FINANCE ACT, 1973 (1973_act_19) | IE

ISB Act 1973-08-04

Schedule 1 FINANCE ACT, 1973 Open official source

FIRST SCHEDULE Policies of Life Insurance

Policies of Life Insurance

Section 23.

Rules applicable to endowment policies

1. An endowment policy is a qualifying policy if it satisfies the following conditions

(a) the term specified in the policy in relation to survival must be a term ending not earlier than ten years after the making of the insurance,

(b) premiums must be payable under the policy at yearly intervals or at intervals of six months, three months, two months or one month, and—

(i) until the happening of the event upon which the capital sum secured is payable, or

(ii) until the happening of that event, or the earlier expiry of a specified period shorter than the term specified but also ending not earlier than ten years after the making of the insurance, or

(iii) if the policy is to lapse on the death of a specified person, until one of those times or the policy's earlier lapse,

(c) the total amount of the premiums payable under the policy in any period of twelve months must not exceed—

(i) twice the total amount of the premiums payable in any other such period, or

(ii) one-eighth of the total amount of the premiums which would be payable if the policy were to continue in force for the specified term,

(d) the policy must guarantee that the capital sum payable on death will be equal to three-fourths at least of the total premiums which would be payable if the policy were to continue in force for that term, disregarding any amounts included in those premiums by reason of their being payable otherwise than annually, and

(e) the policy must not secure the provision (except by surrender) at any time before the happening of the event aforesaid of any benefit of a capital nature other than benefits attributable to a right to participate in profits or arising by reason of a person's disability.

2. In applying paragraph 1 to any policy—

(a) no account shall be taken of any provision for the waiver of premiums by reason of a person's disability, and

(b) if the term of the policy runs from a date earlier, but not more than three months earlier, than the making of the insurance, the insurance shall be treated as having been made on that date, and any premium paid in respect of the period before the making of the insurance, or in respect of that period and a subsequent period, as having been payable on that date.

3. References in paragraph 1 (d) to a capital sum payable on death include references to any capital sum, or series of capital sums, payable by reason thereof; and a policy secures a capital sum payable either on death or on disability notwithstanding that the amount payable may vary with the event.

Exceptional mortality risk

4. For the purpose of determining whether any policy is a qualifying policy, there shall be disregarded—

(a) so much of any premium thereunder as is charged on the grounds that an exceptional risk of death is involved, and

(b) any provision under which, on those grounds, any sum may become chargeable as a debt against the capital sum guaranteed by the policy on death.

Connected policies

5. Where the terms of any policy provide that it is to continue in force only so long as another policy does so, neither policy is a qualifying policy unless, if they had constituted together a single policy issued in respect of an insurance made at the time of the insurance in respect of which the first-mentioned policy was issued, that single policy would have been a qualifying policy.

Premiums paid out of sums due under previous policies

6. (1) Where, in the case of a policy under which a single premium only is payable, liability for the payment of that premium is discharged in accordance with subparagraph (2), the policy is a qualifying policy notwithstanding anything in paragraph 1 (b) or paragraph 1 (c) and where, in the case of any other policy, liability for the payment of the first premium thereunder, or of any part of that premium, is so discharged, the premium or part shall be disregarded for the purposes of paragraph 1 (c).

(2) Liability for the payment of a premium is discharged in accordance with this subparagraph if it is discharged by the retention by the company with which the insurance is made of the whole or a part of any sum which has become payable on the maturity of, or on the surrender more than ten years after its issue of the rights conferred by, a policy—

(a) previously issued by the company to the person making the insurance, or, if it is made by trustees, to them or any predecessors in office, or

(b) issued by a company when the person making the insurance was an infant, and securing a capital sum payable either on a specified date falling not more than one month after his attaining the age of twenty-five years or on the anniversary of the policy immediately following his attainment of that age,

being a policy which was itself a qualifying policy, or which would have been a qualifying policy if issued in respect of an insurance made on or after the 16th day of May, 1973.

Substitution, variations, etc.

7. (1) Where one policy (hereafter referred to as the new policy) is issued in substitution for, or on the maturity of and in consequence of an option conferred by, another policy (hereafter referred to as the old policy), the question whether the new policy is a qualifying policy shall, to the extent provided by the rules in subparagraph (2), be determined by reference to both policies.

(2) The said rules (for the purposes of which, the question whether the old policy was a qualifying policy shall be determined in accordance with this Schedule, whatever the date of the insurance in respect of which it was issued) are as follows—

(a) if the new policy would apart from this paragraph be a qualifying policy, but the old policy was not, the new policy is not a qualifying policy unless the person making the insurance in respect of which it is issued was an infant when the old policy was issued, and the old policy was one securing a capital sum payable either on a specified date falling not later than one month after his attaining the age of twenty-five years or on the anniversary of the policy immediately following his attainment of that age;

(b) if the new policy would apart from this paragraph be a qualifying policy, and the old policy was also a qualifying policy, the new policy is a qualifying policy unless—

(i) it takes effect before the expiry of ten years from the making of the insurance in respect of which the old policy was issued, and

(ii) the highest total of premiums payable thereunder for any period of twelve months expiring before that time is less than one-half of the highest total paid for any period of twelve months under the old policy, or under any related policy issued less than ten years before the issue of the new policy (“related policy” meaning any policy in relation to which the old policy was a new policy within the meaning of this paragraph, any policy in relation to which that policy was such a policy, and so on);

(c) if the new policy would not apart from this paragraph be a qualifying policy, and would fail to be so by reason only of paragraph 1 (b) or 1 (c) it is nevertheless a qualifying policy if the old policy was a qualifying policy and—

(i) the old policy was issued in respect of an insurance made more than ten years before the taking effect of the new policy, and the premiums payable for any period of twelve months under the new policy do not exceed the smallest total paid for any such period under the old policy, or

(ii) the old policy was issued outside the State, and the circumstances are as specified in subparagraph (3).

(3) The said circumstances are—

(a) that the person in respect of whom the new insurance is made became resident in the State during the twelve months ending with the date of its issue,

(b) that the issuing company certify that the new policy is in substitution for the old, and that the old was issued either by a branch or agency of the company outside the State or by a company outside the State with whom the first-mentioned company has arrangements for the issue of policies in substitution for ones held by persons coming to the State, and

(c) that the new policy confers on the holder benefits which are substantially equivalent to those which he would have enjoyed if the old policy had continued in force.

8. (1) Subject to the provisions of this paragraph, where the terms of a policy are varied, the question whether the policy after the variation is a qualifying policy shall be determined in accordance with the rules in paragraph 7, with references in those rules to the new policy and the old policy construed for that purpose as references respectively to the policy after the variation and the policy before the variation, and with any other necessary modifications.

(2) In applying any of those rules by virtue of this paragraph, the question whether a policy after a variation would be a qualifying policy apart from the rule shall be determined as if any reference in paragraphs 1 to 5 to the making of an insurance, or to a policy's term, were a reference to the taking effect of the variation or, as the case may be, to the term of the policy as from the variation.

(3) This paragraph does not apply by reason of—

(a) any variation which, whether or not of a purely formal character, does not affect the terms of a policy in any significant respect, or

(b) any variation effected before the end of the year 1973 for the sole purpose of converting into a qualifying policy any policy issued (but not one treated by virtue of section 23 as issued) in respect of an insurance made on or after the 16th day of May, 1973.

ISB Act 1973-08-04

Schedule 2 FINANCE ACT, 1973 Open official source

SECOND SCHEDULE Agreement between the Government of Ireland and the Government of the United Kingdom with respect to certain exemptions from tax

Agreement between the Government of Ireland and the Government of the United Kingdom with respect to certain exemptions from tax

Section 32.

The Government of Ireland and the Government of the United Kingdom;

With a view to making such alterations in the Agreement made the 14th April 1926, between the Government of the Irish Free State and the British Government in respect of Double Income Tax as may be necessary in consequence of the alterations in the British Income Tax Acts effected by the British Finance Acts 1971 and 1972;

Have agreed as follows

Article 1

(1) In Article 1 (a) of the said Agreement the words “British income tax” shall as respects the year 1973-74 and any subsequent year be construed as meaning the basic rate of income tax and the reference to British surtax shall be construed as meaning the excess of liability to British income tax over what it would be if all British income tax were charged at the basic rate only.

(2) Article 1 (a) of the said Agreement shall be further amended by the addition of

“Where the income is a dividend derived from a company which is resident in the United Kingdom, such a person shall be entitled to payment of the tax credit in respect thereof to which an individual resident in the United Kingdom would have been entitled had he received that dividend.

Provided that there shall be no such entitlement to the tax credit where the recipient of the dividend is a company which either alone or together with one or more associated companies controls directly or indirectly not less than 10 per cent. of the voting power in the company paying the dividend. For the purpose of this paragraph two companies shall be deemed to be associated if one is controlled directly or indirectly by the other, or both are controlled directly or indirectly by a third company.

The term ‘dividend’ includes any item which under the law of the United Kingdom is treated as a distribution of a company.”.

Article 2

Article 1 (b) of the said Agreement shall be amended by the addition of

“Where the income is a dividend paid by a company which is resident in Ireland to a company which is resident in the United Kingdom and which controls directly or indirectly not less than 10 per cent. of the voting power in the former company, the exemption shall apply only to income tax in excess of 5 per cent. of the dividend.

The term ‘dividend’ includes any payment or other transaction which under the law of Ireland is deemed to be a dividend.”.

Article 3

In Article 2 of the said Agreement, as amended by Article 2 of the Agreement of 25th April 1928, any reference to the standard rate of British income tax shall be construed as meaning the basic rate of British income tax and any reference to British surtax shall be construed as meaning the excess of liability to British income tax over what it would be if all British income tax were charged at the basic rate only.

Article 4

This Agreement shall enter into force on the exchange of Notes confirming that the necessary steps have been taken to give it the force of law in Ireland and the United Kingdom, and shall thereupon have effect

(a) as respects dividends paid on or after 6th April 1973 and not later than 5th April 1975; and

(b) in other respects for any year of assessment beginning on or after 6th April 1973.

In witness whereof the undersigned, duly authorised thereto by their respective Governments, have signed this Agreement.

Done in two originals at London this 2nd day of May, 1973.

For the Government of Ireland

DONAL O'SULLIVAN.

For the Government of the United Kingdom

ANTHONY KERSHAW.

ISB Act 1973-08-04

Schedule 3 FINANCE ACT, 1973 Open official source

THIRD SCHEDULE Extension of Charge to Tax to Profits and Income Derived from Activities Carried on and Employments Exercised on the Continental Shelf—Supplementary Provisions

Extension of Charge to Tax to Profits and Income Derived from Activities Carried on and Employments Exercised on the Continental Shelf—Supplementary Provisions

Section 33.

Information

1. The holder of a licence granted under the Petroleum and Other Minerals Development Act, 1960, shall, if required to do so by a notice served on him by an inspector, give to the inspector within the time limited by the notice (which shall not be less than thirty days) such particulars as may be required by the notice of—

(a) transactions in connection with activities authorised by the licence as a result of which any person is or might be liable to tax by virtue of section 33; and

(b) emoluments paid or payable in respect of duties performed in an area in which those activities may be carried on under the licence and the persons to whom they were paid or are payable;

and shall take reasonable steps to obtain the information necessary to enable him to comply with the notice.

2. Schedule 15 to the Income Tax Act, 1967, is hereby amended by the insertion in column (2) thereof of “Finance Act, 1973, Third Schedule, paragraph 1”.

Collection

3. (1) Subject to the following provisions of this Schedule, where any tax is assessed by virtue of section 33 on a person not resident in the State in respect of profits or gains from activities authorised, or carried on in connection with activities authorised, by a licence granted under the Petroleum and Other Minerals Development Act, 1960, or in respect of profits or gains arising from exploration or exploitation rights connected with activities so authorised or carried on, and any of the tax remains unpaid later than thirty days after it has become due and payable, the Revenue Commissioners may serve a notice on the holder of the licence stating particulars of the assessment, the amount of tax remaining unpaid and the date when it became payable, and requiring the holder of the licence to pay that amount, together with any interest due thereon under section 14 of the Finance Act, 1962, or under section 550 of the Income Tax Act, 1967, within thirty days of the service of the notice.

(2) Any amount of tax which a person is required to pay by a notice under this paragraph may be recovered from him as if it were tax due and duly demanded from him; and he may recover any such amount paid by him from the person on whom the assessment was made as a simple contract debt in any court of competent jurisdiction.

4. Paragraph 3 does not apply to any assessment to tax on emoluments from an office or employment referred to in section 33 (5).

5. The said paragraph 3 does not apply if the profits or gains in respect of which the relevant assessment was made arose to the person on whom it was made in consequence of a contract made by the holder of the licence before the 16th day of May, 1973, unless he is a person connected with the holder or the contract was varied on or after that date.

6. For the purpose of this Schedule, a person shall be regarded as connected with the holder, if he would be so regarded for the purposes of section 16 of the Finance (Miscellaneous Provisions) Act, 1968.

7. Where, on an application made by a person who will or might become liable to tax which, if remaining unpaid, could be recovered under the said paragraph 3 from the holder of a licence, the Revenue Commissioners are satisfied that the applicant will comply with any obligations imposed on him by the Income Tax Acts or the enactments relating to corporation profits tax, they may issue a certificate to the holder of the licence exempting him from the provisions of that paragraph with respect to any tax payable by the applicant; and where such a certificate is issued, that paragraph shall not apply to any such tax which becomes due while the certificate is in force.

8. The Revenue Commissioners may, by notice in writing given to the holder of a certificate issued under paragraph 7, cancel the certificate from such date, not earlier than thirty days after the service of the notice, as may be specified in the notice.

ISB Act 1973-08-04

Schedule 4 FINANCE ACT, 1973 Open official source

FOURTH SCHEDULE Protocol

Protocol

Section 38.

Between the Government of Ireland and the Government of the United Kingdom Amending the Agreement for the Reciprocal Relief of Double Taxation in Respect of Irish Corporation Profits Tax and United Kingdom Profits Tax, Signed on 18th May 1949

The Government of Ireland and the Government of the United Kingdom;

Desiring to conclude a Protocol to amend the Agreement between the Contracting Parties for the reciprocal relief of double taxation in respect of Irish Corporation Profits Tax and United Kingdom Profits Tax, signed on 18th May 1949 (hereinafter referred to as “the Agreement”);

Have agreed as follows

Article 1

In Article VII (1) and (2) of the Agreement for the words “beneficially owns, directly or indirectly, not less than three-quarters of the ordinary share capital of” there shall be substituted the words “controls, directly or indirectly, not less than 10 per cent. of the voting power in”.

Article 2

This Protocol, which shall form an integral part of the Agreement, shall come into force when the last of all such things shall have been done in Ireland and the United Kingdom as are necessary to give the Protocol the force of law in Ireland and the United Kingdom respectively, and shall thereupon have effect in respect of dividends paid on or after 6th April 1973.

In witness whereof the undersigned, duly authorised thereto by their respective Governments, have signed this Protocol.

Done in two originals at London this 2nd day of May, 1973.

For the Government of Ireland

DONAL O'SULLIVAN.

For the Government of the United Kingdom

ANTHONY KERSHAW.

ISB Act 1973-08-04

Schedule 5 FINANCE ACT, 1973 Open official source

FIFTH SCHEDULE

Section 39.

PART I Disallowance of Trading Losses and Restriction of Capital Allowances

PART I

Disallowance of Trading Losses and Restriction of Capital Allowances

Change in ownership of company

1. For the purposes of section 39 there is a change in the ownership of a company—

(a) if a single person acquires more than half of the ordinary share capital of a company, or

(b) if two or more persons each acquire a holding of 5 per cent. or more of the ordinary share capital of the company and those holdings together amount to more than half of the ordinary share capital of the company, or

(c) if two or more persons each acquire a holding of the ordinary share capital of the company, and the holdings together amount to more than half of the ordinary share capital of the company, but disregarding a holding of less than 5 per cent. unless it is an addition to an existing holding and the two holdings together amount to 5 per cent. or more of the ordinary share capital of the company.

2. In applying paragraph 1—

(a) the circumstances at any two points of time with not more than three years between may be compared, and a holder at the later time may be regarded as having acquired whatever he did not hold at the earlier time, irrespective of what he has acquired or disposed of in between,

(b) so as to allow for any issue of shares or other re-organisation of capital, the comparison referred to in subparagraph (a) may be made in terms of percentage holdings of the total ordinary share capital at the respective times, so that a person whose percentage holding is greater at the later time may be regarded as having acquired a percentage holding equal to the increase,

(c) in deciding for the purposes of subparagraphs (b) and (c) of paragraph 1, whether any person has acquired a holding of at least 5 per cent. or a holding which makes at least 5 per cent. when added to an existing holding, acquisitions by, and holdings of, persons who are connected with each other shall be aggregated as if they were acquisitions by, and holdings of, one and the same person, and for the purposes of this subparagraph persons shall be regarded as connected with each other if they would be so regarded for the purposes of section 16 of the Finance (Miscellaneous Provisions) Act, 1968,

(d) any acquisition of shares under the will or on the intestacy of a deceased person and any gift of shares, if it is shown that the gift is unsolicited and made without regard to the provisions of section 39, shall be left out of account.

3. Where persons, whether members of the company or not, possess extraordinary rights or powers under the articles of association or under any other document regulating the company and, as a consequence, ownership of ordinary share capital may not be an appropriate test of whether there has been a major change in the persons

for whose benefit the losses or capital allowances may ultimately enure, then in considering whether there has been a change in ownership of the company for the purposes of section 39, holdings of all kinds of share capital, including preference shares, or of any particular category of share capital, or voting power or any other special kind of power, may be taken into account instead of ordinary share capital.

4. Where section 39 has operated to restrict relief by reference to a change in ownership taking place at any time, no transaction or circumstance before that time shall be taken into account in determining whether there is any subsequent change in ownership.

Groups of companies

5. (1) A change in the ownership of a company shall be disregarded for the purposes of section 39 if—

(a) immediately before the change, the company is the 75 per cent. subsidiary of another company, and

(b) that other company continues after the change, despite a change in the direct ownership of the first-mentioned company, to own that first-mentioned company as a 75 per cent. subsidiary.

(2) If there is a change in the ownership of a company which has a 75 per cent. subsidiary, whether owned directly or indirectly, then section 39 shall apply as if there had also been a change in the ownership of the said subsidiary unless under subparagraph (1) the change in ownership of the first-mentioned company is to be disregarded.

Provisions as to ownership

6. For the purposes of section 39 and this Schedule—

(a) references to ownership shall be construed as references to beneficial ownership, and references to acquisition shall be construed accordingly,

(b) the expression “ordinary share capital” has the meaning assigned to it by section 226 (2) (b) of the Income Tax Act, 1967,

(c) a company shall be deemed to be a 75 per cent. subsidiary of another company if and so long as not less than 75 per cent. of its ordinary share capital is owned by that other company, whether directly or through another company or other companies, or partly directly and partly through another company or other companies,

(d) the amount of ordinary share capital of one company owned by a second company through another company or other companies, or partly directly and partly through another company or other companies, shall be determined in accordance with the provisions of Part II of this Schedule,

(e) “share” includes “stock”.

Time of change in ownership

7. If any acquisition of ordinary share capital or other property or rights taken into account in determining that there has been a change in ownership of a company was made in pursuance of a contract of sale or option or other contract, or the acquisition was made by a person holding such a contract, and the contract was made on or after the 16th day of May, 1973, the time when the change in ownership took place shall be determined as if the acquisition had been made when the contract was made with the holder or when the benefit of it was assigned to him so that, in the case of a person exercising an option to purchase shares, he shall be regarded as having purchased the shares when he acquired the option.

Time allowed for making assessments

8. Where the operation of section 39 depends on circumstances or events at a time after the change in ownership, but not more than three years after, an assessment to give effect to the provisions of the said section 39 shall not be out of time if it is made—

(a) in case it is an assessment to income tax, within ten years from the end of the year of assessment within which that time or the latest of those times occurs, or

(b) in case it is an assessment to corporation profits tax, within ten years from the end of the accounting period within which that time or the latest of those times occurs.

Information

9. Any person in whose name any shares, or securities of a company are registered shall, if required by notice in writing by an inspector given for the purposes of section 39 state whether or not he is the beneficial owner of those shares or securities or any of them and, if he is not the beneficial owner of those shares or securities or any of them, shall furnish the name and address of the person or persons on whose behalf those shares or securities are registered in his name.

10. Schedule 15 to the Income Tax Act, 1967, is hereby amended by the insertion in column 2 thereof of “Finance Act, 1973, Fifth Schedule, paragraph 9”.

PART II Provisions for Determining the Amount of Capital held in a Company Through other Companies

PART II

Provisions for Determining the Amount of Capital held in a Company Through other Companies

1. Where, in the case of a number of companies, the first company directly owns ordinary share capital of the second and the second directly owns ordinary share capital of the third, then, for the purposes of this Schedule, the first company shall be deemed to own ordinary share capital of the third through the second, and, if the third directly owns ordinary share capital of a fourth, the first shall be deemed to own ordinary share capital of the fourth through the second and third, and the second shall be deemed to own ordinary share capital of the fourth through the third, and so on.

2. In this Part—

(a) any number of companies of which the first company directly owns ordinary share capital of the next and the next directly owns ordinary share capital of the next but one and so on, and, if there are more than three, any three or more of them, are referred to as a series;

(b) in any series—

(i) that company which owns ordinary share capital of another through the remainder is referred to as the first owner;

(ii) that other company the ordinary share capital of which is so owned is referred to as the last owned company;

(iii) the remainder, if one only, is referred to as an intermediary and, if more than one, are referred to as a chain of intermediaries;

(c) a company in a series which directly owns ordinary share capital of another company in the series is referred to as an owner;

(d) any two companies in a series of which one owns ordinary share capital of the other directly, and not through one or more of the other companies in the series, are referred to as being directly related to one another.

3. Where every owner in a series owns the whole of the ordinary share capital of the company to which it is directly related, the first owner shall be deemed to own through the intermediary or chain of intermediaries the whole of the ordinary share capital of the last owned company.

4. Where one of the owners in a series owns a fraction of the ordinary share capital of the company to which it is directly related, and every other owner in the series owns the whole of the ordinary share capital of the company to which it is directly related, the first owner shall be deemed to own that fraction of the ordinary share capital of the last owned company through the intermediary or chain of intermediaries.

5. Where—

(a) each of two or more of the owners in a series owns a fraction, and every other owner in the series owns the whole, of the ordinary share capital of the company to which it is directly related; or

(b) every owner in a series owns a fraction of the ordinary share capital of the company to which it is directly related;

the first owner shall be deemed to own through the intermediary or chain of intermediaries such fraction of the ordinary share capital of the last owned company as results from the multiplication of those fractions.

6. Where the first owner in any series owns a fraction of the ordinary share capital of the last owned body corporate in that series through the intermediary or chain of intermediaries in that series, and also owns another fraction or other fractions of the ordinary share capital of the last owned body corporate, either—

(a) directly, or

(b) through an intermediary or intermediaries which is not a member or are not members of that series, or

(c) through a chain or chains of intermediaries of which one or some or all is not a member or are not members of that series, or

(d) in a case where the series consists of more than three companies, through an intermediary or intermediaries which is a member or are members of the series, or through a chain or chains of intermediaries consisting of some but not all of the companies of which the chain of intermediaries in the series consists,

then, for the purpose of ascertaining the amount of the ordinary share capital of the last owned company owned by the first owner, all those fractions shall be aggregated and the first owner shall be deemed to own the sum of those fractions.

ISB Act 1973-08-04

Schedule 6 FINANCE ACT, 1973 Open official source

SIXTH SCHEDULE Spirits (Rates of Ordinary Customs Duty)

Spirits (Rates of Ordinary Customs Duty)

Section 48.

Part I

Description of Spirits

Preferential Rates

Full Rates

(1)

(2)

(3)

£

For every gallon of Perfumed Spirits entered in such manner as to indicate that the strength is not to be tested

36.236

36.436

For every gallon of liqueurs, cordials, mixtures and other preparations in bottle entered in such manner as to indicate that the strength is not to be tested

30.573

30.740

For every gallon computed at proof of spirits of any description not heretofore mentioned and mixtures and preparations containing spirits

22.647

22.772

Part II

Description of Spirits

United Kingdom Rate

£

For every gallon of Perfumed Spirits entered in such manner as to indicate that the strength is not to be tested

28.765

For every gallon of liqueurs, cordials, mixtures and other preparations in bottle entered in such manner as to indicate that the strength is not to be tested

24.270

For every gallon computed at proof of spirits of any description not heretofore mentioned and mixtures and preparations containing spirits

17.978

ISB Act 1973-08-04

Schedule 7 FINANCE ACT, 1973 Open official source

SEVENTH SCHEDULE Duties on Tobacco

Duties on Tobacco

Section 49.

Part I Customs

Part I

Customs

Unmanufactured

£

if stripped or stemmed

containing 10 per cent. or more by weight of moisture

the

lb.

5.045

containing less than 10 per cent. by weight of moisture

”

5.245

if unstripped or unstemmed

containing 10 per cent. or more by weight of moisture

”

5.043

containing less than 10 per cent. by weight of moisture

”

5.243

Full

Preferential

£

Manufactured

cigars

the

lb.

5.985

5.193

cigarettes

”

5.870

5.097

cavendish or negrohead

”

5.955

5.168

cavendish or negrohead manufactured in bond

”

5.925

5.143

reconstituted or homogenised tobacco containing 10 per cent. or more by weight of moisture

”

5.043

reconstituted or homogenised tobacco containing less than 10 per cent. by weight of moisture

the

lb.

5.243

other manufactured tobacco

”

5.855

5.085

snuff containing more than 13 per cent. by weight of moisture

”

5.835

5.068

snuff containing 13 per cent. or less by weight of moisture

”

5.955

5.168

Part II Customs

Part II

Customs

Unmanufactured

£

if stripped or stemmed

containing 10 per cent. or more by weight of moisture

the

lb.

5.043

containing less than 10 per cent by weight of moisture

”

5.243

if unstripped or unstemmed

containing 10 per cent. or more by weight of moisture

”

5.043

containing less than 10 per cent. by weight of moisture

”

5.243

Part III Customs

Part III

Customs

Full

Preferential

£

Manufactured

cigars

the

lb.

5.400

5.193

cigarettes

”

5.298

5.097

cavendish or negrohead

”

5.374

5.168

cavendish or negrohead manufactured in bond

”

5.348

5.143

reconstituted or homogenised tobacco containing 10 per cent. or more by weight of moisture

”

5.043

reconstituted or homogenised tobacco containing less than 10 per cent. by weight of moisture

”

5.243

other manufactured tobacco

hard pressed tobacco

”

4.455

4.254

other pipe tobacco

”

5.129

4.928

other manufactured tobacco

”

5.286

5.085

snuff containing more than 13 per cent. by weight of moisture

”

5.268

5.068

snuff containing 13 per cent. or less by weight of moisture

”

5.374

5.168

Part IV Excise

Part IV

Excise

£

Unmanufactured

containing 10 per cent. or more by weight of moisture

the

lb.

5.043

containing less than 10 per cent. by weight of moisture

”

5.243

Manufactured

cavendish or negrohead manufactured in bond

”

5.143

ISB Act 1973-08-04

Schedule 8 FINANCE ACT, 1973 Open official source

EIGHTH SCHEDULE Scale of Rates of Estate Duty

Scale of Rates of Estate Duty

Section 53.

Principal Value of the Estate

Rate per cent. of duty

£

Exceeding

10,000

and

not

exceeding

11,000

4

”

11,000

”

12,500

6

”

12,500

”

15,000

8

”

15,000

”

17,500

10

”

17,500

”

20,000

12

”

20,000

”

25,000

14

”

25,000

”

30,000

16

”

30,000

”

35,000

18

”

35,000

”

40,000

21

”

40,000

”

45,000

24

”

45,000

”

50,000

27

”

50,000

”

55,000

30

”

55,000

”

60,000

33

”

60,000

”

75,000

37

”

75,000

”

100,000

41

”

100,000

”

150,000

45

”

150,000

”

200,000

50

”

200,000

55

ISB Act 1973-08-04

Schedule 9 FINANCE ACT, 1973 Open official source

NINTH SCHEDULE Stamp Duties on Instruments

Stamp Duties on Instruments

Section 64.

Part I Bond, Covenant or Instrument of any kind whatsoever.

Part I

Bond, Covenant or Instrument of any kind whatsoever.

(1) Being the only or principal or primary security for any annuity (except upon the original creation thereof by way of sale or security, and except a superannuation annuity), or for any sum or sums of money at stated periods, not being interest for any principal sum secured by a duly stamped instrument, nor rent reserved by a lease.

For a definite and certain period, so that the total amount to be ultimately payable can be ascertained.

Where the total amount does not exceed ten thousand pounds

Exempt

Where the total amount exceeds ten thousand pounds

For every £200 or any fractional part of £200 of the amount secured

25p

For the term of life or any other indefinite period. For every £10, and also for any fractional part of £10, of the annuity or sum periodically payable

25p

(2) Being a collateral or auxiliary or additional or substituted security for any of the above-mentioned purposes where the principal or primary instrument is duly stamped.

Where the amount secured does not exceed ten thousand pounds

Exempt

Where the total amount to be ultimately payable can be ascertained and exceeds ten thousand pounds

50p

In any other case

For every £10, and also for any fractional part of £10, of the annuity or sum periodically payable

5p

(3) Being a grant or contract for payment of a superannuation annuity, that is to say a deferred life annuity granted or secured to any person in consideration of annual premiums payable until he attains a specified age and so as to commence on his attaining that age.

For every £10, and also for any fractional part of £10, of the annuity

5p

Part II Conveyance or Transfer on sale of any property other than stocks or marketable securities.

Part II

Conveyance or Transfer on sale of any property other than stocks or marketable securities.

(1) Where the amount or value of the consideration for the sale does not exceed one thousand pounds and the instrument contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions, in respect of which the amount or value, or the aggregate amount or value, of the consideration exceeds one thousand pounds

Exempt

(2) Where the amount or value of the consideration for the sale exceeds one thousand pounds but does not exceed two thousand pounds and the instrument contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration exceeds two thousand pounds:—

For every £50, or fractional part of £50, of the consideration

25p

(3) Where the amount or value of the consideration for the sale exceeds two thousand pounds but does not exceed six thousand pounds and the instrument contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration exceeds six thousand pounds:—

For every £50, or fractional part of £50, of the consideration

50p

(4) Where in the case of a conveyance or transfer on sale or in the case of a conveyance or transfer operating as a voluntary disposition inter vivos the consideration for the sale or the value of the property exceeds six thousand pounds and the instrument contains a certificate by the party to whom the property is being conveyed or transferred to the effect that the person becoming entitled to the entire beneficial interest in the property (or, where more than one person becomes entitled to a beneficial interest therein, each of them) is related to the person or each of the persons immediately theretofore entitled to the entire beneficial interest in the property in one or other of the following ways, that is to say, as a lineal descendant, parent, grandparent, step-parent, husband or wife, brother or sister of a parent or brother or sister, or lineal descendant of a parent, husband or wife or brother or sister:—

For every £50, or fractional part of £50, of the consideration or of the value

50p

(5) Where the amount or value of the consideration for the sale exceeds six thousand pounds but does not exceed seven thousand five hundred pounds and the instrument contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration exceeds seven thousand five hundred pounds:—

If the amount or value of the consideration—

Exceeds

£6,000

and

does

not

exceed

£6,250

£70

”

£6,250

”

£6,500

£80

”

£6,500

”

£6,750

£90

”

£6,750

”

£7,000

£100

”

£7,000

”

£7,250

£110

”

£7,250

”

£7,500

£120

(6) Where the amount or value of the consideration for the sale exceeds seven thousand five hundred pounds but does not exceed ten thousand pounds and the instrument contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration exceeds ten thousand pounds:—

For every £50, or fractional part of £50, of the consideration

£1.00

(7) Where the amount or value of the consideration for the sale exceeds ten thousand pounds but does not exceed fifty thousand pounds and the instrument contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration exceeds fifty thousand pounds:—

For every £50, or fractional part of £50, of the consideration

£1.50

(8) Of any other kind whatsoever not hereinbefore described:—

For every £50, or fractional part of £50, of the amount or value of the consideration for the sale, or, in the case of a conveyance or transfer operating as a voluntary disposition inter vivos, of the value of the property conveyed or transferred

£2.50

Part III

(3) For any other definite term or for any indefinite term of any lands, tenements, or heritable subjects—

Where the consideration, or any part of the consideration (other than rent), moving either to the lessor or to any other person, consists of any money, stock, or security, and—

(a) The amount or value of such consideration does not exceed one thousand pounds and the lease contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration other than rent exceeds one thousand pounds

Exempt

(b) The amount or value of such consideration exceeds one thousand pounds but does not exceed two thousand pounds and the lease contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration other than rent exceeds two thousand pounds:—

For every £50, or fractional part of £50, of the amount or value

25p

(c) The amount or value of such consideration exceeds two thousand pounds but does not exceed six thousand pounds and the lease contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration other than rent exceeds six thousand pounds:—

For every £50, or fractional part of £50, of the amount or value

50p

(d) The amount or value of such consideration exceeds six thousand pounds but does not exceed seven thousand five hundred pounds and the lease contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration other than rent exceeds seven thousand five hundred pounds:—

If the amount or value of the consideration—

Exceeds

£6,000

and

does

not

exceed

£6,250

£70

”

£6,250

”

£6,500

£80

”

£6,500

”

£6,750

£90

”

£6,750

”

£7,000

£100

”

£7,000

”

£7,250

£110

”

£7,250

”

£7,500

£120

(e) The amount or value of such consideration exceeds seven thousand five hundred pounds but does not exceed ten thousand pounds and the lease contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration other than rent exceeds ten thousand pounds:—

For every £50, or fractional part of £50, of the amount or value

£1.00

(f) The amount or value of such consideration exceeds ten thousand pounds but does not exceed fifty thousand pounds and the lease contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration other than rent exceeds fifty thousand pounds:—

For every £50, or fractional part of £50, of the amount or value

£1.50

(g) The case is of any other kind whatsoever not hereinbefore described:—

For every £50, or fractional part of £50, of the amount or value

£2.50

Where the consideration or any part of the consideration is any rent

In respect of such consideration

If the rent, whether reserved as a yearly rent or otherwise, is at a rate or average rate

If the term does not exceed 35 years, or is indefinite.

If the term exceeds 35 years, but does not exceed 100 years.

If the term exceeds 100 years.

Not exceeding £5 per annum

5p

30p

60p

Exceeding—

£5

and

not

exceeding

£10

10p

60p

£1.20

£10

”

£15

15p

90p

£1.80

£15

”

£20

20p

£1.20

£2.40

£20

”

£25

25p

£1.50

£3.00

£25

”

£50

50p

£3.00

£6.00

£50

”

£75

75p

£4.50

£9.00

£75

”

£1.00

£6.00

£12.00

£100

For every full sum of £50, and also for any fractional part of £50 thereof

50p

£3.00

£6.00

PART IV Mortgage, Bond, Debenture, Covenant (except a marketable security) and Warrant of Attorney to confess and enter up judgment.

PART IV

Mortgage, Bond, Debenture, Covenant (except a marketable security) and Warrant of Attorney to confess and enter up judgment.

(1) Being the only or principal or primary security (other than an equitable mortgage) for the payment or repayment of money—

Not exceeding ten thousand pounds

Exempt

Exceeding ten thousand pounds—

For every two hundred pounds, or any fractional part of two hundred pounds, of the amount secured

25p

(2) Being a collateral, or auxiliary, or additional, or substituted security (other than an equitable mortgage), or by way of further assurance for the above-mentioned purpose where the principal or primary security is duly stamped—

Where the amount secured does not exceed ten thousand pounds

Exempt

Where the amount secured exceeds ten thousand pounds

50p

(3) Being an equitable mortgage

Where the amount secured does not exceed ten thousand pounds

Exempt

Where the amount secured exceeds ten thousand pounds

For every one hundred pounds, and also for any fractional part of one hundred pounds

5p

(4) Transfer, Assignment, or Disposition of any mortgage, bond, debenture, or covenant (except a marketable security) or of any money or stock secured by any such instrument, or by any warrant of attorney to enter up judgment, or by any judgment.

Where the amount secured does not exceed ten thousand pounds

Exempt

Where the amount secured exceeds ten thousand pounds

For every two hundred pounds, and also for any fractional part of two hundred pounds, of the amount transferred, assigned, or disposed, exclusive of interest which is not in arrear

5p

And also where any further money is added to the money already secured

The same duty as a principal security for such further money.

(5) Reconveyance, Release, Discharge, Surrender, Resurrender, or Renunciation of any such security as aforesaid, or of the benefit thereof, or of the money thereby secured

Where the amount secured does not exceed ten thousand pounds

Exempt

Where the amount secured exceeds ten thousand pounds

For every two hundred pounds, and also for any fractional part of two hundred pounds of the total amount or value of the money at any time secured

5p

ISB Act 1973-08-04

Schedule 10 FINANCE ACT, 1973 Open official source

TENTH SCHEDULE Amendment of Enactments

Amendment of Enactments

Section 90.

Number and Year

Short Title

Amendment

(1)

(2)

(3)

No. 22 of 1972

Value-Added Tax Act, 1972

In section 1 (1), in the definition of “livestock”, “and pigs” shall be substituted for “pigs and horses”; in the definition of “taxable period”, “provided that the taxable period immediately following that commencing on the 1st day of May, 1973, shall be the period commencing on the 1st day of July, 1973, and ending on the 2nd day of September, 1973, and the next succeeding taxable period shall be the period commencing on the 3rd day of September, 1973, and ending on the 31st day of October, 1973” shall be inserted after “November”; and in the definition of “manufacturer”, “and, in relation to goods of a kind specified in the Fourth Schedule, includes a person who in the course of business supplies or arranges for the supply of materials to another person for the purpose of having any such goods made or assembled on his behalf by that other or another person” shall be inserted after “goods”.

In section 3, in subsection (1), “, subject to subsection (1A),” shall be inserted after “in relation to goods, shall”; and in subsection (5) (b) “for the time being specified in section 11 (1) (c)” shall be substituted for “of 30.26 per cent.”.

In section 5 (1), “not being a delivery deemed in accordance with section 3 (1 A) to be a rendering of services”, shall be inserted after “goods”.

In section 8, the following subsection shall be substituted for subsection (1) “(1) In this section references to a farming business do not include references to fur farming.”; and in subsection (3), in paragraph (a) (i), “paragraphs (vii), (xii), (xiv) and (xv) of the Second Schedule,” shall be inserted after “specified in”; in paragraph (b) (ii), “or which are goods of a kind specified in paragraphs (vi) to (viii) or (xii) to (xv) of the Second Schedule, delivered to him by persons other than accountable persons” shall be inserted after “accountable persons”; and “either of the rates for the time being specified in paragraphs (a) or (d) of subsection (1) of section 11” shall be substituted for “the rate of 5.26 per cent.”.

In section 10, in subsection (7), “14.81” shall be substituted for “19.20”; in subsection (8) (b) “45” shall be substituted for “60”.

In section 11, in subsection (1) (d), “, other than consideration to which paragraph (b) applies,” shall be inserted after “consideration”, “, (v) or (xvi)” shall be substituted for “or(v)” and “and (xii) to (xv)” shall be inserted after “(viii)”; in subsection (2), “for the time being specified in subsection (1) (c)” shall be substituted for “of 30.26 per cent.” and “for the time being specified in subsection (1) (a) on” shall be substituted for “of 5.26 per cent. of”; and in subsection (3), “paragraph (xvi) of the Second Schedule and paragraph (xxxii) of Part I of the Third Schedule,” shall be inserted after “10 (8) (c),”.

In section 12, in subsection (1), “tax at the rate specified in section 11 (1) (a) on” shall be substituted for “5.26 per cent. of” in both places where it occurs; in subsection (3) (a), “except to the extent that such provision constitutes a rendering of services in respect of which he is accountable for tax,” shall be added.

In section 13, in subsection (2) (b), “, tax were chargeable in respect of the delivery or rendering” shall be inserted after “another accountable person”; and the following subsection shall be substituted for subsection (4) — “(4) For the purposes of this section farming does not include fur farming by a person other than a person to whom paragraph (c) or (d) of section 8 (3) applies.”

In section 15, in subsection (1), “specified in section 11 (1) (a) on” shall be substituted for “of 5.26 per cent. of”; “specified in section 11 (1) (c) on” shall be substituted for “of 30.26 per cent. of” and “specified in section 11 (1) (e) on” shall be substituted for “of 16.37 per cent. of”; in subsection (2), “and (xii) to (xv)” shall be inserted after “(viii)” and in subsection (4) (b), “14.81” shall be substituted for “19.20”.

In section 17 (1), “at any of the rates specified in section 11 (1), including the rate of zero per cent.,” shall be inserted after “chargeable”.

In section 25(2), “11 (1B) or” shall be inserted before “23”.

In section 32 (1) (b), “by a person of a service which is connected with any” shall be substituted for “of a service by a person for the purpose of a”.

In the Third Schedule, in Part I, “other than horses and greyhounds” shall be added to paragraph (iv); “for a purpose other than the production of food” shall be added to paragraph (vi); “including textile” shall be substituted in paragraph (xi) for “excluding”; “other than food and drink of a kind specified in paragraph (xii) of the Second Schedule” shall be added to paragraph (xv); and “other than by oral consumption” shall be inserted in paragraph (xvi), after “use”.

ISB Act 1973-08-04

Schedule 11 FINANCE ACT, 1973 Open official source

ELEVENTH SCHEDULE Enactments Repealed

Enactments Repealed

Section 96.

Session and Chapter or Number and Year

Short Title

Extent of Repeal

(1)

(2)

(3)

54 & 55 Vict., c. 39

Stamp Act, 1891

In section 83, the words “makes, issues” and “or offers for subscription”. In the First Schedule, the headings—“Bond for securing the payment or repayment of money or the transfer or retransfer of stock”, “Debenture for securing the payment or repayment of money or the transfer or retransfer of stock”, “Foreign Security” and subheads (1), (3), (4) and (5) of the heading “Marketable Security”. Sections 112 and 113.

59 & 60 Vict., c.28

Finance Act, 1896

Section 12.

62 & 63 Vict., c. 9

Finance Act, 1899

Section 8.

3 Edw. VII, c. 46

Revenue Act, 1903

Section 5.

7 Edw. VII, c. 13

Finance Act, 1907

Section 10.

7 Edw. VII, c. 24

Limited Partnerships Act, 1907

Section 11.

No. 22 of 1965

Finance Act, 1965

Paragraph (A) of subsection (1) and subsection (4) of section 31.

FINANCE ACT, 1973

Table of Provisions (11)

Statutory Text (11 Articles)

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