Legalize / Ireland / Act

Finance Act 2016

Type Act

Publication 2016-12-25

State In force

Source Irish Statute Book

articles 59

Reform history JSON API

Chapter 1 Interpretation

1. Interpretation (Part 1)

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

2. Amendment of section 531AN of Principal Act (rate of charge)

2. (1) Section 531AN of the Principal Act is amended—

(a) in subsection (3) —

(i) by substituting “€18,772” for “€18,668”, and

(ii) by substituting “2.5 per cent” for “3 per cent”,

(b) in subsection (3A)(a) by substituting “2.5 per cent” for “3 per cent”,

(d) in subsection (6) by substituting “increased by the greater of” for “increased by”, and

(e) by substituting the following Table for the Table to that section:

“TABLE

PART 1

Part of aggregate income	Rate of universal social charge
(1)	(2)
The first €12,012	0.5 per cent
The next €6,760	2.5 per cent
The next €51,272	5 per cent
The remainder	8 per cent

PART 2

Part of aggregate income	Rate of universal social charge
(1)	(2)
The first €12,012	0.5 per cent
The remainder	2.5 per cent

”.

(2) Subsection (1) applies for the year of assessment 2017 and each subsequent year of assessment.

Chapter 3 Income Tax

3. Exemption in respect of certain expense payments for resident relevant directors

3. The Principal Act is amended by inserting the following section after section 195C:

“Exemption in respect of certain expense payments for resident relevant directors

195D. (1) In this section—

‘civil servant’ has the meaning assigned to it by the Civil Service Regulation Act 1956;

‘company’ has the same meaning as it has in section 4;

‘director’ has the same meaning as it has in section 770;

‘relevant director’, in relation to a company, means a person holding office as a non-executive director of that company

(a) who is resident in the State, and

(b) whose annualised amount of the emoluments from the office for the year of assessment 2017 and for each subsequent year in which the person is a relevant director of the company, other than payments to which this section applies, does not exceed €5,000;

‘relevant meeting’ means a meeting in the State attended by a relevant director in his or her capacity as a director for the purposes of the conduct of the affairs of the company;

‘travel’ means travel by car, motorcycle, taxi, bus, rail or aircraft.

(2) This section applies to payments made by a company to or on behalf of a relevant director of that company in respect of expenses of travel and subsistence incurred by the relevant director, on and from 1 January 2017, solely for the purpose of the attendance by him or her at a relevant meeting.

(3) So much of a payment to which this section applies, as does not exceed the upper of any relevant rate or rates laid down from time to time by the Minister for Public Expenditure and Reform in relation to the payment of expenses of travel and subsistence of a civil servant, shall be exempt from income tax and shall not be reckoned in computing income for the purposes of the Income Tax Acts.”.

4. Amendment of section 472AB of Principal Act (earned income tax credit)

4. (1) Section 472AB of the Principal Act is amended in subsection (2) —

(a) in paragraph (a), by substituting “€950” for “€550”, and

(b) in paragraph (b), by substituting “€950” for “€550”.

(2) Subsection (1) applies for the year of assessment 2017 and each subsequent year of assessment.

5. Amendment of section 466A of Principal Act (home carer tax credit)

5. (1) Section 466A of the Principal Act is amended in subsection (2) by substituting “€1,100” for “€1,000”.

(2) Subsection (1) applies for the year of assessment 2017 and each subsequent year of assessment.

6. Fisher tax credit

6. (1) The Principal Act is amended by inserting the following after section 472B:

“Fisher tax credit

472BA. (1) In this section—

‘aquaculture animal’ means an aquatic animal at all its life stages, including eggs, sperm and gametes, reared in a farm or mollusc farming area, including an aquatic animal from the wild intended for a farm or mollusc farming area;

‘day at sea’ means a cumulative period of 8 hours within any 24 hour period during which the fisher undertakes fishing voyages;

‘fisher’ means any person engaging in fishing on board a fishing vessel;

‘fishing vessel’ means a vessel which is—

(a) registered on the European Community Fishing Fleet Register in accordance with Commission Regulation (EC) No. 26/2004 of 30 December 2003[^1], and

(b) is used solely for the purposes of sea-fishing,

but does not include a vessel that is engaged in fishing or dredging solely for scientific, research or training purposes;

‘fishing voyage’ means a fishing trip commencing with a departure from a port for the purpose of fishing, and ending with the first return to a port thereafter upon the conclusion of the trip, but a return due to distress only shall not be deemed to be a return if it is followed by a resumption of the trip;

‘sea-fish’ means fish of any kind found in the sea, whether fresh or in other condition, including crustaceans and molluscs, but does not include salmon, fresh water eels or aquaculture animals;

‘sea-fishing’ means fishing for or taking sea-fish.

(2) Where for a year of assessment an individual to whom this section applies has spent not less than 80 days at sea actively engaged in sea-fishing, he or she shall be entitled to a tax credit (to be known as the ‘fisher tax credit’) of €1,270.

(3) Where for a year of assessment an individual makes a claim under this section, relief shall not be given under section 472B for that year of assessment.

(4) This section applies to an individual, resident in the State—

(a) the profits or gains of whom in relation to their trade as a fisher are charged to tax under Schedule D, or

(b) the emoluments of whom in relation to their employment as a fisher are charged to tax under Schedule E.”.

(2) Subsection (1) applies for the year of assessment 2017 and each subsequent year of assessment.

7. Amendment of section 480A of Principal Act (relief on retirement for certain income of certain sportspersons)

7. (1) Section 480A of the Principal Act is amended in subsection (9) by substituting “(within the meaning of section 787 or 787B)” for “(within the meaning of section 787)”.

(2) Subsection (1) applies for the year of assessment 2017 and each subsequent year of assessment.

8. Amendment of section 477B of Principal Act (home renovation incentive)

8. Section 477B of the Principal Act is amended—

(a) in subsection (1) —

(i) by inserting the following definition:

“‘housing authority’ has the same meaning as it has in the Housing (Miscellaneous Provisions) Act 1992;”,

and

(ii) in the definition of “qualifying residence”—

(I) in paragraph (c), by substituting “by the individual,” for “by the individual, or”,

(II) in paragraph (d), by substituting “of the qualifying work, or” for “of the qualifying work;”, and

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

“(e) which is owned by a housing authority and for which the housing authority is charging rent pursuant to section 58 of the Housing Act 1966 for the tenancy or occupation thereof by the individual and where the housing authority has given its prior written consent to the individual to qualifying work being carried out on the residential premises.”,

(b) in subsection (2) —

(i) in paragraph (a) —

(I) in subparagraph (i) —

(A) by substituting “2018” for “2016”, and

(B) by substituting “in subsection (1) refers,” for “in subsection (1) refers, and”,

(II) in subparagraph (ii) —

(A) by substituting “2018” for “2016”, and

(B) by substituting “in subsection (1) refers, and” for “in subsection (1) refers.”,

and

(III) by inserting the following after subparagraph (ii):

“(iii) during the period from 1 January 2017 to 31 December 2018 in the case of a qualifying residence to which paragraph (e) of the definition of ‘qualifying residence’ in subsection (1) refers.”,

and

(ii) in paragraph (d) —

(I) by substituting “2018” for “2016” in each place where it occurs, and

(II) by substituting “2019” for “2017” in each place where it occurs,

(d) in subsection (8), by inserting the following after paragraph (b):

“(c) Subparagraph (i) of paragraph (a) shall not apply in the case of a residential premises referred to in paragraph (e) of the definition of ‘qualifying residence’ in subsection (1).”,

and

(e) in subsection (12), by substituting “(a), (b) or (e) ” for “(a) or (b)”.

9. Help to Buy

9. (1) The Principal Act is amended by inserting the following section after section 477B:

“Help to Buy

477C. (1) In this section—

‘appropriate payment’ shall be construed in accordance with subsection (4);

‘appropriate tax’ has the meaning assigned to it by section 256;

‘approved valuation’, in relation to a self-build qualifying residence, means the valuation of the residence that, at the time the qualifying loan is entered into, is approved by the qualifying lender as being the valuation of the residence;

‘first-time purchaser’ means an individual who, at the time of a claim under subsection (3) has not, either individually or jointly with any other person, previously purchased or previously built, directly or indirectly, on his or her own behalf a dwelling;

‘income tax payable’ has the meaning assigned to it by section 3;

‘loan’ means any loan or advance, or any other arrangement whatever, by virtue of which interest is paid or payable;

‘loan-to-value ratio’ means the amount of the qualifying loan as a proportion of the purchase value of the qualifying residence or the self-build qualifying residence;

‘PPS number’, in relation to an individual, means the individual’s personal public service number within the meaning of section 262 of the Social Welfare Consolidation Act 2005;

‘purchase value’ means—

(a) in the case of a qualifying residence, the price paid for the qualifying residence, being a price that is not less than its market value, or

(b) in the case of a self-build qualifying residence, the approved valuation;

‘qualifying contractor’ has the meaning assigned to it by subsection (2);

‘qualifying lender’ has the meaning assigned to it by section 244A(3);

‘qualifying loan’, means a loan, which—

(a) is used by the first-time purchaser wholly and exclusively for the purpose of defraying money employed in—

(i) the purchase of a qualifying residence, or

(ii) the provision of a self-build qualifying residence (including, in a case where such acquisition is required for its construction, the acquisition of land on which the residence is constructed),

(b) is entered into solely between a first-time purchaser and a qualifying lender (but this does not exclude a loan to which a guarantor is a party), and

(c) is secured by the mortgage of a freehold or leasehold estate or interest in, or a charge on, a qualifying residence or a self-build qualifying residence;

‘qualifying period’ means the period commencing on 19 July 2016 and ending on 31 December 2019;

‘qualifying residence’ means—

(a) a new building which was not, at any time, used, or suitable for use, as a dwelling, or

(b) a building which was not, at any time, in whole or in part, used, or suitable for use, as a dwelling and which has been converted for use as a dwelling,

and—

(i) which is occupied as the sole or main residence of a first-time purchaser,

(ii) in respect of which the construction work is subject to the rate of tax specified in section 46(1)(c) of the Value-Added Tax Consolidation Act 2010, and

(iii) where the purchase value is not greater than—

(I) where in the period commencing on 19 July 2016 and ending on 31 December 2016, a contract referred to in subsection (3)(a) is entered into between a claimant and a qualifying contractor or the first tranche of a qualifying loan referred to in subsection (3)(b) is drawn down by a claimant, €600,000, or

(II) in all other cases, €500,000;

‘relevant tax year’ means a year of assessment, within the 4 tax years immediately preceding the year in which an application is made under this section, in respect of which a claim for an appropriate payment, or part of such appropriate payment, is made by an individual;

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

‘self-build qualifying residence’ means a qualifying residence which is built, directly or indirectly, by a first-time purchaser on his or her own behalf;

‘tax reference number’ means in the case of an individual, the individual’s PPS number or in the case of a company, the reference number stated on any return of income form or notice of assessment issued to that company by the Revenue Commissioners;

‘tax year’ means a year of assessment within the meaning of the Tax Acts;

‘VAT registration number’, in relation to a person, means the registration number assigned to the person under section 65 of the Value-Added Tax Consolidation Act 2010.

(2) In this section, a ‘qualifying contractor’ means a person who applies to the Revenue Commissioners for registration as a qualifying contractor (pursuant to arrangements for such registration that are put in place by the Revenue Commissioners) and in respect of whom the Revenue Commissioners are satisfied is entitled to be so registered and—

(a) who—

(i) complies with the obligations referred to in section 530G or 530H, or

(ii) in the case of a contractor who is not a subcontractor to whom Chapter 2 of Part 18 applies, complies with the obligations referred to in subparagraph (i), other than the obligations referred to in paragraphs (a) and (b) of subsection (1) of section 530G or 530H,

(b) who has been issued with a tax clearance certificate in accordance with section 1095 and such tax clearance certificate has not been rescinded under subsection (3A) of that section, and

(i) details of qualifying residences which the contractor offers, or proposes to offer, for sale within the qualifying period,

(ii) details of any planning permission under the Planning and Development Acts 2000 to 2015 in respect of the qualifying residences referred to in subparagraph (i),

(iii) details of the freehold or leasehold estate or interest in the land on which the qualifying residences referred to in subparagraph (i) are constructed or to be constructed, and

(iv) any other relevant information that may be required by the Revenue Commissioners for the purposes of registration of a person as a qualifying contractor.

(3) Where an individual has, in the qualifying period, either—

(a) entered into a contract with a qualifying contractor for the purchase by that individual of a qualifying residence, that is not a self-build qualifying residence, or

(b) drawn down the first tranche of a qualifying loan in respect of that individual’s self-build qualifying residence,

that individual may make a claim for an appropriate payment.

(4) On the making of a claim by an individual referred to in subsection (3), a payment (in this section referred to as an ‘appropriate payment’) shall, subject to the provisions of this section, be made in accordance with subsection (16).

(5) (a) An appropriate payment in relation to a qualifying residence or a self-build qualifying residence under this section shall not be greater than whichever of the amounts referred to in the following subparagraphs is the lesser, namely:

(i) the amount of €20,000,

(ii) the amount of income tax payable and paid by the claimant in respect of the 4 tax years immediately preceding the year in which an application is made under subsection (6), or

(iii) the amount equal to 5 per cent of the purchase value of the qualifying residence or self-build qualifying residence, as the case may be.

(b) In paragraph (a)(ii), income tax paid shall include any amount of appropriate tax which has, in accordance with sections 257 and 267AA, been deducted from payments of relevant interest made to the claimant in the 4 tax years immediately preceding the year in which an application is made under subsection (6).

(c) The amount of appropriate tax referred to in paragraph (b) shall be reduced by the amount of any appropriate tax repaid to the claimant under section 266A.

(d) Notwithstanding Chapter 1 of Parts 44 and 44A, where section 1017 or 1031C applied in respect of a tax year, the amount of income tax paid by a claimant, for the purposes of paragraph (a)(ii) shall be determined by the following formula—

A x C

where—

A is the amount of the total income (if any) of the claimant for the tax year,

B is the sum of the amount of the total income (if any) of the claimant and the amount of the total income (if any) of the claimant’s spouse or civil partner, and

C is the amount of income tax paid for the tax year.

(e) An appropriate payment under this section shall be made—

(i) in the first instance as a refund of income tax paid by the claimant in respect of the earliest relevant tax year and followed by each succeeding relevant tax year, and

(ii) thereafter as a refund of the amount of appropriate tax paid by the claimant in respect of the earliest relevant tax year and followed by each succeeding relevant tax year.

(6) (a) Prior to submitting a claim under subsection (3), an individual shall make an application to the Revenue Commissioners which shall include—

(i) an indication that he or she intends to make a claim under this section,

(ii) his or her name and PPS number, and

(iii) confirmation by the individual, where such is the case, that the conditions specified in paragraph (b) have been met.

(b) The conditions referred to in paragraph (a)(iii) are that—

(i) he or she is a first-time purchaser,

(ii) where the individual is a chargeable person within the meaning of Part 41A or, as appropriate, Part 41 for a tax year within the 4 tax years immediately preceding the year in which the application is made, he or she has complied with the requirements of that Part or, as appropriate, those Parts and has paid the amount of income tax payable and of universal social charge (within the meaning of Part 18D) which he or she is liable to pay, in respect of each such tax year,

(iii) where the individual is not a chargeable person within the meaning of Part 41A or, as appropriate, Part 41 for a relevant tax year, he or she has made a return of income, in such form as the Revenue Commissioners may require, and has paid the amount of income tax payable and of universal social charge which he or she is liable to pay, in respect of each such relevant tax year, and

(iv) in the case of an individual to which subparagraph (ii) refers, he or she has been issued with a tax clearance certificate in accordance with section 1095 and such tax clearance certificate has not been rescinded under subsection (3A) of that section.

(c)Where section 1017 or 1031C applied in respect of a tax year, the individual who must meet the conditions referred to in subparagraphs (ii) and (iii) of paragraph (b) shall be the person assessed to tax under section 1017 or the nominated civil partner within the meaning of section 1031A.

(7) For the purposes of subsections (5)(a)(ii) and (6)(b)(ii) and (iii) —

(a) (i) an individual may elect to be deemed to have made his or her application under subsection (6) in the tax year 2016 where, in the period commencing on 19 July 2016 and ending on 31 December 2016, a contract referred to in subsection (3)(a) is entered into between the applicant and a qualifying contractor or, as appropriate, the first tranche of a qualifying loan referred to in subsection (3)(b) is drawn down by the applicant, provided the application is made on or before 31 March 2017, or

(ii) an individual may elect to be deemed to have made his or her application under subsection (6) in the tax year 2016 where, in the period commencing on 1 January 2017 and ending on 31 March 2017, a contract referred to in subsection (3)(a) is entered into between the applicant and a qualifying contractor or, as appropriate, the first tranche of a qualifying loan referred to in subsection (3)(b) is drawn down by the applicant, provided the application is made on or before 31 May 2017,

and where an individual so elects, the application shall be deemed to have been made in the tax year 2016 and the corresponding claim under subsection (3), where it is made in the tax year 2017, shall be deemed to have been made in the tax year 2016,

(b) notwithstanding the obligation on an individual under paragraph (a)(i) to, as appropriate, make an application on or before 31 March 2017, where such an individual makes an application under subsection (6) in 2018 or 2019, the application shall be deemed to have been made in the tax year 2017, and the corresponding claim under subsection (3) shall be deemed to have been made in the tax year 2017.

(8) (a) An application made in any tax year shall cease to be valid on the earlier of the following events:

(i) failure by the applicant to satisfy the conditions specified in subsection (6)(b);

(ii) on the rescission of the applicant’s tax clearance certificate in accordance with subsection (3A) of section 1095; or

(iii) on the falling of 31 December in the tax year in which the application is made.

(b) Notwithstanding paragraph (a) and subsection (25), where an application is made under this section in the period commencing on 1 October and ending on 31 December in any of the tax years 2017, 2018 or 2019 (hereafter in this paragraph referred to as the ‘first- mentioned period’), and the corresponding claim is made under subsection (3) in the period commencing on 1 January and ending on 31 March of the following year, the applicant shall be deemed to have made his or her claim in the first-mentioned period.

(9) Where an application is made under this section and more than one individual is a party to the application, each such individual shall—

(a) confirm that he or she is a first-time purchaser,

(b) satisfy the conditions specified in subsection (6)(b),

(d) agree with each of the other parties as to the allocation between the parties of the amount of the appropriate payment and notify the Revenue Commissioners of such allocation.

(10) Subject to the conditions specified in subsection (6)(b) being satisfied, the Revenue Commissioners shall notify the applicant of the maximum appropriate payment that would, following the making of a claim under this section, be available to or in respect of the applicant.

(11) The loan-to-value ratio in respect of a claim under this section shall not be less than 70 per cent.

(12) (a) On making a claim under subsection (3), where the qualifying residence is other than a self-build qualifying residence, the claimant shall provide to the Revenue Commissioners—

(i) his or her name and PPS number,

(ii) the address of the qualifying residence,

(iii) the purchase value of the qualifying residence,

(iv) details of the qualifying lender,

(v) confirmation that a qualifying loan has been entered into,

(vi) the qualifying loan application number or reference number used by the qualifying lender,

(vii) the amount of the qualifying loan,

(viii) evidence of the qualifying loan entered into,

(ix) evidence of the contract entered into with a qualifying contractor,

(x) the amount of deposit payable by the claimant to the qualifying contractor,

(xi) the amount, if any, of deposit paid by the claimant to the qualifying contractor,

(xii) confirmation that, on its completion, the qualifying residence will be occupied by the claimant as his or her only or main residence, and

(xiii) in the case of a claimant referred to in subsection (16)(a)(i), details of the claimant’s bank account to which the appropriate payment shall, subject to the qualifying contractor having satisfied the requirements of subsection (13), be made.

(b) A claimant shall satisfy himself or herself that the contractor is a qualifying contractor.

(13) Following the making of a claim in accordance with subsection (12), the qualifying contractor shall provide to the Revenue Commissioners—

(a) the contractor’s name,

(b) the contractor’s tax reference number and VAT registration number,

(d) the address of the qualifying residence,

(e) the purchase value of the qualifying residence,

(f) the amount of deposit payable by the claimant to the qualifying contractor,

(g) the amount, if any, of deposit paid by the claimant to the qualifying contractor, and

(h) in the case of a contract to which subsection (16)(a)(ii) applies, details of the qualifying contractor’s bank account.

(14) On making a claim under subsection (3) in the case of a self-build qualifying residence, the claimant shall provide to the Revenue Commissioners—

(a) his or her name and PPS number,

(b) the address of the self-build qualifying residence,

(d) details of the qualifying lender,

(e) confirmation that a qualifying loan has been entered into,

(f) the amount of the qualifying loan,

(g) confirmation that, on its completion, the self-build qualifying residence will be occupied by the claimant as his or her only or main residence, and

(h) details of the qualifying loan bank account to which the appropriate payment shall, subject to a solicitor, acting on behalf of the claimant, having satisfied the requirements of subsection (15), be made.

(15) Following the making of a claim in accordance with subsection (14), a solicitor, acting on behalf of the claimant, shall provide to the Revenue Commissioners—

(a) the name of the claimant,

(b) the address of the self-build qualifying residence,

(d) evidence of the drawdown of the first tranche of the qualifying loan, and

(e) confirmation of the purchase value of the self-build qualifying residence.

(16) (a) Subject to the provisions of this section, the appropriate payment shall be made by the Revenue Commissioners—

(i) where in the period commencing on 19 July 2016 and ending on 31 December 2016, a contract referred to in subsection (3)(a) is entered into between the claimant and a qualifying contractor or, as appropriate, the first tranche of a qualifying loan referred to in subsection (3)(b) is drawn down by the claimant, to the claimant’s bank account,

(ii) where in the period commencing on 1 January 2017 and ending on 31 December 2019, a contract referred to in subsection (3)(a) is entered into between the claimant and a qualifying contractor, to the qualifying contractor’s bank account, or

(iii) where in the period commencing on 1 January 2017 and ending on 31 December 2019, the first tranche of a qualifying loan referred to in subsection (3)(b) is drawn down by the claimant, to the claimant’s qualifying loan bank account.

(b) Where the appropriate payment is made in respect of a claimant to a qualifying contractor referred to in paragraph (a)(ii), the contractor shall treat the appropriate payment as a credit against the purchase price of the qualifying residence.

(c) Where paragraph (a)(ii) applies, the claimant shall consent to the appropriate payment in respect of him or her being paid by the Revenue Commissioners to the qualifying contractor.

(17) (a) On its completion, a qualifying residence or a self-build qualifying residence shall be occupied by the claimant as his or her only or main residence.

(b) (i) Where an appropriate payment is made on foot of a claim under this section, and the qualifying residence or self-build qualifying residence ceases to be occupied—

(I) by the claimant, or

(II) where more than one individual is a party to the claim, by all of those individuals,

within 5 years from occupation of the residence, the claimant shall notify the Revenue Commissioners and, in accordance with subparagraph (ii), pay to the Revenue Commissioners an amount equal to the amount of the appropriate payment, or the lesser percentage there specified of the amount of the appropriate payment.

(ii) Where the residence ceases to be occupied as mentioned in subparagraph (i) —

(I) within the first year from occupation, the claimant shall, within 3 months from the residence ceasing to be so occupied, pay to the Revenue Commissioners an amount equal to the amount of the appropriate payment,

(II) within the second year from occupation, the claimant shall, within 3 months from the residence ceasing to be so occupied, pay to the Revenue Commissioners an amount equal to 80 per cent of the amount of the appropriate payment,

(III) within the third year from occupation, the claimant shall, within 3 months from the residence ceasing to be so occupied, pay to the Revenue Commissioners an amount equal to 60 per cent of the amount of the appropriate payment,

(IV) within the fourth year from occupation, the claimant shall, within 3 months from the residence ceasing to be so occupied, pay to the Revenue Commissioners an amount equal to 40 per cent of the amount of the appropriate payment, or

(V) within the fifth year from occupation, the claimant shall, within 3 months from the residence ceasing to be so occupied, pay to the Revenue Commissioners an amount equal to 20 per cent of the amount of the appropriate payment.

(18) (a) Where—

(i) arising from a claim under this section, an appropriate payment is made to, or in respect of, a claimant, and

(ii) any condition that imposes a qualification, as respects the claimant, in relation to the making of an appropriate payment under this section is not satisfied by the claimant,

the claimant shall, within 3 months from the date on which the appropriate payment is made, pay to the Revenue Commissioners an amount equal to the amount of the appropriate payment, or part of such an amount, as appropriate.

(b) (i) Where, arising from a claim under this section in respect of a self-build qualifying residence, an appropriate payment is made to an individual, the individual shall pay to the Revenue Commissioners an amount equal to the amount of the appropriate payment—

(I) where the self-build qualifying residence is not completed within 2 years from the date on which the appropriate payment was made by the Revenue Commissioners, or

(II) if within that 2 year period, there are, in the opinion of the Revenue Commissioners, reasonable grounds to believe that the self-build qualifying residence will not be completed within that period.

(ii) Payment to the Revenue Commissioners under subparagraph (i) shall be made within 3 months from the end of the 2 year period referred to in clause (I) of that subparagraph or, as appropriate, within 3 months from the Revenue Commissioners issuing notice to the individual to the effect that they had formed an opinion in accordance with clause (II) of that subparagraph.

(c) (i) Where arising from a claim under this section, other than a claim to which paragraph (b) refers, an appropriate payment is made directly to an individual (who is not a qualifying contractor), the individual shall pay to the Revenue Commissioners an amount equal to the amount of the appropriate payment—

(I) if the qualifying residence is not subsequently purchased by the individual within 2 years from the date on which the appropriate payment was made by the Revenue Commissioners, or

(II) if within that 2 year period, there are, in the opinion of the Revenue Commissioners, reasonable grounds to believe that the purchase of the qualifying residence by the individual will not be completed within that period.

(d) (i) Where, arising from a claim under this section, an appropriate payment claimed by an individual is made to a qualifying contractor under subsection (16)(a)(ii), and—

(I) the qualifying residence is not subsequently purchased by the individual within 2 years from the date of the making of the appropriate payment by the Revenue Commissioners, or

the qualifying contractor shall pay to the Revenue Commissioners an amount equal to the amount of the appropriate payment.

(ii) Payment to the Revenue Commissioners under subparagraph (i) shall be made within 3 months from the end of the 2 year period referred to in clause (I) of that subparagraph or, as appropriate, within 3 months from the Revenue Commissioners issuing notice to the qualifying contractor to the effect that they had formed an opinion in accordance with clause (II) of that subparagraph.

(e) For the purposes of paragraph (d), an individual referred to in that paragraph may notify the Revenue Commissioners where he or she has reasonable grounds to believe that the purchase of the qualifying residence by the individual will not be completed within the 2 year period referred to in that paragraph.

(f) Where the Revenue Commissioners are satisfied that a qualifying residence or self-build qualifying residence—

(i) is substantially complete at the end of the 2 year period referred to in paragraph (b), (c) or (d), and

(ii) is likely to be completed thereafter within a period of time that, in the opinion of the Revenue Commissioners, is a reasonable one (and such opinion shall be communicated to the person concerned),

the aforementioned 2 year period shall, for the purposes of those paragraphs, stand extended by the period referred to in subparagraph (ii).

(19) Where more than one individual is a party to a claim under this section and a liability arises under subsection (17) or (18) in respect of payment to the Revenue Commissioners of an amount equal to the amount of the appropriate payment, or part of such an amount, each party to the claim shall be liable jointly and severally.

(20) (a) Where a person who is liable to pay to the Revenue Commissioners an amount referred to in subsection (17)(b) or paragraph (a), (b), (c) or (d) of subsection (18) fails to pay that amount, a Revenue officer may, at any time, make an assessment or an amended assessment on that person for a year of assessment or accounting period, as the case may be, in an amount that, according to the best of that officer’s judgement, ought to be charged on that person.

(b) A person aggrieved by an assessment or an amended assessment made on that person under this subsection may appeal the assessment or the amended assessment to the Appeal Commissioners, in accordance with section 949I, within the period of 30 days after the date of the notice of assessment or amended assessment.

(c) Where in accordance with paragraph (a), a Revenue officer makes an assessment or an amended assessment on a person in an amount that, according to the best of that officer’s judgement, ought to be charged on that person, the amount so charged shall, for the purposes of paragraph (a) and Part 42, be deemed to be tax due and payable in respect of the tax year in which the person is liable to pay the amount involved and shall carry interest as determined in accordance with subsection (2) of section 1080 as if a reference in that subsection to the date when the tax became due and payable were a reference to the date the amount so charged is, under this section, payable to the Revenue Commissioners.

(d) Any liability to pay an amount to which paragraph (a) applies, including any interest thereon, which is due and unpaid by a qualifying contractor under this section shall be and remain a charge on the freehold or leasehold estate or interest in the land on which the qualifying residence was to be constructed, where the contractor retains such estate or interest in the land.

(e) Notwithstanding section 36 of the Statute of Limitations 1957, the charge referred to in paragraph (d) shall continue to apply, without limit as to time, until such time as it is paid in full.

(21) An individual aggrieved by a decision by the Revenue Commissioners to refuse a claim under this section may appeal the decision to the Appeal Commissioners, in accordance with section 949I, within the period of 30 days of the notice of that decision.

(22) Anything required to be done by or under this section by the Revenue Commissioners may be done by any Revenue officer.

(23) Any application, claim, information, confirmation, declaration or documentation required by this section shall be given by electronic means and through such electronic systems as the Revenue Commissioners may make available for the time being for any such purpose, and the relevant provisions of Chapter 6 of Part 38 shall apply.

(24) Section 1021 shall not apply where an appropriate payment is made under this section.

(25) No application or claim may be made under this section after 31 December 2019.”.

(2) Schedule 29 to the Principal Act is amended by inserting the following after “section 477B” in column 3:

“section 477C”.

(3) Section 266A of the Principal Act is amended by inserting the following after subsection (2):

“(3) A claimant under section 477C to, or in respect of, whom an appropriated payment is made under that section shall not be entitled to relief under this section in respect of the same dwelling.”.

10 Amendment of section 825C of Principal Act (special assignee relief programme)

10. Section 825C of the Principal Act is amended—

(a) in subsection (2A) by substituting “2015 to 2020,” for “2015, 2016 or 2017,”, and

(b) in subsection (4)(b) by substituting “any of the tax years 2015 to 2020” for “2015, 2016 or 2017”.

11 Amendment of section 823A of Principal Act (deduction for income earned in certain foreign states)

11. (1) Section 823A of the Principal Act is amended—

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

“ ‘relevant state’ means, as regards the years of assessment 2012 to 2020, the Federative Republic of Brazil, the Russian Federation, the Republic of India, the People’s Republic of China or the Republic of South Africa, and includes—

(a) as regards the years of assessment 2013 to 2020, the Arab Republic of Egypt, the People’s Democratic Republic of Algeria, the Republic of Senegal, the United Republic of Tanzania, the Republic of Kenya, the Federal Republic of Nigeria, the Republic of Ghana and the Democratic Republic of the Congo,

(b) as regards the years of assessment 2015 to 2020, Japan, the Republic of Singapore, the Republic of Korea, the Kingdom of Saudi Arabia, the United Arab Emirates, the State of Qatar, the Kingdom of Bahrain, the Republic of Indonesia, the Socialist Republic of Vietnam, the Kingdom of Thailand, the Republic of Chile, the Sultanate of Oman, the State of Kuwait, the United Mexican States and Malaysia, and

(b) in subsection (3) by substituting “30 days” for “40 days”, and

(2) Paragraph (b) of subsection (1) shall have effect for the years of assessment 2017, 2018, 2019 and 2020.

12 Amendment of section 472AA of Principal Act (relief for long-term unemployed starting a business)

12. Section 472AA of the Principal Act is amended in subsection (1) by substituting “31 December 2018” for “31 December 2016” in the definition of “new business”.

13 Amendment of section 216A of Principal Act (rent-a-room relief)

13. As respects the year of assessment 2017 and subsequent years of assessment, section 216A of the Principal Act is amended, in subsection (5), by substituting “€14,000” for “€12,000”.

14 Retirement benefits

14. (1) Part 30 of the Principal Act is amended—

(a) in section 784—

(i) by inserting the following after subsection (2E):

“(2F) Notwithstanding any other provision of this Chapter, a retirement annuity contract shall not cease to be an annuity contract for the time being approved by the Revenue Commissioners where, notwithstanding anything contained in the contract as approved—

(a) the person with whom the contract is made—

(i) on or before 31 March 2017—

(I) commences payment of an annuity to the individual,

(II) pays a lump sum of a kind referred to in subsection (2)(b) to the individual, or

(III) transfers the value of the individual’s accrued rights under the contract in accordance with subsection (2A),

(ii) in priority to any payment or transfer referred to in subparagraph (i), makes available from the cash and other assets representing the value of the individual’s accrued rights under the contract, to such extent as may be necessary, an amount for the purposes of discharging a tax liability in relation to the individual under the provisions of Chapter 2C of this Part in respect of the contract,

(b) insofar as subparagraph (i) of paragraph (a) is concerned, the annuity contract is deemed to be a vested RAC in accordance with section 787O(6), and

(c) insofar as subparagraph (ii) of paragraph (a) is concerned, the annuity contract is a vested RAC within the meaning of section 787O(1).”,

and

(ii) by inserting the following after subsection (7):

“(8) Where an annuity contract is a vested RAC within the meaning of section 787O(1), the provisions of section 784A(4) shall apply to the cash and other assets representing the individual’s accrued rights under the contract at the time of death of the individual as if that cash and those other assets were assets of an approved retirement fund.”,

(b) in section 787G—

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

“(4B) For the purposes of subsection (6), the administrator of a vested PRSA of a kind referred to in paragraph (c) of the definition of ‘vested PRSA’ in section 790D(1) shall be treated as making the assets of the PRSA available to the PRSA contributor on the date the contributor attains the age of 75 years or, where the contributor attained the age of 75 years prior to the date of passing of the Finance Act 2016, on the date of passing of that Act.”,

and

(ii) in subsection (6), by substituting “where assets of a PRSA are treated under subsection (4) or subsection (4B)” for “where assets of a PRSA are treated under subsection (4) ”,

“(2D) A PRSA product (within the meaning of Part X of the Pensions Act 1990) approved under section 94 of that Act, shall not cease to be an approved product where, notwithstanding anything contained in the terms of the product as approved—

(a) the PRSA administrator—

(i) on or before 31 March 2017—

(I) commences payment of an annuity to the PRSA contributor,

(II) pays a lump sum to the PRSA contributor, in accordance with section 787G(3)(a),

(III) makes assets of the PRSA available to the PRSA contributor, or

(IV) transfers assets of the PRSA to an approved retirement fund in accordance with section 787H(1),

(ii) in priority to any payment, making of assets available or transfer referred to in subparagraph (i), makes available from the PRSA assets, to such extent as may be necessary, an amount for the purposes of discharging a tax liability in relation to the PRSA contributor under the provisions of Chapter 2C of this Part in respect of the PRSA,

(b) insofar as subparagraph (i) of paragraph (a) is concerned, the PRSA is deemed to be a vested PRSA in accordance with section 790D(1A), and

(c) insofar as subparagraph (ii) of paragraph (a) is concerned, the PRSA is a vested PRSA within the meaning of paragraph (c) of the definition of ‘vested PRSA’ in section 790D(1).”,

(d) in section 787O—

(i) in subsection (1) —

(I) in the definition of “uncrystallised pension rights”, by substituting “on that date;” for “on that date.”, and

(II) by inserting the following definition:

“ ‘vested RAC’ means a relevant pension arrangement of a kind referred to in paragraph (b) of the definition of that term in this subsection in respect of which—

(a) payment of the annuity to the individual entitled to the annuity under the contract has not commenced, or

(b) a transfer has not been made under section 784(2A),

on or before the date on which the individual attains the age of 75 years.”,

and

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

“(6) Where an individual of a kind referred to in the definition of ‘vested RAC’ attains the age of 75 years prior to the date of passing of the Finance Act 2016, the relevant pension arrangement is deemed to become a vested RAC on the date of passing of that Act.”,

(e) in section 787R—

(i) in subsection (5), by substituting the following for paragraph (b):

“(b) where the benefit crystallisation event is an event of a kind described at subparagraph (b), (ba) or (c) of paragraph 2 of Schedule 23B, refuse to transfer an amount to the individual, or to any of the funds referred to in the said subparagraph (b), refuse to make assets of the PRSA referred to in the said subparagraph (ba) available to the PRSA contributor or, as the case may be, refuse to make a payment or transfer referred to in the said subparagraph (c),”,

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

“(5A) (a) In this subsection—

‘relevant administrator’ means—

(i) in the case of a vested PRSA of a kind referred to in paragraph (c) of the definition of ‘vested PRSA’ in section 790D(1), the administrator of that vested PRSA, and

(ii) in the case of a vested RAC within the meaning of section 787O(1), the person with whom the individual (referred to in the definition of ‘vested RAC’ in that section) made the annuity contract;

‘relevant person’ means—

(i) in the case of a vested PRSA of a kind referred to in paragraph (c) of the definition of ‘vested PRSA’ in section 790D(1), a PRSA contributor of a kind referred to in that paragraph, and

(ii) in the case of a vested RAC within the meaning of section 787O(1), an individual of a kind referred to in the definition of ‘vested RAC’ in that section;

‘date of the benefit crystallisation event’ means, as the case may be, the date the relevant person attains the age of 75 years or, where the relevant person attains that age prior to the date of passing of the Finance Act 2016, the date of passing of that Act.

(b) Notwithstanding subsection (4), where a benefit crystallisation event of a kind referred to in subparagraph (bb) or (bc), as the case may be, of paragraph 2 of Schedule 23B occurs in relation to a relevant person, the relevant person shall, within the period of 30 days from the date of the benefit crystallisation event, provide a declaration containing the details referred to in subsection (4) to the relevant administrator.

(c) Where a relevant person fails to comply with paragraph (b), section 787Q shall apply to the benefit crystallisation event referred to in that paragraph as if the condition referred to in subsection (2)(b) of that section is met.”,

and

(iii) in subsection (6), by substituting “subsections (4), (5) and (5A)” for “subsections (4) and (5) ”,

(f) in section 787S, by substituting the following for subsection (5):

“(5) Where any item—

(a) has been incorrectly included in a return as a chargeable excess, or

(b) has been included in a return as a chargeable excess in accordance with the application of paragraph (c) of subsection (5A) of section 787R in circumstances where, if a declaration referred to in paragraph (b) of that subsection had been provided to the relevant administrator (within the meaning of that subsection), no chargeable excess or a lesser chargeable excess would have arisen in respect of the benefit crystallisation event concerned,

then, on a case being made, an officer of the Revenue Commissioners may make such assessments, adjustments or set-offs as may in his or her judgement be required for securing that the resulting liabilities to tax, including interest on unpaid tax, whether of the administrator of a relevant pension arrangement or the individual or, where the provisions of section 787R(2A) apply, whether of the subsequent administrator, fund administrator, relevant member or non-member, as the case may be, are, so far as possible, the same as they would have been if the item had not been so included.”,

and

(g) in section 790D—

(i) in subsection (1), by substituting the following for the definition of “vested PRSA”:

“ ‘vested PRSA’ means—

(a) a PRSA in respect of which assets of the PRSA have been made available to, or paid to, the PRSA contributor or to any other person, by the PRSA administrator on or after 7 November 2002, other than assets of a kind referred to in paragraphs (b), (c) and (d) of section 787G(3), and for the purposes of this definition the provisions of subsections (4) and (4A) of section 787G shall apply,

(b) in the case of a PRSA that is a PRSA to which an individual is or was the contributor of additional voluntary PRSA contributions, such a PRSA where benefits become payable to the individual under the main scheme on or after 7 November 2002, or

(c) a PRSA in respect of which the PRSA contributor has attained the age of 75 years where, up to and including the date on which the contributor attained that age, no assets of the PRSA have been made available to, or paid to, the PRSA contributor or to any other person, other than a transfer of part of the assets to another PRSA to which the contributor to the first mentioned PRSA is the contributor;”,

and

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

“(1A) Where a PRSA contributor of a kind referred to in paragraph (c) of the definition of ‘vested PRSA’ attains the age of 75 years in the circumstances referred to in that paragraph prior to the date of passing of the Finance Act 2016, the PRSA is deemed to become a vested PRSA on the date of passing of that Act.”.

(2) Schedule 23B to the Principal Act is amended—

(a) in paragraph 2, by inserting the following after subparagraph (ba):

“(bb) the individual is a PRSA contributor and the PRSA becomes a vested PRSA of a kind referred to in paragraph (c) of the definition of ‘vested PRSA’ in section 790D(1),

(bc) the relevant pension arrangement becomes a vested RAC within the meaning of section 787O(1),”,

and

(b) in paragraph 3, by inserting the following after subparagraph (da):

“(db) where the benefit crystallisation event is an event of a kind referred to in paragraph 2(bb), the aggregate of the amount of any cash sums and the market value of the assets in the PRSA at the date the individual attains the age of 75 years or, where the individual attained the age of 75 years prior to the date of passing of the Finance Act 2016, on the date of passing of that Act,

(dc) where the benefit crystallisation event is an event of a kind referred to in paragraph 2(bc), the aggregate of so much of the cash sums and the market value of such of the other assets representing the individual’s rights under the relevant pension arrangement at the date the individual attains the age of 75 years or, where the individual attained the age of 75 years prior to the date of passing of the Finance Act 2016, on the date of passing of that Act,”.

(3) This section comes into operation on the passing of this Act.

Chapter 4 Income Tax, Corporation Tax and Capital Gains Tax

15. Living City Initiative

15. The Principal Act is amended—

(a) in section 372AAA, in the definition of “relevant house”, by deleting “for use as a dwelling”,

(b) in section 372AAB—

(i) in subsection (1) —

(I) in the definition of “letter of certification”, by deleting paragraph (b),

(II) in the definition of “relevant local authority”, by substituting “situated.” for “situated;”, and

(III) by deleting the definition of “total floor area”,

and

(ii) in subsection (9), by substituting “€5,000.” for “10 per cent of the market value of the building, structure or house immediately before that expenditure was incurred.”,

(i) in subsection (1), by substituting the following for the definition of “qualifying expenditure”:

“ ‘qualifying expenditure’, in relation to capital expenditure incurred in the qualifying period on the conversion or the refurbishment of a qualifying premises and subject to subsection (1A), means, notwithstanding section 279, the lesser of—

(a) the aggregate of all such capital expenditure, and

(b) (i) where the person who incurred the capital expenditure is a company carrying on a trade from the qualifying premises, €1,600,000,

(ii) where the person who incurred the capital expenditure is a company who is letting the qualifying premises, €800,000, or

(iii) where the person who incurred the capital expenditure is an individual, €400,000,

and for the purposes of giving relief under this section, any reference to expenditure being incurred shall include a reference to expenditure deemed under any provision of Part 9 to be incurred;”,

(ii) in subsection (1A), by inserting the following after “does not exceed €200,000,”:

“or

where a company or companies are in receipt of rental income from letting the qualifying premises the qualifying expenditure incurred by each person for the purposes of this section, shall, if necessary and notwithstanding section 279, be reduced, such that the amount determined by the formula—

(A x 50 per cent) + (B x 25 per cent)

does not exceed €200,000,”,

(iii) in subsection (6), by substituting “€5,000.” for “10 per cent of the market value of the building, structure or house immediately before that expenditure was incurred.”,

(iv) by substituting the following for subsection (8):

“(8) Notwithstanding any other provision of this section, this section shall not apply in respect of qualifying expenditure incurred on a qualifying premises where—

(a) a property developer, or a person who is connected (within the meaning of section 10) with the property developer is entitled to the relevant interest, within the meaning of section 269, in relation to that expenditure, and

(b) either of the persons referred to in paragraph (a) incurred the qualifying expenditure on that qualifying premises, or such expenditure was incurred by any other person connected (within the meaning of section 10) with the property developer.”,

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

“(8A) Where any part of qualifying expenditure has been or is to be met, directly or indirectly, by grant assistance or any other assistance which is granted by or through the State, any board established by statute, any public or local authority or any other agency of the State, then that qualifying expenditure shall be reduced by an amount equal to 3 times the sum received or receivable.”,

and

(vi) by inserting the following after subsection (9):

“(10) A person shall not be entitled to allowances under this section while that person is regarded as an undertaking in difficulty for the purposes of the Commission Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty[^2].”,

(d) by inserting the following after section 372AAC:

“Residential accommodation: capital allowances to lessors in respect of eligible expenditure incurred on the conversion and refurbishment of relevant houses

372AAD. (1) In this section—

‘conversion’ in relation to a building, structure or house, has the meaning given to it in section 372AAB;

‘eligible expenditure’, in relation to capital expenditure incurred in the relevant qualifying period on the conversion or the refurbishment of a special qualifying premises, and subject to subsection (2), means, notwithstanding section 279, the lesser of—

(a) the aggregate of all such capital expenditure, and

(b) (i) where the person who incurred the capital expenditure is a company, €800,000, or

(ii) where the person who incurred the capital expenditure is an individual, €400,000,

and, for the purposes of giving relief under this section, any reference to expenditure being incurred shall include a reference to expenditure deemed under any provision of Part 9 to be incurred;

‘house’ has the meaning given to it in section 372AAB;

‘letter of certification’ has the meaning given to it in section 372AAB;

‘property developer’ has the meaning given to it in section 372AAC;

‘relevant qualifying period’ means the period commencing on the date of coming into operation of this section and ending on 4 May 2020;

‘special qualifying premises’ means a relevant house—

(a) the site of which is wholly within a special regeneration area,

(b) which is used solely as a dwelling,

(d) is let on bona fide commercial terms for such consideration as might be expected to be paid in a letting of the relevant house negotiated on an arm’s length basis.

(2) Notwithstanding the definition of eligible expenditure in subsection (1), where capital expenditure is incurred in the relevant qualifying period on a special qualifying premises by 2 or more persons, being either individuals or companies or individuals and companies, the amount of expenditure which is to be treated as eligible expenditure incurred by each person for the purposes of this section, shall, if necessary and notwithstanding section 279, be reduced, such that the amount determined by the formula—

(A x 50 per cent) + (B x 25 per cent)

does not exceed €200,000,

where—

A is the aggregate of all eligible expenditure incurred by the individual or individuals, and

B is the aggregate of all eligible expenditure incurred by the company or companies.

(3) (a) Subject to paragraph (b) and subsections (4) to (10), the provisions of the Tax Acts relating to the making of allowances or charges in respect of capital expenditure incurred on the construction or refurbishment of an industrial building or structure shall, notwithstanding anything to the contrary in those provisions, apply in relation to eligible expenditure on a special qualifying premises as if the special qualifying premises were, at all times at which it is a special qualifying premises, an industrial building or structure in respect of which an allowance is to be made for the purposes of income tax or corporation tax, as the case may be, under Chapter 1 of Part 9 by reason of its use for the purpose specified in section 268(1)(a).

(b) An allowance shall be given by virtue of this subsection in relation to any eligible expenditure on a special qualifying premises only in so far as that expenditure is incurred in the relevant qualifying period.

(4) In relation to eligible expenditure incurred in the relevant qualifying period on a special qualifying premises, section 272 shall apply as if—

(a) in subsection (3)(a)(ii) of that section the reference to 4 per cent were a reference to 15 per cent, and

(b) in subsection (4)(a) of that section the following were substituted for subparagraph (ii):

‘(ii) where capital expenditure on the conversion or refurbishment of the building or structure is incurred, 7 years beginning with the time when the building or structure was first used subsequent to the incurring of that expenditure.’.

(5) Relief under this section shall not be given unless the following information is provided to the Revenue Commissioners as part of the first claim made by the person in accordance with subsection (3):

(a) the name and PPS number or tax reference number of the person making the claim;

(b) the address of the special qualifying premises in respect of which the eligible expenditure was incurred;

(c) the unique identification number (if any) assigned to the special qualifying premises under section 27 of the Finance (Local Property Tax) Act 2012; and

(d) details of the aggregate of all eligible expenditure incurred by the person in respect of the special qualifying premises.

(6) Any claim made, or information required to be provided, to the Revenue Commissioners under this section, shall be made or provided by electronic means and through such electronic systems as the Revenue Commissioners may make available for the time being for any such purpose.

(7) Notwithstanding section 274(1), no balancing allowance or balancing charge shall be made in relation to a special qualifying premises by reason of any event referred to in that section which occurs more than 7 years after the special qualifying premises was first used subsequent to the incurring of the eligible expenditure on the conversion or refurbishment of the special qualifying premises.

(8) This section shall not apply where eligible expenditure incurred does not exceed €5,000.

(9) For the purposes only of determining, in relation to a claim for an allowance by virtue of subsection (3), whether and to what extent eligible expenditure incurred on the conversion or refurbishment of a special qualifying premises is incurred or not incurred in the relevant qualifying period, only such an amount of that eligible expenditure as is properly attributable to work on the conversion or refurbishment of the premises actually carried out during the relevant qualifying period shall (notwithstanding any other provision of the Tax Acts as to the time when any capital expenditure is or is to be treated as incurred) be treated as having been incurred in that period.

(10) Notwithstanding any other provision of this section, this section shall not apply in respect of eligible expenditure incurred on a special qualifying premises where—

(b) either of the persons referred to in paragraph (a) incurred the eligible expenditure on that special qualifying premises, or such expenditure was incurred by any other person connected (within the meaning of section 10) with the property developer.

(11) Where any part of eligible expenditure has been or is to be met, directly or indirectly, by grant assistance or any other assistance which is granted by or through the State, any board established by statute, any public or local authority or any other agency of the State, then that eligible expenditure shall be reduced by an amount equal to 3 times the sum received or receivable.

(12) Expenditure in respect of which a person is entitled to relief under this section shall not include any expenditure in respect of which that person is entitled to a deduction, relief or allowance under any other provision of the Tax Acts.

(13) A person shall not be entitled to allowances under this section while that person is regarded as an undertaking in difficulty for the purposes of the Commission Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty.”,

(e) in section 409F(2), in paragraph (a) of the definition of “area-based capital allowance”, by substituting “372AC, 372AD, 372AAC or 372AAD” for “372AC, 372AD or 372AAC”, and

(f) in Schedule 25B by inserting the following after the matter set out opposite Reference Number 38A:

“

38B.	Section 372AAB (residential accommodation: allowance to owner-occupiers in respect of qualifying expenditure incurred on the conversion and refurbishment of Georgian houses)	The amount the individual deducts from his or her total income for a year of assessment under section 372AAB(2) in respect of qualifying expenditure incurred on the conversion or refurbishment of a qualifying premises.
38C.	Section 372AAD (residential accommodation: capital allowances to lessors in respect of eligible expenditure incurred on the conversion and refurbishment of relevant houses)	An amount equal to— (a) the aggregate amount of allowances (including balancing allowances) made to the individual under Chapter 1 of Part 9 as that Chapter is applied by section 372AAD, including any such allowance or part of any allowances made to the individual for a previous tax year and carried forward from that previous tax year in accordance with Part 9, or
		(b) where full effect has not been given in respect of that aggregate for that tax year, the part of that aggregate to which full effect has been given for that tax year in accordance with section 278 and section 304 or 305, as the case may be, or any of those sections as applied or modified by any other provision of the Tax Acts.

”.

16 Amendment of section 97 of Principal Act (computational rules and allowable deductions)

16. (1) Section 97 of the Principal Act is amended by substituting the following for subsection (2J):

“(2J) (a) Notwithstanding subsection (2), but subject to the other provisions of this section (including paragraphs (b) and (c) of this subsection), the deduction authorised by subsection (2)(e) shall not exceed—

(i) 75 per cent of the deduction that would, but for this subsection, be authorised by subsection (2)(e) in respect of interest accrued on or after 7 April 2009 up to and including 31 December 2016,

(ii) 80 per cent of the deduction that would, but for this subsection, be authorised by subsection (2)(e) in respect of interest accrued on or after 1 January 2017 up to and including 31 December 2017,

(iii) 85 per cent of the deduction that would, but for this subsection, be authorised by subsection (2)(e) in respect of interest accrued on or after 1 January 2018 up to and including 31 December 2018,

(iv) 90 per cent of the deduction that would, but for this subsection, be authorised by subsection (2)(e) in respect of interest accrued on or after 1 January 2019 up to and including 31 December 2019, and

(v) 95 per cent of the deduction that would, but for this subsection, be authorised by subsection (2)(e) in respect of interest accrued on or after 1 January 2020 up to and including 31 December 2020,

on borrowed money employed in the purchase, improvement or repair of a premises which, at the time the interest accrues, is a residential premises.

(b) For the purposes of paragraph (a) —

(i) borrowed money employed on the construction of a residential premises on land in which the person chargeable has an estate or interest shall, together with any borrowed money which that person employed in the acquisition of such land, be deemed to be borrowed money employed in the purchase of a residential premises,

(ii) where a premises consists in part of residential premises and in part of premises which are not residential premises, paragraph (a) shall apply to the interest accrued on the part of the borrowed money employed in the purchase, improvement or repair of the premises that is attributable, on a just and reasonable basis, to residential premises, and

(iii) the interest on borrowed money referred to in paragraph (a) shall be treated as accruing from day to day.

(2) Subsection (1) shall come into operation on 1 January 2017.

17 Amendment of section 285A of Principal Act (acceleration of wear and tear allowances for certain energy-efficient equipment)

17. Section 285A of the Principal Act is amended—

(a) in subsection (2), by substituting “person” for “company” in both places where it occurs,

(b) by substituting the following for subsection (5):

“Subsection (2) shall not apply where the energy-efficient equipment is leased, let or hired to any person.”,

and

18. Amendment of section 657 of Principal Act (averaging of farm profits)

18.

(1) Section 657 of the Principal Act is amended—

(a) by inserting the following definitions in subsection (1):

“ ‘deferred tax’ means the amount of income tax determined by the formula—

A - B

where—

A is the amount of income tax which would, apart from subsection (6A), be charged on an individual by virtue of subsection (6) in accordance with subsection (5) in respect of a year of assessment, and

B is the amount of income tax which would, apart from this section, be chargeable in accordance with Chapter 3 of Part 4 in respect of a year of assessment;

‘specified return date for the chargeable period’ has the same meaning as in section 959A;”,

(b) by inserting the following after subsection (6) —

“(6A) (a) Where for a year of assessment an individual is by virtue of subsection (6) chargeable to income tax in respect of profits or gains from farming in accordance with subsection (5), that individual may, on including a claim in that behalf with the return required under Chapter 3 of Part 41A for the year of assessment, elect to defer payment of the deferred tax for that year of assessment.

(b) Where an individual duly elects in accordance with paragraph (a) in respect of a year of assessment, the deferred tax in respect of the year of assessment shall be payable in 4 equal instalments.

(c) The first instalment of the 4 instalments referred to in paragraph (b) shall be due and payable on or before the specified return date for the chargeable period of the year of assessment following the year of assessment in which the election, referred to in paragraph (a), is made and the remaining 3 instalments shall be due and payable respectively on or before each of the following 3 anniversaries of the date on which the first instalment was due and payable.

(d) An individual shall only be entitled to make an election in accordance with this subsection in a year of assessment provided an election has not been made in any of the 4 years of assessment immediately preceding such year of assessment.”,

and

(i) deleting “and” in paragraph (c),

(ii) substituting “assessment, and” for “assessment.” in paragraph (d), and

(iii) inserting the following after paragraph (d):

“(e) notwithstanding section 959AA, there shall be made such assessment or assessments, if any, as may be necessary to secure the payment of any deferred tax which remains due and payable.”.

(2) Subsection (1) shall apply for the year of assessment 2016 and subsequent years of assessment.

19 Amendment of section 288 of Principal Act (balancing allowances and balancing charges)

19. (1) Section 288(6A) of the Principal Act is amended in paragraph (a)(i) by substituting “the Minister for Agriculture, Food and the Marine in accordance with Council Regulation (EU) No. 508/2014 of the European Parliament and of the Council of 15 May 2014[^3]” for “the Minister for Agriculture, Fisheries and Food in accordance with Council Regulation (EC) No. 1198/2006 of 27 July 2006”.

(2) This section shall come into operation on such day as the Minister for Finance, with the consent of the Minister for Agriculture, Food and the Marine, may, by order, appoint.

20 Employment and investment incentive and seed capital scheme

20. (1) The Principal Act is amended—

(a) in section 502(7)(d)(i), by substituting “31st day of December” for “5th day of April”,

(b) in section 507—

(i) in subsection (1), by substituting for “the annual reports required in accordance with Article 11 of Commission Regulation (EU) No. 651/2014 of 17 June 2014” the following:

“(a) the annual reports required in accordance with Article 11 of Commission Regulation (EU) No. 651/2014 of 17 June 2014[^4], and

(b) publishing the following information in relation to all qualifying companies:

(i) the name of the company;

(ii) the address of the company;

(iii) the Companies Registration Office number of the company;

(iv) the amount of finance raised;

(v) the date of share issue and type of relief.”,

(ii) in subsection (2), by substituting “Notwithstanding section 851A” for “Notwithstanding any obligation as to secrecy imposed on them by the Tax Acts or the Official Secrets Act 1963”, and

(iii) in subsection (4), by substituting “section 851A” for “statute or otherwise”,

and

(2) The amendments to section 507 of the Principal Act effected by subsection (1)(b) of this section shall apply to shares issued on or after 13 October 2015.

(3) Subsection (1)(c) applies as respects a subscription for eligible shares made on or after 1 January 2017.

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

21. (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) as respects the year of assessment 2017, a sum representing income tax on the amount of the payment at the rate of 39 per cent,

(b) as respects the year of assessment 2018, a sum representing income tax on the amount of the payment at the rate of 37 per cent,

(c) as respects the year of assessment 2019, a sum representing income tax on the amount of the payment at the rate of 35 per cent, and

(d) as respects the year of assessment 2020 and each subsequent year of assessment, a sum representing income tax on the amount of the payment at the rate of 33 per cent;”,

and

(b) in section 267M by substituting the following for subsection (2):

“(2) (a) Notwithstanding section 15 and subject to paragraph (aa), where the taxable income of an individual includes—

(i) specified interest, the part of taxable income, equal to that specified interest, shall be chargeable to tax at the rate specified in the definition of ‘appropriate tax’ in section 256(1), or

(ii) foreign deposit interest, so much of the part of taxable income, equal to that foreign deposit interest, as would otherwise be chargeable to tax at the standard rate, shall instead be chargeable to tax at the rate specified in the definition of ‘appropriate tax’ in section 256(1).

(aa) Notwithstanding paragraph (a), where any liability of the individual for a year of assessment in respect of the specified interest or foreign deposit interest, as the case may be, has not been discharged on or before the specified return date for the chargeable period (within the meaning of section 959A) for that year, then the part of taxable income, equal to that specified interest or that foreign deposit interest, shall be chargeable to tax at the rate of tax described in the Table to section 15 as the higher rate.”.

(2) Subsection (1) applies to relevant interest, specified interest or foreign deposit interest, as the case may be, received or paid on or after 1 January 2017.

22 Amendment of section 110 of Principal Act (securitisation)

22. Section 110 of the Principal Act is amended—

(a) in subsection (1) in the definition of “qualifying company” by—

(i) substituting the following for paragraph (f):

“(f) which has notified in writing the authorised officer in a form prescribed by the Revenue Commissioners that it is or intends to be a company to which paragraphs (a) to (e) apply and has supplied such other particulars relating to the company as may be specified on the prescribed form including details concerning the—

(i) type of transaction,

(ii) assets acquired,

(iii) originator,

(iv) intra-group transactions, and

(v) connected parties,

not later than 8 weeks from—

(I) 1 January 2017 where the day referred to in paragraph (e) predates 1 January 2017 and the company has not yet made the notification in writing to the authorised officer in the form prescribed by the Revenue Commissioners as required to be made by the specified return date (within the meaning of section 959A) for the first accounting period in relation to which it is such a company, or

(II) the day referred to in paragraph (e),

and where information required is not available at the time the written notification is provided to the authorised officer, that information should be provided without undue delay upon becoming available,”,

and

(ii) substituting “(4A), (5) and (5A)” for “(4A) and (5)”,

(b) in subsection (4) by substituting “(4A), (5) and (5A)” for “(4A) and (5)”, and

“(5A) (a) In this subsection—

‘arrangement’ includes any agreement, understanding, scheme, transaction or series of transactions;

‘CLO transaction’ means a securitisation transaction entered into by a qualifying company which is carried out in conformity with—

(a) a prospectus, within the meaning of Directive 2003/71/EC of the European Parliament and of the Council of 4 November 2003[^5],

(b) listing particulars, where any securities issued by the qualifying company are listed on an exchange, other than the main exchange, of the State or a relevant Member State, or

(c) where the securities issued by the qualifying company will not be listed on an exchange in the State or a relevant Member State, legally binding documents,

that—

(i) may provide for a warehousing period, which for the purposes of this subsection means a period not exceeding 3 years during which time the qualifying company is preparing to issue securities, and

(ii) provide for investment eligibility criteria that govern the type and quality of assets to be acquired,

and where, based on the documents referred to in paragraphs (a) to (c) and the activities of the qualifying company, it would not be reasonable to consider that the main purpose, or one of the main purposes, of the qualifying company was to acquire specified mortgages;

‘CMBS/RMBS transaction’ means a securitisation transaction entered into by the qualifying company where—

(a) the originator (within the meaning of paragraph (a) of the definition of ‘originator’ in Article 4 of the CRR) retains a net economic interest in the credit risk of the securitisation position in accordance with Article 405 of the CRR, or

(b) an originator (within the meaning of paragraph (b) of the definition of ‘originator’ in Article 4 of the CRR) retains a net economic interest in the credit risk of the securitisation position in accordance with Article 405 of the CRR and is a financial institution (within the meaning of the CRR) or credit institution (within the meaning of the CRR) regulated by a competent authority in a relevant Member State or the State or is authorised by a third country authority, recognised by the European Commission as having supervisory and regulatory arrangements at least equivalent to those applied in a relevant Member State or the State, to carry out similar activities;

‘CRR’ means Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 2013[^6];

‘EEA state’ means a state, not being a Member State or the State, which is a contracting party to the Agreement on the European Economic Area signed at Oporto on 2 May 1992 as adjusted by the Protocol signed at Brussels on 17 March 1993;

‘loan origination business’ means the making of an advance, other than a specified security to a borrower that has a specified property business—

(a) in respect of which the qualifying company is the original creditor, or

(b) that is acquired by the qualifying company on or about the date on which it was advanced,

provided that such advance is not made as a result of a novation or refinancing of a specified mortgage, other than for bona fide commercial reasons and did not form part of an arrangement the main purpose, or one of the main purposes, of which was to avoid the application of this subsection;

‘relevant Member State’ means a Member State, other than the State, or not being such a Member State, an EEA state;

‘securitisation’ means a securitisation within the meaning of the CRR;

‘specified mortgage’ means—

(a) a loan which is secured on, and which derives its value from, or the greater part of its value from, directly or indirectly, land in the State,

(b) a specified agreement which derives all of its value, or the greater part of its value, directly or indirectly, from land in the State or a loan to which paragraph (a) applies, other than a loan or a specified agreement which derives its value or the greater part of its value from a CLO transaction, a CMBS/RMBS transaction, a loan origination business or a sub-participation transaction,

(c) the portion of a specified security treated as attributable to the specified property business in accordance with paragraph (c)(ii), or

(d) units in an IREF (within the meaning of Chapter 1B of Part 27);

‘specified property business’, in relation to a qualifying company, means the whole, or part, of the business of the qualifying company that involves the holding, managing or both the holding and managing of specified mortgages, and shall not include—

(a) a CLO transaction,

(b) a CMBS/RMBS transaction,

(d) a sub-participation transaction, or

(e) activities which are preparatory to the transactions or business mentioned in paragraphs (a) to (d),

where the qualifying company, in respect of paragraphs (a) or (b), apart from activities incidental or preparatory to that transaction or business, carries on no other activities;

‘specified security’ means a security where subsection (4) would, or would but for this subsection, apply to any interest or other distribution payable thereon;

‘sub-participation transaction’ means a transaction which involves the acquisition of an economic interest in a loan by the qualifying company in the ordinary course of a bona fide syndication of such loan to one or more lenders where the originator of the loan—

(a) is a financial institution (within the meaning of CRR) or credit institution (within the meaning of CRR)—

(i) regulated by a competent authority in a relevant Member State or the State, or

(ii) authorised by a third country authority, recognised by the European Commission as having supervisory and regulatory arrangements at least equivalent to those applied in a relevant Member State or the State, to carry out similar activities,

(b) remains a lender of record, and

(b) (i) In calculating the portion of the value of a loan or specified agreement attributable directly or indirectly to land in the State for the purposes of paragraph (a), account shall not be taken of any arrangement that—

(I) involves a transfer of assets, other than a specified mortgage, from a person connected with the qualifying company, and

(II) the main purpose, or one of the main purposes, of which is the avoidance of tax.

(ii) In calculating the portion of the value of each loan or specified agreement attributable directly or indirectly to land in the State for the purposes of paragraph (a), regard shall be had to the gross value of the assets from which the specified mortgage derives its value of which the land in the State is part.

(c) (i) Notwithstanding the generality of section 70(1), the profits arising to a qualifying company from its specified property business shall be treated for the purposes of the Tax Acts, other than any provision relating to the commencement or cessation of a trade, as a separate business which is distinct from any other business or part of a business carried on by the qualifying company.

(ii) For the purposes of treating the specified property business of a qualifying company as a separate business, in accordance with subparagraph (i), any necessary apportionment shall be made so that expenses laid out or expended in earning the profits of that separate business shall be attributed to the separate business on a just and reasonable basis and the amount of the expenses so apportioned shall be an amount which would be attributed to a distinct and separate company, engaged in the same activities, if it were independent of, and dealing at arm’s length with, the qualifying company.

(d) Subject to subsections (4A) and (5), subsection (4) shall only apply to the calculation of the profits of a specified property business of a qualifying company in respect of so much of any interest or other distribution payable in respect of a specified security—

(i) as is paid by a qualifying company to—

(I) a person—

(A) being an individual who is resident in the State and within the charge to income tax, or

(B) in any other case, who is or will be within the charge to corporation tax,

in the State in respect of that interest or other distribution,

(II) a fund approved under section 774, 784(4) or 785(5), a PRSA within the meaning of section 787A, a person exempt from income tax under section 790B or a fund authorised by a Member State or an EEA state and subject to supervisory and regulatory arrangements at least equivalent to the supervisory and regulatory arrangements applied to those funds in the State,

(III) a person (referred to in this clause as the ‘non-resident person’) who—

(A) being an individual is a national of a relevant Member State, or

(B) being a company, is formed under the laws of, and is registered in, a relevant Member State,

where under the laws of any relevant Member State the interest or other distribution is subject, without any reduction computed by reference to the amount of such interest or other distribution, in respect of any interest or other distribution which is to any extent dependent on the interest or other distribution payable on the specified security, or in respect of any imputed, deemed or notional expenses calculated by reference to an amount of debt, equity or hybrid financing, including instruments which are neither debt nor equity financing to a tax which generally applies to income or profits (other than gains), received in that state, by persons, from sources outside that state where it would be reasonable to consider that—

(AA) the holding of the specified security by the non-resident person does not form part of any arrangement or scheme the main purpose, or one of the main purposes, of which is the avoidance of a liability to tax, and

(AB) where the non-resident person is a company, genuine economic activities, relevant to the holding of the specified security, are carried on by the non-resident person in any relevant Member State,

(IV) an IREF (within the meaning of Chapter 1B of Part 27), or

(V) an investment undertaking, other than an investment undertaking which would be a personal portfolio IREF (within the meaning of section 739M) if all references in that section to IREFs were references to investment undertakings, and references to IREF assets and IREF business were references to the assets and activities of that investment undertaking,

(ii) as on the creation of the specified security, would represent no more than a reasonable commercial return which is not dependent on the results of the qualifying company for the use of that principal, or

(iii) from which tax has been properly deducted at the standard rate in force at the time of the payment in accordance with section 246(2) and such tax which has been properly deducted is not refundable.

(e) (i) Subject to subparagraph (ii), this subsection shall apply to accounting periods commencing on or after 6 September 2016.

(ii) Where the accounting period of a company begins before 6 September 2016 and ends after that date, for the purposes of this subsection, that accounting period shall be divided into 2 parts, one beginning on the date on which the accounting period begins and ending on 5 September 2016 and the other beginning on 6 September 2016 and ending on the date on which the accounting period ends.”.

23 Amendment of Part 27 of Principal Act (unit trusts and offshore funds)

23. Part 27 of the Principal Act is amended—

(a) in section 739B(1) by substituting “In this Chapter, in Chapter 1B and in Schedules 2B and 2C” for “In this Chapter and in Schedule 2B”,

(b) by inserting after Chapter 1A the following:

“Chapter 1B

Irish real estate funds

Interpretation

739K. (1) In this Chapter—

‘accounting period’ means the period for which an investment undertaking or sub-fund, as the case may be, makes up its accounts and subsections (2) and (3) of section 27 shall have application for the purposes of determining the accounting period of an investment undertaking or sub-fund;

‘accrued IREF profits’ means the IREF profits, including any retained IREF profits, that have arisen and accrued to a unit since that unit was acquired by the person who, on the happening of an IREF taxable event, is the unit holder;

‘arrangement’ includes any agreement, understanding, scheme, course of action, course of conduct, transaction or series of transactions;

‘connected’ has the meaning assigned to it in section 10;

‘income statement’ means the profit and loss account, income statement or equivalent prepared in respect of an investment undertaking or sub-fund, as the case may be, in accordance with international accounting standards or alternatively in accordance with the generally accepted accounting practice specified in the investment undertaking’s prospectus;

‘IREF’ means an investment undertaking or, where that investment undertaking is an umbrella scheme, a sub-fund of an investment undertaking—

(a) in which 25 per cent or more of the value of the assets at the end of the immediately preceding accounting period is derived directly or indirectly from IREF assets, or

(b) where paragraph (a) does not apply, it would be reasonable to consider that the main purpose, or one of the main purposes, of the investment undertaking or the sub-fund, as the case may be, was to acquire IREF assets or to carry on an IREF business,

other than an investment undertaking within the meaning of paragraph (b) of the definition of ‘investment undertaking’ in section 739B, and where this Chapter applies to a sub-fund of an umbrella scheme, for the purposes of the calculation, assessment and collection of any tax due under this Chapter, each sub-fund of such umbrella scheme shall be treated as a separate legal person;

‘IREF assets’ means one or more of the following held by an IREF:

(a) relevant assets (within the meaning of section 29(1A));

(b) shares in a REIT (within the meaning of Part 25A);

(c) shares deriving their value or the greater part of their value directly or indirectly from the assets referred to in paragraph (a) or (b), other than shares quoted on a stock exchange except as provided for in paragraph (b) of this definition;

(d) specified mortgages, other than those which—

(i) are issued by a qualifying company as part of a CLO transaction, a CMBS/RMBS transaction or a loan origination business (each within the meaning of section 110), or

(ii) form part of a loan origination business of the IREF, and any necessary amendments to the definition of ‘loan origination’ shall be made so that it applies to a business carried on by an IREF rather than a qualifying company;

(e) units in an IREF;

‘IREF business’ means activities involving IREF assets, the profits or gains of which, apart from section 739C, would be chargeable to income tax, corporation tax or capital gains tax, including, but without limitation to the generality of the preceding words, activities which would be regarded as—

(a) dealing in or developing land, or

(b) a property rental business;

‘IREF excluded profits’ means—

(a) in relation to a unit holder in respect of which an IREF is not a personal portfolio IREF having regard to the IREF assets concerned (other than those referred to in paragraphs (b) to (e) of the definition of ‘IREF assets’)—

(i) any profits or gains as shown in the income statement of the IREF in relation to the disposal of those assets where—

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Finance Act 2016

PART 1 Universal Social Charge, Income Tax, Corporation Tax and Capital Gains Tax

Chapter 1 Interpretation

1. Interpretation (Part 1)

Chapter 2 Universal Social Charge

2. Amendment of section 531AN of Principal Act (rate of charge)

PART 1

PART 2

Chapter 3 Income Tax

3. Exemption in respect of certain expense payments for resident relevant directors

4. Amendment of section 472AB of Principal Act (earned income tax credit)

5. Amendment of section 466A of Principal Act (home carer tax credit)

6. Fisher tax credit

7. Amendment of section 480A of Principal Act (relief on retirement for certain income of certain sportspersons)

8. Amendment of section 477B of Principal Act (home renovation incentive)

9. Help to Buy

10 Amendment of section 825C of Principal Act (special assignee relief programme)

11 Amendment of section 823A of Principal Act (deduction for income earned in certain foreign states)

12 Amendment of section 472AA of Principal Act (relief for long-term unemployed starting a business)

13 Amendment of section 216A of Principal Act (rent-a-room relief)

14 Retirement benefits

Chapter 4 Income Tax, Corporation Tax and Capital Gains Tax

15. Living City Initiative

16 Amendment of section 97 of Principal Act (computational rules and allowable deductions)

17 Amendment of section 285A of Principal Act (acceleration of wear and tear allowances for certain energy-efficient equipment)

18. Amendment of section 657 of Principal Act (averaging of farm profits)

19 Amendment of section 288 of Principal Act (balancing allowances and balancing charges)

20 Employment and investment incentive and seed capital scheme

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

22 Amendment of section 110 of Principal Act (securitisation)

23 Amendment of Part 27 of Principal Act (unit trusts and offshore funds)