Legalize / Ireland / Act

Finance (No. 2) Act 2013

Type Act

Publication 2013-12-18

Last updated 2015-03-15

State Partially repealed superseded text

Text As published

Source Irish Statute Book

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articles 87

This is the act as published. Later amendments are not folded into the text below: each one is a separate act in this repository and an entry in this law's history.

3 amending acts · 2015-03-15, BETTING (AMENDMENT) ACT 2015

Act to provide for the imposition, repeal, remission, alteration and regulation of taxation, of stamp duties and of duties relating to excise and otherwise to make further provision in connection with finance including the regulation of customs

Reform history JSON API

“(3A)

(a) In this subsection—

‘qualifying period’, in relation to a specified person—

- (i) means an accounting period in respect of which that person is entitled to a relevant deduction and each subsequent accounting period where the accounting periods in aggregate do not exceed 36 months where the specified person is a company, and

- (ii) where the specified person is not a company, means a year of assessment in which that person is entitled to a relevant deduction and each of the 2 immediately succeeding years of assessment where the specified person is not a company;

  ‘relevant deduction’ means a deduction under section 666(1), in accordance with subsection (2)(a) of this section;

  ‘relevant tax’, in relation to a specified person—

- (i) where the specified person is a company, means any corporation tax, and

- (ii) where the specified person is not a company, means any income tax or universal social charge;

  ‘relief’ means an amount equivalent to an amount determined by the formula—

  A — B

  where—

  A is the amount of relevant tax that would be payable by a specified person for a year of assessment or an accounting period, as the case may be, falling within the qualifying period computed as if subsection (2) had not been enacted, and

  B is the amount of relevant tax payable by the specified person for that year of assessment or accounting period, as the case may be;

  ‘specified person’ means a person referred to in subsection (2), other than a person entitled to a deduction under subsection (1) of section 666 equal to 100 per cent of the excess referred to in the said subsection (1).

(b) A specified person shall be entitled to relief in respect of relevant deductions of an amount not exceeding €7,500 in the aggregate in the qualifying period.”,

and

“(4) This section shall apply in respect of any accounting period which begins on or after 1 January 2012 and ends on or before 31 December 2015.”.

(3) Subsection (1), other than subparagraphs (iii) and (iv) of paragraph (b), shall apply with effect from 6 November 2012.

21. Amendment of section 766 of Principal Act (tax credit for research and development expenditure)

21. (1) Section 766 of the Principal Act is amended—

(a) in subsection (1)(a), in the definition of “qualifying group expenditure on research and development”, by substituting “€300,000” for “€200,000”,

(b) in subsection (1)(b)(viii) by substituting “15 per cent” for “10 per cent”, and

“(c) (i) Subject to subparagraph (ii), where a company makes a claim in respect of a specified amount and it is subsequently found that the claim is not as authorised by this section or by section 766A, as the case may be, then the company may be charged to tax under Case IV of Schedule D for the accounting period in respect of which the payment was made or the amount surrendered, as the case may be, in an amount equal to 4 times so much of the specified amount as is not so authorised.

(ii) Where a company makes a claim under subsection (2A) and it is subsequently found that the claim is deliberately false or overstated and that the amount surrendered in accordance with that claim is not as authorised by this section, then subparagraph (i) shall not apply and the company shall be charged to tax under Case IV of Schedule D for the accounting period in respect of which the amount was surrendered in an amount equal to 8 times so much of the amount surrendered as is not so authorised.”.

(2) This section shall apply to accounting periods commencing on or after 1 January 2014.

22. Amendment of section 246 of Principal Act (interest payments by companies and to non-residents)

22. (1) Section 246 of the Principal Act is amended in subsection (3) by substituting the following for paragraph (bb):

“(bb) interest paid in the State—

(i) by a company to another company, being a company to which paragraph (a) of subsection (5) applies, for so long as that other company is a company to which that paragraph applies, or

(ii) by a company (in this paragraph referred to as the ‘first-mentioned company’) to which subparagraphs (i) and (ii) of subsection (5)(a) apply to another company resident in the State where that other company is deemed to be a member of the same group of companies as the first-mentioned company and for this purpose the provisions of subsection (1) of section 411 shall apply to determine whether companies are deemed to be members of the same group of companies as if references in that subsection to a 75 per cent subsidiary were references to a 51 per cent subsidiary,”.

(2) Subsection (1) shall apply to interest paid on or after 1 January 2014.

23. Amendment of Part 8 of Principal Act (annual payments, charges and interest)

23. (1) Part 8 of the Principal Act is amended—

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

“ ‘appropriate tax’, in relation to a payment of relevant interest, means a sum representing income tax on the amount of the payment at the rate of 41 per cent;”,

(b) in section 261(c)(i)—

(i) by substituting the following for clause (II):

“(II) where the taxable income of that person includes relevant interest, the part of taxable income equal to that relevant interest shall be chargeable to tax at the rate at which tax was deducted from that relevant interest,”,

and

(ii) by deleting clause (III),

(i) in subsection (1) by inserting “that is opened before 16 October 2013” after “account”, and

(ii) by inserting the following subsection after subsection (8):

“(9) An account shall cease to be a special term account on a date which is—

(a) 3 years after the day on which the account was opened if the account is a medium term account, or

(b) 5 years after the day on which the account was opened if the account is a long term account, including an account which was opened as a medium term account but which was subsequently converted into a long term account.”,

(d) in section 267A(1)—

(i) in the definition of “long term share account” by substituting “account that is opened before 16 October 2013” for “account opened”,

(ii) in the definition of “medium term share account” by substituting “account that is opened before 16 October 2013” for “account opened”, and

(iii) by inserting the following definition:

“ ‘regular share account’ means an account, other than a special share account or a special term share account, opened by a member (being an individual) with a credit union;”,

(e) by inserting the following section after section 267A:

“Taxation of dividends on regular share accounts

267AA. A credit union shall treat—

(a) the value of shares held in a regular share account at any time, as an amount of a relevant deposit held by it at that time, and

(b) the value of any dividend paid on those shares at any time, as an amount of relevant interest paid at that time in respect of such relevant deposit and the provisions of Chapter 4 of this Part shall apply to such relevant interest treated as paid by the credit union as they apply to relevant interest paid by a relevant deposit taker.”,

(f) in section 267B—

(i) in subsection (2)(b) by deleting “, and the appropriate tax in respect of such relevant interest shall be at a rate of 33 per cent”, and

(ii) in subsection (3)(b) by deleting “, and the appropriate tax in respect of such relevant interest shall be at a rate of 33 per cent”,

(g) in section 267C by inserting the following subsection after subsection (5):

“(6) An account shall cease to be a special term share account on a date which is—

(a) 3 years after the day on which the account was opened if the account is a medium term share account, or

(b) 5 years after the day on which the account was opened if the account is a long term share account, including an account which was opened as a medium term share account but which was subsequently converted into a long term share account.”,

and

(h) in section 267M by deleting “paragraph (b) of” where it occurs in subparagraphs (i) and (ii) of subsection (2)(a).

(2) Subsection (1) applies to interest or dividends (within the meaning of Part 8 of the Principal Act) paid on or after 1 January 2014.

24. Amendment of section 481 of Principal Act (relief for investment in films)

24. (1) Section 481 of the Principal Act is amended in subsection (1) by substituting the following for the definition of “eligible individual”:

“ ‘eligible individual’ means an individual employed by a qualifying company for the purposes of the production of a qualifying film;”.

(2) This section comes into operation on such day as the Minister for Finance may by order appoint.

25. Film withholding tax

25. (1) The Principal Act is amended by inserting the following Chapter after section 529A:

“Chapter 1A

Payments in respect of non-resident artistes by companies qualifying for relief for investment in films

Interpretation (Chapter 1A)

529B. (1) In this Chapter—

‘artiste’ means an individual who provides artistic services;

‘artistic services’ means the services of an individual, when provided within the State, in giving a performance in audio-visual works of any kind, including films and television content, which is or may be made available to the public or any section of the public;

‘appropriate tax’, in relation to a relevant payment, means—

(a) where such payment does not include value-added tax, a sum representing income tax on the amount of that payment at the standard rate in force at the time of payment, and

(b) where such payment includes value-added tax, a sum representing income tax at the standard rate in force at the time of payment on the amount of that payment exclusive of the value-added tax;

‘certificate of deduction’ means a certificate issued in accordance with section 529D(2);

‘chargeable period’ means the period specified in a notice in writing given by the Revenue Commissioners to a person, being a period of one or more income tax months, in respect of which the person is required under section 529E to make a return to the Collector-General, or where no such notice issued, a calendar month;

‘due date’, in relation to a chargeable period, means the day that is 23 days after the end of that period;

‘EEA Agreement’ means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by all subsequent amendments to that Agreement;

‘EEA State’ means a state which is a contracting party to the EEA Agreement;

‘electronic means’ has the meaning assigned to it in section 917EA(1);

‘income tax month’ means a calendar month;

‘non-resident’ means an individual who is neither resident nor ordinarily resident in the State, in another Member State or in another EEA state;

‘qualifying company’ has the meaning assigned to it in section 481;

‘relevant payment’ means any payment of whatever nature made, whether directly or indirectly, by a qualifying company in a chargeable period in respect of artistic services provided by an artiste who is non- resident, whether or not the artistic services are provided directly or indirectly to the qualifying company including any payments relating to the exploitation of or compensation for any rights held by or on behalf of or in respect of the artiste who is non-resident, but excludes emoluments to which Chapter 4 of Part 42 applies;

‘Revenue officer’ means an officer of the Revenue Commissioners;

‘specified person’ means a person to whom a relevant payment is due.

(2) For the purposes of this Chapter any reference to the amount of a relevant payment shall be construed as a reference to the amount which would be the amount of that payment as if no appropriate tax were required to be deducted from that payment.

Deduction of tax from relevant payments

529C. (1) (a) A qualifying company making a relevant payment shall deduct from the amount of the payment the appropriate tax in relation to the payment.
- (b) The specified person shall allow such deduction on the receipt of the residue of the payment.

- (c) The qualifying company shall be acquitted and discharged of such amount as is represented by the deduction, as if that amount had actually been paid to the specified person.
(2)

(a) A specified person shall be entitled to have the amount of the relevant payment reduced by the amount of expenditure, which was not reimbursed or is not reimbursable, that was incurred in the provision of artistic services to a qualifying company.

(b) The amount of expenditure referred to in paragraph (a) shall be computed as if the artistic services provided to the qualifying company was a separate trade and the expenditure was incurred for the purposes of that trade.

(c) A specified person may make a claim to the Revenue Commissioners in respect of expenditure defrayed in accordance with paragraph (b).

(d) Where a Revenue officer is satisfied that the amount of expenditure claimed under paragraph (c) would not have been disallowed under section 81 if the specified person had provided the services directly to the qualifying company by carrying on a trade or profession chargeable to tax under Case I or Case II, then a Revenue officer shall issue a notification to the qualifying company specifying the amount of expenditure that shall be allowed as a deduction under paragraph (a).

(e) On receipt of a notification issued under paragraph (d), the qualifying company shall deduct the appropriate tax from the amount of the relevant payment after allowing the deduction in the notification issued under paragraph (d).

(3) A qualifying company which makes a relevant payment to a specified person in circumstances other than those referred to in subsection (1) shall—

(a) be liable to pay tax to the Revenue Commissioners at the standard rate on the amount of the relevant payment, and

(b) without prejudice to any other penalty to which the qualifying company may be liable and without prejudice to section 1078, be liable to a penalty of €5,000 or the amount of the tax payable under paragraph (a), whichever is the lesser.

Identification of, and issue of documents to, specified persons

529D. (1) A specified person shall furnish to a qualifying company details of the specified person’s country of residence, address and tax reference in the country of residence.

(2) Where the specified person has complied with subsection (1) the qualifying company, on making a relevant payment, shall give to such person a certificate of deduction in a form prescribed by the Revenue Commissioners with particulars of—

(a) the name and address of the specified person,

(b) the specified person’s tax reference as furnished in accordance with subsection (1),

(c) the amount of the relevant payment,

(d) the amount of the appropriate tax deducted from that payment, and

(e) the date on which the payment is made.

Returns by qualifying company

529E. (1) On or before the due date relating to a chargeable period, a qualifying company shall make a return to the Collector-General of all relevant payments made by the qualifying company during that chargeable period and shall specify on that return the amount of the qualifying company’s tax liability under this Chapter.

(2) A return required under this section shall be made by electronic means and the relevant provisions of Chapter 6 of Part 38 shall apply.

(3) Where a qualifying company fails to submit the return due under subsection (1), the qualifying company shall, without prejudice to any other penalty to which the qualifying company may be liable and without prejudice to section 1078, be liable to a penalty of €5,000 or the amount of the tax due under subsection (2), whichever is the lesser.

(4) The Revenue Commissioners shall make regulations for the purposes of this section and such regulations may provide for—

(a) the manner by which qualifying companies shall communicate electronically with the Revenue Commissioners,

(b) the particulars to be included in the return required under this section, and

(c) any other matters relating to returns under this section by a qualifying company.

Payment of tax by qualifying company

529F. On or before the due date relating to a chargeable period, a qualifying company shall remit to the Collector-General all amounts of appropriate tax which the qualifying company is liable under this Chapter to deduct from relevant payments made by the qualifying company during that chargeable period.

Assessment by Revenue officer

529G. (1) Where a Revenue officer has reason to believe that there is an amount of appropriate tax in relation to a relevant payment that ought to have been but has not been included in a return under section 529E(1), or where the Revenue officer is dissatisfied with any such return, the Revenue officer may make an assessment on the qualifying company to the best of the officer’s judgement of the amount of the appropriate tax which in the opinion of the officer is due and payable by the qualifying company for the chargeable period or periods.

(2) Without prejudice to section 529E but subject to subsection (4), the amount of tax specified in an assessment under subsection (1) shall be due and payable to the Revenue Commissioners from the qualifying company so assessed.

(3)

(a) A Revenue officer may, where the officer considers this necessary, amend an assessment of tax made under subsection (1), and where, in accordance with this section, the Revenue officer makes or amends an assessment, the officer shall give notice to the qualifying company assessed showing the total amount of tax due and payable in accordance with the assessment.

(b) Without prejudice to anything in this section, the provisions of Chapter 5 of Part 41A, including those relating to time limits shall, with any necessary modifications, apply to the making and amending of an assessment under this section.

(c) The Revenue officer may issue the notice of assessment or of amended assessment by electronic means.

(4)

(a) Where a notice is given to a qualifying company under subsection (3), the qualifying company may, if the qualifying company claims that the total amount of tax assessed is excessive, on giving notice in writing to the Revenue officer within the period of 30 days from the date of the notice, appeal to the Appeal Commissioners.

(b) A qualifying company to whom notice is given under subsection (3), shall not be entitled to appeal to the Appeal Commissioners—

(i) in the case of a qualifying company who has made a return under section 529E, until that qualifying company has paid the tax due and payable on the basis of the qualifying company’s return together with the related interest due under section 529H, and

(ii) in any other case, until the qualifying company has made a return under section 529E for the return period concerned and has paid the tax due and payable on the basis of that return together with the related interest due under section 529H.

(c) The Appeal Commissioners shall hear and determine an appeal made to them under this subsection as if it were an appeal against an assessment to income tax and the provisions of the Income Tax Acts relating to such appeals and to the rehearing of an appeal and to the statement of a case for the opinion of the High Court on a point of law shall apply accordingly with any necessary modifications.

Interest on late payment of appropriate tax

529H. (1) Where an amount of tax which a qualifying company is liable to pay under this Chapter to the Collector-General is not paid by the due date concerned, simple interest on the amount outstanding shall be paid by the qualifying company to the Collector-General and shall be calculated from the due date concerned until payment, for any day or part of a day during which the amount remains unpaid at the rate specified in section 1080.

(2) Subsections (3) to (5) of section 1080 shall apply in relation to interest payable under subsection (1) as they apply in relation to interest payable under that section.

Repayment of appropriate tax

529I. (1) Notwithstanding anything in the Tax Acts—
- (a) subject to paragraph (d), no repayment of appropriate tax in respect of any relevant payment shall be made to any specified person receiving or entitled to the relevant payment,

- (b) the amount of any relevant payment shall be deemed to be income of the specified person and chargeable to income tax under Case IV of Schedule D and under no other Case or Schedule, and shall be taken into account in computing the total income of the person entitled to that amount but in relation to such a person—

    - (i) except for the purposes of a claim to repayment under paragraph (d), the specified amount within the meaning of section 188(2) shall, as respects the year of assessment for which the person is to be charged to income tax in respect of the relevant payment, be increased by that amount, and

    - (ii) where the taxable income of that person includes a relevant payment then the part of the taxable income, equal to that relevant payment, shall be chargeable to tax at the rate at which tax was deducted from the relevant payment,

- (c) section 59 shall apply as if a reference to appropriate tax deductible by virtue of this Chapter were contained in paragraph (a) of that section,

- (d) (i) a specified person shall be entitled in computing the income chargeable under Case IV, in accordance with paragraph (b), to a deduction in respect of expenditure, which was not reimbursed or is not reimbursable, incurred in the provision of artistic services to a qualifying company,

    - (ii) the amount of expenditure referred to in subparagraph (i) shall be computed as if the artistic services provided to the qualifying company was a separate trade or profession and the expenditure was incurred for the purposes of that trade or profession,

    - (iii) a specified person may make a claim for repayment of appropriate tax to the Revenue Commissioners in respect of expenditure incurred in accordance with subparagraph (ii),

    - (iv) on receipt of a claim under subparagraph (iii) a Revenue officer shall make a determination on an amount that is equal to the expenditure that would not have been disallowed as a deduction under section 81 if the specified person had provided the services directly to the qualifying company by carrying on a trade or profession chargeable to tax under Case I or Case II,

    - (v) a repayment of the appropriate tax charged on the amount determined by a Revenue officer under subparagraph (iv) shall be made to the specified person,

    - (vi) following a determination under subparagraph (iv) and the application of subparagraph (v) the Revenue Commissioners shall notify the specified person of the repayment, if any, that is due,

    - (vii) a claim may not be made under this section where the relevant payment has been reduced, in respect of expenditure incurred, under section 529C(2).
(2) On receipt of a notice of a determination made under subsection (1)(d)(iv), a specified person who is aggrieved by the determination may, by notice in writing given to the Revenue Commissioners within 30 days of the date of the determination, appeal to the Appeal Commissioners.

(3) The Appeal Commissioners shall hear and determine an appeal made to them under subsection (2) as if it were an appeal against an assessment to income tax and the provisions of the Income Tax Acts relating to such appeals and to the rehearing of an appeal and to the statement of a case for the opinion of the High Court on a point of law shall apply accordingly with any necessary modifications.

(4) The Revenue Commissioners shall make regulations for the purposes of this section and such regulations may provide for—

(a) the manner by which specified persons shall communicate with the Revenue Commissioners,

(b) the particulars to be included in a claim for a repayment under this section,

(c) the transmission of information in connection with appeals,

(d) any other matters related to repayments under this section.

Obligation on specified person

529J. Every specified person shall furnish to a qualifying company, on request, all such information or particulars as are required by the qualifying company to enable the qualifying company to comply with this Chapter.

Record keeping and inspection of records

529K. (1) Without prejudice to any other provision of the Tax Acts each qualifying company shall keep and maintain a record of all relevant payments made and the record shall state, in relation to each such payment, the name, address and tax reference of the specified person or the artiste, as appropriate, the date of the payment, the amount of the payment and the amount of appropriate tax deducted from the payment.

(2) The obligations contained in subsections (3) and (4) of section 886 to keep and retain records and linking documents apply to all records, documents and other data created or maintained manually or by any electronic means for the purposes of this Chapter.

(3)

(a) Without prejudice to other provisions of the Tax Acts, any person, or any employee of a person, who has made or received a relevant payment, shall produce to a Revenue officer for inspection all documents and records relating to the relevant payment as are in the power, possession or procurement of such person or employee, as the case may be, which have been requested by the Revenue officer.

(b) For the purposes of subsection (1), any Revenue officer who exercises powers or performs duties, as the case may be, under this section shall be authorised in writing by the Revenue Commissioners to exercise those powers or perform those duties.

(c) An authorised officer when exercising powers or performing duties under this section shall, on request, produce evidence of the officer’s authorisation.

Civil penalties

529L. Chapter 3A of Part 47 applies, with any necessary modification, to a penalty arising under section 529C(3) or 529E(3).

Miscellaneous

529M. (1) Regulations made under this Chapter shall be laid before Dáil Éireann as soon as may be after they are made and, if a resolution annulling those regulations is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulations are laid before it, the regulations shall be annulled accordingly, but without prejudice to the validity of anything previously done under them.

(2)

(a) Anything required to be done by a qualifying company under this Chapter or under regulations made under this Chapter may be done by another person acting under the authority of the qualifying company.

(b) Where anything is done by such other person under the authority of a qualifying company, this Chapter shall apply as if it had been done by the qualifying company.

(c) Anything purporting to have been done by or on behalf of a qualifying company shall for the purposes of this Chapter be deemed to have been done by the qualifying company or under the qualifying company’s authority, as the case may be, unless the contrary is proved.

(3) Anything to be done by or under this Chapter by the Revenue Commissioners, other than the making of regulations, may be done by any Revenue officer or may, if appropriate, be done through such electronic systems as the Revenue Commissioners may put in place for the time being for any such purpose.”.

(2) Subsection (1) shall come into operation on such day as the Minister for Finance may appoint by order.

26. Amendment of section 530F of Principal Act (obligation on principals to deduct tax)

26. Section 530F of the Principal Act is amended in subsection (3)(a) by deleting “by the due date for the return”.

27. Amendment of section 891E of Principal Act (implementation of the Agreement to Improve Tax Compliance and Provide for Reporting and Exchange of Information concerning Tax Matters (United States of America) Order 2013)

27. Section 891E of the Principal Act is amended in subsection (10)(b) by substituting “to which the return relates” for “in which the return is received”.

28. Amendment of Schedule 24 to Principal Act (relief from income tax and corporation tax by means of credit in respect of foreign tax)

28. (1) Schedule 24 to the Principal Act is amended—

(a) in paragraph 5 by inserting the following after subparagraph (3):

“(4) Where Chapter 2A of Part 15 applies to a person for a tax year, the specified rate shall be ascertained by dividing the income tax payable by that person for that year in accordance with section 485E by the amount of the individual’s adjusted income, within the meaning of section 485C, for that year.”,

(b) in paragraph 7—

(i) in subparagraph (3) by substituting the following for clause (c):

“(c) notwithstanding anything in clauses (a) and (b), where any part of the foreign tax in respect of the income (including any foreign tax which under clause (b) is to be treated as increasing the amount of the income) cannot be allowed as a credit against either income tax or corporation tax, the amount of the income shall be treated as reduced by that part of that foreign tax, but, for the purposes of corporation tax, the amount by which the income is treated as reduced by that part of the foreign tax shall not exceed the amount of income which would be the amount referred to in paragraph 4 as ‘the relevant income’, taking account of the provisions of subparagraphs (2) and (2A) of that paragraph.”,

and

(ii) in subparagraph (4) by substituting “total income or the adjusted income, as the case may be,” for “total income”,

and

“(3) For the purposes of subparagraph (4)—

(a) as respects any leasing income included in trading income for an accounting period of a trade carried on by a company, and

(b) taking account of payments for the use of, or the right to use, specific equipment as a separate leasing income,

an amount shall be treated as unrelieved foreign tax, or unrelieved relevant foreign tax, of that accounting period in respect of that leasing income, being—
- (i) in the case of foreign tax, which is deducted, or treated as so deducted by subparagraph (4), from that leasing income, the sum of—

    - (I) so much of that tax as is neither allowed as a credit against corporation tax nor treated as reducing income under paragraph 7(3)(c), and

    - (II) 87.5 per cent of the amount of foreign tax by which income is treated as reduced by virtue of paragraph 7(3)(c),

      and

- (ii) in the case of relevant foreign tax, the amount by which 87.5 per cent of that relevant foreign tax, which is deducted, or treated as so deducted by subparagraph (4), from that leasing income, exceeds the amount of corporation tax which is treated as attributable to that leasing income for the purposes of this paragraph.
(4) Where, taking account of payments for the use of, or the right to use, specific equipment as a separate leasing income, a company is in receipt of a leasing income for an accounting period (in this subparagraph referred to as ‘the first-mentioned accounting period’) from which foreign tax or relevant foreign tax has been deducted, then for the purposes of the Corporation Tax Acts any unrelieved foreign tax, or unrelieved relevant foreign tax, of the accounting period immediately preceding the first-mentioned accounting period in respect of the same leasing income shall be treated as foreign tax or relevant foreign tax, as the case may be, deducted from such leasing income of the first-mentioned accounting period.”.

(2) Paragraphs (a) and (b)(ii) of subsection (1) apply as respects any relief, deduction, credit in relation to tax or, as the case may be, a reduction in the amount of tax payable, details of which fall to be included in particulars on a return, required to be delivered under section 951 of the Principal Act, which was delivered on or after 31 January 2008.

(3) Paragraphs (b)(i) and (c) of subsection (1) apply as respects accounting periods beginning on or after 1 January 2014.

29. Securities issued by Irish Water

29. (1) The Principal Act is amended—

(a) in the Table to section 37 by inserting the following after “Securities issued on or after the 28th day of May, 1992 by Bord Gáis Éireann.”:

“Securities issued on or after the 24th day of October 2013 by Irish Water.”,

and

(b) in section 607(1)(d) by inserting “Irish Water,” after “Bord Gáis Éireann,”.

(2) Subsection (1)(b) has effect as respects any securities issued by Irish Water on or after 24 October 2013.

30. Life assurance policies and investment funds

30. (1) The Principal Act is amended in section 730F(1)—

(a) in paragraph (a)(ii) by substituting “41 per cent” for “36 per cent”, and

(b) in paragraph (b) by substituting “at the rate of 60 per cent” for “at a rate determined by the formula— (S + 36) per cent where S is the standard rate per cent (within the meaning of section 4)”.

(2) The Principal Act is amended in section 730J—

(a) in paragraph (a)(i)(I) by substituting “41 per cent” for “33 per cent”,

(b) in paragraph (a)(i)(II)(A) by substituting “at the rate of 60 per cent” for “at the rate determined by the formula— (S + 36) per cent where S is the standard rate per cent for the year of assessment in which the payment is made”,

(d) in paragraph (a)(ii)(I) by substituting “at the rate of 80 per cent” for “at the rate determined by the formula— (H + 33) per cent where H is a rate per cent determined in relation to the person by section 15 for the year of assessment in which the payment is made”.

(3) The Principal Act is amended in section 730K(1)—

(a) in paragraph (a) by substituting “at the rate of 60 per cent” for “at the rate determined by the formula— (S + 36) per cent where S is the standard rate per cent for the year of assessment in which the payment is made”, and

(b) in paragraph (b) by substituting “41 per cent” for “36 per cent”.

(4) The Principal Act is amended in Chapter 1A of Part 27—

(a) in section 739D(5A), in the formula in paragraph (b), by substituting “(G x 41)” for “(G x 36)”, and

(b) in section 739E(1)—

(i) in paragraph (a)(ii) by substituting “41 per cent” for “33 per cent”,

(ii) in paragraph (b)(ii) by substituting “41 per cent” for “36 per cent”, and

(iii) in paragraph (ba) by substituting “at the rate of 60 per cent” for “at a rate determined by the formula— (S + 36) per cent, where S is the standard rate per cent (within the meaning of section 4)”.

(5) The Principal Act is amended in Chapter 4 of Part 27—

(a) in section 747D(a)(i)(I)—

(i) in subclause (A) by substituting “at the rate of 60 per cent” for “at the rate determined by the formula— (S + 36) per cent where S is the standard rate per cent for the year of assessment in which the payment is made”, and

(ii) in subclause (B) by substituting “41 per cent” for “33 per cent”,

(b) in section 747D(a)(i)(II)—

(i) in subclause (A) by substituting “at the rate of 60 per cent” for “at the rate determined by the formula— (S + 36) per cent, where S is the standard rate per cent for the year of assessment in which the payment is made”, and

(ii) in subclause (B) by substituting “41 per cent” for “36 per cent”,

(c) in section 747D(a)(ii)(I) by substituting “at the rate of 80 per cent” for “at the rate determined by the formula— (H + 33) per cent, where H is the rate per cent determined in relation to the person by section 15 for the year of assessment in which the payment is made”, and

(d) in section 747E(1)(b)—

(i) in subparagraph (i) by substituting “at the rate of 60 per cent” for “at the rate determined by the formula— (S + 36) per cent, where S is the standard rate per cent for the year of assessment in which the payment is made”, and

(ii) in subparagraph (ii) by substituting “41 per cent” for “36 per cent”.

(6)
(a) Subsection (1) applies and has effect as respects the happening of a chargeable event in relation to a life policy (within the meaning of Chapter 5 of Part 26 of the Principal Act) on or after 1 January 2014.

(b) Subsection (2) applies and has effect as respects the receipt by a person of a payment in respect of a foreign life policy (within the meaning of Chapter 6 of Part 26 of the Principal Act) on or after 1 January 2014.

(c) Subsection (3) applies and has effect as respects the disposal in whole or in part of a foreign life policy (within the meaning of Chapter 6 of Part 26 of the Principal Act) on or after 1 January 2014.

(d) Subsection (4) applies and has effect as respects the happening of a chargeable event in relation to an investment undertaking (within the meaning of section 739B(1) of the Principal Act) on or after 1 January 2014.

(e) Paragraphs (a) to (c) of subsection (5) apply and have effect as respects the receipt by a person of a payment in respect of a material interest in an offshore fund (within the meaning of Chapter 4 of Part 27 of the Principal Act) on or after 1 January 2014.

(f) Paragraph (d) of subsection (5) applies and has effect as respects the disposal in whole or in part by a person of a material interest in an offshore fund (within the meaning of Chapter 4 of Part 27 of the Principal Act) on or after 1 January 2014.

31. Living City Initiative

31. (1) The Principal Act is amended in Chapter 13 (inserted by section 30 of the Finance Act 2013) of Part 10—

(a) in section 372AAA—

(i) by deleting the definition of “Georgian house”, and

(ii) by inserting the following definition:

“ ‘relevant house’ means a building, constructed before 1915 for use as a dwelling, comprising at least 2 storeys, with or without a basement;”,

(b) in section 372AAB(1), in the definition of “qualifying premises”, by substituting “relevant” for “Georgian”, and

(i) in subsection (3) by substituting “relevant” for “Georgian”, and

(ii) in subsection (8) by substituting “any public or local authority” for “any public local authority” in paragraph (b).

(2) The Principal Act is amended—

(a) in Part 1 of the Table to section 458 by inserting “Section 372AAB”,

(b) in section 1024(2)(a)(i) by substituting “sections 244, 372AR and 372AAB” for “sections 244 and 372AR”, and

(3) Subsection (2) shall come into operation on such date as the Minister for Finance may appoint by order.

Chapter 4 Corporation Tax

32. Amendment of section 77 of Principal Act (miscellaneous special rules for computation of income)

32. (1) Section 77 of the Principal Act is amended—

(a) in subsection (6A)(b) by substituting “so much of the relevant foreign tax in relation to the relevant interest as does not exceed that amount of the income referable to the relevant interest” for “the relevant foreign tax in relation to the relevant interest”, and

(b) in subsection (6B)(b) by substituting “so much of the relevant foreign tax in relation to the relevant royalties as does not exceed that amount of the income referable to the relevant royalties” for “the relevant foreign tax in relation to the relevant royalties”.

(2) This section shall apply as respects accounting periods beginning on or after 1 January 2014.

33. Amendment of section 396C of Principal Act (relief from corporation tax for losses of participating institutions)

33. Section 396C of the Principal Act is amended in subsection (5) by inserting “and before 1 January 2014” after “2009”.

34. Amendment of section 411 of Principal Act (surrender of relief between members of groups and consortia)

34. (1) Section 411 of the Principal Act is amended in subsection (1)(c)(ii)(II) by deleting “or, where the company is a 75 per cent subsidiary of another company, the principal class of shares of that other company,”.

(2) This section applies as respects accounting periods commencing on or after the date of the passing of this Act.

35. Deferral of exit tax

35. (1) The Principal Act is amended in Chapter 2 of Part 20 by inserting the following section after section 628:

“628A. (1) In this section—

‘chargeable period’ means a year of assessment or an accounting period, as the case may be;

‘disposal of assets’ means a disposal of migrated assets;

‘EEA Agreement’ means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by all subsequent amendments to that Agreement;

‘EEA State’ means a state which is a contracting party to the EEA Agreement;

‘electronic means’ has the meaning assigned to it in section 917EA(1);

‘migrated assets’ means the assets of a migrating company, the chargeable gain on the deemed disposal of which was taken into account in determining the amount of relevant tax;

‘migrating company’ means a company which ceases to be resident in the State and becomes resident, under the law of a relevant territory, in that territory for the purposes of tax;

‘migration date’ means the date, on or after 1 January 2014, on which a company ceases to be resident in the State;

‘relevant event’ means—

(a) the appointment of a liquidator to the migrating company,

(b) any event under the law of a relevant territory corresponding to the event specified in paragraph (a),

(c) the migrating company ceasing to be resident, under the law of a relevant territory, in that territory for the purposes of tax, and not becoming so resident in another relevant territory for that purpose, or

(d) any failure to pay relevant tax by the date that it becomes due and payable;

‘relevant period’, in respect of which a statement under paragraph (b) of subsection (4) is to be made, is the calendar year immediately preceding the 21-day period in which the statement is to be made, except that in respect of the first such statement of the 5 or 9 statements, as the case may be, referred to in that subsection, such period shall be the period commencing at the migration date and ending on the last day before the beginning of the calendar year in respect of which the next such statement is to be made;

‘relevant tax’ means tax payable, other than tax in respect of the amount of any postponed gain under section 628, which but for section 627 would not be payable by a migrating company for a chargeable period;

‘relevant territory’ means a Member State (other than the State) or an EEA State;

‘specified date’ means—

(a) in relation to corporation tax, the last day of the period of 9 months starting on the day immediately following the migration date, but in any event not later than day 23 of the month in which that period of 9 months ends, or

(b) in relation to capital gains tax payable in respect of a year of assessment in which the migration date occurs, 31 October in the tax year following that year;

‘tax’, in relation to a relevant territory other than the State, means any tax imposed in that territory which corresponds to income tax or corporation tax.
(2) Subject to the provisions of this section, a migrating company may elect to pay relevant tax—

(a) in 6 equal instalments at yearly intervals, the first instalment of which shall be due and payable on the specified date, and the remaining 5 instalments shall be due and payable respectively on each of the next 5 anniversaries of the specified date, or

(b) not later than 60 days after the date of disposal of assets.

(3) Where a migrating company makes an election to pay relevant tax—

(a) in accordance with paragraph (a) of subsection (2), relevant tax shall be payable in 6 equal instalments at yearly intervals in accordance with that paragraph, or

(b) in accordance with paragraph (b) of subsection (2)—

(i) so much of the relevant tax shall be paid on the disposal of assets by the company as bears the same proportion to the relevant tax as the chargeable gains, computed on the deemed disposal of those assets at the migration date, bears to the aggregate of the chargeable gains computed on the deemed disposal of the assets by the company at the migration date, and

(ii) any relevant tax which is not due and payable within a period of 10 years from the migration date, shall be deemed to become due and payable on the tenth anniversary of the migration date.
(4)
(a) An election under subsection (2) shall—

(i) be made in the return under section 959I—

(I) where the relevant tax is corporation tax, for the accounting period which ends on the migration date for the company, or

(II) where the relevant tax is capital gains tax, for the year of assessment in which the migration date for the company occurs,

and that return shall be made by electronic means (in accordance with Chapter 6 of Part 38);

(ii) specify—

(I) the date on which the company ceased to be resident in the State,

(II) the relevant territory in which the migrating company has become resident,

(III) the amount of the relevant tax, and

(IV) whether the election is being made to pay relevant tax in accordance with paragraph (a) or (b) of subsection (2);

and

(iii) provide such other information as may be required by the Revenue Commissioners for the purposes of this section.
(b) Where an election is made to pay relevant tax in accordance with—

(i) subsection (2)(a), the migrating company shall within 21 days of the end of each of the 5 calendar years which follow the year in which the migration date occurs, or

(ii) subsection (2)(b), the migrating company shall within 21 days of the end of each of the 9 calendar years which follow the year in which the migration date occurs,

deliver to the Revenue Commissioners a statement, notwithstanding that the migrating company has not received a notice to prepare and deliver such a statement, by such electronic means and in such form and format as the Revenue Commissioners may specify, in respect of the relevant period, for the purposes of relevant tax—
- (I) specifying whether the company is treated under the laws of a relevant territory as resident for the purposes of tax in that territory throughout that relevant period,

- (II) where the company has made an election to pay relevant tax in accordance with subsection (2)(b)—

- (A) stating whether any relevant tax became due and payable during that relevant period,

- (B) specifying the amount of that tax, the amount of the related interest charge and whether that tax and interest has been paid, and

    - (C) setting out the computation of that tax and interest, in accordance with subsections (3)(b)(i) and (6),

      and

    - (III) providing such other information as may be required by the Revenue Commissioners for the purposes of this section.
(5) Notwithstanding subsections (2) and (3) if, at any time within 10 years of the migration date, a relevant event occurs, then any amount of relevant tax which has not been paid at the time of the relevant event, and any interest charged on that amount in accordance with subsection (6), shall become due and payable on the occurrence of the relevant event.

(6)

(a) Where relevant tax becomes due and payable at any time under this section, simple interest shall be payable on the amount of that relevant tax and shall be calculated, from the specified date until payment, for any day or part of a day during which the amount of relevant tax remains unpaid, at the prevailing rate specified in the Table to subsection (2)(c)(ii) of section 1080, and such interest shall be due and payable when the relevant tax concerned is due and payable.

(b) Interest charged on the relevant tax shall be added to each of the instalments mentioned in subsection (2)(a) or, where subsection (2)(b), (3)(b)(ii) or (5) applies, added to the amount of relevant tax, and shall be paid at the same time as such instalment is due or at the same time as relevant tax is payable in accordance with subsection (2)(b), (3)(b)(ii) or (5), as the case may be.

(7) The Revenue Commissioners may, where it appears to them that the deferral of tax would otherwise present a serious risk to collection of the tax, require a migrating company which has made an election under subsection (2) to give security, or further security, of such amounts and in such form and manner as they may determine, for the payment of relevant tax, within 30 days from the date of service on the company of a notice in writing.

(8) All amounts of relevant tax and interest shall be paid to the Collector-General.

(9) Any amount of relevant tax and interest payable in accordance with this section shall be payable without the making of an assessment.
(10)
(a) The Collector-General may, at any time before the end of the period beginning with the date on which that tax was due and payable by reference to this section and ending 3 years after the time when a statement under subsection (4)(b), specifying the amount of that tax, is made and delivered to the Collector-General, serve on—

(i) a company which is, or during the period of 12 months ending with the date when relevant tax became due and payable was, a member of the same group (within the meaning of section 629(1)) as the migrating company, or

(ii) a person who is, or during the period mentioned in subparagraph (i) was, a controlling director (within the meaning of section 629(1)) of the migrating company or of a company which has, or within that period had, control over the migrating company,

a notice—
- (I) stating the amount which remains unpaid of the relevant tax payable by the migrating company and the date on which the tax became due and payable, and

- (II) requiring the company referred to in subparagraph (i) or the person referred to in subparagraph (ii), as the case may be, to pay that amount within 30 days of service of the notice,

  and in the event of the serving of such notice the amount referred to in subparagraph (I) shall be so payable by the company or person concerned, as the case may be.
(b) Any amount which a person is required to pay by a notice under this subsection may be recovered from the person as if it were tax due by such person, and such person may recover any such amount paid on foot of a notice under this section from the migrating company.

(c) A payment in pursuance of a notice under this subsection shall not be allowed as a deduction in computing income, profits or losses for any tax purposes.
(11) Without prejudice to the provisions of this section, the provisions of the Corporation Tax Acts and the Capital Gains Tax Acts, as appropriate, relating to the collection and recovery of corporation tax, capital gains tax, and interest, shall apply, with any necessary modifications, to the collection and recovery of relevant tax and interest payable in accordance with this section as they apply to any other corporation tax, capital gains tax, and interest.”.

(2) Subsection (1) shall come into operation on 1 January 2014.

36. REITs

36. Part 25A of the Principal Act is amended—

(a) in section 705A, in the definition of “holding company”, by substituting “definition of ‘group’ ” for “immediately preceding definition”,

(b) in section 705K(1)(a) by substituting “section 705B(1)(b)(vi), or” for “section 705B(1)(b)(iv),”,

(i) in subsection (3) by deleting “, as the case may be,” where it first occurs, and

(ii) in subsection (5) by deleting “, as the case may be,” where it first occurs,

(d) in section 705N by substituting “section 705B(1)(b)(vi)” for “section 705B(1)(b)(iv)”, and

(e) in section 705P—

(i) by substituting the following for subsection (1)—

“(1) Where a notice is given under subsection (1) or (4) of section 705O, a company or group that has ceased to be a REIT or group REIT is to be treated for corporation tax purposes as having ceased, at the date specified in the notice, to be a REIT or group REIT, as the case may be.”,

and

(ii) in subsection (2)—

(I) by substituting “subsection (1) or (4) of section 705O” for “sections 705O(1) or (4)”, and

(II) by deleting “, as the case may be,” where it first occurs.

37. Amendment of Schedule 4 to Principal Act (exemption of specified non-commercial State- sponsored bodies from certain tax provisions)

37. (1) Schedule 4 to the Principal Act is amended by inserting the following after paragraph 96:

“96A. The Teaching Council.”.

(2) Subsection (1) is deemed to have come into force and have taken effect as on and from 28 March 2006.

38. Acceleration of wear and tear allowances for certain energy-efficient equipment

38. (1) The Principal Act is amended in the Table in Schedule 4A by inserting the following in column (2) opposite the reference in column (1) to “Electric and Alternative Fuel Vehicles”:

“Natural Gas Vehicles and Associated Equipment: Natural gas vehicles and relevant required fuelling equipment that meet specified efficiency criteria.

Natural Gas Vehicle Conversions: Equipment for the conversion to natural gas or biogas as a primary fuel for existing commercial vehicles, that meet specified efficiency criteria.”.

(2) Subsection (1) shall come into operation on 1 January 2014.

39. Amendment of section 23A of Principal Act (company residence)

39. (1) Section 23A of the Principal Act is amended by inserting the following subsection after subsection (4):

“(5) Notwithstanding subsection (3)—

(a) where a company—

(i) is incorporated in the State and, by virtue of the law of a relevant territory other than the State, would be resident in that relevant territory for the purposes of tax if it were incorporated in that relevant territory but would not otherwise be resident for tax purposes in that relevant territory, and

(ii) is managed and controlled in that relevant territory and, by virtue of the law of the State, would be resident for the purposes of tax in the State if it were so managed and controlled in the State but would not otherwise be resident for tax purposes in the State,

and

(b) accordingly, the company would not, apart from this subsection, be regarded, by virtue of the law of any territory, as resident in that territory for the purposes of tax,

that company shall be regarded for the purposes of the Tax Acts and the Capital Gains Tax Acts as resident in the State.”.

(2) This section has effect from—

(a) 24 October 2013, as respects a company incorporated on or after that date, and

(b) 1 January 2015, as respects a company incorporated before 24 October 2013.

40. Attribution of relevant profits for additional credit

40. (1) Schedule 24 to the Principal Act is amended in paragraph 9I—

(a) in subparagraph (1), in the definition of “tax”, by deleting “, for the purposes of the definition of ‘excluded dividend’ in this subparagraph,”,

(b) in subparagraph (4)(b) by substituting “subject to corporation tax at the rate specified in section 21A(3)(a)” for “chargeable to corporation tax under Case III of Schedule D”, and

(4A)
(a) Where the relevant profits in relation to the relevant dividend referred to in clause (a) or (b) of subparagraph (4) have not been subject to tax, which corresponds to corporation tax in the State, but are attributable to profits of a company which have been subject to such tax, then, for the purposes of subparagraph (4), the rate per cent of tax, which is referred to in clause (a) or (b) of that subparagraph as applicable to the relevant profits in relation to the relevant dividend, shall be deemed to be the rate per cent of tax, which corresponds to corporation tax in the State, applicable to those profits of that company which have been subject to such tax.

(b) For the purposes of clause (a) and subparagraphs (3) and (4)—

(i) each part, if any, of a relevant dividend mentioned in clause (a) or (b) of subparagraph (4), being—

(I) an amount (referred to in this subclause as the ‘directly taxed amount’), which is so much of the relevant dividend as does not exceed the relevant profits in relation to the relevant dividend which have been subject to tax, which corresponds to corporation tax in the State, or

(II) so much of the excess of the relevant profits in relation to the relevant dividend over the directly taxed amount as is attributable to profits of a company which have been subject to tax, which corresponds to corporation tax in the State,

shall be treated as a separate relevant dividend, and

(ii) the aggregate value of the parts of the relevant dividend so treated under subclause (i) shall not exceed the value of that relevant dividend.

(i) profits of a company are attributable to the profits of another company if they have been received directly or indirectly by the payment of dividends or the making of distributions by one or more companies directly or indirectly from the profits of that other company, and

(ii) relevant profits in relation to a relevant dividend shall not be attributable to the same profits of a company more than once.

(d) For the purposes of clause (c)(ii), any profits of a company, other than relevant profits in relation to a relevant dividend, and any profits of any other company to which they are attributable shall be deemed to be the same profits.”.

((2) This section shall have effect as respects dividends paid on or after the date of the passing of this Act.

Chapter 5 Capital Gains Tax

41. Amendment of section 29 of Principal Act (persons chargeable)

41. Section 29 of the Principal Act is amended by substituting the following for subsection (5A):

“(5A)

(a) This subsection shall apply where an individual referred to in subsection (4) transfers outside the State, to his or her spouse or civil partner, any of the proceeds of the disposal of any assets on which chargeable gains accrue, as referred to in that subsection.

(b) Where this subsection applies, any amounts received or treated, under subsection (5), as received in the State on or after 24 October 2013 which derive from any transfer referred to in paragraph (a) shall be treated, for the purpose of subsection (4), as amounts received in the State by the individual in respect of chargeable gains referred to in subsection (4).”.

42. Amendment of section 552 of Principal Act (acquisition, enhancement and disposal costs)

42. Section 552 of the Principal Act is amended by inserting the following subsection after subsection (1A):

“(1B)

(a) In this subsection—

‘connected person’ has the same meaning as in section 10;

‘debt’ means a debt or debts, in respect of borrowed money, whether incurred by the person making the disposal of an asset or by a connected person;

‘group’ and ‘member of a group’ have the same meanings, respectively, as in section 616.

(b) Where—

(i) the amount or value of the consideration referred to in subsection (1)(a), or

(ii) the amount of any expenditure referred to in subsection (1)(b),

was defrayed either directly or indirectly out of borrowed money, the debt in respect of which is released in whole or in part (whether before, on or after the disposal of the asset), that amount shall be reduced by the lesser of the amount of the debt which is released or the amount of the allowable loss which, but for this subsection, would arise.

(c) For the purposes of paragraph (b), the date on which the whole or part of a debt is released shall be determined on the same basis as the release of the whole or part of a specified debt is treated as having been effected in section 87B(4).

(d) Where a debt is released in whole or in part in a year of assessment after the year of assessment in which the disposal of the asset takes place (such that the release of the debt was not taken into account in the computation of a chargeable gain or allowable loss on the disposal of the asset) then for the purposes of the Capital Gains Tax Acts a chargeable gain, equal to the amount of the reduction that would have been made under paragraph (b) had the release been effected in the year of assessment in which the disposal of the asset took place, shall be deemed to accrue to the person who disposed of the asset on the date on which the debt is released but, where the disposal is to a connected person, any gain under this subsection shall be treated for the purposes of section 549(3) as if it accrued on the disposal of an asset to that connected person.

(e) A chargeable gain under paragraph (d) shall not be deemed to accrue where, had a gain accrued on the disposal of the asset, it would not have been a chargeable gain or it would have qualified for relief from capital gains tax.

(f) Where a debt released is in respect of money borrowed by a member of a group of companies from another member of the group, the amount or value of the consideration referred to in subsection (1)(a), or the amount of any expenditure referred to in subsection (1)(b), shall not be reduced by the amount of that debt which is released under paragraph (b) or a chargeable gain in respect of the release of that debt shall not be deemed to accrue under paragraph (d).”.

43. Amendment of section 598 of Principal Act (disposals of business or farm on “retirement”)

43. (1) Section 598 of the Principal Act is amended in subsection (1)(a), in the definition of “qualifying assets”, by substituting the following for paragraph (v):

“(v) land which has been let by the individual at any time in the period of 15 years ending with the disposal where—

(I) immediately before the time the land was first let in that period of 15 years, the land was owned by the individual and used for the purposes of farming carried on by the individual for a period of not less than 10 years ending at that time, and

(II) the disposal is—

(A) to a child (within the meaning of section 599) of the individual, or

(B) to an individual, other than a child referred to in clause (A), provided the land was let to a person for the purposes of farming during the period of 15 years referred to in subparagraph (I) and each letting of the land was for a period of not less than 5 consecutive years;”.

(2) This section applies to disposals made on or after 1 January 2014.

44. Amendment of section 604A of Principal Act (relief for certain disposals of land or buildings)

44. Section 604A of the Principal Act is amended in subsection (2) by substituting “31 December 2014” for “31 December 2013”.

45. Entrepreneur relief

45. (1) The Principal Act is amended by inserting the following section after section 597:

“Entrepreneur relief

597A. (1) In this section—

‘chargeable business asset’ means an asset, including goodwill but not including shares (other than shares mentioned in paragraph (b)), securities or other assets held as investments, acquired at a cost of not less than €10,000 on or after 1 January 2014 but on or before 31 December 2018 and which—

(a) is, or is an interest in, an asset used wholly for the purposes of a new business carried on by an individual, or

(b) is a holding of new ordinary shares, issued on or after 1 January 2014, in a qualifying company, of which the individual has control (within the meaning of section 10) and in which the individual is a full-time working director, carrying on new business,

other than an asset on the disposal of which no gain accruing would be a chargeable gain;

‘full-time working director’, in relation to a qualifying company, means a director required to devote substantially the whole of his or her time to the service of the company in a managerial or technical capacity;

‘new business’ means relevant trading activities carried on by an individual or by a qualifying company that were not previously carried on by that individual or qualifying company or by any person connected (within the meaning of section 10) with that individual or qualifying company;

‘qualifying company’ means a company which is a micro, small or medium-sized enterprise, as defined in Article 2 of the Annex to the Commission Recommendation of 6 May 2003¹;

‘relevant trading activities’ has the same meaning as in section 488 and includes farming (within the meaning of section 655).

(2) An individual who, on or after 1 January 2010, has made a disposal of an asset on which capital gains tax has been paid and who, on or after 1 January 2014 but on or before 31 December 2018, applies an amount equal to all or part of the consideration (after deducting any capital gains tax paid), in acquiring chargeable business assets, shall be entitled to a tax credit against any capital gains tax liability arising on a subsequent disposal of or of an interest in those chargeable business assets made more than 3 years after they were acquired, in an amount equal to the lower of—

(a) that part of the capital gains tax paid on the disposal of the asset in the proportion that the amount so applied bears to the consideration (after deducting any capital gains tax paid), and

(b) 50 per cent of the capital gains tax payable on the disposal of the chargeable business asset.

(3) Where on a subsequent disposal of the chargeable business assets referred to in subsection (2) an amount equal to all or part of the consideration (after deducting any capital gains tax paid) on that disposal is, in turn, applied on or after 1 January 2014 but on or before 31 December 2018, in acquiring other chargeable business assets (in this subsection referred to as ‘the new chargeable business assets’) used wholly in a further new business, the individual shall similarly be entitled to a tax credit against any capital gains tax liability arising on a subsequent disposal of or of an interest in those new chargeable business assets made more than 3 years after they were acquired, in an amount equal to the lower of—

(a) that part of the capital gains tax paid on the disposal of the chargeable business assets in the proportion that the amount so applied bears to the consideration (after deducting any capital gains tax paid), and

(b) 50 per cent of the capital gains tax payable on the disposal of the new chargeable business asset.”.

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

PART 2 Excise

46. Amendment of Chapter 1 of Part 2 of Finance Act 1999 (mineral oil tax)

46. Chapter 1 of Part 2 of the Finance Act 1999 is amended—

(a) in section 99A—

(i) in subsection (1) by inserting the following definition:

“ ‘purchase in bulk’ means the purchase of gas oil by a qualifying road transport operator, where that gas oil is delivered, in a quantity exceeding 2000 litres or such other quantity as the Commissioners may prescribe, to a premises or place that is under the control of a qualifying road transport operator;”,

and

(ii) by inserting the following subsection after subsection (4):

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