FINANCE ACT, 2000

“‘propellant’ means—

• (a) in relation to mineral oil, mineral oil used for combustion in the engine of a motor vehicle, or

• (b) in relation to heavy oil with a sulphur content greater than 50 milligrammes per kilogramme, such heavy oil used for combustion in the engine of a train;”,

and

• (c) the insertion in the definition of “motor vehicle” of “a dumper or” after “a road roller or”.

94 Amendment of paragraph 12 of Imposition of Duties (No. 221) (Excise Duties) Order, 1975 (S.I. No. 307 of 1975).

94.—(1) Paragraph 12 of the Imposition of Duties (No. 221) (Excise Duties) Order, 1975 (S.I. No. 307 of 1975), is amended by the substitution of the following subparagraph for subparagraph (11)

• “(11) Where a person who—

  • (a) carries on a passenger road service within the meaning of section 2 of the Road Transport Act, 1932, pursuant to a passenger licence granted under section 11 of that Act,

  • (b) lawfully carries on, other than pursuant to such a licence, such a passenger road service,

  • (c) provides a school transport service pursuant to an agreement with the Minister for Education and Science, or

  • (d) carries on a passenger road service or provides a school transport service pursuant to an agreement with a person to whom clause (a), (b) or (c), as may be appropriate, applies,

  shows to the satisfaction of the Revenue Commissioners that hydrocarbon oil on which the duty of excise imposed by this paragraph has been paid has been used by such person for combustion in the engine of a mechanically propelled vehicle used in the provision of such service, the Revenue Commissioners shall, subject to compliance with such conditions as they think fit, repay to such person the amount of duty less an amount calculated at the rate of £17.90 per 1,000 litres on hydrocarbon oil so used, on receipt of a claim in respect thereof by such person in such form as they may direct, provided that no repayment may be made in respect of a claim made after the experation of 4 months from the date on which the hydrocarbon oil was so used without the consent of the Revenue Commissioners.”.

• (2) Subparagraph (11) of the said paragraph 12 (inserted by this section) shall, on and from such day as may be specified by order of the Minister for Finance, apply only to hydrocarbon oil with a maximum sulphur content of 50 milligrammes per kilogramme.

• (3) A claim under the said subparagraph (11) may be made—

• (a) subject to subsection (2), in respect of hydrocarbon oil used after the coming into operation of this section, or

• (b) in respect of hydrocarbon oil used at any time during the period commencing on 1 January 1997, or such earlier date as may be prescribed by order of the Revenue Commissioners, and ending on the coming into operation of this section, provided that such claim is made on or before such other date as may be so prescribed.

95 Amendment of section 99 (passenger road services) of Finance Act, 1999.

95.—(1) Section 99 of the Finance Act, 1999, is amended by the substitution of the following subsection for subsection (1):

• “(1) Where a person who—

  • (a) carries on a passenger road service within the meaning of section 2 of the Road Transport Act, 1932, pursuant to a passenger licence granted under section 11 of that Act,

  • (b) lawfully carries on, other than pursuant to such a licence, such a passenger road service,

  • (c) provides a school transport service pursuant to an agreement with the Minister for Education and Science, or

  • (d) carries on a passenger road service or provides a school transport service pursuant to an agreement with a person to whom paragraph (a), (b) or (c), as may be appropriate, applies,

  shows to the satisfaction of the Commissioners that heavy oil on which mineral oil tax has been paid has been used by such person for combustion in the engine of a mechanically propelled vehicle used in the provision of such service, the Commissioners shall, subject to compliance with such conditions as they may think fit, repay to such person the amount of mineral oil tax paid less an amount calculated at the rate of £17.90 per 1,000 litres on such mineral oil so used.”.

• (2) Subsection (1) of the said section 99 (inserted by this section) shall, on and from such day as may be specified by order of the Minister for Finance, apply only to heavy oil with a maximum sulphur content of 50 milligrammes per kilogramme.

96 Hydrocarbon oil used in trains.

96.—(1) In this section “the Order of 1975” means the Imposition of Duties (No. 221) (Excise Duties) Order, 1975 (S.I. No. 307 of 1975).

• (2) Notwithstanding the provisions of paragraph 12(3) of the Order of 1975, the rebate allowed under that paragraph shall, in respect of hydrocarbon oil used in the engine of a train, apply only to such oil with a maximum sulphur content of 50 milligrammes per kilogramme.

• (3) It shall be an offence for a person to use for combustion in the engine of a train, or to keep in the fuel tank of a train, hydrocarbon oil that has a sulphur content greater than 50 milligrammes per kilogramme—

• (a) where any duty of excise payable in respect thereof under paragraph 12(1) of that Order has not been paid, or

• (b) on which a rebate under paragraph 12(3) of that Order has been allowed.

• (4) Without prejudice to any other penalty to which a person may be liable, where such person is guilty of an offence under subsection (3), he or she shall be liable on summary conviction to a fine of £1,000.

• (5) References in subsection (13) and subsection (13A) (inserted by section 78 of the Finance Act, 1974) of section 21 of the Finance Act, 1935, to a motor vehicle shall be construed as including references to a train.

• (6) This section shall come into operation on such day as the Minister for Finance may appoint by order.

97 Amendment of section 103 (presumptions in certain proceedings) of Finance Act, 1999.

97.—Section 103 of the Finance Act, 1999, is amended by the substitution of the following subsection for subsection (1):

• “(1) Where, in proceedings for an offence under section 102 consisting of the use of mineral oil as a propellant, or the keeping of mineral oil in a fuel tank in contravention of that section, it is proved that a fuel tank contained mineral oil, it shall be presumed (unless the contrary is proved) that such mineral oil was used as a propellant or kept in the fuel tank concerned in contravention of that section, as may be appropriate, and to have been so used or kept by—

  • (a) the owner of the vehicle concerned or, if a person other than the owner was, at the time of the alleged commission of the offence, entitled to the possession of the vehicle, the person so entitled, and

  • (b) any other person who at the time of the alleged commission of the offence was in charge of the vehicle.”.

98 Amendment of section 104 (appeals to Revenue Commissioners) of Finance Act, 1995.

98.—Section 104 of the Finance Act, 1995, is amended—

• (a) by the insertion of the following subsection after subsection (2):

• “(2A) Any person who is the subject of any of the following acts of the Commissioners:

  • (a) a refusal to approve a person as an authorised warehousekeeper or a premises as a tax warehouse under section 105 of the Finance Act, 1992, or a revocation, under that section, of any such approval that has been granted,

  • (b) a refusal to approve a person as a tax representative under section 108 of the Finance Act, 1992, or a revocation, under that section, of any such approval that has been granted,

  • (c) a refusal to grant registration of a trader under section 110(4) of the Finance Act, 1992, or a revocation, under that section, of any such registration that has been granted,

  • (d) a decision in relation to the registration of a vehicle, or the amendment of an entry in or the deletion of an entry from, the register referred to in section 131 of the Finance Act, 1992, by the Commissioners, or on their behalf, under that section 131,

  • (e) a determination of an open market selling price of a vehicle under section 133(2) of the Finance Act, 1992, or

  • (f) a granting, refusal or revocation of an authorisation under section 136 of the Finance Act, 1992, or a decision in relation to the arrangements for payment of vehicle registration tax under that section 136,

  may appeal against such an act to the Commissioners.”;

• (b) in subsection (3), by the substitution of “(1), (2) or (2A)” for “(1) or (2)”; and

• (c) in subsection (4), by the substitution of the following paragraphs for paragraphs (c) and (d):

• “(c) the repayment of a duty of excise,

• (d) the notification by the Commissioners of a refusal of a repayment by them of a duty of excise, or

• (e) the notification by the Commissioners of the doing by them of an act referred to in subsection (2A),”.

99 Delegation of certain powers of the Revenue Commissioners.

99.—Chapter IV of Part II of the Finance Act, 1992, is amended—

• (a) by the insertion of the following section after section 130A:

“130B.—(1) For the purposes of this Chapter, and subject to the direction and control of the Commissioners, any power, function or duty conferred or imposed on them may, subject to subsection (2), be exercised or performed on their behalf by an officer of the Commissioners.

• (2) Any power, function or duty conferred or imposed on the Commissioners by—

  • (a) paragraph (c) of subsection (1) of section 131,

  • (b) paragraphs (c) and (d) of subsection (2) of section 133, or

  • (c) subsections (2) and (3) of section 136,

  may be exercised or performed on their behalf, and subject to their direction and control, by an officer of the Commissioners authorised by them in writing for the purposes of that section.”,

and

• (b) in section 131A by the deletion of subsection (8).

100 Amendment of section 131 (registration of vehicles by Revenue Commissioners) of Finance Act, 1992.

100.—Section 131 of the Finance Act, 1992, is amended by the substitution of the following subsection for subsection (5):

• “(5) The Commissioners shall assign in the prescribed manner a unique identification mark to each vehicle entered in the register and shall cause to be issued to the owner of the vehicle a certificate of registration in the prescribed form in respect of each such vehicle.”.

101 Amendment of section 133 (chargeable value of Finance Act. 1992.

101.—Section 133 of the Finance Act, 1992, is amended in subsection (2)—

• (a) by the substitution of the following paragraph for paragraph (c):

• “(c) Notwithstanding the provisions of paragraph (b), where a price stands declared for a vehicle in accordance with this subsection which, in the opinion of the Commissioners, is higher or lower than the open market selling price at which a vehicle of that model and specification or a vehicle of a similar type and character is being offered for sale in the State while such price stands declared, the open market selling price may be determined from time to time by the Commissioners for the purposes of this section.”,

and

• (b) in paragraph (d) (inserted by the Finance (No. 2) Act, 1992). by the substitution of “may be determined from time to time” for “may be determined”.

102 Excise duty on foreign travel.

102.—The duty of excise on the issue of passenger tickets imposed by subsection (2) of section 65 of the Finance Act, 1982, shall not be charged or levied on or after 1 January 2000.

103 Excise duty on public dancing licence, occasional licence, special exemption order and authorisation to a club.

103.—Section 78 of the Finance Act, 1980, is amended—

• (a) by the substitution of the following subsection for subsection (6):

• “(6) The duty imposed by this section on a licence shall be paid to the Courts Service for and on behalf of the Revenue Commissioners, or to such other body as may be appointed by the Commissioners, on the lodging of the notice in writing of the application for the licence with the appropriate District Court Clerk.”,

and

• (b) by the substitution of the following subsection for subsection (7):

• “(7) Notwithstanding anything to the contrary contained in any Act, a licence which is liable to a duty imposed by this section shall not be granted unless the duty has been paid in accordance with subsection (6).”

104 Excise duty on registration of clubs.

104.—Section 48 of the Finance Act, 1989, is amended—

• (a) by the deletion of subsection (1),

• (b) by the substitution of the following subsection for subsection (3):

• “(3) The duty imposed by this section on a certificate of registration shall be paid to the Courts Service for and on behalf of the Revenue Commissioners, or to such other body as may be appointed by the Commissioners, on the lodging of the application in writing for registration or renewal of registration under section 2 of the Registration of Clubs (Ireland) Act, 1904, with the appropriate District Court Clerk.”,

and

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

• “(4) Notwithstanding anything to the contrary contained in any Act, a certificate of registration of a club which is liable to the duty imposed by this section shall not be granted unless the duty has been paid in accordance with subsection (3).”.

105 Imposition of duty on liquor licences for National Cultural Institutions.

105.—(1) There shall be charged, levied and paid on every licence granted pursuant to section 62 of the National Cultural Institutions Act, 1997, and on the due renewal of every such licence a duty of excise of £200.

• (2) A licence granted by the Revenue Commissioners pursuant to section 62 of the National Cultural Institutions Act, 1997, shall expire at midnight on the next following 30 September after the commencement of the period to which the licence relates.

106 Tax clearance in relation to excise licences.

106.—Section 62 of the National Cultural Institutions Act, 1997, is amended by the insertion of the following after subsection (2):

• “(2A) Notwithstanding anything to the contrary in any other enactment, a licence shall not be granted or renewed by the Revenue Commissioners under this section in respect of any period commencing on or after 1 October 2000 unless a tax clearance certificate in relation to the licence or its renewal has been issued in accordance with section 1094 of the Taxes Consolidation Act, 1997.”.

PART 3 Value-Added Tax

107 Interpretation (Part 3).

107.—In this Part—

“Principal Act” means the Value-Added Tax Act, 1972;

“Act of 1978” means the Value-Added Tax (Amendment) Act, 1978;

“Act of 1992” means the Finance Act, 1992;

“Act of 1999” means the Finance Act, 1999.

108 Amendment of section 1 (interpretation) of Principal Act.

108.—Section 1 of the Principal Act is amended by the substitution for the definition of “telecommunications services” of the following:

“‘telecommunications services’ means services relating to the transmission, emission or reception of signals, writing, images and sounds or information of any nature by wire, radio, optical or other electromagnetic systems and includes—

• (a) the related transfer or assignment of the right to use capacity for such transmission, emission or reception. and

• (b) the provision of access to global information networks;”.

109 Amendment of section 6A (special scheme for investment gold) of Principal Act.

109.—Section 6A (inserted by the Act of 1999) of the Principal Act is amended—

• (a) by the substitution in paragraph (a) of subsection (2) of “investment gold, including investment gold which is represented by securities” for “investment gold which is represented by securities”,

and

• (b) by the insertion of the following subsection after subsection (8):

• “(9) Every trader in investment gold shall establish the identity of any person to whom such trader supplies investment gold when the total consideration which such trader is entitled to receive in respect of such supply, or a series of such supplies which are or appear to be linked, amounts to at least 15,000 euros, and such trader shall retain a copy of all documents used to identify the person to whom the investment gold is supplied as if they were records to be kept in accordance with section 16(1A) of this Act.”.

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

110.—Section 8 of the Principal Act is amended—

• (a) in subsection (5):

• (i) by the substitution of “goods or services, other than services of the kind referred to in paragraph (xiii) of the Sixth Schedule,” for “such goods or services”, and

• (ii) by the substitution of “goods or services, other than services of the kind referred to in paragraph (xiii) of the Sixth Schedule.” for “goods or services.”,

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

• “(5A)

  • (a) Notwithstanding subsection (5), provision may be made by regulation for the cancellation, by the request of a person who supplies services of the kind referred to in paragraph (xiii) of the Sixth Schedule, of an election made by such person under this section and for the payment by such person to the Revenue Commissioners, in addition to any amount payable in accordance with subsection (5), of such an amount (hereafter referred to in this subsection as the ‘cancellation amount’), as shall be determined in accordance with paragraph (b), as a condition of cancellation and the cancellation amount shall be payable as if it were tax due in accordance with section 19 for the taxable period in which the cancellation comes into effect.

  • (b) (i) Where the person referred to in paragraph (a)—

    • (I) was entitled to deduct tax in accordance with section 12 in respect of the acquisition, purchase or development of immovable goods used by that person in the course of a supply of services of a kind referred to in paragraph (xiii) of the Sixth Schedule, or

    • (II) would be entitled to deduct tax in accordance with section 12 in respect of the acquisition, as a result of a transfer to that person, of immovable goods used by that person in the course of a supply of services of a kind referred to in paragraph (xiii) of the Sixth Schedule, if that tax had been chargeable but for the application of the provisions of section 3(5)(b)(iii) on that transfer,

    then, in respect of each such acquisition, purchase or development, an amount (hereafter referred to in this subsection as the ‘adjustment amount’) shall be calculated in accordance with subparagraph (ii) and the cancellation amount shall be the sum of the adjustment amounts so calculated or, if there is only one such adjustment amount, that amount: but if there is no adjustment amount, the cancellation amount is nil.

    • (ii) The adjustment amount shall be determined by the formula—

    	A x (10 - B)
    	10

    where—

    A is—

    - (I) the amount of tax deductible in respect of the said acquisition, purchase or development of the said immovable goods, or
    
    - (II) the amount of tax that would be deductible in respect of the said acquisition of the said immovable goods if the provisions of section 3(5)(*b*)(iii) had not applied to the transfer of those immovable goods,
    
      and
    
      B is the number of full years for which the said goods were used by the person in the course of the supply of services of a kind referred to in paragraph (xiii) of the Sixth Schedule: but if the said number of full years is in excess of 10, such adjustment amount shall be deemed to be nil.
    

  • (c) For the purposes of paragraph (b) a full year shall be any continuous period of 12 months.”,

and

• (c) in subsection (6) (inserted by the Act of 1992) by the insertion after “subsection (5)” of “of subsection (5A)”.

111 Amendment of section 11 (rates of tax) of Principal Act.

111.—Section 11 of the Principal Act is amended in subsection (1) (inserted by the Act of 1992) by the substitution in paragraph (f) of “4.2 per cent” for “4 per cent” (inserted by the Act of 1999).

112 Amendment of section 12 (deduction for tax borne or paid) of Principal Act.

112.—Section 12 of the Principal Act is amended—

• (a) by the insertion in paragraph (a) of subsection (1) of the following subparagraph after subparagraph (via) (inserted by the Act of 1999):

“(vib) the residual tax referred to in section 12C, being residual tax contained in the price charged to the taxable person for the purchase of agricultural machinery (within the meaning of section 12C), by means of documents issued to that person during the period in accordance with section 12C(1B),”,

and

• (b) by the substitution of the following for subsection (4):

• “(4)

  • (a) In this subsection—

  ‘deductible supplies or activities’ means the supply of taxable goods or taxable services, or the carrying out of qualifying activities as defined in subsection (1)(b);

  ‘dual-use inputs’ means goods or services (other than goods or services on the purchase or acquisition of which, by virtue of subsection (3), a deduction of tax shall not be made) which are not used solely for the purposes of either deductible supplies or activities or non-deductible supplies or activities;

  ‘non-deductible supplies or activities’ means the supply of goods or services or the carrying out of activities other than deductible supplies or activities;

  ‘total supplies and activities’ means deductible supplies or activities and non-deductible supplies or activities.

  • (b) Where a taxable person engages in both deductible supplies or activities and non-deductible supplies or activities then, in relation to that person’s acquisition of dual-use inputs for the purpose of that person’s business for a period, that person shall be entitled to deduct in accordance with subsection (1) only such proportion of tax, borne or payable on that acquisition, which is calculated in accordance with the provisions of this subsection and regulations, as being attributable to that person’s deductible supplies or activities and such proportion of tax is, for the purposes of this subsection, referred to as the ‘proportion of tax deductible’.

  • (c) For the purposes of this subsection and regulations, the proportion of tax deductible by a taxable person for a period shall be calculated on any basis which results in a proportion of tax deductible which correctly reflects the extent to which the dual-use inputs are used for the purposes of that person’s deductible supplies or activities and has due regard to the range of that person’s total supplies and activities.

  • (d) The proportion of tax deductible may be calculated on the basis of the ratio which the amount of a person’s tax-exclusive turnover from deductible supplies or activities for a period bears to the amount of that person’s tax-exclusive turnover from total supplies and activities for that period but only if that basis results in a proportion of tax deductible which is in accordance with paragraph (c).

  • (e) Where it is necessary to do so to ensure that the proportion of tax deductible by a taxable person is in accordance with paragraph (c), a taxable person shall—

    • (i) calculate a separate proportion of tax deductible for any part of that person’s business, or

    • (ii) exclude, from the calculation of the proportion of tax deductible, amounts of turnover from incidental transactions by that person of the type specified in paragraph (i) of the First Schedule or amounts of turnover from incidental transactions by that person in immovable goods.

  • (f) The proportion of tax deductible as calculated by a taxable person for a taxable period may be adjusted in accordance with regulations, if, for the accounting period in which the taxable period ends, that proportion does not correctly reflect the extent to which the dual-use inputs are used for the purposes of that person’s deductible supplies or activities or does not have due regard to the range of that person’s total supplies and activities.”.

113 Amendment of section 12A (special provisions for tax invoiced by flat-rate farmers) of Principal Act.

113.—Section 12A (inserted by the Act of 1978) of the Principal Act is amended in subsection (1) by the substitution of “4.2 per cent” for “4 per cent” (inserted by the Act of 1999).

114 Amendment of section 12C (special scheme for agricultural machinery) of Principal Act.

114.—Section 12C (inserted by the Act of 1999) of the Principal Act is amended by the insertion of the following subsections after subsection (1):

• “(1A) A taxable dealer who purchases agricultural machinery from a person where the disposal of that agricultural machinery by such person to such taxable dealer was deemed in accordance with section 3(5)(c) not to be a supply of goods shall, subject to the provisions of this section and in accordance with subparagraph (vib) of paragraph (a) of subsection (1) of section 12, be entitled to deduct the residual tax, determined by the formula in subsection (3), contained in the price payable by such taxable dealer in respect of that purchase.

• (1B) A person who disposes of agricultural machinery to a taxable dealer where the disposal of that agricultural machinery by such person to such taxable dealer was deemed in accordance with section 3(5)(c) not to be a supply of goods shall issue a document to the taxable dealer to whom the disposal is made and shall indicate on the document—

  • (a) that person’s name and address,

  • (b) the name and address of the taxable dealer,

  • (c) the date of issue of the document,

  • (d) a description of the agricultural machinery, including details of the make, model and, where appropriate, the year of manufacture, the engine number and registration number of that machinery,

  • (e) the consideration for the disposal of the agricultural machinery,

  • (f) confirmation that the disposal is deemed in accordance with section 3(5)(c) not to be a supply of goods, and

  • (g) such other particulars as may be specified by regulations, if any.”.

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

115.—Section 17 of the Principal Act is amended by the insertion in subsection (1AB) (inserted by the Finance Act, 1996) after “subsection (1AA)” of “or section 12C (1B)”.

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

116.—Section 20 of the Principal Act is amended—

• (a) by the insertion in subsection (3) of the following paragraph after paragraph (b):

• “(bb) An order under this subsection may, if so expressed, have retrospective effect.”,

• (b) by the substitution in subsection (5) of the following paragraph for paragraph (a)—

• “(a) Where, due to a mistaken assumption in the operation of the tax, whether that mistaken assumption was made by a taxable person, any other person or the Revenue Commissioners, a person—

  • (i) accounted, in a return furnished to the Revenue Commissioners, for an amount of tax for which that person was not properly accountable, or

  • (ii) did not, because that person’s supplies of goods and services were treated as exempted activities, furnish a return to the Revenue Commissioners and, therefore, did not receive a refund of an amount of tax in accordance with subsection (1), or

  • (iii) did not deduct an amount of tax in respect of qualifying activities, as defined in section 12(1)(b), which that person was entitled to deduct,

  then, in respect of the total amount of tax referred to in subparagraphs (i), (ii) or (iii) (in this subsection referred to as the ‘overpaid amount’) that person may claim a refund of the overpaid amount and the Revenue Commissioners shall, subject to the provisions of this subsection, refund to the claimant the overpaid amount unless that refund would result in the unjust enrichment of the claimant.”,

• (c) by the substitution in subsection (5)(d)(i) of “a loss of demand for those goods or services, for the period for which the claim is being made”, for “a loss of turnover”, and

• (d) by the substitution in subsection (5)(d)(iii) of “loss of demand” for “loss of turnover”.

117 Amendment of section 22 estimation of tax due for a taxable period) of Principal Act.

117.—Section 22 of the Principal Act is amended in subsections (1) and (2) by the substitution of “period” for “taxable period” wherever it occurs.

118 Amendment of section 23 (assessment of tax due for any period) of Principal Act.

118.—Section 23 (inserted by the Act of 1978) of the Principal Act is amended in subsection (1):

• (a) by the deletion of “consisting of one taxable period or of two or more consecutive taxable periods”, and

• (b) by the deletion of “the taxable period or periods comprised in”.

119 Amendment of section 25 (appeals) of Principal Act.

119.—Section 25 of the Principal Act is amended in clause (i) of subsection (2) by the substitution of “periods” for “taxable periods”.

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

120.—Section 27 of the Principal Act is amended by the deletion of subsection (8).

121 Amendment of section 32 (regulations) of Principal Act.

121.—Section 32 of the Principal Act is amended in paragraph (ag) (inserted by the Act of 1992) of subsection (1) by the deletion of “by tax-free shops”.

122 Amendment of First Schedule to Principal Act.

122.—The First Schedule to the Principal Act is amended in paragraph (xv) (inserted by the Finance Act, 1980) by the insertion after “Finance Act, 1994,” of “of bets of the kind referred to in section 75 of the Finance Act, 1996,”.

123 Amendment of Second Schedule to Principal Act.

123.—The Second Schedule to the Principal Act is amended—

• (a) by the substitution of the following paragraph for paragraph (ia) (inserted by the Finance Act, 1994):

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

• (a) the supply of goods, in a tax-free shop approved by the Revenue Commissioners, to travellers departing the State for a place outside the Community, or

• (b) the supply, other than by means of a vending machine, of food, drink and tobacco products on board a vessel or aircraft to passengers departing the State for another Member State, for consumption on board that vessel or aircraft;”,

• (b) by the insertion in paragraph (vb) (inserted by the Finance Act, 1993) after “paragraph (v)” of “but not including goods for supply on board such vessels or aircraft to passengers for the purpose of those goods being carried off such vessels or aircraft”, and

• (c) by the insertion in subparagraph (a) of paragraph (xva) (inserted by the Finance Act, 1998) after “catalogues” of “, directories”.

124 Revocation (Part 3).

124.—The European Communities (Value-Added Tax) Regulations, 1999 (S.I. No. 196 of 1999), shall be deemed to have been revoked with effect from 1 July 1999.

PART 4 Stamp Duties

125 Interpretation (Part 4).

125.—In this Part “Principal Act” means the Stamp Duties Consolidation Act, 1999.

126 Amendment of section 81 (relief from stamp duty in respect of transfers to young trained farmers) of Principal Act.

126.—(1) Section 81 of the Principal Act is amended:

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

• “(2) No stamp duty shall be 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 Schedule 1 on any instrument to which this section applies.”,

• (b) by the substitution of the following subsection for subsection (6):

• “(6) Subsection (2) shall not apply to an instrument unless it has, in accordance with section 20, been stamped with a particular stamp denoting that it is not chargeable with any duty or that it is duly stamped.”,

• (c) by the substitution of the following subsection for subsection (7):

• “(7)

  • (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 one 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 penalty equal to 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 together with interest on that amount as may so become payable charged at a rate of 1 per cent per month or part of a month from the date of disposal of the land to the date the penalty is remitted.

  • (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 subsection (3)—

    • (i) was 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 penalty an amount equal to 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, together with interest on that amount as may so become payable charged at a rate of 1 per cent per month or part of a month from the date when the instrument was executed to the date the penalty is remitted.”,

and

• (d) in subsection (9) by the substitution of “31 December 2002” for “31 December 1999”.

• (2) Subsection (1) shall apply and have effect in relation to instruments executed on or after 1 January 2000.

127 Amendment of section 86 (exemption from stamp duty in respect of certain loan stock) of Principal Act.

127.—(1) Section 86 of the Principal Act is amended in paragraph (b)—

• (a) by the substitution of “ICC Bank public limited company” for “Industrial Credit Corporation p.l.c.”, and

• (b) by the deletion of “Bord Telecom Éireann,”.

• (2)
• (a) Subsection (1)(a) shall have effect in relation to transfers of loan stock executed on or after 10 February 2000.

• (b) Subsection (1)(b) shall have effect in relation to transfers of loan stock executed where the loan stock was issued on or after 10 February 2000.

128 Amendment of section 87 (stock borrowing) of Principal Act.

128.—(1) Section 87 of the Principal Act is amended—

• (a) in subsection (1)—

• (i) by the deletion of the definition of “stock” and the definition of “stock borrower”, and

• (ii) by the substitution of the following definition for the definition of “stock borrowing”:

“‘stock borrowing’ means a transaction in which a person other than an individual (in this section referred to as the ‘stock borrower’)—

• (a) obtains stock from another person other than an individual (in this section referred to as the ‘lender’), and

• (b) gives an undertaking to provide to the lender, not later than 6 months after the date on which the said stock borrower obtained the stock referred to in paragraph (a), equivalent stock;”,

• (b) in subsection (3) by the substitution of “6 months” for “3 months” in both places where it occurs, and

• (c) in subsection (4)—

• (i) by the insertion of “, for a period of 3 years from the date of the stock borrowing,” after “maintain”, and

• (ii) by the deletion of paragraph (a).

• (2)
• (a) Paragraphs (a) and (b) of subsection (1) shall apply to stock borrowing transactions entered into on or after 6 April 1999, and

• (b) Subsection (1)(c) shall apply to stock borrowing transactions entered into on or after 10 February 2000.

129 Stock repo.

129.—(1) The Principal Act is amended in Part 7 by the insertion in Chapter 2 of the following section after section 87:

“87A.—(1) In this section—

‘equivalent stock’ has the meaning assigned to it by section 87 subject to references—

• (a) to ‘obtained from the lender’ being read as ‘transferred to the repo buyer’,

• (b) to ‘stock borrowing’ being read as ‘stock transfer’,

• (c) to ‘lender’ being read as ‘repo seller’,

• (d) to ‘stock borrower’ being read as ‘repo buyer’,

• (e) to ‘borrowed stock’ being read as ‘stock transferred’, and

• (f) to ‘borrower’ being read as ‘repo buyer’;

‘repurchase agreement’ means an agreement between a person other than an individual (in this section referred to as the ‘repo seller’) and another person other than an individual (in this section referred to as the ‘repo buyer’) whereby the repo seller agrees to sell stock to the repo buyer on terms that the repo seller will repurchase, and the repo buyer will resell, equivalent stock not later than 6 months after the date of the stock transfer;

‘stock return’ means a transaction or transactions whereby a repo buyer conveys equivalent stock to a repo seller in pursuance of a repurchase agreement and within the 6 month time limit referred to in the repurchase agreement;

‘stock transfer’ means a transaction whereby a repo seller conveys stock to a repo buyer in pursuance of a repurchase agreement.

• (2) Stamp duty shall not be chargeable on a stock transfer or on a stock return.

• (3) If and to the extent that the repo seller does not repurchase or cause to be repurchased from the repo buyer before the expiration of the period of 6 months from the date of the stock transfer equivalent stock the repo buyer shall pay to the Revenue Commissioners within 14 days after the expiration of that period the amount of ad valorem duty which would have been chargeable on the stock so transferred if this section had not been enacted.

• (4) If any repo buyer fails to duly pay any sum which that repo buyer is liable to pay under subsection (3), that sum, together with—

  • (a) interest on that sum at the rate of 1 per cent per month or part of a month from the first day after the expiration of the period of 6 months referred to in subsection (3) to the date of payment of that sum, and

  • (b) by means of further penalty, a sum equal to 1 per cent of the duty for each day the duty remains unpaid,

  shall be recoverable from the repo buyer as a debt due to the Minister for Finance for the benefit of the Central Fund.

• (5) Every repo buyer shall maintain, for a period of 3 years from the date of the stock transfer, separate records of each stock transfer and any stock return made in respect of that stock transfer and such records shall include, in respect of each stock transfer, the following:

  • (a) the name and address of the repo seller;

  • (b) the type, nominal value, description and amount of the stock transferred by the repo seller;

  • (c) the date on which the stock was transferred to the repo buyer;

  • (d) the date on which equivalent stock should be repurchased by the repo seller;

  • (e) the type, nominal value, description and amount of the stock returned by the repo buyer to the repo seller and the date of such return;

  • (f) where paragraph (a), (b), (c), (d), (e), (f), (g) or (h) of the definition of ‘equivalent stock’ applies, full details of that equivalent stock.”.

• (2) This section shall apply—

• (a) in relation to subsections (1) and (2) of section 87A, to a stock transfer and a stock return in respect of such stock transfer each of which are executed on or after 6 April 1999, and

• (b) in relation to subsections (3), (4) and (5) of section 87A, to a stock transfer and a stock return in respect of such stock transfer each of which are executed on or after 10 February 2000.

130 Reorganisation of undertakings for collective investment.

130.—(1) The Principal Act is amended by the insertion of the following section after section 88:

“88A.—Stamp duty shall not be chargeable on any conveyance or transfer of assets in respect of which no chargeable gain accrues by virtue of section 739A (inserted by the Finance Act, 2000) of the Taxes Consolidation Act, 1997.”.

• (2) This section shall apply and have effect in relation to a conveyance or transfer executed on or after the date of the passing of this Act.

131 Amendment of section 97 (certain transfers following the dissolution of a marriage) of Principal Act.

131.—(1) Section 97 of the Principal Act is amended in subsection (2):

• (a) by the deletion in subparagraph (i) of paragraph (a) of “or”,

• (b) by the substitution in subparagraph (ii) of paragraph (a) of “1996, or” for “1996.”, and

• (c) by the insertion of the following subparagraph after subparagraph (ii):

• “(iii) to an order or other determination to like effect, which is analogous to an order referred to in subparagraph (i) or (ii), of a court under the law of another territory made under or in consequence of the dissolution of a marriage, being a dissolution that is entitled to be recognised as valid in the State.”.

• (2) This section shall apply to an order or other determination to like effect where the order or the determination is made on or after 10 February 2000.

132 Relief in respect of certain payments of stamp duty.

132.—(1) The Principal Act is amended in Part 8 by the insertion of the following section after section 120:

“120A.—The statement required to be delivered pursuant to this Part in respect of a transaction specified in section 116(1)(c) shall, in any case where, within the period of 4 years immediately before the date of the transaction and on or after 4 August 1973, there has been a reduction in the issued capital of the capital company concerned as a result of losses sustained by the company, be charged at the rate of zero per cent in respect of so much of the amount determined in accordance with section 118 as corresponds to the reduction in issued capital or to so much of the reduction in issued capital to which the rate of zero per cent had not been applied in respect of an earlier transaction occurring since the reduction in capital.”.

• (2) This section shall apply and have effect in relation to transactions executed on or after 15 December 1999.

133 Amendment of Schedule 1 to Principal Act.

133.—(1) Schedule 1 to the Principal Act is amended—

• (a) by the substitution under the Heading “CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities or a policy of insurance or a policy of life insurance” of the following paragraph for paragraph (15):

“(15) Where in the case of a conveyance or transfer on sale or in the case of a conveyance or transfer operating as a voluntary disposition inter vivos the instrument contains a certificate by the party to whom the property is being conveyed or transferred to the effect that the person becoming entitled to the entire beneficial interest in the property (or, where more than one person becomes entitled to a beneficial interest in the property, each of them) is related to the person or each of the persons immediately theretofore entitled to the entire beneficial interest in the property in one or other of the following ways, that is, as a lineal descendant, parent, grandparent, step-parent, husband or wife, brother or sister of a parent or brother or sister, or lineal descendant of a parent, husband or	“(15) Where in the case of a conveyance or transfer on sale or in the case of a conveyance or transfer operating as a voluntary disposition inter vivos the instrument contains a certificate by the party to whom the property is being conveyed or transferred to the effect that the person becoming entitled to the entire beneficial interest in the property (or, where more than one person becomes entitled to a beneficial interest in the property, each of them) is related to the person or each of the persons immediately theretofore entitled to the entire beneficial interest in the property in one or other of the following ways, that is, as a lineal descendant, parent, grandparent, step-parent, husband or wife, brother or sister of a parent or brother or sister, or lineal descendant of a parent, husband or	“(15) Where in the case of a conveyance or transfer on sale or in the case of a conveyance or transfer operating as a voluntary disposition inter vivos the instrument contains a certificate by the party to whom the property is being conveyed or transferred to the effect that the person becoming entitled to the entire beneficial interest in the property (or, where more than one person becomes entitled to a beneficial interest in the property, each of them) is related to the person or each of the persons immediately theretofore entitled to the entire beneficial interest in the property in one or other of the following ways, that is, as a lineal descendant, parent, grandparent, step-parent, husband or wife, brother or sister of a parent or brother or sister, or lineal descendant of a parent, husband or
wife or brother or sister	...	...	a duty of an amount equal to one-half of the ad valorem stamp duty which, but for the provisions of this paragraph, would be chargeable under this heading but where the calculation results in an amount which is not a multiple of £1 the amount so calculated shall be rounded up to the nearest £.”,

and

• (b) by the substitution in paragraph (1) of the Heading “LEASE” of “£15,000” for “£6,000”.

• (2)
• (a) Subsection (1)(a) shall have effect in relation to instruments executed on or after 10 February 2000.

• (b) Subsection (1)(b) shall have effect in relation to instruments executed on or after 1 December 1999.

PART 5 Residential Property Tax

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

134.—(1) Section 100 of the Finance Act, 1983, is amended in subsection (1) by the substitution in the definition of “general exemption limit” of “£300,000” for “£200,000” (inserted by the Finance Act, 1999) and of “2000” for “1999” (as so inserted).

• (2) This section shall have effect in relation to any valuation date (within the meaning of section 95(1) of the Finance Act, 1983) occurring on or after 5 April 2000.

135 Amendment of section 110A (clearance on sale of certain residential property) of Finance Act, 1983.

135.—(1) Section 110A (inserted by the Finance Act, 1993) of the Finance Act, 1983, is amended by the insertion of the following subsection after subsection (11):

• “(12) Subsection (2) of this section shall not apply to the sale of an estate or interest in residential property which has been previously acquired after 5 April 1996 by a bona fide purchaser for full consideration in money or money’s worth.”.

• (2) This section shall apply and have effect in relation to the sale of an estate or interest in residential property (within the meaning of Part VI of the Finance Act, 1983) completed after 10 February 2000.

PART 6 Capital Acquisitions Tax

136 Interpretation

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

137 Amendment of section 2 (interpretation) of Principal Act.

137.—(1) Section 2 of the Principal Act is amended by the insertion after subsection (5) of the following subsection:

• “(5A) For the purposes of this Act—

  • (a) a reference to a person being resident in the State on a particular date shall be construed as a reference to that person being resident in the State in the year of assessment in which that date falls (but, for those purposes, the provisions of Part 34 of the Taxes Consolidation Act, 1997, relating to residence of individuals shall not be construed as requiring a year of assessment to have elapsed before a determination of whether or not a person is resident in the State on a date falling in that year may be made), and

  • (b) a reference to a person being ordinarily resident in the State on a particular date shall be construed as a reference to that person being ordinarily resident in the State in the year of assessment in which that date falls.”.

• (2) This section shall have effect in relation to gifts or inheritances taken on or after 1 December 1999.

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

138.—(1) Section 6 of the Principal Act is amended by—

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

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

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

  • (b) in the case of a gift taken under a discretionary trust where the disponer is resident or ordinarily resident in the State at the date of the disposition under which the donee takes the gift or at the date of the gift or was (in the case of a gift taken after the death of the disponer) so resident or ordinarily resident at the date of that death, the whole of the gift;

  • (c) in the case where the donee is resident or ordinarily resident in the State at the date of the gift, the whole of the gift; and

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

• (b) the substitution of the following subsections for subsection (3):

• “(3) For the purposes of subsection (1), a person who is not domiciled in the State on a particular date shall be treated as not resident and not ordinarily resident in the State on that date unless—

  • (a) that date occurs on or after 1 December 2004,

  • (b) that person has been resident in the State for the 5 consecutive years of assessment immediately preceding the year of assessment in which that date falls, and

  • (c) that person is either resident or ordinarily resident in the State on that date.

• (4)

  • (a) In this subsection—

  ‘company’ means a private company within the meaning assigned to it by section 16(2);

  ‘company controlled by the donee’ has the same meaning as is assigned to ‘company controlled by the donee or successor’ by section 16(3);

  ‘share’ has the meaning assigned to it by section 16(2).

  • (b) For the purposes of subsection (1)(d), a proportion of the market value of any share in a private company incorporated outside the State which (after the taking of the gift) is a company controlled by the donee shall be deemed to be a sum situate in the State and shall be the amount determined by the following formula—

  	A x	B
  		C

  where—

  A is the market value of that share at the date of the gift ascertained under section 16,

  B is the market value of all property in the beneficial ownership of that company which is situate in the State at the date of the gift, and

  C is the total market value of all property in the beneficial ownership of that company at the date of the gift.

  • (c) Paragraph (b) shall not apply in a case where the disponer was domiciled outside the State at all times up to and including the date of the gift or, in the case of a gift taken after the death of the disponer, up to and including the date of that death or where the share in question is actually situate in the State at the date of the gift.”.

• (2) Subject to subsection (3), this section shall have effect in relation to gifts taken on or after 1 December 1999.

• (3) Notwithstanding subsection (2), this section shall not have effect in relation to a gift taken under a disposition where the date of the disposition is before 1 December 1999.

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

139.—(1) Section 12 of the Principal Act is amended by—

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

• “(1) In this Act, ‘taxable inheritance’ means—

  • (a) in the case where the disponer is resident or ordinarily resident in the State at the date of the disposition under which the successor takes the inheritance, the whole of the inheritance;

  • (b) in the case where the successor (not being a successor in relation to a charge for tax arising by virtue of section 106 of the Finance Act, 1984, section 103 of the Finance Act, 1986, or section 110 of the Finance Act, 1993) is resident or ordinarily resident in the State at the date of the inheritance, the whole of the inheritance; and

  • (c) in any case, other than a case referred to in paragraph (a) or (b), where at the date of the inheritance—

    • (i) the whole of the property—

      • (I) which was to be appropriated to the inheritance; or

      • (II) out of which property was to be appropriated to the inheritance,

      was situate in the State, the whole of the inheritance;

    • (ii) a part or proportion of the property—

      • (I) which was to be appropriated to the inheritance; or

      • (II) out of which property was to be appropriated to the inheritance,

      was situate in the State, that part or proportion of the inheritance.”,

• (b) in subsection (2), by the substitution of “subsection (1)(c)” for “subsection (1)(b)”,

• (c) the insertion of the following subsections after subsection (2):

• “(3) For the purposes of subsection (1), a person who is not domiciled in the State on a particular date shall be treated as not resident and not ordinarily resident in the State on that date unless—

  • (a) that date occurs on or after 1 December 2004,

  • (b) that person has been resident in the State for the 5 consecutive years of assessment immediately preceding the year of assessment in which that date falls, and

  • (c) that person is either resident or ordinarily resident in the State on that date.

• (4)

  • (a) In this subsection—

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

  ‘company’ controlled by the successor’ has the same meaning as is assigned to ‘company controlled by the donee or successor’ by section 16(3);

  ‘share’ has the meaning assigned to it by section 16(2).

  • (b) For the purposes of subsection (1)(b), a proportion of the market value of any share in a private company incorporated outside the State which (after the taking of the inheritance) is a company controlled by the successor shall be deemed to be a sum situate in the State and shall be the amount determined by the following formula—

  	A x	B
  		C

  where—

  A is the market value of that share at the date of the inheritance ascertained under section 16,

  B is the market value of all property in the beneficial ownership of that company which is situate in the State at the date of the inheritance, and

  C is the total market value of all property in the beneficial ownership of that company at the date of the inheritance.

  • (c) Paragraph (b) shall not apply in a case where the disponer was not domiciled in the State at the date of the disposition under which the successor takes the inheritance or where the share in question is actually situate in the State at the date of the inheritance.”.

• (2) Subject to subsection (3), this section shall have effect in relation to inheritances taken on or after 1 December 1999.

• (3) Notwithstanding subsection (2), this section shall not have effect in relation to an inheritance taken under a disposition where the date of the disposition is before 1 December 1999.

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

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

• (a) by the substitution of the following definition for the definition of “farmer” in subsection (1):

“‘farmer’, in relation to a donee or successor, means an individual who is domiciled 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—

• (a) no deduction shall be made from the market value of property for any debts or encumbrances, and

• (b) an individual shall be deemed to be beneficially entitled in possession to—

  • (i) an interest in expectancy, notwithstanding the definition of ‘entitled in possession’ in section 2, and

  • (ii) property which is subject to a discretionary trust under or in consequence of a disposition made by the individual where the individual is an object of the trust.”,

• (b) 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 6 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) Paragraph (a) of subsection (1) shall have effect in relation to gifts or inheritances taken on or after 10 February 2000, and paragraph (b) of subsection (1) shall have effect where the sale or compulsory acquisition which causes the agricultural value to cease to be applicable occurs on or after 10 February 2000.

141 Amendment of section 36 (delivery of returns) of Principal Act.

141.—(1) Section 36 of the Principal Act is amended—

• (a) by the substitution of the following subsection for subsection (4):

• “(4) Subsection (2) applies to a charge for tax arising by reason of the provisions of section 106 of the Finance Act, 1984, and to any other gift where—

  • (a) the aggregate of the taxable values of all taxable gifts taken by the donee on or after 2 December 1988, which have the same group threshold (as defined in the Second Schedule) as that other gift, exceeds an amount which is 80 per cent of the threshold amount (as defined in the Second Schedule) which applies in the computation of tax on that aggregate; or

  • (b) the donee or, in a case to which section 23(1) applies, the transferee (within the meaning of, and to the extent provided for by, that section) is required by notice in writing by the Commissioners to deliver a return,

  and for the purposes of this subsection, a reference to a gift includes a reference to a part of a gift or to a part of a taxable gift, as the case may be.”,

• (b) by the substitution of the following paragraph for paragraph (a) of subsection (14):

• “(a) the taxable value of the taxable gift exceeds an amount which is 80 per cent of the group threshold (as defined in the Second Schedule) which applies in relation to that gift for the purposes of the computation of the tax on that gift.”.

• (2) This section shall have effect in relation to gifts or inheritances taken on or after 1 December 1999.

142 Amendment of section 48 (receipts and certificates) of Principal Act.

142.—Section 48 of the Principal Act is amended by—

• (a) the substitution of the following subsections for subsections (3), (4) and (5):

• “(3) The Commissioners shall, on application to them by a person who is an accountable person in respect of any of the property of which a taxable gift or taxable inheritance consists, if they are satisfied that the tax charged on the property in respect of the taxable gift or taxable inheritance has been or will be paid, or that there is no tax so charged, give a certificate to the person, in such form as they think fit, to that effect.

• (3A) Where a person who is an accountable person in respect of the property of which a taxable gift or taxable inheritance consists has—

  • (a) delivered to the Commissioners, a full and true return of all the property comprised in the gift or inheritance on the valuation date and such particulars as may be relevant to the assessment of tax in respect of the gift or inheritance,

  • (b) made on that return an assessment of such amount of tax as, to the best of that person's knowledge, information and belief, ought to be charged, levied and paid, and

  • (c) duly paid the amount of such tax (if any),

  the Commissioners may give a certificate to the person, in such form as they think fit, to the effect that the tax charged on the property in respect of the taxable gift or taxable inheritance has been paid or that there is no tax so charged.

• (4) A certificate referred to in subsection (3) or (3A) shall discharge the property from liability for tax (if any) in respect of the gift or inheritance, to the extent specified in the certificate, but shall not discharge the property from tax in case of fraud or failure to disclose material facts and, in any case, shall not affect the tax payable in respect of any other property or the extent to which tax is recoverable from any accountable person or from the personal representatives of any accountable person:

Provided that a certificate purporting to be a discharge of the whole tax payable in respect of any property included in the certificate in respect of a gift or inheritance shall exonerate from liability for such tax a bona fide purchaser or mortgagee for full consideration in money or money's worth without notice of such fraud or failure and a person deriving title from or under such a purchaser or mortgagee.

• (5) Subject to the provisions of subsection (6), where tax is chargeable on the taxable value of a taxable gift or taxable inheritance and—

  • (a) application is made to the Commissioners by any person (in this section referred to as ‘the applicant’)—

    • (i) who is a person accountable, but not primarily accountable, for the payment of the whole or part of the tax, or

    • (ii) who is the personal representative of any person referred to in subparagraph (i),

    and

  • (b) the applicant—

    • (i) delivers to the Commissioners a full and true return of all the property comprised in the gift or inheritance and such particulars as may be relevant to the assessment of tax in respect of the gift or inheritance, and

    • (ii) makes on that return an assessment of such amount of tax as, to the best of that person's knowledge, information and belief, ought to be charged, levied and paid,

    the Commissioners may, upon payment of the tax assessed by the applicant, give a certificate to the applicant which shall discharge the applicant from any other claim for tax in respect of the gift or inheritance.”,

and

• (b) the deletion of subsection (7).

143 Amendment of section 54 (provisions relating to charities, etc.) of Principal Act.

143.—(1) Section 54 of the Principal Act is amended by the substitution of the following subsection for subsection (1):

• “(1) Where any person takes a benefit for public or charitable purposes that person shall be deemed—

  • (a) for the purposes of sections 5(1) and 11(1), to have taken that benefit beneficially, and

  • (b) for the purposes of the Second Schedule, to have taken a gift or an inheritance accordingly to which the group threshold of £15,000 applies.”.

• (2) This section shall have effect in relation to gifts or inheritances taken on or after 1 December 1999.

144 Amendment of section 55 (exemption of certain objects) of Principal Act.

144.—(1) Section 55 of the Principal Act is amended by the substitution of the following subsection for subsection (4):

• “(4) The exemption referred to in subsection (2) shall cease to apply to an object, if at any time after the valuation date and—

  • (a) before the sale of the object,

  • (b) before the death of the donee or successor, and

  • (c) before such object again forms part of the property comprised in a gift or an inheritance (other than an inheritance arising by virtue of section 103 of the Finance Act, 1986) in respect of which gift or inheritance an absolute interest is taken by a person other than the spouse of that donee or successor,

  there has been a breach of any condition specified in paragraph (b) or (c) of subsection (1).”.

• (2) This section shall have effect in relation to gifts or inheritances taken on or after 10 February 2000.

145 Amendment of Second Schedule to Principal Act.

145.—(1) The Second Schedule to the Principal Act is amended—

• (a) in Part I, by the substitution of the following paragraphs for paragraphs 1 to 7: