FINANCE ACT, 1978 (1978_act_21) | IE

ISB Act 1978-07-05

Schedule 1 FINANCE ACT, 1978 Open official source

FIRST SCHEDULE Amendment of Enactments

Amendment of Enactments

Section 4.

PART I Amendments consequential on amendment of section 236 of Income Tax Act, 1967

PART I

Amendments consequential on amendment of section 236 of Income Tax Act, 1967

Schedule 5 to the Income Tax Act, 1967, is hereby amended in accordance with the following provisions

(a) Part I shall be deleted,

(b) for paragraph 4 (inserted by the Finance Act, 1974) there shall be substituted the following paragraph

“4. Subject to paragraph 5, in the case of an individual born at a time specified in the first column of the Table set out below, section 236 (1A) shall have effect with the substitution for the reference to 15 per cent. of a reference to such percentage as is specified for his case in the second column of the Table.

TABLE

Year of Birth

Percentage

1916 or 1917

16

1914 or 1915

17

1912 or 1913

18

1910 or 1911

19

1909 or any earlier year

20

”

PART II Amendments Consequential on Changes in Personal Reliefs

PART II

Amendments Consequential on Changes in Personal Reliefs

Section 6.

1. Section 138 of the Income Tax Act, 1967, is hereby amended in accordance with the following provisions

(a) in subsection (1), for “£1,100” in each place where it occurs, there shall be substituted “£1,730”, for “£665” there shall be substituted “£865” and for “£1,215” there shall be substituted “£1,845”, and

(b) in subsection (2), for “£665” in each place where it occurs, there shall be substituted “£865” and for “£735” there shall be substituted “£935”.

2. The Finance Act, 1974, is hereby amended by the substitution in section 8 of “£180” for “£145” and “£80s” for “£45”.

PART III Formula for determining tax appropriate to the emoluments of certain individuals resident in the State and employed in the United Kingdom

PART III

Formula for determining tax appropriate to the emoluments of certain individuals resident in the State and employed in the United Kingdom

Section 9.

1. The formula referred to in the definition of “tax appropriate to the emoluments”, in relation to an individual for a year of assessment, in section 9 (1) is—

A ______ A B

A

______

A B

C

where—

A is the amount of the individual's emoluments (hereinafter referred to as “net emoluments”) chargeable to tax for that year of assessment (including, in the case of a married person, any emoluments of his wife which are deemed to be his income in accordance with the provisions of section 192 of the Income Tax Act, 1967) after deducting therefrom so much of any loss as is, under the provisions of section 307 (4) (b) of the Income Tax Act, 1967, regarded as a deduction from those emoluments,

B is the aggregate of the individual's income, other than emoluments, for that year of assessment from all sources (including in the case of a married person, any income, other than emoluments, of his wife which is deemed to be his income in accordance with the provisions of section 192 of the Income Tax Act, 1967) after deducting from the income from each several source so much of any of the following amounts as is directly referable to that source

(i) any deduction in respect of expenses;

(ii) any deduction in respect of contributions;

(iii) any capital allowance; and

(iv) any loss within the meaning of section 89 or Chapter I of Part XIX of the Income Tax Act, 1967,

C is the tax payable on the individual's total income for that year before taking account of any relief provided for by section 9 and of any relief provided for under section 361 of the Income Tax Act, 1967, under the former Agreements or under section 39 of the Finance Act, 1977.

2. Where, in relation to any individual, the emoluments included in A in the formula in paragraph 1 include emoluments of the individual and emoluments of his wife, the tax appropriate to the emoluments of each shall be determined separately and shall be an amount which bears the same proportion to the tax appropriate to the emoluments as the net emoluments of each bear to A aforesaid.

PART IV Schedule to be added to Finance Act, 1974

PART IV

Schedule to be added to Finance Act, 1974

Section 12.

“THIRD SCHEDULE

Tax appropriate to the profits or gains from farming

1.‘Tax appropriate to the profits or gains from farming’, in relation to an individual who, by virtue of the provisions of section 15, is chargeable to tax for a year of assessment in respect of profits or gains from farming, means the amount of tax determined by the formula—

A ______ A B

A

______

A B

C

where—

A is—

(a) in a case where the individual is so charged on an amount determined by section 21, the amount so determined,

(b) in a case where the individual is so charged by reference to the provisions of section 58 of the Income Tax Act, 1967, the amount computed by reference to those provisions, adjusted by reference to the provisions of paragraph 2 and having regard to the provisions of section 21A,

(c) in a case where the individual is so charged by reference to the provisions of section 20A, the amount computed by reference to those provisions, adjusted by reference to the provisions of paragraph 2 and having regard to the provisions of section 21 A.

B is the individual's income, other than income included in A, for that year from all sources (including income of his wife which is deemed to be his income in accordance with the provisions of section 192 of the Income Tax Act, 1967) after deducting from the income from each several source the aggregate of the amounts specified in paragraph 3, and

C is the amount of tax chargeable on the individual's total income for that year before taking account of any relief provided by section 361 of the Income Tax Act, 1967, or by section 19 or 21A.

2. Where, in determining A in paragraph 1, the amount of profits or gains from farming is to be adjusted by reference to the provisions of this paragraph, that amount shall be reduced by the aggregate of—

(a) so much of any capital allowance as is to be taken into account in charging the profits or gains to tax, and

(b) so much of any loss within the meaning of Chapter I of Part XIX of the Income Tax Act, 1967, as is to be, or is regarded as being, deducted from or set off against those profits or gains.

3. In determining B in paragraph 1, the amount to be deducted from the income from a source, in arriving at the amount of income from that source to be included in B is the aggregate of—

(a) so much of the following amounts as is to be deducted from or set off against that income, or as is to be allowed in charging that income to tax—

(i) any deduction in respect of expenses;

(ii) any deduction in respect of contributions, and

(iii) any capital allowance; and

(b) so much of any loss within the meaning of Chapter I of Part XIX of the Income Tax Act, 1967, as is to be, or

is regarded as being, deducted from or set off against the income from that source.

4. In this Schedule ‘capital allowance’, ‘deduction in respect of expenses’ and ‘deduction in respect of contributions’ have the same meanings as in section 16 of the Finance Act, 1976, and ‘farming’ has the same meaning as in Chapter II of Part I.”.

ISB Act 1978-07-05

Schedule 2 FINANCE ACT, 1978 Open official source

SECOND SCHEDULE Exempted Transactions in relation to Agricultural Societies and Fishery Societies

Exempted Transactions in relation to Agricultural Societies and Fishery Societies

Section 18.

PART I Agricultural societies

PART I

Agricultural societies

1. (a) The selling by wholesale of any of the following commodities—

(i) milk

eggs

honey

fresh fruit and fresh vegetables (including fresh potatoes)

grain

seeds

livestock

poultry

wool

flax

flowers

where the society by which the commodity is sold—

(A) is the producer thereof, or

(B) purchases the commodity from the producer thereof or from an agricultural society which purchased it from that producer;

(ii) butter

cream

cheese

skim milk

milk powder

whey

whey powder

lactose

butter oil

casein

chocolate crumb

processed fruit and processed vegetables (including processed potatoes)

meat

hides

hooves

horns

offal

where the producer of the commodity is an agricultural society;

(iii) animal feeding stuffs (excluding grain, vegetables, milk, skim milk, milk powder, whey and whey powder)

animal drugs and medicines

fertilisers

weedkillers and insecticides

preservatives for silage making

boxes and other packaging materials for agricultural products

parchment and salt for butter production

sacks and binder twine

creamery and dairy equipment

grain drying equipment

farm machinery (including spare parts and tyres)

fuel for farm machinery

building and fencing materials for use solely in works in respect of which the purchasers of the materials qualify for grants under the Farm Modernisation Scheme operated by the Department of Agriculture.

(b) In subparagraph (a) “producer”—

(i) in relation to milk, means the person who is the owner of the animal from which the milk is obtained and has the corresponding meaning in relation to eggs, honey and wool,

(ii) in relation to fresh fruit, means the person by whom the fruit is grown and has the corresponding meaning in relation to fresh vegetables (including fresh potatoes), grain, seeds, flax and flowers,

(iii) in relation to livestock, means the person by whom the livestock is bred or reared and has the corresponding meaning in relation to poultry,

(iv) in relation to butter, means the society by which the butter is made and has the corresponding meaning in relation to other milk products, and

(v) in relation to processed fruit, means the society by which the fruit is processed and has the corresponding meaning in relation to processed vegetables (including processed potatoes), meat, hides, hooves, horns and offal.

2. The provision of any of the following services—

contract tillage or harvesting (including silage making)

deep ploughing

manure spreading

spraying of crops

turf cutting

commission drying, grinding or storage of crops or grain

commission packaging or processing of milk products by an agricultural society on behalf of another such society

commission selling of fertilisers, grain, wool or livestock

storage, packing, grading or processing of fruit or vegetables

storage of milk products by an agricultural society on behalf of another such society

transport of farm products

artificial insemination, auctioning or weighing of livestock

warble fly eradication

sack hire

leasing of refrigerated bulk milk tanks.

PART II Fishery societies

PART II

Fishery societies

1. The selling by wholesale of any of the following—

fresh fish

processed fish

commodities or articles for use in catching fish.

2. The provision of either of the following services—

auctioning of fish

transport of fish.

ISB Act 1978-07-05

Schedule 3 FINANCE ACT, 1978 Open official source

THIRD SCHEDULE Rates of Capital Acquisitions Tax

Rates of Capital Acquisitions Tax

Section 41.

“PART II

TABLE I

Applicable where the donee or successor is the spouse, child, or minor child of a deceased child, of the disponer.

Portion of Value

Rate of tax

Lower Limit

Upper Limit

Per cent.

£

0

150,000

Nil

150,000

200,000

25

200,000

250, 000

30

250,000

300, 000

35

300,000

350, 000

40

350,000

400, 000

45

400,000

50

TABLE II

Applicable where the donee or successor is a lineal ancestor or a lineal descendant (other than a child, or a minor child of a deceased child) of the disponer.

Portion of Value

Rate of tax

Lower Limit

Upper Limit

Per cent.

£

0

30,000

Nil

30,000

33,000

5

33,000

38,000

7

38,000

48,000

10

48,000

58,000

13

58,000

68,000

16

68,000

78,000

19

78,000

88,000

22

88,000

103,000

25

103,000

118,000

28

118,000

133,000

31

133,000

148,000

34

148,000

163,000

37

163,000

178,000

40

178,000

193,000

43

193,000

208,000

46

208,000

223,000

49

223,000

50

TABLE III

Applicable where the donee or successor is a brother or a sister, or a child of a brother or of a sister, of the disponer.

Portion of Value

Rate of tax

Lower Limit

Upper Limit

Per cent.

£

0

20,000

Nil

20,000

23,000

10

23,000

28,000

12

28,000

38,000

15

38,000

48,000

19

48,000

58,000

23

58,000

68,000

27

68,000

78,000

31

78,000

93,000

35

93,000

108,000

40

108,000

123,000

45

123,000

50

TABLE IV

Applicable where the donee or successor does not stand to the disponer in a relationship referred to in Table I, II or III of this Part of this Schedule.

Portion of Value

Rate of tax

Lower Limit

Upper Limit

Per cent.

£

0

10,000

Nil

10,000

13,000

20

13,000

18,000

22

18,000

28,000

25

28,000

38,000

30

38,000

48,000

35

48,000

58,000

40

58,000

68,000

45

68,000

83,000

50

83,000

98,000

55

98,000

60

”

ISB Act 1978-07-05

Schedule 4 FINANCE ACT, 1978 Open official source

FOURTH SCHEDULE Enactments Repealed

Enactments Repealed

Section 52.

PART I

Number and Year

Short Title

Extent of Repeal

(1)

(2)

(3)

No. 6 of 1967

Income Tax Act, 1967.

Section 220, so far as it is unrepealed.

No. 16 of 1976

Finance Act, 1976.

Section 33.

The repeals in this Part of this Schedule shall not affect the liability to income tax for years of assessment ending on or before the 5th day of April, 1976, or the liability to corporation tax for accounting periods ending on or before the 31st day of March, 1978, or the assessment, collection or recovery of either of those taxes or of interest thereon or other proceedings relating to those taxes or that interest.

PART II

Number and Year

Short Title

Extent of Repeal

(1)

(2)

(3)

No. 20 of 1932

Finance Act, 1932.

Section 41.

FINANCE ACT, 1978

Statutory Text (4 Articles)

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