Finance Act 2009

“Intangible assets.

291A.— (1) In this section—

‘ authorised officer ’ means an officer of the Revenue Commissioners authorised by them in writing for the purposes of this section;

‘ intangible asset ’ shall be construed in accordance with generally accepted accounting practice;

‘ specified intangible asset ’ means an intangible asset, being—

• (a) any patent, registered design, design right or invention,

• (b) any trade mark, trade name, trade dress, brand, brand name, domain name, service mark or publishing title,

• (c) any copyright or related right within the meaning of the Copyright and Related Rights Act 2000,

• (d) any supplementary protection certificate provided for under Council Regulation (EEC) No. 1768/92 of 18 June 1992 ¹,

• (e) any supplementary protection certificate provided for under Regulation (EC) No. 1610/96 of the European Parliament and of the Council of 23 July 1996 ²,

• (f) any plant breeders’ rights within the meaning of section 4 of the Plant Varieties (Proprietary Rights) Act 1980, as amended by the Plant Varieties (Proprietary Rights) (Amendment) Act 1998,

• (g) know-how within the meaning of section 768,

• (h) any authorisation without which it would not be permissible for—

• (i) a medicine, or

  • (ii) a product of any design, formula, process or invention,

  to be sold for any purpose for which it was intended,

  • (i) any rights derived from research, undertaken prior to any authorisation referred to in paragraph (h), into the effects of—

  • (i) a medicine, or

  • (ii) a product of any design, formula, process or invention,

• (j) any licence in respect of an intangible asset referred to in any of paragraphs (a) to (i),

• (k) any rights granted under the law of any country, territory, state or area, other than the State, or under any international treaty, convention or agreement to which the State is a party, that correspond to or are similar to those within any of paragraphs (a) to (j), or

• (l) goodwill to the extent that it is directly attributable to anything within any of paragraphs (a) to (k);

‘ profit and loss account ’, in relation to an accounting period of a company, has the meaning assigned to it by generally accepted accounting practice and includes an income and expenditure account where a company prepares accounts in accordance with international accounting standards.

• (2) Where a company carrying on a trade incurs capital expenditure on the provision of a specified intangible asset for the purposes of the trade, then, for the purposes of this Chapter and Chapter 4 of this Part—

  • (a) the specified intangible asset shall be treated as machinery or plant,

  • (b) such machinery or plant shall be treated as having been provided for the purposes of the trade, and

  • (c) for so long as the company is the owner of the specified intangible asset or, where the asset consists of a right, is entitled to that right, that machinery or plant shall be treated as belonging to that company.

• (3) Subject to this section, where for any accounting period a wear and tear allowance is to be made under section 284 to a company which has incurred capital expenditure on the provision of a specified intangible asset for the purposes of a trade carried on by that company, subsection (2) of section 284 shall apply as if the reference in paragraph (ad) of that subsection to a rate per cent of 12.5 were a reference to a rate per cent determined by the formula—

A

B × 100

where—

A is—

- (*a*) the amount, computed in accordance with generally accepted accounting practice, charged to the profit and loss account of the company, for the period of account which is the same as the accounting period, in respect of the amortisation or depreciation of the specified intangible asset, or

- (*b*) where the period of account beginning in the accounting period is not the same as that accounting period, so much of the amount, so computed and charged in that respect to the profit and loss account of the company for any such period of account, as may be apportioned to the accounting period on a just and reasonable basis taking account of the respective lengths of the periods concerned and the duration of use and ownership of the asset in each of those periods,

  and

  B is the actual cost, within the meaning of paragraph (*ad*) of section 284(2), of the specified intangible asset or, if greater than the actual cost, the value of that asset by reference to which amortisation or depreciation have been computed for the period of account referred to in paragraph (*a*) or (*b*).

• (4)

  • (a) Notwithstanding subsection (3), where a company makes an election under this subsection in respect of capital expenditure incurred on the provision of a specified intangible asset for the purposes of a trade carried on by the company, subsection (2) of section 284 shall apply as if the reference in paragraph (ad) of that subsection to 12.5 per cent were a reference to 7 per cent.

  • (b) An election by a company under paragraph (a) shall—

    • (i) be made in the return required to be made under section 951 for the accounting period of the company in which the expenditure on the provision of the specified intangible asset is first incurred, and

    • (ii) apply to all capital expenditure incurred on the asset.

• (5)

  • (a) So much of the activities of a company carried on as part of a trade (in this subsection referred to as ‘relevant activities’) which consist of managing, developing or exploiting a specified intangible asset or specified intangible assets in respect of which allowances under this Chapter have been made to the company, including activities which comprise the sale of goods or services that derive the greater part of their value from such assets, shall be treated for the purposes of the Tax Acts, other than any provision of those Acts relating to the commencement or cessation of a trade, as a separate trade (in this subsection and subsection (6) referred to as a ‘relevant trade’), which is distinct from any other trade or part of a trade carried on by the company.

  • (b) For the purposes of treating relevant activities as a separate trade in accordance with paragraph (a), any necessary apportionment shall be made so that income shall be attributed to the relevant trade on a just and reasonable basis and the amount of that income shall not exceed the amount which would be attributed to a distinct and separate company, engaged in the relevant activities, if it were independent of, and dealing at arm’s length with, the company mentioned in paragraph (a).

• (6)

  • (a) Subject to paragraphs (b) and (c), the aggregate amount for an accounting period of—

    • (i) any allowances to be made to a company under section 284 as applied by this section, and

    • (ii) any interest incurred in connection with the provision of a specified intangible asset by reference to which allowances referred to in subparagraph (i) are made,

    shall not exceed 80 per cent of the amount which would be the amount of the trading income from the relevant trade carried on by the company for that accounting period if no such allowances were to be made to the company and no such interest were to be deducted in computing that income for that accounting period and, for the purposes of this paragraph, the whole or part of any such allowances shall not be allowed for that accounting period and, only if it is then necessary for the purposes of this paragraph, the whole or part of any such interest shall not be deducted for that accounting period.

  • (b) (i) The amount of any allowances which, by virtue of paragraph (a), remains unallowed for an accounting period (in this subparagraph referred to as the ‘excess amount’) shall be carried forward and treated as an allowance within the meaning of paragraph (a)(i) for the succeeding accounting period to be added to the amount of any allowances within that meaning which, subject to paragraph (a), are available for offset against trading income of the relevant trade for that succeeding accounting period and any excess amount in that succeeding accounting period shall, in turn, be carried forward and treated as an allowance within the meaning of paragraph (a)(i) for the next succeeding accounting period to be added to the amount of any allowances within that meaning which, subject to paragraph (a), are available for offset against trading income of the relevant trade for that accounting period and so on for each succeeding accounting period.

    • (ii) The amount of any interest for which relief cannot be given, by virtue of paragraph (a), for an accounting period (in this subparagraph referred to as ‘excess interest’) shall be carried forward and treated as interest within the meaning of paragraph (a)(ii) for the succeeding accounting period to be added to the amount of any interest within that meaning for which relief, subject to paragraph (a), can be given for that succeeding accounting period and any excess interest in that succeeding accounting period shall, in turn, be carried forward and treated as interest within the meaning of paragraph (a)(ii) for the next succeeding accounting period to be added to the amount of any interest within that meaning, for which relief, subject to paragraph (a), can be given for that accounting period and so on for each succeeding accounting period.

  • (c) In computing, for the purposes of this subsection, the trading income from a relevant trade for an accounting period of a company, no account shall be taken of any income which is disregarded for the purposes of the Tax Acts.

• (7) This section shall not apply to capital expenditure incurred by a company—

  • (a) for which any relief or deduction under the Tax Acts may be given or allowed other than by virtue of this section,

  • (b) to the extent that the expenditure incurred on the provision of a specified intangible asset exceeds the amount which would have been paid or payable for the asset in a transaction between independent persons acting at arm’s length, or

  • (c) that is not made wholly and exclusively for bona fide commercial reasons and that was incurred as part of a scheme or arrangement of which the main purpose or one of the main purposes is the avoidance of, or reduction in, liability to tax.

• (8)

  • (a) The Revenue Commissioners or an authorised officer may, in relation to an allowance made or to be made to a company under section 284 as applied by this section in respect of capital expenditure incurred on a specified intangible asset—

    • (i) consult with any person (in this subsection referred to as an ‘expert’) who in their opinion may be of assistance in ascertaining the extent to which such expenditure is incurred on the specified intangible asset and, where such an asset is acquired from a connected person (within the meaning of section 10), the amount which would have been payable for the asset in a transaction between independent persons acting at arm’s length, and

    • (ii) notwithstanding any obligation as to secrecy or other restriction on the disclosure of information imposed by, or under, the Tax Acts or any other statute or otherwise, but subject to paragraph (b), disclose to the expert any detail in relation to the allowance claimed under this section which they consider necessary for such consultation.

  • (b) (i) Before disclosing information to any expert under paragraph (a), the Revenue Commissioners or authorised officer shall make known to the company—

    • (I) the identity of the expert who they intend to consult, and

    • (II) the information they intend to disclose to the expert.

    • (ii) Where the company shows to the satisfaction of the Revenue Commissioners or authorised officer (or on appeal to the Appeal Commissioners) that disclosure of such information to that expert could prejudice the company’s trade, then the Revenue Commissioners or authorised officer shall not make such disclosure.

• (9)

  • (a) This section shall not apply to the acquisition by a company (in this subsection referred to as ‘the transferee’) of a specified intangible asset where the acquisition is from another company (in this subsection referred to as ‘the transferor’) and, by virtue of section 615(2) or 617(1), the transferee is treated as having acquired the asset for a consideration of such amount as would secure that neither a gain nor a loss would accrue on the transferor’s disposal of the asset to the transferee.

  • (b) Notwithstanding paragraph (a), where the transferor and transferee make a joint election under section 615(4) or 617(4), the transferee shall be entitled to claim an allowance under section 284 as applied by this section in respect of capital expenditure incurred by it on acquiring the specified intangible asset from the transferor.

• (10) Any claim made by reference to this section shall be made within 12 months from the end of the accounting period in which the capital expenditure, giving rise to the claim, is incurred.”,

• (e) in section 615 by inserting the following after subsection (3):

• “(4)

  • (a) This section shall not apply in relation to the transfer of a specified intangible asset within the meaning of section 291A where the company acquiring the asset and the company from which the asset is acquired jointly so elect by giving notice, not later than 12 months from the end of the accounting period in which the company acquired the asset, to the Collector-General in such manner as the Revenue Commissioners may require.

  • (b) Where—

    • (i) an election is made under paragraph (a) in relation to the transfer of a specified intangible asset, and

    • (ii) that transfer is not a transfer to which section 400(6) applies,

    then, for the purposes of computing any chargeable gain, the transfer of that asset shall be treated, as respects—

    - (I) the disposal by the company from which the asset was acquired, and
    
    - (II) the acquisition by the company acquiring the asset,
    
      as having been made for a consideration equal to the market value of the asset on the date of that transfer.”,
    

• (f) in section 617(1) by substituting “subsections (2), (3) and (4)” for “subsections (2) and (3)”,

• (g) in section 617 by inserting the following after subsection (3):

• “(4) Where a member of a group of companies disposes of a specified intangible asset within the meaning of section 291A to another member of the group, subsection (1) shall not apply to the disposal of that asset where the companies jointly so elect by giving notice, not later than 12 months from the end of the accounting period in which the other member of the group acquired the asset, to the Collector-General in such manner as the Revenue Commissioners may require.”,

• (h) in section 755 by inserting the following after subsection (2):

• “(3) Subject to subsection (4), this section shall not apply to a company within the charge to corporation tax.

• (4)

  • (a) Subject to paragraph (b), where a company elects in writing, this section shall apply to capital expenditure, specified in the election, incurred by it on the purchase of patent rights after 7 May 2009 and before 7 May 2011.

  • (b) An election under paragraph (a) shall be made in the return required to be made under section 951 for the accounting period of the company in which the expenditure is incurred and shall not be made later than 12 months from the end of the accounting period in which the capital expenditure, giving rise to the claim, is incurred.”,

• (i) in section 756 by inserting the following after subsection (6):

• “(7) This section shall not apply to patent rights in respect of which an allowance has been made to a company under section 284 as applied by section 291A.”,

and

• (j) in section 768 by inserting the following after subsection (6):

• “(7) Subject to subsection (8), this section shall not apply to a company within the charge to corporation tax.

• (8)

  • (a) Subject to paragraph (b), where a company elects in writing, this section shall apply to expenditure, specified in the election, incurred by it on know-how after 7 May 2009 and before 7 May 2011.

  • (b) An election under paragraph (a) shall be made in the return required to be made under section 951 for the accounting period of the company in which the expenditure is incurred and shall not be made later than 12 months from the end of the accounting period in which the capital expenditure, giving rise to the claim, is incurred.”.

• (2) This section applies to expenditure incurred by a company after 7 May 2009.

Chapter 6 Capital Gains Tax

14. Capital gains: rate of charge.

14.— (1) The Principal Act is amended—

• (a) in section 28(3) by substituting “25 per cent” for “22 per cent”, and

• (b) in section 649A(1) by substituting the following for paragraph (b):

• “(b) in the case of a relevant disposal made on or after 8 April 2009, 25 per cent.”.

• (2) This section applies to disposals made on or after 8 April 2009.

PART 2 Excise

15. Rates of mineral oil tax.

15.— The Finance Act 1999 is amended—

• (a) with effect as on and from 8 April 2009 by substituting the following for Schedule 2 to that Act (as amended by section 47(b) of the Finance (No. 2) Act 2008):

“SCHEDULE 2

Rates of Mineral Oil Tax

(With effect as on and from 8 April 2009)

Description of Mineral Oil	Rate of Tax
Light Oil: Petrol Aviation gasoline	€508.79 per 1,000 litres €508.79 per 1,000 litres
Heavy Oil: Used as a propellant Used for air navigation Used for private pleasure navigation Kerosene used other than as a propellant Fuel oil Other heavy oil	€409.20 per 1,000 litres €409.20 per 1,000 litres €409.20 per 1,000 litres €00.00 €14.78 per 1,000 litres €47.36 per 1,000 litres
Liquefied Petroleum Gas: Used as a propellant Other liquefied petroleum gas	€63.59 per 1,000 litres €00.00
Coal: For business use For other use	€4.18 per tonne €8.36 per tonne

”,

and

• (b) in subsection (2) of section 97A (inserted by section 72(1)(c) of the Finance Act 2008) by substituting the following for paragraph (b):

• “(b) payment of an amount of mineral oil tax on such quantity, calculated at a rate that is the difference between the rate specified in Schedule 2 for marked gas oil and the rate so specified for heavy oil used for private pleasure navigation.”.

16. Rates of tobacco products tax.

16.— The Finance Act 2005 is amended with effect as on and from 8 April 2009 by substituting the following for Schedule 2 to that Act (as amended by section 52 of the Finance (No. 2) Act 2008):

“SCHEDULE 2

Rates of Tobacco Products Tax

(With effect as on and from 8 April 2009)

Description of Product	Rate of Tax
Cigarettes ... ... ... ... ... ... ... ... ... ... ... ... ... ...	€183.42 per thousand together with an amount equal to 18.25 per cent of the price at which the cigarettes are sold by retail
Cigars ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...	€261.066 per kilogram
Fine-cut tobacco for the rolling of cigarettes	€220.301 per kilogram
Other smoking tobacco ... ... ... ... ... ... ... ... ...	€181.117 per kilogram

”.

17. Betting duty.

17.— (1) Notwithstanding section 53 of the Finance (No. 2) Act 2008, section 67 of the Finance Act 2002 shall apply as if paragraph (a) of subsection (1) of the said section 53 had not been enacted and the said paragraph (a) is deemed never to have had effect.

• (2) Section 67(1) of the Finance Act 2002 is amended by substituting “2 per cent” for “1 per cent”.

• (3) Subsection (2) comes into operation on such day as the Minister for Finance may appoint by order.

18. Air travel tax.

18.— Section 55 of the Finance (No. 2) Act 2008 is amended—

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

“ ‘airport’ means an airport within the meaning of the Air Navigation and Transport (Amendment) Act 1998, but does not include an airport from which the number of persons (including passengers) who departed on aircraft during the previous calendar year was less than 50,000;”,

and

• (b) by substituting the following for subsection (4):

• “(4) Every person liable to pay air travel tax shall, within 20 days or such other period as the Commissioners may determine, remit to the Commissioners the amount of air travel tax payable by him or her in respect of departures by passengers during the previous month or such other period as so determined.”.

19. Amendment of section 135B (repayment of amounts in respect of vehicle registration tax in certain cases) of Finance Act 1992.

19.— Section 135B of the Finance Act 1992 is amended in subsection (6)(b) by substituting the following for subparagraph (ii):

• “(ii) Where the first registered owner has disposed of the vehicle prior to the date of the making of the repayment claim the amount of the repayment shall be limited to an amount calculated as follows:

V × (OP — S)

OP

where—

V is the amount of vehicle registration tax overpaid,

S is the price, if any, received by the first registered owner at the time of disposal but where S is greater than OP, OP shall be taken as the price received, and

OP is the price, including all taxes, declared to the Commissioners at the time of first registration of the vehicle.”.

PART 3 Value-Added Tax

20. Interpretation (Part 3).

20.— In this Part “Principal Act” means the Value-Added Tax Act 1972.

21. Amendment of section 7 (waiver of exemption) of Principal Act.

21.— Section 7 of the Principal Act is amended—

• (a) in subsection (3) by substituting “subsection (3), (7) or (9) of section 7B” for “section 7B(3)”, and

• (b) by inserting the following after subsection (5):

• “(6) Where a person cancelled his or her waiver of exemption before 1 July 2008 then, for the purposes of applying section 12E, the adjustment period (within the meaning of that section or, as the context may require, the period to be treated as the adjustment period in accordance with section 4C(11)) in relation to any capital good the tax chargeable on that person’s acquisition or development of which that person was obliged to take into account when that person made that cancellation, shall be treated as if it ended on the date on which that cancellation had effect.”.

22. Amendment of section 7B (transitional measures: waiver of exemption) of Principal Act.

22.— Section 7B of the Principal Act is amended—

• (a) by substituting the following for subsection (2):

• “(2) For the purposes of applying section 12E, the adjustment period (within the meaning of that section or, as the context may require, the period to be treated as the adjustment period in accordance with section 4C(11)) in relation to a capital good the tax chargeable on the landlord’s acquisition or development of which that landlord was obliged to take into account when that landlord cancelled his or her waiver of exemption, shall end on the date on which that cancellation had effect.”,

and

• (b) by inserting the following after subsection (6):

• “(7)

  • (a) This subsection applies where—

    • (i) on 1 July 2008 a landlord had an interest in relevant immovable goods,

    • (ii) on the relevant date the landlord did not have an interest in any relevant immovable goods, and

    • (iii) that landlord’s waiver of exemption had not been cancelled on or before the relevant date in accordance with section 7(3).

  • (b) Where this subsection applies—

    • (i) the landlord’s waiver of exemption shall be treated as if it were cancelled in accordance with section 7(3) on the date of the passing of the Finance Act 2009, and

    • (ii) that landlord shall pay an amount, being the amount payable in accordance with section 7(3) in respect of the cancellation of that waiver, as if it were tax due by that landlord for the taxable period beginning on 1 May 2009.

• (8)

  • (a) This subsection applies where—

    • (i) in the period from 1 July 2008 to the relevant date, a landlord made a supply of relevant immovable goods during the adjustment period (within the meaning of section 12E or, as the context may require, the period to be treated as the adjustment period in accordance with section 4C(11)) in relation to those goods, and

    • (ii) tax was not chargeable on that supply.

  • (b) Where this subsection applies, then for the purposes of sections 4B(5), 12E(3)(d) and 12E(7)(b) the supply of the relevant immovable goods is treated as if it was made on the date of the passing of the Finance Act 2009.

  • (c) Paragraph (b) shall not apply where—

    • (i) the landlord’s waiver of exemption has been cancelled in accordance with subsection (7), or

    • (ii) the landlord cancels his or her waiver of exemption in accordance with section 7(3) before 1 July 2009.

• (9)

  • (a) This subsection applies where—

    • (i) on or after the date of the passing of the Finance Act 2009 a landlord has an interest in relevant immovable goods,

    • (ii) the landlord ceases, whether as a result of disposing of such goods or otherwise, to have an interest in any such goods, and

    • (iii) on the date when that landlord ceases to have any such interest, that landlord’s waiver of exemption has not been cancelled in accordance with section 7(3).

  • (b) Where this subsection applies—

    • (i) the landlord’s waiver of exemption shall be treated as if it were cancelled on the date referred to in paragraph (a)(iii), and

    • (ii) that landlord shall pay an amount, being the amount payable in accordance with section 7(3) in respect of the cancellation of that waiver, as if it were tax due by that landlord for the taxable period in which the waiver of exemption is so treated as cancelled.

• (10) In this section—

‘ relevant immovable goods ’ means immovable goods the tax chargeable on the acquisition or development of which a landlord would be obliged to take into account in accordance with section 7(3) in relation to the cancellation of that landlord’s waiver of exemption;

‘ relevant date ’ means the date immediately before the date of the passing of the Finance Act 2009.”.

PART 4 Stamp Duties

23. Interpretation (Part 4).

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

24. Exchange of houses.

24.— The Principal Act is amended by inserting the following after section 83B:

“Exchange of houses.

83C.— (1) In this section—

‘excess land’ means an area of land other than land referred to in the definition of ‘house’;

‘house’ means a building or part of a building, used or suitable for use as a dwelling, and includes an area of land for occupation and enjoyment with the dwelling as its gardens or grounds which, exclusive of the area of the land on which the dwelling is constructed, does not exceed 0.4047 hectare;

‘house builder’ means a person who has constructed a new house and includes a person who is connected, within the meaning of section 10 of the Taxes Consolidation Act 1997, with the first-mentioned person as part of an arrangement in connection with the construction or disposal of the house;

‘new house’ means a house that immediately prior to a conveyance, transfer or lease of the house by the house builder has not previously been occupied or sold;

‘ old house ’ means a house that, immediately prior to a conveyance or transfer of the house by an individual, has been occupied by the individual or any other individual.

• (2) This section applies to an instrument which operates as a conveyance or transfer of an old house by an individual (whether alone or with other individuals) to a house builder where—

  • (a) the instrument contains a certificate that this section applies,

  • (b) either or both the house builder and any other person conveys, transfers or leases a new house to the individual (whether alone or with other individuals), and

  • (c) the conveyance or transfer of the old house is entered into in consideration of the conveyance, transfer or lease of the new house (in this section referred to as an ‘ exchange of houses ’).

• (3) Notwithstanding section 37, stamp duty shall not be chargeable on an instrument to which this section applies in so far as the instrument effects the conveyance or transfer of an old house by an individual (whether alone or with other individuals) to a house builder.

• (4) Where subsection (3) applies and the old house and the new house are not of equal value, any consideration paid or agreed to be paid for equality shall consist only of a payment in cash.

• (5) Where excess land is conveyed or transferred by an individual to a house builder by an instrument to which this section applies, the instrument, in so far as it conveys or transfers excess land, shall be chargeable to stamp duty, in respect of the excess land, as if it were a conveyance or transfer on sale of the excess land with the substitution of the value of the excess land thereby conveyed or transferred for the amount or value of the consideration for the sale.

• (6) Subsection (3) shall not apply to an instrument unless it has, in accordance with section 20, been stamped with a particular stamp denoting that it is duly stamped or, as the case may be, that it is not chargeable with any duty.

• (7) For the purposes of subsection (6), where any exchange of houses is effected by more than one instrument, the instruments shall, for the purposes of section 20, be presented to the Commissioners at the same time.

• (8)

  • (a) Where relief from stamp duty arises under this section, on the first occurrence of either of the events specified in paragraph (c), the house builder shall become liable to pay the Commissioners an amount (in this subsection referred to as a ‘ clawback ’) equal to the amount of the duty that would have been charged on the instrument by virtue of section 37, in respect of the conveyance or transfer of the old house to the house builder, together with interest charged on that amount, calculated in accordance with section 159D, from the date of the first occurrence of either of the said events to the date the clawback is paid.

  • (b) Where relief from stamp duty arises under this section and it is subsequently found that the certificate, referred to in subsection (2)(a), contained in the instrument—

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

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

    then, where a false certificate has been included in the instrument, the house builder shall be liable to pay to the Commissioners a penalty in an amount equal to 125 per cent of the duty that would have been charged on the instrument by virtue of section 37, in respect of the conveyance or transfer of the old house to the house builder, had all the facts been truthfully certified, together with interest charged on that amount, calculated in accordance with section 159D, from the date the instrument was executed to the date the penalty is paid.

  • (c) The events referred to in paragraph (a) are that—

    • (i) the old house, or part of the old house, is conveyed or transferred by the house builder to another person, or

    • (ii) the old house is not conveyed or transferred by the house builder to another person on or before 31 December 2010.

• (9) Notwithstanding subsection (8)—

  • (a) a house builder shall not be liable to a clawback under paragraph (a) of subsection (8) if and to the extent that the house builder has paid a penalty under paragraph (b) of the said subsection,

  • (b) a house builder shall not be liable to a penalty under paragraph (b) of subsection (8) if and to the extent that the house builder has paid a clawback under paragraph (a) of the said subsection.

• (10) This section applies as respects instruments executed on or after 7 May 2009 and on or before 31 December 2010.”.

25. Amendment of section 101 (intellectual property) of Principal Act.

25.— (1) Section 101(1) of the Principal Act is amended in the definition of “ intellectual property ”—

• (a) in paragraph (a) by substituting “, domain name, trade name, trade dress, brand, brand name, service mark or publishing title” for “or domain name”,

• (b) by inserting the following after paragraph (e):

• “(ea) any authorisation without which it would not be permissible for—

  • (i) a medicine, or

  • (ii) a product of any design, formula, process or invention,

  to be sold for any purpose for which it was intended,

• (eb) any rights derived from research undertaken, prior to any authorisation referred to in paragraph (ea), into the effects of—

  • (i) a medicine, or

  • (ii) a product of any design, formula, process or invention,”,

• (c) in paragraph (f) by substituting “, (e), (ea) or (eb)” for “or (e)”,

• (d) in paragraph (g) by substituting “(e), (ea), (eb)” for “(e)”,

• (e) in paragraph (h) by substituting “(e), (ea), (eb), (f) or (g), or” for “(e), (f) or (g),”, and

• (f) in paragraph (i) by substituting “(e), (ea), (eb)” for “(e)”.

• (2) This section applies as respects instruments executed after 7 May 2009.

26. Amendment of Part 9 (levies) of Principal Act.

26.— (1) Part 9 of the Principal Act is amended—

• (a) by inserting the following after section 124A:

“Certain premiums of life assurance.

124B.— (1) In this section—

‘ assessable amount ’, in relation to a quarter, means the gross amount received by an insurer by means of premiums in that quarter for policies of insurance referred to in classes I, II, III, IV, V and VI of Annex I to the Directive, to the extent that the risks to which those policies of insurance relate are located in the State (being risks deemed to be located in the State by virtue of section 61);

‘ Directive ’ means Directive 2002/83/EC of the European Parliament and of the Council of 5 November 2002 ¹ concerning life assurance;

‘ due date ’ means, in respect of the quarter ending on—

• (a) 31 March in any year, 30 April in the same year,

• (b) 30 June in any year, 31 July in the same year,

• (c) 30 September in any year, 31 October in the same year, and

• (d) 31 December in any year, 31 January in the following year;

‘ insurer ’ means—

• (a) a person who is the holder of an assurance licence under the Insurance Act 1936,

• (b) the holder of an authorisation within the meaning of the European Communities (Life Assurance) Framework Regulations 1994 (S.I. No. 360 of 1994), or

• (c) the holder of an official authorisation to undertake insurance in Iceland, Liechtenstein or Norway, pursuant to the EEA Agreement within the meaning of the European Communities (Amendment) Act 1993, who is carrying on the business of life assurance in the State;

‘life assurance’ means insurance of a class referred to in Annex I to the Directive;

‘premium’ has the same meaning as in the Insurance Act 1936;

‘ quarter’ , in relation to a year, means a period of 3 months ending on 31 March, 30 June, 30 September or 31 December.

• (2) An insurer shall, in each year, not later than the due date for each quarter, commencing with the quarter ending on 30 September 2009, deliver to the Commissioners a statement in writing showing the assessable amount for the insurer in respect of that quarter.

• (3) There shall be charged on every statement delivered pursuant to subsection (2) a stamp duty of an amount equal to 1 per cent of the assessable amount shown in the statement.

• (4) The duty charged by subsection (3) on a statement delivered by an insurer pursuant to subsection (2) shall be paid by the insurer to the Commissioners on delivery of the statement.

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

• (6) In the case of failure by an insurer—

  • (a) to deliver not later than the due date any statement required to be delivered by the insurer pursuant to subsection (2), or

  • (b) to pay the stamp duty chargeable on any such statement on delivery of the statement,

  the insurer shall—

  - (i) from that due date until the day on which the stamp duty is paid, be liable to pay, in addition to the stamp duty, interest on the stamp duty calculated in accordance with section 159D, and
  
  - (ii) from that due date, be liable to pay a penalty of €380 for each day the stamp duty remains unpaid.
  

• (7) Where during any quarter but before the due date—

  • (a) an insurer ceases to carry on a business in the course of which the insurer is required to deliver a statement (in this subsection referred to as the ‘ first-men tioned statement ’) pursuant to subsection (2) (including any case where the insurer is so required by virtue of the prior operation of this subsection) but has not done so before that cesser, and

  • (b) another person (in this subsection referred to as the ‘ successor ’) acquires the whole, or substantially the whole, of the business,

  then—

  - (i) the insurer is not required to deliver the first-mentioned statement, and
  
  - (ii) the successor shall—
  
      - (I) where the successor is, apart from this subsection, required to deliver a statement (in this subsection referred to as the ‘second-mentioned statement’) pursuant to subsection (2) (including any case where the successor is so required by virtue of the prior operation of this subsection) in respect of the same quarter but has not done so before that acquisition, include in that second-mentioned statement the assessable amount that would have been required to have been shown in the first-mentioned statement had the insurer not ceased to carry on the business concerned,
  
      - (II) where subparagraph (I) does not apply, deliver the first-mentioned statement as if the successor were the insurer.
  

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

• (b) in section 125(3) by substituting “3 per cent” for “2 per cent”, and

• (c) in section 126B(1) by substituting the following for the definition of “specified section”:

“ ‘ specified section ’ means section 123, 123A, 123B, 123C, 124, 124A, 124B or 125.”.

• (2)
• (a) In this subsection “assessable amount”, “premiums” and “insurer” have, respectively, the meanings given to them in section 124B(1) (inserted by this section) of the Principal Act.

• (b) Subsection (1)(a) applies as respects so much of the assessable amount as is comprised of premiums received on or after 1 August 2009 in respect of contracts of insurance whenever entered into by an insurer.

• (3)
• (a) In this subsection “assessable amount”, “premiums” and “insurer” have, respectively, the meanings given to them in section 125(1) of the Principal Act.

• (b) Subsection (1)(b) applies as respects so much of the assessable amount as is comprised of premiums received on or after 1 June 2009 in respect of offers of insurance or notices of renewal of insurance issued by an insurer on or after 8 April 2009.

PART 5 Capital Acquisitions Tax

27. Amendment of Schedule 2 (computation of tax) to Capital Acquisitions Tax Consolidation Act 2003.

27.— (1) Schedule 2 to the Capital Acquisitions Tax Consolidation Act 2003 is amended—

• (a) in the definition of “ group threshold ” in paragraph 1 of Part 1—

• (i) in subparagraph (a) by substituting “€304,775” for “€381,000”,

• (ii) in subparagraph (b) by substituting “€30,478” for “€38,100”, and

• (iii) in subparagraph (c) by substituting “€15,239” for “€19,050”,

and

• (b) by substituting “25” for “22” in the Table in Part 2.

• (2) This section applies to gifts and inheritances taken on or after 8 April 2009.

PART 6 Miscellaneous

28. Interpretation (Part 6).

28.— In this Part “Principal Act” means the Taxes Consolidation Act 1997.

29. Interest on certain overdue tax.

29.— (1) The Principal Act is amended—

• (a) in section 172K(6) by substituting the following for paragraph (b):

• “(b) Any amount of dividend withholding tax payable in accordance with this Chapter without the making of an assessment shall carry interest from the date when the amount becomes due and payable until payment—

  • (i) for any day or part of a day before 1 July 2009 during which the amount remains unpaid, at a rate of 0.0322 per cent, and

  • (ii) for any day or part of a day on or after 1 July 2009 during which the amount remains unpaid, at a rate of 0.0274 per cent.”,

• (b) in section 240(3) by substituting the following for paragraph (a):

• “(a) Any tax payable in accordance with section 239 without the making of an assessment shall carry interest from the date when the amount becomes due and payable until payment—

  • (i) for any day or part of a day before 1 August 1978 during which the amount remains unpaid, at a rate of 0.0492 per cent,

  • (ii) for any day or part of a day on or after 1 August 1978 and before 1 April 1998 during which the amount remains unpaid, at a rate of 0.0410 per cent,

  • (iii) for any day or part of a day on or after 1 April 1998 and before 1 July 2009 during which the amount remains unpaid, at a rate of 0.0322 per cent, and

  • (iv) for any day or part of a day on or after 1 July 2009 during which the amount remains unpaid, at a rate of 0.0274 per cent.”,

• (c) in section 258(9) by substituting the following for paragraph (b):

• “(b) Any amount of appropriate tax or amount on account of appropriate tax payable in accordance with this Chapter without the making of an assessment shall carry interest from the date when the amount becomes due and payable until payment—

  • (i) for any day or part of a day before 1 July 2009 during which the amount remains unpaid, at a rate of 0.0322 per cent, and

  • (ii) for any day or part of a day on or after 1 July 2009 during which the amount remains unpaid, at a rate of 0.0274 per cent.”,

• (d) in section 531 by substituting the following for subsection (9):

• “(9) Where the amount of tax which a person who is or is deemed to be a principal of the kind referred to in subsection (1) is liable under this section and any regulations under subsection (6) to pay to the Collector-General is not so paid, simple interest on the amount shall be paid by the person to the Collector-General and shall be calculated from the date on which the amount became due and payable until payment—

  • (a) for any day or part of a day before 1 August 1978 during which the amount remains unpaid, at a rate of 0.0492 per cent,

  • (b) for any day or part of a day on or after 1 August 1978 and before 1 April 1998 during which the amount remains unpaid, at a rate of 0.0410 per cent,

  • (c) for any day or part of a day on or after 1 April 1998 and before 1 July 2009 during which the amount remains unpaid, at a rate of 0.0322 per cent, and

  • (d) for any day or part of a day on or after 1 July 2009 during which the amount remains unpaid, at a rate of 0.0274 per cent.”,

• (e) in section 730G(7) by substituting the following for paragraph (b):

• “(b) Any amount of appropriate tax shall carry interest from the date when the amount becomes due and payable until payment—

  • (i) for any day or part of a day before 1 July 2009 during which the amount remains unpaid, at a rate of 0.0322 per cent, and

  • (ii) for any day or part of a day on or after 1 July 2009 during which the amount remains unpaid, at a rate of 0.0274 per cent.”,

• (f) in section 739F(7) by substituting the following for paragraph (b):

• “(b) Any amount of appropriate tax shall carry interest from the date when the amount becomes due and payable until payment—

  • (i) for any day or part of a day before 1 July 2009 during which the amount remains unpaid, at a rate of 0.0322 per cent, and

  • (ii) for any day or part of a day on or after 1 July 2009 during which the amount remains unpaid, at a rate of 0.0274 per cent.”,

• (g) in section 991 by substituting the following for subsection (1):

• “(1) Where an amount of tax which an employer is liable under this Chapter and any regulations under this Chapter to pay to the Revenue Commissioners is not so paid, simple interest on the amount shall be paid by the employer to the Revenue Commissioners, and such interest shall be calculated from the expiration of the period specified in the regulations for the payment of the amount until payment—

  • (a) for any day or part of a day before 1 August 1978 during which the amount remains unpaid, at a rate of 0.0492 per cent,

  • (b) for any day or part of a day on or after 1 August 1978 and before 1 April 1998 during which the amount remains unpaid, at a rate of 0.0410 per cent,

  • (c) for any day or part of a day on or after 1 April 1998 and before 1 July 2009 during which the amount remains unpaid, at a rate of 0.0322 per cent, and

  • (d) for any day or part of a day on or after 1 July 2009 during which the amount remains unpaid, at a rate of 0.0274 per cent.”,

and

• (h) in section 1080 by substituting the following for the Table to subsection (2):

“Table

(Period) (1)	(Percentage) (2)
From 6 April 1963 to 31 July 1971	0.0164%
From 1 August 1971 to 30 April 1975	0.0246%
From 1 May 1975 to 31 July 1978	0.0492%
From 1 August 1978 to 31 March 1998	0.0410%
From 1 April 1998 to 31 March 2005	0.0322%
From 1 April 2005 to 30 June 2009	0.0273%
From 1 July 2009 to the date of payment	0.0219%

”.

• (2) Section 159D of the Stamp Duties Consolidation Act 1999 is amended—

• (a) in subsection (1) by inserting the following after the definition of “ period of delay ”:

“ ‘ relevant period ’, in relation to a period of delay which falls into more than one of the periods specified in column (1) of the Table to subsection (2), means any part of the period of delay which falls into, or is the same as, a period specified in that column;”,

and

• (b) by substituting the following for subsection (2):

• “(2) The amount of interest charged, chargeable, payable or recoverable in respect of any unpaid duty or other amount due and payable or recoverable under a specified provision—

  • (a) where one of the periods specified in column (1) of the Table to this subsection includes or is the same as the period of delay, shall be the amount determined by the formula—

  A × D × P

  where—

  A is the duty or other amount due and payable under the specified provision which remains unpaid,

  D is the number of days (including part of a day) forming the period of delay, and

  P is the appropriate percentage in column (2) of the Table to this subsection opposite the period specified in column (1) of the said Table within which the period of delay falls or which is the same as the period of delay,

  and

  • (b) where a continuous period formed by more than one period specified in column (1) of the Table to this subsection, but not (as in subsection (a)) only one such period, includes or is the same as the period of delay, shall be the aggregate of the amounts due in respect of each relevant period which forms part of the period of delay, and the amount due in respect of each such relevant period shall be determined by the formula—

  A × D × P

  where—

  A is the duty or other amount due and payable under the specified provision which remains unpaid,

  D is the number of days (including part of a day) forming the relevant period, and

  P is the appropriate percentage in column (2) of the Table to this subsection opposite the period specified in column (1) of the said Table within which the period of delay falls or which is the same as the relevant period.

  Table

  (Period) (1)	(Percentage) (2)
  From 1 April 2005 to 30 June 2009	0.0273%
  From 1 July 2009 to the date of payment	0.0219%

  ”.

• (3) Section 51 of the Capital Acquisitions Tax Consolidation Act 2003 is amended in subsection (2) by substituting the following for the Table to that subsection:

“Table

Part 1

(Period) (1)	(Percentage) (2)
From 31 March 1976 to 31 July 1978	0.0492%
From 1 August 1978 to 31 March 1998	0.0410%
From 1 April 1998 to 31 March 2005	0.0322%
From 1 April 2005 to 30 June 2009	0.0273%
From 1 July 2009 to the date of payment	0.0219%

Part 2

(1)	(2)
From 8 February 1995 to 31 March 1998	0.0307%
From 1 April 1998 to 31 March 2005	0.0241%
From 1 April 2005 to 30 June 2009	0.0204%
From 1 July 2009 to the date of payment	0.0164%

”.

• (4) Section 21(1) of the Value-Added Tax Act 1972 is amended—

• (a) in paragraph (a) by substituting “0.0274” for “0.0322”, and

• (b) in paragraph (b) by substituting “0.0274” for “0.0322”.

• (5) Section 103(2) of the Finance Act 2001 is amended by substituting the following for paragraph (a):

• “(a) Without prejudice to the provisions of section 74 of the Finance Act 2002 concerning betting duty, where any amount of excise duty becomes payable under subsection (1) or under any other provision of the statutes which relate to the duties of excise, or any instrument relating to the duties of excise made under statute, and is not paid, simple interest on the amount shall be paid by the person liable to pay the duty and such interest shall be calculated from the date on which the amount became payable—

  • (i) for any day or part of a day before 1 July 2009 during which the amount remains unpaid, at a rate of 0.0322 per cent, and

  • (ii) for any day or part of a day on or after 1 July 2009 during which the amount remains unpaid, at a rate of 0.0274 per cent.”.

• (6) Section 74 of the Finance Act 2002 is amended by substituting the following for subsection (1):

• “(1) Where any amount of betting duty becomes payable under section 67 and is not paid, simple interest on the amount shall be paid by the person liable to pay the duty and such interest shall be calculated from the date on which the amount becomes payable—

  • (a) for any day or part of a day before 1 July 2009 during which the amount remains unpaid, at a rate of 0.0322 per cent, and

  • (b) for any day or part of a day on or after 1 July 2009 during which the amount remains unpaid, at a rate of 0.0274 per cent.”.

• (7)
• (a) Subsections (1), (2), (3), (5) and (6) shall apply as respects any unpaid tax or duty, as the case may be, that has not been paid before 1 July 2009 regardless of whether that tax or duty became due and payable before, on or after that date.

• (b) Subsection (4) shall apply as respects interest payable under section 21 of the Value-Added Tax Act 1972 for any day or part of a day commencing on or after 1 July 2009, in respect of an amount of value-added tax due to be paid or an amount of value-added tax refunded which was not properly refundable, as the case may be, whether before, on or after that date.

30. Miscellaneous technical amendments in relation to tax.

30.— (1) Part 11D (inserted by section 21 of the Finance (No. 2) Act 2008) of the Principal Act is amended—

• (a) in section 380Q(1), in the definition of “ dangerous sub stance ”, by substituting “Regulation 3” for “section 3”,

• (b) in section 380Q by substituting the following for subsection (2):

• “(2) This Part shall apply to any expenditure incurred on or after 1 January 2009 and before 1 January 2014.”,

• (c) in section 380S(2) by substituting “section 380R(5)(a)(ii)” for “section 380R(5)(b)”,

• (d) in section 380V(2)—

• (i) by substituting “a relevant trade” for “that trade”, and

• (ii) by substituting “380U(b)” for “380U(1)(b)”,

and

• (e) in section 380W—

• (i) in subsection (1) by substituting “380U(b)” for “380U(1)(b)”, and

• (ii) in subsection (3) by substituting “Tax” for “Taxes”.

• (2) Section 1077C(2)(b) (inserted by the Finance (No. 2) Act 2008) of the Principal Act is amended by substituting “person” for “individual”.

• (3) The Stamp Duties Consolidation Act 1999 is amended—

• (a) in section 87(3) by substituting “payment of that sum and, by means of a penalty,” for “payment of that sum and”,

• (b) in section 87A(4)(b) by substituting “by means of a penalty, a sum equal to 1 per cent” for “a sum equal to 1 per cent”, and

• (c) in section 134A—

• (i) in subsection (7) by substituting “subsection (3)(a) and paragraphs (a)(i) and (b)(i) of subsection (5)” for “subsections (3)(a) and (5)(a)”,

• (ii) in subsection (8) by substituting “subsection (3)(b) and paragraphs (a)(ii) and (b)(ii) of subsection (5)” for “subsections (3)(b) and (5)(b)”, and

• (iii) in subsection (9) by substituting “subsection (3)(c) and paragraphs (a)(iii) and (b)(iii) of subsection (5)” for “subsections (3)(c) and (5)(c)”.

• (4) The Finance (No. 2) Act 2008 is amended—

• (a) in section 6(1)(c) by deleting subparagraph (ii), other than clause (II), and inserting the following paragraph after that clause:

“(iia) in paragraph (c)(ii)—

• (I) by substituting ‘Table to this subsection’ for ‘Table to this section’, and

• (II) by substituting ‘24,000’ for ‘15,000’,

and”,

and

• (b) in section 98(2) by substituting “subparagraph (as) of paragraph 2 of Schedule 5” for “subparagraph (ar) of paragraph 2 of Schedule 5”.

• (5)
• (a) For the purposes of section 21(2) of the Finance (No. 2) Act 2008, the amendments to the Principal Act effected by section 21(1) of that Act shall be read as amended by subsection (1) of this section.

• (b) Subsection (2) is deemed to have come into force and have taken effect as on and from 24 December 2008.

• (c) In subsection (3)—

• (i) paragraphs (a) and (b) are deemed to have come into force and have taken effect as on and from 24 December 2008,

• (ii) subparagraphs (i) and (ii) of paragraph (c) have effect as respects penalties incurred on or after the passing of this Act, and

• (iii) subparagraph (iii) of paragraph (c) has effect as on and from 24 December 2008 and, accordingly, the provisions of paragraph 6(b) of Schedule 5 to the Finance (No. 2) Act 2008 relating to references to subsections (2)(c) and (4)(c) of section 134A of the Stamp Duties Consolidation Act 1999 apply to the provisions concerned as amended by that subparagraph.

• (d) Subsection (2) of section 6 of the Finance (No. 2) Act 2008 applies to subsection (1) of that section as amended by subsection (4) (a) of this section.

• (e) Subsection (4) (b) has effect as on and from the passing of this Act.

31. Care and management of taxes and duties.

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

32. Short title, construction and commencement.

32.— (1) This Act may be cited as the Finance Act 2009.

• (2) Part 1 shall be construed together with—

• (a) in so far as it relates to income tax and income levy, the Income Tax Acts,

• (b) in so far as it relates to corporation tax, the Corporation Tax Acts, and

• (c) in so far as it relates to capital gains tax, the Capital Gains Tax Acts.

• (3) Part 2, in so far as it relates to duties of excise, shall be construed together with the statutes which relate to those duties and to the management of those duties.

• (4) Part 3 shall be construed together with the Value-Added Tax Acts.

• (5) Part 4 shall be construed together with the Stamp Duties Consolidation Act 1999 and the enactments amending or extending that Act.

• (6) Part 5 shall be construed together with the Capital Acquisitions Tax Consolidation Act 2003 and the enactments amending or extending that Act.

• (7) Part 6 in so far as it relates to—

• (a) income tax, shall be construed together with the Income Tax Acts,

• (b) corporation tax, shall be construed together with the Corporation Tax Acts,

• (c) capital gains tax, shall be construed together with the Capital Gains Tax Acts,

• (d) duties of excise, shall be construed together with the statutes which relate to duties of excise and the management of those duties,

• (e) value-added tax, shall be construed together with the Value-Added Tax Acts,

• (f) stamp duty, shall be construed together with the Stamp Duties Consolidation Act 1999 and the enactments amending or extending that Act, and

• (g) gift tax or inheritance tax, shall be construed together with the Capital Acquisitions Tax Consolidation Act 2003 and the enactments amending or extending that Act.

• (8) Except where otherwise expressly provided in Part 1, that Part is deemed to have come into force and takes effect as on and from 1 January 2009.

• (9) Except where otherwise expressly provided for, where a provision of this Act is to come into operation on the making of an order by the Minister for Finance, that provision shall come into operation on such day or days as the Minister for Finance shall appoint either generally or with reference to any particular purpose or provision and different days may be so appointed for different purposes or different provisions.

Footnotes