Legalize / Ireland / Act

Finance Act 2014

Type Act

Publication 2014-12-23

Last updated 2016-12-25

State In force superseded text

Text As published

Source Irish Statute Book

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articles 101

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.

2 amending acts · 2016-12-25, FINANCE ACT 2016

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

“(3C) Notwithstanding subsection (3), a balancing charge shall not be made by reference to a wear and tear allowance made to a company (in this subsection referred to as the ‘first-mentioned company’) in respect of capital expenditure incurred on the provision of a specified intangible asset (within the meaning of section 291A) where an event referred to in subsection (1) occurs more than 5 years after the beginning of the accounting period of the company in which the asset was first provided, but if—

(a) that event, or any scheme or arrangement which includes that event, results in a company which is connected (within the meaning of section 10) with the first-mentioned company incurring capital expenditure on the specified intangible asset, and

(b) for the purposes of this Chapter and Chapter 4, the amount of that expenditure would, apart from this subsection, exceed the amount still unallowed, at the time of the event, of capital expenditure incurred by the first-mentioned company on the provision of that asset,

the amount of such expenditure shall be deemed, for those purposes, to be equal to the said amount still unallowed.”,

and

(b) in section 291A—

(i) in subsection (1), in paragraph (g) of the definition of “specified intangible asset”, by substituting “section 768 and, except where such asset is provided directly or indirectly in connection with the transfer of a business as a going concern, customer lists” for “section 768”, and

(ii) in subsection (6)(a) by deleting “80 per cent of”.

(2)
(a) Paragraph (a) of subsection (1) applies as respects any event referred to in section 288(1) of the Principal Act which occurs on or after 23 October 2014.

(b) Paragraph (b) of subsection (1) has effect for accounting periods commencing on or after 1 January 2015.

41. Amendment of section 623 of Principal Act (company ceasing to be member of group)

41. Section 623 of the Principal Act is amended in subsection (4) by inserting the following after “time”:

“and, solely for the purpose of determining when such tax is due and payable, as if any tax charged in respect of a chargeable gain that accrued from such a sale and reacquisition were tax for the accounting period of the chargeable company in which it ceases to be a member of the group”.

42. Amendment of Schedule 17A to Principal Act (accounting standards)

42. Schedule 17A to the Principal Act is amended in paragraph 1—

(a) in clause (a) by deleting “or”,

(b) in clause (b)(ii) by substituting “standards, or” for “standards.”, and

“(c) in relation to any accounting period beginning on or after 1 January 2015, Irish generally accepted accounting practice based on published standards to the extent that practice is based on the provisions of those published standards that are stated to embody international accounting standards.”.

43. Company residence

43. (1) The Principal Act is amended—

(a) by substituting the following for section 23A:

“(1) Subject to subsection (2), a company which is incorporated in the State shall be regarded for the purposes of the Tax Acts and the Capital Gains Tax Acts as resident in the State.

(2) Notwithstanding subsection (1), a company which is regarded for the purposes of any arrangements, having the force of law by virtue of section 826(1), as resident in a territory other than the State and not resident in the State shall be regarded for the purposes of the Tax Acts and the Capital Gains Tax Acts as not resident in the State.

(3) Nothing in subsection (1) shall prevent a company that—

(a) is not incorporated in the State, and

(b) is centrally managed and controlled in the State,

being resident in the State for the purposes of the Tax Acts and the Capital Gains Tax Acts.”,

and

(b) in section 882(2) by deleting subparagraphs (II) and (III) of paragraph (ii).

(2)
(a) Subject to paragraph (b), this section shall have effect from 1 January 2015.

(b) As respects a company incorporated before 1 January 2015, this section shall have effect—

(i) after 31 December 2020, or

(ii) from the date, after 31 December 2014, of a change in ownership of the company where there is a major change in the nature or conduct of the business of the company within the relevant period,

whichever is the earlier.

(i) beginning on the later of—

(I) 1 January 2015, or

(II) the date which occurs one year before the date of the change in ownership of the company referred to in that paragraph,

and

(ii) ending 5 years after the date of that change of ownership.

(d) For the purposes of the references in paragraphs (b) and (c) to a change in ownership of a company, Schedule 9 (other than paragraph 4 of that Schedule) to the Principal Act shall apply as if references in that Schedule to section 401 or 679(4) of the Principal Act were references to the said paragraphs (b) and (c).

(e) For the purposes of paragraph (b), “a major change in the nature or conduct of the business of the company” means—

(i) a major change in the nature or conduct of a trade (within the meaning of section 401(1)(a) or (b) of the Principal Act) carried on by the company,

(ii) the commencement by the company of a new trade, or

(iii) a major change arising from the acquisition by the company of property or of an interest in, or right over, property.

44. Amendment of section 626B of Principal Act (exemption from tax in the case of gains on certain disposals of shares)

44. (1) Section 626B of the Principal Act is amended by inserting the following after subsection (3):

“(3A)

(a) In this subsection ‘relevant treatment of a gain’ means the treatment, provided by this section or section 626C, of a gain as not being a chargeable gain.

(b) Notwithstanding any provision of section 590, the relevant treatment of a gain shall not apply for the purposes of section 590, but this is subject to paragraph (c).

(c) The relevant treatment of a gain shall apply for the purposes of section 590 where the participator (within the meaning of that section) is a company.”.

(2) This section applies as respects disposals on or after 18 November 2014.

Chapter 6 Capital Gains Tax

45. Amendment of certain provisions of Principal Act

45. (1) The Principal Act is amended—

(a) in section 598(6)(b) by deleting “and such assessment may be made at any time not more than 10 years”,

(b) in section 599(4) by deleting paragraph (b), and

(2) This section applies to disposals giving rise to a clawback of relief under section 598, 599 or 611 of the Principal Act where such disposals are made on or after the date of the passing of this Act.

46. Amendment of section 29A of Principal Act (temporary non-residents)

46. (1) Section 29A of the Principal Act is amended by inserting the following after subsection (3):

“(3A) Notwithstanding subsection (3), where the market value of the relevant assets on the day they were disposed of is greater or less than the market value of those assets on the last day of the year, referred to in that subsection, that greater or lesser market value shall be substituted for the market value on that last day of the year.”.

(2) This section applies to disposals made on or after the date of the passing of this Act.

47. Amendment of section 560 of Principal Act (wasting assets)

47. (1) Section 560 of the Principal Act is amended in subsection (1) —

(a) in the definition of “wasting asset”—

(i) in paragraph (c) by inserting “(other than plant that is a work of art)” after “plant”, and

(ii) in paragraph (d) by substituting “Commissioners;” for “Commissioners.”,

and

(b) by inserting the following definition after the definition of “wasting asset”:

“‘work of art’ includes a picture, print, book, manuscript, sculpture, piece of jewellery, furniture or similar object;”.

(2) This section applies to disposals made on or after the date of the passing of this Act.

48. Tax treatment of return of value on certain shares

48. The following section is inserted after section 848A of the Principal Act:

“Tax treatment of return of value on certain shares

848AA. (1) In this section—

‘company’ means Vodafone plc;

‘relevant legislation’ means Part 26 of the Act of the British Parliament entitled the Companies Act 2006;

‘return of value’ means the special dividend paid in respect of fully paid bonus C shares issued to shareholders in the company in accordance with the terms of a return of value and related share consolidation, provided for by means of a scheme of arrangement under the relevant legislation, and which was completed by the company on or about 21 February 2014.

(2) Notwithstanding any other provision of this Act, the receipt by an individual who is a shareholder in the company of a return of value in an amount of not more than €1,000, shall be deemed, for the purposes of capital gains tax, to be the receipt of a capital sum derived from the individual’s ordinary shares in the company and not to be income, unless the individual elects to have that return of value treated as income.

(3) An election referred to in subsection (2) to have a return of value treated as income shall be regarded as made by an individual by including the return of value as income in a return for the year ended 31 December 2014, required to be delivered under section 879 or 959I, as appropriate.”.

49. Amendment of section 604B of Principal Act (relief for farm restructuring)

49. Section 604B of the Principal Act is amended in subsection (1)(a) —

(a) by substituting the following for the definition of “agricultural land”:

“‘agricultural land’ means land used for the purposes of farming but does not include buildings on the land;”,

and

(b) in the definition of “relevant period” by substituting “31 December 2016” for “31 December 2015”.

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

50. (1) Section 598 of the Principal Act is amended in subsection (1) —

(a) in paragraph (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 25 years ending with the disposal where—

(I) immediately before the time the land was first let in that period of 25 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,

(B) to an individual, other than a child referred to in clause (A), where that disposal occurs on or before 31 December 2016, or

(C) 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 25 years referred to in subparagraph (I) and each letting of the land was for a period of not less than 5 consecutive years;”,

and

(b) by inserting the following after paragraph (d):

“(e) For the purposes of paragraph (v)(II)(C) in the definition of ‘qualifying assets’, land let under one or more than one conacre agreement before 31 December 2016 shall not affect entitlement to relief under this section, where a letting of the land for a period of not less than 5 consecutive years commences on or before 31 December 2016.”.

(2) This section applies to disposals made on or after 1 January 2015.

51. Exemption of certain payment entitlements

51. The Principal Act is amended by inserting the following section after section 604B:

“Exemption of certain payment entitlements

604C. (1) In this section—

‘farmer’ and ‘payment entitlement’ have the same meanings, respectively, as they have for the purposes of Council Regulation (EC) No. 73/2009 of 19 January 2009 ⁸;

‘scheme year 2013’ means the period beginning on 16 May 2012 and ending on 15 May 2013;

‘scheme year 2014’ means the period beginning on 16 May 2013 and ending on 15 May 2014.

(2) The disposal by farmers in the scheme year 2014 of payment entitlements that have, together with the land on which eligibility for the payment entitlements is based, been fully leased in the scheme year 2013 shall be exempt from capital gains tax.”.

52. Amendment of section 597A of Principal Act (entrepreneur relief)

52. (1) The Principal Act is amended by substituting the following section for section 597A:

“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, where that asset is 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 a qualifying enterprise, or
(b) is a holding of new ordinary shares, issued on or after 1 January 2014—

(i) in a qualifying company carrying on new business, or

(ii) in a holding company which owns 100 per cent of the ordinary share capital of a qualifying company carrying on new business,

of which an individual claiming relief under this section—
- (I) owns not less than 15 per cent of the ordinary share capital of the qualifying company or the holding company, and

- (II) is a full-time working director of the qualifying company,

  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;

  ‘holding company’ means a company that is not listed on the official list of any stock exchange whose business consists wholly of holding shares in a qualifying company;

  ‘initial risk finance investment’ means the funding of the qualifying enterprise for the purpose of new business which funding—
(a) must not exceed a total of €15 million,

(b) is provided in full within 6 months of the commencement of the new business, and

(c) includes equity or investment or both;
‘new business’ means relevant trading activities carried on—

(a) by a qualifying enterprise (to which paragraph (a) of the definition of ‘qualifying enterprise’ applies) that were not, prior to 1 January 2014, carried on by that qualifying enterprise or by any person connected (within the meaning of section 10) with that qualifying enterprise, or

(b) by a qualifying enterprise (to which paragraph (b) of the definition of ‘qualifying enterprise’ applies) that were not, prior to 1 January 2014, carried on by that qualifying enterprise or by any person connected (within the meaning of section 10) with that qualifying enterprise,

but shall not include any relevant trading activities the products, goods or services of which are substantially the same as products, goods or services previously provided by any individual claiming relief under this section or by any person connected with that individual;

‘qualifying company’ is a company that is a qualifying enterprise and which, at the time of the making of the initial risk finance investment, is not listed on the official list of any stock exchange;

‘qualifying enterprise’ means an enterprise which, at the time of the making of the initial risk finance investment, is a micro, small or medium-sized enterprise, as defined in Article 2 of the Annex to Commission Recommendation 2003/361/EC of 6 May 2003 ⁹ and which—

(a) has not been carrying on any business, trade or profession, or

(b) has been carrying on a business, trade or profession for less than 7 years;

‘relevant trading activities’ has the same meaning as it has in section 488 and includes farming (within the meaning of section 654).
(2) An individual who—

(a) on or after 1 January 2010, has made a disposal of an asset on which capital gains tax has been paid, and

(b) on or after 1 January 2014 but on or before 31 December 2018, applies an amount equal to all or part of the consideration received on that disposal (after deducting any capital gains tax paid on that disposal) as an initial risk finance investment in acquiring chargeable business assets,

shall be entitled to a tax credit against 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—
- (i) that part of the capital gains tax paid on the disposal of the first- mentioned asset in the proportion that the amount applied as an initial risk finance investment bears to the consideration received on the first-mentioned disposal (after deducting any capital gains tax paid), and

- (ii) 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) applied as initial risk finance investment is, in turn, applied as an initial risk finance investment 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’), the individual shall similarly be entitled to a tax credit against 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 first- mentioned chargeable business asset in the proportion that the amount applied as an initial risk finance investment bears to the consideration received on that disposal (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.

(4) Where for bona fide commercial reasons, a person making a disposal of a chargeable business asset first transfers that asset to a wholly owned company followed immediately by the disposal of the shares in that company to the person making the acquisition, the tax credit under subsection (2) or (3), as appropriate, shall apply to the disposal of the shares in the company to which the chargeable business asset was transferred as it would have applied if the chargeable business asset had been disposed of directly to the person making the acquisition.

(5) Subsection (4) shall not apply where the transfer of the chargeable business asset to a wholly owned company is an arrangement or part of an arrangement the main purpose or one of the main purposes of which is to secure a tax advantage within the meaning of section 546A.”.

(2) This section shall come into operation with effect from 1 January 2014.

PART 2 Excise

53. Amendment of section 136 of Finance Act 2001 (entry and search of premises)

53. Section 136 of the Finance Act 2001 is amended by substituting the following paragraph for paragraph (c) of subsection (1):

“(c) bets liable to betting duty are reasonably believed to be accepted or facilities, the use of which is subject to commission charges (within the meaning of section 67B of the Finance Act 2002) liable to betting intermediary duty, are reasonably believed to be provided,”.

54. Amendment of section 21 of Betting Act 1931 (hours of business of registered premises)

54. The Betting Act 1931 is amended by substituting the following section for section 21:

“21. (1) Registered premises shall not be opened or kept open for the transaction of business—

(a) at any time on Christmas Day or Good Friday, or

(b) before 7 o’clock in the morning or after 10 o’clock in the evening on any other day.

(2) If, in relation to a registered premises, subsection (1) is contravened, the registered proprietor of those premises shall be guilty of an offence and shall be liable on summary conviction to a class A fine or imprisonment for a term not exceeding 6 months or both.”.

55. Amendment of section 96 of Finance Act 1999 (rates)

55. (1) Section 96 of the Finance Act 1999 is amended in subsection (5) by substituting “mineral oil tax” for “the carbon charge”.

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

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

56. (1) Chapter 1 of Part 2 of the Finance Act 1999 is amended—

(a) in section 94(1) —

(i) by substituting the following for the definition of “additive”:

“‘additive’ means any product (other than hydrocarbon oil, liquefied petroleum gas, substitute fuel or vehicle gas) which may be added to—

(a) hydrocarbon oil,

(b) liquefied petroleum gas,

(c) substitute fuel, or

(d) vehicle gas,

as an extender or for the purpose of improving performance or for any other purpose, and cognate words shall be construed accordingly;”,

(ii) by substituting the following for the definition of “liquefied petroleum gas”:

“‘liquefied petroleum gas’ means gas classified within CN Codes 2711 12 11 to 2711 19 00;”,

(iii) by substituting the following for the definition of “mineral oil”:

“‘mineral oil’ means hydrocarbon oil, liquefied petroleum gas, vehicle gas, substitute fuel and additives;”,

(iv) in the definition of “hydrocarbon oil” by substituting “include vehicle gas or any oil” for “include any oil”,

(v) by inserting the following definitions:

“‘biogas’ means vehicle gas obtained solely from biomass;

‘CN Code’ means a Community subdivision to the combined nomenclature of the European Communities referred to in Article 1 of Council Regulation (EEC) No. 2658/87 of 23 July 1987 ¹⁰ as amended by Commission Regulation (EC) No. 2031/2001 of 6 August 2001 ¹¹;

‘production of vehicle gas’ means compressing, liquefying, regasification, packaging, or any other process by which vehicle gas is produced and made available;

‘vehicle gas’ means gas other than liquefied petroleum gas used or intended for use as vehicle fuel;”,

and

(vi) by deleting the definition of “methane”,

(b) in section 94(2)(b)(ii) by substituting “oil or gas” for “oil”,

“(1) Subject to the provisions of this Chapter, and any regulations made under it, a duty of excise, to be known as mineral oil tax, shall be charged, levied and paid—

(a) on all mineral oil other than vehicle gas—

(i) released for consumption in the State, or

(ii) released for consumption in another Member State, and brought into the State,

and

(b) on all vehicle gas—

(i) produced in the State, or

(ii) brought into the State.

(2) Liability to mineral oil tax shall arise at the time—

(a) in the case of vehicle gas, when it is—

(i) produced in the State, or

(ii) brought into the State,

(b) in the case of mineral oil other than vehicle gas, when that mineral oil is—

(i) released for consumption in the State, or

(ii) following release for consumption in another Member State, brought into the State.

(2A) In the case of vehicle gas, the person who produces vehicle gas or the person who brings vehicle gas into the State shall be liable for and shall pay mineral oil tax.”,

(d) in section 96(1B) by substituting “mineral oil, other than vehicle gas,” for “mineral oil” where it first occurs,

(e) in section 96 by inserting the following after subsection (1B):

“(1C) The rate of tax per megawatt hour specified for vehicle gas in Schedule 2A is in proportion to the emissions for natural gas and is determined by the formula—

EF x A x C

where—

EF is the carbon emission factor of natural gas expressed in kilograms of CO2 per terajoule,

A is the amount, €0.02, to be charged per kilogram of CO2 emitted,

C is 0.0036, the number of terajoules per megawatt hour.”,

(f) by inserting the following section after section 96:

“Registration for vehicle gas

96A. (1) Every person who produces or intends to produce vehicle gas, or who brings or intends to bring vehicle gas into the State, shall register with the Commissioners in accordance with such procedures as the Commissioners may prescribe or otherwise impose.

(2) A person registered by the Commissioners under subsection (1) shall apply to the Commissioners for approval of the installation, premises or place used or to be used for the production or storage of vehicle gas in accordance with such procedures as the Commissioners may prescribe or otherwise impose.

(3) A person registered by the Commissioners under subsection (1) shall comply with such requirements as the Commissioners may prescribe or otherwise impose for the purpose of collecting mineral oil tax and for the protection of the revenue derived from that tax.”,

(g) in section 100 by inserting the following after subsection (5):

“(5A) Subject to such conditions as the Commissioners may prescribe or otherwise impose, a relief from the carbon charge shall apply—

(a) to any vehicle gas that is shown to the satisfaction of the Commissioners to be biogas, and

(b) where biogas has been mixed or blended with any other vehicle gas, to the biogas content of any such mixture or blend.”,

(h) in section 104(2) by substituting the following for paragraph (g):

“(g) require a person who is an owner of or who is for the time being in charge of any motor vehicle constructed or adapted to use liquefied petroleum gas, vehicle gas or substitute fuel as a propellant in that vehicle to give such information as may be specified in relation to the supply or use of such mineral oil;”,

(i) by substituting the following for Schedule 2:

“SCHEDULE 2

Rates of Mineral Oil Tax

Description of Mineral Oil Rate of Tax

Light Oil:

Petrol €587.71 per 1,000 litres

Aviation gasoline €587.71 per 1,000 litres

Heavy Oil:

Used as a propellant €479.02 per 1,000 litres

Used for air navigation €479.02 per 1,000 litres

Used for private pleasure navigation €479.02 per 1,000 litres

Kerosene used other than as a propellant €50.73 per 1,000 litres

Fuel oil €76.53 per 1,000 litres

Other heavy oil €102.28 per 1,000 litres

Liquefied Petroleum Gas:

Used as a propellant €96.45 per 1,000 litres

Other liquefied petroleum gas €32.86 per 1,000 litres

Vehicle gas: €9.36 per megawatt hour

”,


Description of Mineral Oil	Rate of Tax
Light Oil:
Petrol	€587.71 per 1,000 litres
Aviation gasoline	€587.71 per 1,000 litres

Heavy Oil:
Used as a propellant	€479.02 per 1,000 litres
Used for air navigation	€479.02 per 1,000 litres
Used for private pleasure navigation	€479.02 per 1,000 litres
Kerosene used other than as a propellant	€50.73 per 1,000 litres
Fuel oil	€76.53 per 1,000 litres
Other heavy oil	€102.28 per 1,000 litres

Liquefied Petroleum Gas:
Used as a propellant	€96.45 per 1,000 litres
Other liquefied petroleum gas	€32.86 per 1,000 litres

Vehicle gas:	€9.36 per megawatt hour

and

(j) by substituting the following for Schedule 2A:

“SCHEDULE 2A

Carbon Charge

Description of Mineral Oil Rate

Light Oil:

Petrol €45.87 per 1,000 litres

Aviation gasoline €45.87 per 1,000 litres

Heavy Oil:

Used as a propellant €53.30 per 1,000 litres

Used for air navigation €53.30 per 1,000 litres

Used for private pleasure navigation €53.30 per 1,000 litres

Kerosene used other than as a propellant €50.73 per 1,000 litres

Fuel oil €61.75 per 1,000 litres

Other heavy oil €54.92 per 1,000 litres

Liquefied Petroleum Gas:

Used as a propellant €32.86 per 1,000 litres

Other liquefied petroleum gas €32.86 per 1,000 litres

Vehicle gas: €4.10 per megawatt hour

”.


Description of Mineral Oil	Rate
Light Oil:
Petrol	€45.87 per 1,000 litres
Aviation gasoline	€45.87 per 1,000 litres

Heavy Oil:
Used as a propellant	€53.30 per 1,000 litres
Used for air navigation	€53.30 per 1,000 litres
Used for private pleasure navigation	€53.30 per 1,000 litres
Kerosene used other than as a propellant	€50.73 per 1,000 litres
Fuel oil	€61.75 per 1,000 litres
Other heavy oil	€54.92 per 1,000 litres

Liquefied Petroleum Gas:
Used as a propellant	€32.86 per 1,000 litres
Other liquefied petroleum gas	€32.86 per 1,000 litres

Vehicle gas:	€4.10 per megawatt hour

(2) Section 97 of the Finance Act 2001 is amended by substituting the following for paragraph (c):

“(c) mineral oils within the meaning of section 94 of the Finance Act 1999, other than vehicle gas within the meaning of that section.”.

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

57. Amendment of section 101 of Finance Act 1999 (licensing of mineral oil traders)

57. Section 101 of the Finance Act 1999 is amended—

(a) by inserting the following subsection after subsection (6):

“(6A) The granting to, or the holding by, an applicant or holder, as the case may be, of an auto-fuel trader’s licence or a marked fuel trader’s licence shall be conditional on the applicant or holder complying with excise law in relation to the production, sale or dealing in, keeping or delivery of mineral oil, including the requirements of this section relating to the systems (including the measuring systems) and procedures of the business to which the auto-fuel trader’s licence or the marked fuel trader’s licence relates.”,

(b) by substituting the following for subsections (8) and (9):

“(8) An auto-fuel trader’s licence or a marked fuel trader’s licence shall not be granted—

(a) where the applicant (or, where the applicant is a company, any director or person having control, within the meaning of section 11 of the Taxes Consolidation Act 1997, of that company) has, in the 10 years prior to the date of the application, been convicted of—

(i) any indictable offence under the Acts referred to in section 1078(1) of the Taxes Consolidation Act 1997, or

(ii) any corresponding offence under the law of another Member State,

(b) where the applicant (or, where the applicant is a company, any director or person having control, within the meaning of section 11 of the Taxes Consolidation Act 1997, of that company) does not hold a current tax clearance certificate issued under section 1094 of the Taxes Consolidation Act 1997,

(c) where the applicant does not, when required to do so by the Commissioners, show to the satisfaction of the Commissioners that the applicant, and the premises or place concerned, can satisfy such conditions as may be imposed by the Commissioners,

(d) where there has been a contravention of, or a failure to comply with, a requirement of excise law in relation to the production, sale or dealing in, keeping or delivery of mineral oil—

(i) by the applicant (or, where the applicant is a company, any director or person having control, within the meaning of section 11 of the Taxes Consolidation Act 1997, of that company), or

(ii) at the premises or place in respect of which the application has been made,

and the applicant has not shown to the satisfaction of the Commissioners that the contravention or failure has been remedied,

(e) where, in the case of a licence previously granted, there has been a contravention of, or a failure to comply with, a condition of an auto-fuel trader’s licence or a marked fuel trader’s licence—

(i) by the applicant (or, where the applicant is a company, any director or person having control, within the meaning of section 11 of the Taxes Consolidation Act 1997, of that company), or

(ii) in respect of the premises or place in respect of which the application has been made,

and the applicant has not shown to the satisfaction of the Commissioners that the contravention or failure has been remedied,

(f) where the applicant does not, when required to do so by the Commissioners, show to the satisfaction of the Commissioners that the activity to be carried out under the licence is to be undertaken with a view to the realisation of profits from legitimate trade in mineral oils,

(g) where the applicant does not, when required to do so by the Commissioners, show to the satisfaction of the Commissioners that the activity to be carried out under the licence will be conducted solely for the benefit of the applicant,

(h) where the applicant does not, when required to do so by the Commissioners, show to the satisfaction of the Commissioners that the systems (including the measuring systems) and procedures of the business to which the licence application relates will provide a full and true record of all mineral oil transactions of that business in a form readily accessible to the Commissioners.

(9) The Commissioners may revoke an auto-fuel trader’s licence or a marked fuel trader’s licence where—

(a) the holder of the licence (or, where the holder of the licence is a company, any director or person having control, within the meaning of section 11 of the Taxes Consolidation Act 1997, of that company) has in the preceding 10 years been convicted of—

(i) any indictable offence under the Acts referred to in section 1078(1) of the Taxes Consolidation Act 1997, or

(ii) any corresponding offence under the law of another Member State,

(b) the Commissioners are satisfied that there has been a contravention of, or failure to comply with, a requirement of excise law in relation to the production, sale or dealing in, keeping or delivery of mineral oil—

(i) by the holder of the licence (or, where the holder of the licence is a company, any director or person having control, within the meaning of section 11 of the Taxes Consolidation Act 1997, of that company), or

(ii) at the premises or place in respect of which the licence was granted,

and the holder of the licence has not shown to the satisfaction of the Commissioners that the contravention or failure has been remedied,

(c) the Commissioners are satisfied that there has been a contravention of, or failure to comply with, any of the conditions specified in relation to the licence—

(i) by the holder of the licence (or, where the holder of the licence is a company, any director or person having control, within the meaning of section 11 of the Taxes Consolidation Act 1997, of that company), or

(ii) at the premises or place in respect of which the licence was granted,

and the holder of the licence has not shown to the satisfaction of the Commissioners that the contravention or failure has been remedied,

(d) the holder of the licence, when applying for that licence, provided information that was false or misleading in a material respect,

(e) the holder of the licence does not, when required to do so by the Commissioners, show to the satisfaction of the Commissioners that the activity carried out under the licence is undertaken with a view to the realisation of profits from legitimate trade in mineral oils,

(f) the holder of the licence does not, when required to do so by the Commissioners, show to the satisfaction of the Commissioners that the activity carried out under the licence is conducted solely for the benefit of the licence holder,

(g) the holder of the licence does not, when required to do so by the Commissioners, show to the satisfaction of the Commissioners that the systems (including the measuring systems) and procedures of the business to which the licence relates provide a full and true record of all mineral oil transactions of that business in a form readily accessible to the Commissioners.”,

(i) substituting “(9), or” for “(9),” in paragraph (b), and

(ii) inserting the following after paragraph (b):

“(c) a licence ceases to have effect in accordance with subsection (12A),”,

and

(d) by inserting the following after subsection (12):

“(12A) Where the holder of an auto-fuel trader’s licence or a marked fuel trader’s licence ceases to produce, sell or deal in, keep for sale or delivery, or deliver mineral oil under that licence at the premises to which the licence relates—

(a) the licence shall cease to have effect, and

(b) the holder of the licence shall notify the Commissioners, in writing, of the cessation of the activity for which the licence was granted at the premises concerned not later than 7 days after the licence ceases to have effect.”.

58. Amendment of section 96 of Finance Act 2001 (interpretation (Part 2))

58. Section 96 of the Finance Act 2001 is amended in subsection (1) —

(a) by inserting the following definitions:

“‘alcohol products’ has the meaning assigned to it by paragraph (a) of section 97;

‘beer’ has the same meaning as it has in section 73 of the Finance Act 2003;

‘other fermented beverages’ has the same meaning as it has in section 73 of the Finance Act 2003;”,

(b) by substituting the following for the definition of “spirits”:

“‘spirits’ has the same meaning as it has in section 73 of the Finance Act 2003;”,

“‘mineral oils’ has the meaning assigned to it by paragraph (c) of section 97;”,

and

(d) in the definition of “tobacco products” by substituting “section 97” for “section 97(1) ”.

59. Amendment of section 78A of Finance Act 2003 (relief for small breweries)

59. (1) Section 78A of the Finance Act 2003 is amended—

(a) in subsection (1) by substituting “30,000 hectolitres” for “20,000 hectolitres” in each place,

(b) in subsection (3)(b)(ii) by substituting “60,000 hectolitres” for “40,000 hectolitres”, and

(2) Subsection (1) comes into operation on 1 January 2015.

60. Rates of tobacco products tax

60. The Finance Act 2005 is amended with effect as on and from 15 October 2014 by substituting the following for Schedule 2 to that Act (as amended by section 52 of the Finance (No. 2) Act 2013):

“SCHEDULE 2

Rates of Tobacco Products Tax

(With effect as on and from 15 October 2014)

[image omitted]

”.

61. Amendment of section 92 of Finance Act 1989 (tax concessions for disabled drivers, etc.)

61. Section 92 of the Finance Act 1989 is amended in subsection (1) by substituting the following for subparagraph (ii):

“(ii) as a passenger, where the vehicle has been specially constructed or adapted to take account of the passenger’s disablement.”.

62. Amendment of section 135C of Finance Act 1992 (remission or repayment in respect of vehicle registration tax, etc.)

62. Section 135C of the Finance Act 1992 is amended by substituting “31 December 2016” for “31 December 2014” in each place.

63. Amendment of section 135D of Finance Act 1992 (repayment of amounts of vehicle registration tax on export of certain vehicles)

63. (1) Section 135D of the Finance Act 1992 is amended by substituting the following for subsection (2):

“(2) The amount of vehicle registration tax to be repaid shall—

(a) be calculated by reference to the open market selling price (being that price as determined by the Commissioners) of the vehicle at the time of the examination referred to in subsection (1)(d), and

(b) include an amount that is calculated by means of one or more than one formula or other means of calculation as may be prescribed by the Minister by regulations made by him or her under section 141.”.

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

64. Amendment of section 141 of Finance Act 1992 (regulations)

64. Section 141 of the Finance Act 1992 is amended by inserting the following after subsection (3A):

“(3B) The Minister may make such regulations as he or she considers necessary or expedient for the purpose of prescribing one or more than one formula or other means of calculation for the purposes of the amount referred to in section 135D(2)(b).”.

PART 3 Value-Added Tax

65. **Interpretation (Part 3)**

65. In this Part “Principal Act” means the Value-Added Tax Consolidation Act 2010.

66. Amendment of section 84 of Principal Act (duty to keep records)

66. Section 84 of the Principal Act is amended—

(a) in subsection (3) —

(i) in paragraph (b) by substituting “procurement of the person;” for “procurement of the person; and”,

(ii) in paragraph (c) by substituting “procurement of the person; and” for “procurement of the person,”,

(iii) by inserting the following paragraph after paragraph (c):

“(d) any linking documents that are in the power, possession or procurement of the person,”,

and

(iv) by substituting “records, linking documents, invoices, or any of the other documents” for “records, invoices, or any of the other documents”,

(b) in subsection (4) —

(i) in paragraph (a) by substituting “shall retain records and linking documents” for “shall retain records”,

(ii) in paragraph (b) —

(I) by substituting “shall retain records and linking documents” for “shall retain records”, and

(II) by substituting “6 years;” for “6 years.”,

and

(iii) by inserting the following paragraph after paragraph (b):

“(c) in the case of records and linking documents (required to be kept by a person pursuant to this Chapter) that relate to a transaction and to any return (required to be furnished in accordance with section 76 or 77) for a period in which the transaction affects or may affect the person’s liability to tax or entitlement to deductibility, where that transaction is the subject of—

(i) an inquiry or investigation started by the Revenue Commissioners or by a Revenue officer into any matter to which this Act relates,

(ii) a claim made under a provision of this Act,

(iii) an appeal to the Appeal Commissioners under a provision of this Act, or

(iv) proceedings relating to any matter to which this Act relates,

those records and linking documents shall be retained in that person’s power, possession or procurement for the longer of—
- (I) a period of 6 years from the date of the transaction, and

- (II) until such time as—

- (A) the inquiry or investigation has been completed, or the claim has been determined, and

- (B) any appeal to the Appeal Commissioners in relation to the outcome of that inquiry or investigation or the determination of that claim, or to any other matter to which the Act relates, has become final and conclusive, and

    - (C) any proceedings in relation to the outcome of that inquiry or investigation or the determination of that claim or that appeal, or to any other matter to which the Act relates, has been finally determined, and

    - (D) the time limit for instituting any appeal or proceedings or any further appeal or proceedings has expired.”,

(c) in subsection (5) by substituting “retention of records, linking documents or invoices” for “retention of records or invoices”, and

(d) by inserting the following subsection after subsection (5):

“(6) In this section ‘linking documents’ means documents drawn up in the making up of accounts and returns and showing details of the calculations linking the records required to be kept by a person pursuant to this Chapter to the accounts and returns.”.

67. Amendment of section 86 of Principal Act (special provisions for tax invoiced by flat-rate farmers)

67. Section 86 of the Principal Act is amended in subsection (1) with effect from 1 January 2015 by substituting “5.2 per cent” for “5 per cent”.

68. Amendment of Part 13 of Principal Act (administration and general)

68. Part 13 of the Principal Act is amended—

(a) by inserting the following Chapter heading before section 108A:

“Chapter 1A

Special measures for the protection of the tax”,

(b) by inserting the following section after section 108A:

“Notice of requirement to issue a document

108B. (1) The Revenue Commissioners may, for the purposes of an inquiry or investigation, where they have reasonable grounds to believe that the service of such a notice may assist in the prevention and detection of tax evasion, serve a notice in writing on an accountable person, requiring such person, for such period as is specified in the notice, in relation to each supply of taxable goods or services made by that person to which the provisions of section 66(1)(a) do not apply, to issue, at the time of such supply, a document which shall—

(a) contain all the particulars that would be required by regulations to be included in the document if that document were an invoice required to be issued in accordance with section 66(1)(a), and

(b) unless subsection (2) applies, state that the document is issued under section 108B of the Value-Added Tax Consolidation Act 2010.

(2) A document issued pursuant to a notice served under subsection (1) may be issued as if it were an invoice issued in accordance with section 66(1), using a sequential number from a series of numbers used for the purpose of identifying invoices issued in accordance with section 66(1), subject to the accountable person keeping a separate record of the number within that series that applies to any such document so issued.

(3) A notice served under subsection (1) shall—

(a) specify the period for which the notice shall have effect, being a period of not more than 2 months beginning on a date not earlier than 7 days from the date of service of the notice, and

(b) inform the accountable person of the consequences under section 115(8B) of failing to comply with the notice.”,

and

“(8B) A person who fails to comply with a notice issued under section 108B shall be liable to a penalty of €4,000.”.

69. Joint and several liability for tax

69. (1) The Principal Act is amended by inserting the following after section 108B, which is inserted by section 68:

“Joint and several liability for tax

108C. (1) In this section—

‘first accountable person’ means the person who, in relation to any taxable supply of goods or services or intra-Community acquisition of goods chargeable to tax in accordance with section 3(a), (c), (d) or (e) is, apart from this section, liable to pay the tax chargeable in accordance with Chapter 3 of Part 9;

‘second accountable person’ means a person, other than the first accountable person, who participates as a purchaser or as a supplier in a series of taxable supplies;

‘series of taxable supplies’ means a supply of taxable goods or services made or received by an accountable person and any previous or subsequent supply of those taxable goods or services made or received by other accountable persons and includes intra-Community acquisitions of goods.

(2) Where, in relation to a particular series of taxable supplies—

(a) at the time a supply or intra-Community acquisition (forming part of that series) was made, the second accountable person knows that, or is reckless as to whether or not, that supply of goods or services or intra-Community acquisition is connected to the fraudulent evasion of tax, and

(b) in respect of a taxable period, some or all of the tax due and payable in relation to the supply or intra-Community acquisition has not been remitted to the Collector-General by the first accountable person,

the second accountable person is jointly and severally liable with the first accountable person for the tax due and payable on that supply or intra-Community acquisition in accordance with subsection (3) and shall be liable to pay that tax as if it were tax due and payable by the second accountable person in accordance with Chapter 3 of Part 9.

(3) The amount of tax for which the second accountable person is held, as referred to in subsection (2), jointly and severally liable shall, for each taxable supply of goods or services or intra-Community acquisition, be calculated in accordance with the following formula—

A - B

where—

A is the tax payable by the first accountable person on that taxable supply of goods or services, or intra-Community acquisition under section 3(a), (c), (d) or (e), and

B is the amount of tax, if any, which may be deductible in accordance with section 59(2) by the first accountable person, provided that the aforementioned deductible tax is directly attributable to the acquiring of those goods and services which give rise to the charge to tax payable by the first accountable person.

(4) Where, in relation to any period, the Revenue Commissioners or such officer as the Revenue Commissioners may authorise, have reason to believe that an amount of tax is due and payable to the Commissioners in accordance with this section, they shall serve a notice in writing on the second accountable person, specifying—

(a) that the second accountable person is jointly and severally liable, in accordance with this section, for tax that has not been remitted,

(b) the amount of tax due and payable by the second accountable person, and

(c) the name and address of any accountable person, with whom the second accountable person is jointly and severally liable in accordance with this section.”.

(2) The Principal Act is further amended—

(a) in section 5(1)(b) by substituting “sections 9, 10, 12, 15, 17(1), 94(3) and 108C” for “sections 9, 10, 12, 15, 17(1) and 94(3) ”,

(b) in section 111(1)(a) by inserting “, including tax (if any) payable in accordance with section 108C(3),” after “payable by the person”,

(c) in section 111(1)(i)(I), by inserting “, including tax (if any) payable in accordance with section 108C(3),” after “the total amount of tax”,

(d) in section 115 by substituting the following for subsection (1) —

“(1)

(a) A person who does not comply with section 64(10)(c)(i), 64(12), 65(3), 86(1), 95(9)(a) or 124(7)(a) or Chapter 2, 3, 6 or 7 of Part 9 or any provision of regulations in regard to any matter to which those sections or Chapters relate shall be liable to a penalty of €4,000.

(b) Paragraph (a) shall not apply to a person, being the second accountable person (as defined in section 108C), where—

(i) that person is jointly and severally liable by virtue of section 108C, and

(ii) the penalty which would otherwise arise under paragraph (a) only relates to the tax for which that person is jointly and severally liable by virtue of that section.”,

and

(e) in section 116, by inserting the following after subsection (1) —

“(1A) This section shall not apply to a person, being the second accountable person (as defined in section 108C), where—

(a) that person is jointly and severally liable by virtue of section 108C, and

(b) the penalty which would otherwise arise under this section only relates to the tax for which that person is jointly and severally liable by virtue of section 108C.”.

70. Amendment of section 111 of Principal Act (assessment of tax due)

70. Section 111 of the Principal Act is amended in subsection (2)(a) by substituting “if he or she is aggrieved by the assessment” for “if he or she claims that the amount due is excessive”.

71. Amendment of Schedule 1 (exempt activities), Schedule 2 (zero-rated goods and services) and Schedule 3 (goods and services chargeable at the reduced rate) to Principal Act

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

(a) by substituting the following subparagraph for subparagraph (4) of paragraph 3:

“(4) The provision by non-profit making organisations of—

(a) facilities for participation in—

(i) sporting activities, including golf, or

(ii) physical educational activities,

or

(b) services closely related to the provision of those facilities.”,

(b) in paragraph 4 by inserting the following subparagraph after subparagraph (2) —

“(2A) The supply of services for the protection or care of children and young persons where such services are—

(a) referred to in the Child Care (Placement of Children in Foster Care) Regulations 1995, and

(b) provided by persons with whom arrangements have been made under section 58(1) of the Child and Family Agency Act 2013.”,

and

(i) in subparagraph (1)(e) by substituting “negotiating credit and” for “negotiating credit, and”, and

(ii) by inserting the following clause after clause (ea) of subparagraph (2):

“(eb) a defined contribution scheme (within the meaning of the Pensions Act 1990), other than a one-member arrangement (within the meaning of that Act);”.

(2) Schedule 2 to the Principal Act is amended—

(a) in paragraph 6—

(i) by substituting the following clause for clause (d) of subparagraph (2):

“(d) services of the kind referred to in paragraph 4(2) (Supply, hiring, repair, maintenance, etc. of sea-going vessels or aircraft);”,

and

(ii) by inserting the following clauses after clause (d) of subparagraph (2):

“(da) services of the kind referred to in paragraph 4(3) (Supply, hiring, repair, maintenance, etc. of equipment incorporated or for use in sea-going vessels to which paragraph 4(2)(a) relates);

(db) services of the kind referred to in paragraph 4(4) (Supply, hiring, repair, maintenance, etc. of equipment incorporated or for use in aircraft to which paragraph 4(2)(b) relates);”,

and

(b) in paragraph 8(1) —

(i) in item (a) of Part B of Table 1, by substituting “Tea, herbal tea and preparations derived from either or both of them, when supplied in drinkable form.” for “Tea and preparations derived from tea when supplied in drinkable form.”, and

(ii) in item (a) of column 2 of Part E of Table 1, by substituting “Tea, herbal tea and preparations derived from either or both of them, when supplied in non-drinkable form.” for “Tea and preparations derived from tea when supplied in non-drinkable form.”.

(3) Schedule 3 to the Principal Act is amended—

(a) in paragraph 12 by deleting subparagraphs (2) and (3), and

(b) by substituting the following subparagraph for subparagraph (4) of paragraph 17:

“(4) The supply of hydrocarbon oil of a kind used for domestic or industrial heating, excluding gas oil (within the meaning of section 94(1) of the Finance Act 1999), other than gas oil which has been duly marked in accordance with Regulation 29(2)(a) of the Mineral Oil Tax Regulations 2012 (S.I. No. 231 of 2012).”.

(4) The following provisions shall apply as on and from 1 March 2015:

(a) subsection (1)(a);

(b) subsection (1)(c)(ii);

PART 4 Stamp Duties

72. **Interpretation (Part 4)**

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

73. Accountable persons in relation to stamp duty

73. The Principal Act is amended—

(a) in section 1—

(i) in subsection (1), in the definition of “accountable person”, by inserting “(subject to subsection (1A))” after “means”, and

(ii) by inserting the following after subsection (1):

“(1A) The following persons shall not be accountable persons for the purposes of this Act:

(a) the National Treasury Management Agency;

(b) the Minister in relation to a function exercised by the Minister which is capable of being delegated to the National Treasury Management Agency under section 5 of the National Treasury Management Agency Act 1990.”,

and

(b) by deleting section 108.

74. Relief for certain leases of farmland

74. (1) The Principal Act is amended by inserting the following section after section 81C:

“81D. (1) In this section ‘farming’ includes the occupation of woodlands on a commercial basis.

(2) No stamp duty shall be chargeable under or by reference to the heading ‘LEASE’ in Schedule 1 on any instrument to which this section applies.

(3) This section applies to an instrument which is a lease for a term not less than 6 years and not exceeding 35 years of any lands which are used exclusively for farming carried on by the lessee on a commercial basis and with a view to the realisation of profits.

(4) For the purposes of this section the lessee shall, from the date on which the lease is executed, be a farmer who—

(a) is the holder of or, within a period of 4 years from the date of the lease, will be the holder of, a qualification set out in Schedule 2, 2A or 2B to the Act, or

(b) spends not less than 50 per cent of that individual’s normal working time farming land (including the leased land).

(5) If, at any time during the first 6 years of the period of the lease, any of the conditions of this section cease to be satisfied, subsection (2) shall not apply and the duty that would have been chargeable but for this section shall be chargeable and the lessee, or where there is more than one lessee, each such lessee, jointly and severally, shall be liable to pay to the Commissioners the amount of the duty together with interest calculated in accordance with section 159D from the date when any of those conditions cease to be satisfied to the date when the duty is remitted.

(6) Subsection (5) shall not apply where any of the conditions of this section are not complied with due to the death of the lessee or the permanent incapacity of the lessee, by reason of mental or physical infirmity, to continue to carry on farming.”.

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

75. Amendment of section 113 of Principal Act (miscellaneous instruments)

75. Section 113 of the Principal Act is amended in paragraph (a) —

(a) by inserting “or any other interest” after “shares”, and

(b) by substituting the following for subparagraph (i):

“(i) stocks, funds or securities of the Government, Oireachtas, the Minister or any other Minister of the Government,”.

76. Amendment of section 126B of Principal Act (assessment of duty charged on statements)

76. Section 126B of the Principal Act is amended in subsection (1) —

(a) in the definition of “relevant person”—

(i) in paragraph (f) by deleting “or”,

(ii) in paragraph (g) by substituting “section 125B, or” for “section 125B;”, and

(iii) by inserting the following after paragraph (g):

“(h) a relevant person within the meaning of section 126AA;”,

and

(b) in the definition of “specified section” by substituting “125A, 125B or 126AA” for “125A or 125B”.

77. Amendment of Schedule 1 to Principal Act (stamp duties on instruments)

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

(a) in paragraph (5) under the Heading “CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities or a policy of insurance or a policy of life insurance”—

(i) by inserting “of property that is land” after “inter vivos”,

(ii) by substituting the following for subparagraph (a):

“(a) the instrument is executed—

(i) on or after 1 January 2015 and before 1 January 2016, or

(ii) on or after 1 January 2016 and before 1 January 2018 and the individual by whom the property is being conveyed or transferred has not, at the date of the conveyance or transfer, attained the age of 67 years,

(aa) the individual to whom the property is being conveyed or transferred is an individual—

(i) who, from the date of conveyance or transfer and for a period of not less than 6 years thereafter—

(I) farms the land, or

(II) leases it for a period of not less than 6 years to an individual who farms the land,

and

(ii) who, in a case where subclause (I) applies—

(I) is the holder of or, within a period of 4 years from the date of transfer or conveyance, will be the holder of, a qualification set out in Schedule 2, 2A or 2B to the Act, or

(II) spends not less than 50 per cent of that individual’s normal working time farming land (including the land conveyed or transferred),

(ab) in a case where subparagraph (aa)(i)(II) applies, the individual to whom the land is leased—

(i) is the holder of or, within a period of 4 years from the date of transfer or conveyance, will be the holder of, a qualification set out in Schedule 2, 2A or 2B to the Act, or

(ii) spends not less than 50 per cent of that individual’s normal working time farming land (including the land conveyed or transferred),

(ac) the land is farmed on a commercial basis and with a view to the realisation of profits from that land, and”,

and

(iii) in subparagraph (b) by deleting “the instrument contains a certificate by the party to whom the property is being conveyed or transferred to the effect that”,

and

(b) by inserting the following paragraph after paragraph (5):

“(5A) Where any of the conditions in paragraph (5) are not complied with, at the time of the conveyance or transfer or subsequently, paragraph (5) shall not apply, any additional duty shall be chargeable by reference to the rate of duty in paragraph (4) and the provisions of this Act, in relation to the delivering of returns, the charging of interest and (where appropriate) the incurring of a penalty shall apply from the date on which compliance with any such condition ceases.”.

(2) This section comes into operation on 1 January 2015.

78. Amendment of Schedule 2B to Principal Act (qualifications for applying for relief from stamp duty in respect of transfers to young trained farmers)

78. Schedule 2B to the Principal Act is amended in paragraph 2 by substituting the following for subparagraph (p):

“(p) Higher Certificate in Science Applied Agriculture;

(q) Bachelor of Science (Honours) in Sustainable Agriculture.”.

PART 5 Capital Acquisitions Tax

79. **Interpretation (Part 5)**

79. In this Part “Principal Act” means the Capital Acquisitions Tax Consolidation Act 2003.

80. Amendment of section 17 of Principal Act (exemptions)

80. (1) Section 17 of the Principal Act is amended—

(a) in subsection (1) by substituting the following for paragraph (a):

“(a) for purposes which, in accordance with the law of the State, are public or charitable,”,

and

(b) by inserting the following after subsection (1):

“(1A) For the purposes of subsection (1)(a) a discretionary trust that is at any time a party to any arrangements the main purpose (or one of the main purposes) of which is to secure a tax advantage for any person shall be regarded as not having been created exclusively for purposes which, in accordance with the law of the State, are public or charitable.

(1B) For the purposes of subsection (1A)—

‘arrangements’ includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable);

‘tax advantage’ has the same meaning as in section 811 of the Taxes Consolidation Act 1997.”.

(2) This section applies to inheritances taken on or after the date of the passing of this Act.

81. Amendment of section 82 of Principal Act (exemption of certain receipts)

81. (1) Section 82 of the Principal Act is amended—

(a) in subsection (2) by substituting the following for paragraph (a):

“(a) by—

(i) a minor child of the disponer or of the civil partner of the disponer, or

(ii) a child of the disponer, or of the civil partner of the disponer, who is more than 18 years of age but not more than 25 years of age and is receiving full-time education or instruction at any university, college, school or other educational establishment, or who, regardless of age, is permanently incapacitated by reason of physical or mental infirmity from maintaining himself or herself, or

(iii) a person in relation to whom the disponer stands in loco parentis,

for support, maintenance or education, or”,

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

“(4) The receipt by—

(a) a minor child of the disponer or of the civil partner of the disponer, or

(b) a child of the disponer, or of the civil partner of the disponer, who is more than 18 years of age but not more than 25 years of age and is receiving full-time education or instruction at any university, college, school or other educational establishment, or who, regardless of age, is permanently incapacitated by reason of physical or mental infirmity from maintaining himself or herself,

of money or money’s worth for support, maintenance or education, at a time when the disponer and the other parent of any such minor child or child of the disponer are dead or, in the case of any such minor child or child of the civil partner of the disponer, when the disponer and the civil partner are dead, is not a gift or an inheritance where the provision of such support, maintenance or education—
- (i) is such as would be part of the normal expenditure of a person in the circumstances of the disponer immediately before the death of the disponer, and

- (ii) is reasonable having regard to the financial circumstances of the disponer immediately before the death of the disponer.”,

and

“(5) The references in subsections (2) and (4) to a child receiving full-time education or instruction at an educational establishment shall include references to a child undergoing training by any person (in subsection (6) referred to as ‘the employer’) for any trade or profession in such circumstances that the child is required to devote the whole of his or her time to such training for a period of not less than 2 years.

(6) For the purposes of this section, in the case of a child undergoing training, the Commissioners may require the employer to furnish such particulars as they may reasonably require with respect to the training of the child in such form as may be prescribed by the Commissioners.”.

(2) This section applies on and from the date of the passing of this Act.

82. Amendment of section 89 of Principal Act (provisions relating to agricultural property)

82. (1) Section 89 of the Principal Act is amended—

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

“‘farmer’, in relation to a donee or successor, means an individual in respect of whom not less than 80 per cent of the market value of the property to which the individual is beneficially entitled in possession is represented by the market value of property in a Member State which consists of agricultural property, and, for the purposes of this definition—

(a) no deduction is made from the market value of property for any debts or encumbrances (except debts or encumbrances in respect of a dwelling-house that is the only or main residence of the donee or successor and that is not agricultural property), and

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

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

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

and who—

(i) is the holder of any of the qualifications set out in Schedule 2, 2A or 2B to the Stamp Duties Consolidation Act 1999, or who achieves such a qualification within a period of 4 years commencing on the date of the gift or inheritance, and who for a period of not less than 6 years commencing on the valuation date of the gift or inheritance farms agricultural property (including the agricultural property comprised in the gift or inheritance) on a commercial basis and with a view to the realisation of profits from that agricultural property,

(ii) for a period of not less than 6 years commencing on the valuation date of the gift or inheritance spends not less than 50 per cent of that individual’s normal working time farming agricultural property (including the agricultural property comprised in the gift or inheritance) on a commercial basis and with a view to the realisation of profits from that agricultural property, or

(iii) leases the whole or substantially the whole of the agricultural property, comprised in the gift or inheritance for a period of not less than 6 years commencing on the valuation date of the gift or inheritance, to an individual who satisfies the conditions in paragraph (i) or (ii).”,

and

(b) by inserting the following after subsection (4A):

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