) Act, 1875.	Section 6.
54 & 55 Vict., c. 39.	Stamp Act, 1891.	Section 6; In section 7 (inserted by the Finance Act, 1984) the words “of an amount not exceeding 7p” and the words “not appropriated by any word or words on the face of them to any particular description of instrument”; In section 8(1) the words “, or for any postal purpose,”; In section 9(1)(a) the words “or uses for any postal purpose”; Sections 10 and 23(3); In section 32 the words from “; and the expression ‘bill of exchange payable on demand’ includes—” to end of that section; In section 56 the words “or in perpetuity, or for any indefinite period not terminable with life” in subsection (2) and the whole of subsection (3); In section 77 the whole of subsections (3) and (4); Sections 83 and 84; In section 87(1) the words “, and a reconveyance, release, discharge, surrender, re-surrender, warrant to vacate, or renunciation of any such security,”; Section 115; In the First Schedule, under the heading “GENERAL EXEMPTIONS FROM ALL STAMP DUTIES”, the whole of paragraph (1)(iii); Second Schedule.
58 & 59 Vict., c. 16.	Finance Act, 1895.	Section 12.
61 & 62 Vict., c. 46.	Revenue Act, 1898.	Sections 7(4) and 10(3).
No. 28 of 1925.	Finance Act, 1925.	Section 47.
No. 25 of 1926.	Railways (Existing Officers and Servants) Act, 1926.	Section 6.
No. 27 of 1927.	Electricity (Supply) Act, 1927.	Section 86; In section 95 the words “, and also for the purposes of the exemption numbered 3 under the heading ‘Agreement or any memorandum of an agreement’ contained in the First Schedule to that Act”.
No. 39 of 1934.	Agricultural Co-operative Societies (Debentures) Act, 1934.	Section 7(3).
No. 22 of 1942.	Central Bank Act, 1942.	Section 15(3).
No. 21 of 1944.	Transport Act, 1944.	In section 58 the whole of subsections (1) and (3).
No. 4 of 1945.	Tuberculosis (Establishment of Sanatoria) Act, 1945.	Section 3.
No. 31 of 1945.	National Stud Act, 1945.	In section 5 the whole of subsections (1) and (2).
No. 33 of 1945.	Johnstown Castle Agricultural College Act, 1945.	Section 9.
No. 10 of 1946.	Turf Development Act, 1946.	Section 68.
No. 33 of 1949.	Irish News Agency Act, 1949.	In section 4 the whole of subsections (1) and (2).
No. 12 of 1950.	Transport Act, 1950.	In section 67 the whole of subsections (1) and (3).
No. 11 of 1953.	Grass Meal (Production) Act, 1953.	Section 4(1).
No. 10 of 1954.	Consular Conventions Act, 1954.	Section 10.
No. 5 of 1955.	Tourist Traffic Act, 1955.	Section 15.
No. 24 of 1957.	Scholarship Exchange (Ireland and the United States of America) Act, 1957.	Section 17.
No. 30 of 1959.	Johnstown Castle Agricultural College (Amendment) Act, 1959.	Section 11.
No. 36 of 1959.	Shannon Free Airport Development Company Limited Act, 1959.	Section 7.
No. 8 of 1962.	State Lands (Workhouses) Act, 1962.	Section 2(6).
No. 32 of 1963.	National Building Agency Limited Act, 1963.	Section 5.
No. 33 of 1963.	Companies Act, 1963.	Section 337(2).
No. 4 of 1966.	Air Companies Act, 1966.	Section 19.
No. 8 of 1966.	National Bank Transfer Act, 1966.	Section 7.
No. 17 of 1966.	Finance Act, 1966.	Section 20.
No. 21 of 1969.	Finance Act, 1969.	Subsections (2) (inserted by the Finance Act, 1976) and (2A) (inserted by the Finance Act, 1981) of section 49; In paragraph (a) of subsection (2B) (inserted by the Finance Act, 1996) of section 49 the words “Notwithstanding subsections (2) and (2A) of this section,” and “(apart from the said subsections (2) and (2A))”.
No. 4 of 1970.	Nítrigin Éireann Teoranta Act, 1970.	Section 8.
No. 14 of 1971.	Transport (Miscellaneous Provisions) Act, 1971.	Section 19.
No. 21 of 1973.	Dairy Produce (Miscellaneous Provisions) Act, 1973.	Section 3(6).
No. 27 of 1976.	Family Home Protection Act, 1976.	In section 14 the words “stamp duty,”.
No. 30 of 1976.	Gas Act, 1976.	Section 35(8).
No. 4 of 1978.	Medical Practitioners Act, 1978.	Section 7(8).
No. 32 of 1981.	Youth Employment Agency Act, 1981.	Section 29(1).
No. 11 of 1984.	Wool Marketing Act, 1984.	Section 3(8).
No. 9 of 1985.	Dentists Act, 1985.	Section 7(8).
No. 18 of 1985.	Nurses Act, 1985.	Section 7(8).
No. 15 of 1987.	Labour Services Act, 1987.	Section 27.
No. 34 of 1987.	Dublin Transport Authority (Dissolution) Act, 1987.	Section 6.
No. 18 of 1988.	Agriculture (Research, Training and Advice) Act, 1988.	Section 29.
No. 28 of 1988.	Housing Act, 1988.	Section 4(2)(b).
No. 9 of 1989.	Bord na gCapall (Dissolution) Act, 1989.	Section 2(8).
No. 10 of 1990.	Finance Act, 1990.	In section 114 the words “In addition to the provisions of section 14 of the Family Home Protection Act, 1976 (which relates to exemption from stamp duty and certain fees on creation of a joint tenancy in a family home)”.
No. 31 of 1990.	Fóir Teoranta (Dissolution) Act, 1990.	Section 6.
No. 13 of 1991.	Finance Act, 1991.	Section 104(3)(a) (inserted by the Finance Act, 1992).
No. 30 of 1991.	Industrial Development (Amendment) Act, 1991.	Section 6.
No. 9 of 1992.	Finance Act, 1992.	In section 212(2)(a) the words “or section 14 of the Family Home Protection Act, 1976,”.
No. 15 of 1992.	Dublin Institute of Technology Act, 1992.	Section 19(7).
No. 16 of 1992.	Regional Technical Colleges Act, 1992.	Section 18(7).
No. 19 of 1993.	Industrial Development Act, 1993.	Section 17.
No. 18 of 1994.	Irish Horseracing Industry Act, 1994.	Section 76.
No. 25 of 1994.	Milk (Regulation of Supply) Act, 1994.	Section 3(8).
No. 28 of 1995.	Industrial Development Act, 1995.	Section 4(7).
No. 35 of 1995.	Energy (Miscellaneous Provisions) Act, 1995.	Section 14(5).

SCHEDULE 9 Post-Consolidation Amendments

The Taxes Consolidation Act, 1997, is hereby amended in accordance with the following provisions of this Schedule.