FINANCE ACT, 1975 (1975_act_6) | IE

ISB Act 1975-05-14

Schedule 1 FINANCE ACT, 1975 Open official source

FIRST SCHEDULE Amendment of Enactments

Amendment of Enactments

Section 11.

PART I

Amendments consequential on changes in personal reliefs

1. The Income Tax Act, 1967, is hereby amended in accordance with the following provisions of this paragraph

(i) In section 138—

(a) in subsection (1), for “£800”, in each place where it occurs, there shall be substituted “£920”; for “£500” there shall be substituted “£575”, and for “£900” there shall be substituted “£1,035”,

(b) in subsection (2), for “£500”, in each place where it occurs, there shall be substituted “£575”, and for “£550” there shall be substituted “£635”, and

(c) in subsection (3), for “£200”there shall be substituted “£230”.

(ii) In sections 139 and 140, for “£140”, in each place where it occurs, there shall be substituted “£165”.

(iii) In section 141, in subsection (1A), for “£200”there shall be substituted “£230” and for “£270”, in each place where it occurs, there shall be substituted “£310”.

2. In section 3 of the Finance Act, 1969, for “£140” there shall be substituted “£165”.

3. In section 11 of the Finance Act, 1971, for “£140” there shall be substituted “£165” and for “£280” there shall be substituted “£330”.

4. In section 8 of the Finance Act, 1974, for “£50” there shall be substituted “£145” and for “£25” there shall be substituted “£45”.

PART II

Amendments consequential on definition of capital allowance

Section 35.

1. Sections 69 (1), 218 and 317 (1) of the Income Tax Act, 1967, section 20 (5) (a) of the Finance Act, 1970, section 39 (7) of the Finance Act, 1973, and section 27 (1) of the Finance Act, 1974, are hereby amended by the deletion of the definition of “capital allowance” or “capital allowances”, as the case may be.

2. Section 236 (3) of the Income Tax Act, 1967, is hereby amended by the substitution of “a capital allowance within the meaning of section 33 of the Finance Act, 1975” for all the words from “any allowance” to “XVI”.

3. Section 314 of the Income Tax Act, 1967, is hereby amended by the deletion of subsection (2).

4. Section 22 of the Finance Act, 1971, is hereby amended by the deletion of subsection (5).

5. Section 39 (1) (b) of the Finance Act, 1973, is hereby amended by the insertion after “1967” of “or section 24 (3) of the Finance Act, 1971, section 6 (1) or 7 (4) of the Finance (Taxation of Profits of Certain Mines) Act, 1974, or section 22 (6) of the Finance Act, 1974”.

PART III

Miscellaneous

section 35.

Number and Year

Short Title

Amendment

(1)

(2)

(3)

No.12 of 1942

Taxes and Duties (Special Circumstances) Act, 1942.

In section 3 (1), the words “or the rates of sur-tax” shall be deleted.

No. 6 of 1967

Income Tax Act, 1967.

In paragraph (iii) of the proviso to section 288 (2), “(other than tax at the higher rates)” shall be inserted after “tax” in the last two places in which it occurs.

No. 17 of 1974

Finance (Taxation of Profits of Certain Mines) Act, 1974.

In section 1, in the definition of “tax” the word “, sur-tax” shall be deleted.

In paragraph (iii) of the proviso to section 11 (2), “(other than tax at the higher rates)” shall be substituted for “(other than sur-tax)” in both places where it occurs.

In section 7 (4), “subsection (3)” shall be substituted for “subsection (2)”.

ISB Act 1975-05-14

Schedule 2 FINANCE ACT, 1975 Open official source

SECOND SCHEDULE

section 22.

PART I

Provisions supplementary to sections 19 to 22

1. Subject to the following paragraphs, section 19, paragraphs (b) and (c) of section 20 and sections 21 and 22 shall have effect—

(a) as respects a lease granted after the 15th day of January, 1975, and

(b) so far as they relate to section 83 (4) of the Income Tax Act, 1967, as respects a variation or waiver of a lease (whether granted before, on or after that date) the contract for which is entered into after that date.

2. So far as relates to relief under subsection (5) or (6) of section 81, section 89, 307, 308, 309 or 310 of the Income Tax Act, 1967, or section 25 of the Finance Act, 1964, or to the computation of profits or gains or losses of a trade or profession for—

(a) the year 1975-76 or any subsequent year of assessment, or

(b) for a company's accounting period ending after the 5th day of April, 1975, for the purposes of corporation profits tax,

section 19, paragraphs (b) and (c) of section 20 and sections 21 and 22 shall be deemed to have had effect as from the passing of the Finance Act, 1963, and as respects leases granted at any time.

3. In applying paragraph 2 it shall be assumed—

(a) that all relief which could not be affected by the operation of that paragraph was given (for all years of assessment and accounting periods before or after the passing of this Act) before relief which could be affected by the operation of that paragraph, and

(b) that, in particular, any loss which would not have been sustained if section 19 and paragraphs (a) and (b) of section 20 had always had effect was postponed to any other loss in giving relief against income of a year of assessment before the year 1975-76 or a company's accounting period ending on or before the 5th day of April, 1975.

This paragraph shall have effect notwithstanding the provisions of any enactment governing the order in which reliefs are given.

4. Where an amount is payable by instalments and, by virtue of a claim made under section 83 (6) of the Income Tax Act, 1967, as originally enacted, any of the instalments would have fallen to be treated as rent payable on or after the 6th day of April, 1975, the instalment shall be treated as due on the 6th day of April, 1975, and the person who made the claim shall be chargeable to tax under Case V of Schedule D on the amount of that instalment, less any deduction authorised by subsections (5) and (6) of section 81 in so far as it has not been set off against or deducted from any other amount, as if the claim under the said section 83 (6) had not been made.

5. A person chargeable to tax in accordance with paragraph 4 may, by notice in writing given to the inspector not later than the 5th day of April, 1976, elect that that paragraph shall not apply in his case but that his liability to tax (including his liability for past periods) shall be computed as if section 20 (a) had come into force before the claim under section 83 (6) of the Income Tax Act, 1967, was made; and where he so elects all such assessments, alterations of assessments and repayments of tax shall be made as may be necessary.

6. Where a person liable to pay tax in accordance with paragraphs 4 and 5 satisfies the Revenue Commissioners that he would otherwise suffer undue hardship, the tax may, at his option, be paid by such instalments as the Commissioners may allow.

7. All such adjustments shall be made, whether by way of assessment or discharge or repayment of tax, as are required to give effect to sections 19 and 20 and the provisions of this Schedule.

PART II

Amendment of Enactments

Number and Year

Short Title

Amendment

(1)

(2)

(3)

No.6 of 1967

Income Tax Act, 1967.

In column (2) of Schedule 15 there shall be added: “Finance Act, 1975, sections 19 to 22”.

PART III

Enactments Repealed

Number and Year

Short Title

Extent of Repeal

(1)

(2)

(3)

No. 6 of 1967

Income Tax Act, 1967.

In paragraph (III) of the proviso to section 81 (3) the words “and in respect of which no election has been or could have been made under subsection (6) of that section,”.

In section 91 (1) (b) the words “but for section 83 (6) or”.

In section 92 (2) the words “, where no claim is or can be made under section 83 (6),”.

ISB Act 1975-05-14

Schedule 3 FINANCE ACT, 1975 Open official source

THIRD SCHEDULE Increase in Stock Values: Supplementary Provisions

Increase in Stock Values: Supplementary Provisions

section 31.

1. (1) In any case where a company's accounting period does not coincide with a period of account or with two or more consecutive periods of account, the company's increase in stock value in the accounting period shall be determined for the purposes of section 31 not in accordance with subsection (2) of that section but by reference to a period (in this Schedule referred to as the reference period) determined in accordance with this paragraph.

(2) In any case where the beginning of a company's accounting period does not coincide with the beginning of a period of account, the reference period shall begin at the beginning of the period of account which is current at the beginning of the company's accounting period.

(3) In any case where the end of a company's accounting period does not coincide with the end of a period of account, the reference period shall end at the end of the period of account which is current at the end of the company's accounting period.

(4) In any case where subparagraph (2) does not apply, the reference period shall begin at the beginning of the company's accounting period and, in any case where subparagraph (3) does not apply, the reference period shall end at the end of the company's accounting period.

2. (1) In any case where paragraph 1 (1) applies, a company's increase in stock value in the accounting period shall be determined for the purposes of section 31 by the formula

A(CO) _____ N

A(CO)

_____

N

where—

“A” is the number of months in the company's accounting period or 12, whichever is the less;

“C” is the value of the company's trading stock at the end of the reference period;

“O” is the value of the company's trading stock at the beginning of the reference period; and

“N” is the number of months in the reference period.

(2) In any case where a company's increase in stock value in an accounting period falls to be determined in accordance with subparagraph (1), then, in section 31 (4) and in the following provisions of this Schedule—

(a) any reference to the company's closing stock value shall be construed as a reference to the value of the company's trading stock at the end of the reference period; and

(b) any reference to the company's trading profits for an accounting period shall be construed as a reference to that fraction of its trading profits for the reference period of which the numerator is A and the denominator is N as defined in subparagraph (1).

(3) For the purposes of subparagraph (2) (b), the company's trading profits for the reference period shall be the aggregate of its trading profits for each of the accounting periods comprised in the reference period.

3. (1) The provisions of this paragraph shall have effect for the purposes of section 31 and the preceding provisions of this Schedule in any case where—

(a) there are two companies one of which is engaged in a trade consisting wholly or mainly of the manufacture of goods (in this paragraph referred to as the transferor company) and the other of which (in this paragraph referred to as the transferee company) acquires those goods as trading stock; and

(b) the acquisition occurs during an accounting period of the transferee company or, if paragraph 1 (1) applies in relation to that company, during a reference period; and

(c) the acquisition referred to in paragraph (a) results in a reduction in the trading stock held by the transferor company and a corresponding increase in the trading stock held by the transferee company; and

(d) the business of the transferee company consists wholly or mainly of the sale of goods manufactured by the transferor company; and

(e) the transferee company is not entitled to a deduction under section 31 otherwise than by virtue of this paragraph.

(2) If a claim for relief under section 31 is made by the transferor company, then that company and the transferee company, if it has the same accounting period as the transferor company, shall be treated as one company for the purpose of determining the aggregate amount of the deductions to which they are entitled under section 31

Provided that if paragraph 1 (1) applies in relation to the transferor company, the transferee company shall not be treated as falling within this subparagraph unless paragraph 1 (1) also applies in relation to the transferee company and both the transferee company and the transferor company have the same reference period.

(3) For the purpose specified in subparagraph (2), any reference in section 31 or in the preceding provisions of this Schedule to the value of a company's trading stock at any time or to its trading profits for any period shall be construed as a reference to the aggregate of the values of trading stocks at that time or, as the case may be, the aggregate of the trading profits for that period, of the companies which, for that purpose, are treated as one by virtue of that subparagraph.

(4) Where the aggregate amount of the deductions to which the transferor company and the transferee company are entitled under section 31 has been determined in accordance with subparagraphs (2) and (3), that amount shall be apportioned between them so that the deduction to which one of them is so entitled bears to the deduction to which the other is so entitled the same proportion as the closing stock value of that one of them bears to the closing stock value of the other.

(5) The provisions of this paragraph shall apply only where one of the two companies referred to in subparagraph (1) (a) holds throughout the relevant accounting period or reference period either in its own name or in that of a nominee all of the ordinary shares in the other company referred to in the said subparagraph or where some other company holds throughout the relevant accounting period or reference period either in its own name or in that of a nominee all of the ordinary shares in each of the two companies referred to in the said subparagraph.

(6) For the purposes of computing the aggregate amount of the deductions to which the transferor company and the transferee company treated as one by virtue of subparagraph (2) are entitled under section 31 pursuant to this paragraph and the apportionment of that amount between them, the transferee company shall be regarded as carrying on a trade.

4.(1) A company shall not be entitled to a deduction under section 31 for an accounting period if that accounting period ends by virtue of the company—

(a) ceasing to carry on a trade; or

(b) ceasing to be resident in the State; or

(c) ceasing to be within the charge to income tax under Case I of Schedule D.

(2) In any case where a company's increase in stock value in an accounting period falls to be determined in accordance with paragraph 2 (1), subparagraph (1) shall have effect as if the reference therein to the company's accounting period were a reference to any of the accounting periods comprised in the company's reference period.

5. (1) Subject to the following provisions of this paragraph, where a company claims a deduction under section 31 and, immediately before the beginning of an accounting period, the company was not carrying on the trade to which the claim relates, then, unless—

(a) the company acquired the initial trading stock of that trade on a sale or transfer from another person on that person's ceasing to carry on that trade, and

(b) the stock so acquired is, or is included in, the company's trading stock as valued at the beginning of the accounting period,

the company shall be treated for the purposes of section 31 and the preceding provisions of this Schedule as having at the beginning of the accounting period trading stock of such value as appears to the inspector to be reasonable and just.

(2) In determining, for the purposes specified in subparagraph (1), the value of trading stock to be attributed to a company at the beginning of the accounting period, the inspector shall have regard to all the relevant circumstances of the case and, in particular—

(a) to movements during the company's accounting period in the costs of items of a kind comprised in the company's trading stock during that period; and

(b) to changes during that period in the volume of the trade in question carried on by the company.

(3) The Appeal Commissioners dealing with an appeal from the decision of an inspector on a claim in a case where, in accordance with subparagraph (1), the inspector has attributed to a company at the beginning of an accounting period trading stock of a particular value shall, in hearing and determining the appeal, in so far as it relates to the value of the trading stock to be so attributed, determine such value as appears to them to be reasonable and just, having regard to those factors to which the inspector is required to have regard by virtue of subparagraph (2).

(4) In any case where paragraph 1 (1) applies to a company's accounting period, for any reference in subparagraphs (1) to (3) to that accounting period there shall be substituted a reference to the reference period.

6. (1) In this Schedule “period of account”, in relation to a company, means a period for which the accounts of the company have been made up, and “accounting period”, “company”, “trade”, “trading profits”, and “trading stock”, have the same meanings, respectively, as in section 31.

(2) In any case where a company's accounting period or reference period consists of a number of complete months and a fraction of a month, any reference in the preceding provisions of this Schedule to the number of months in the period shall be construed as including that fraction of a month (and in any case where any such period is less than one month any such reference shall be construed as a reference to that fraction of a month of which the period consists).

ISB Act 1975-05-14

Schedule 4 FINANCE ACT, 1975 Open official source

FOURTH SCHEDULE Stamp Duties on Instruments

Stamp Duties on Instruments

section 48.

Part I

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

£100

” £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

£100

(7) Where the amount or value of the consideration for the sale exceeds ten thousand pounds but does not exceed twenty 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 twenty thousand pounds:—

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

£150

(8) Where the amount or value of the consideration for the sale exceeds twenty 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

£200

(9) 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

£3.00

Part II

(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

£100

(f) The amount or value of such consideration exceeds ten thousand pounds but does not exceed twenty 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 twenty thousand pounds:—

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

£150

(g) The amount or value of such consideration exceeds twenty 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

£200

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

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

£300

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

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

£120

£10 ” ” ” £15

15p

90p

£180

£15 ” ” ” £20

20p

£120

£240

£20 ” ” ” £25

25p

£150

£300

£25 ” ” ” £30

50p

£300

£600

£30 ” ” ” £35

75p

£450

£900

£35 ” ” ” £40

£100

£600

£1200

£100

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

50p

£300

£600

FINANCE ACT, 1975

Statutory Text (4 Articles)

Need to analyze how this provision applies to your matter?