First Previous (FINANCE ACT, 1984) Next ( Chapter II Income Levy)

9 1984

FINANCE ACT, 1984

PART I

Income Tax, Income Levy, Corporation Tax and Capital Gains Tax

Chapter I

Income Tax

Amendment of provisions relating to exemption from income tax.

1. —As respects the year 1984-85 and subsequent years of assessment, the Finance Act, 1980 , is hereby amended—

(a) in subsection (2) of section 1 , by the substitution of “£5,000” for “£4,800” (inserted by the Finance Act, 1983 ) and of “£2,500” for “£2,400” (inserted by the Finance Act, 1983 ), and

(b) in subsection (6) of section 2 , by the substitution of “£5,600” for “£5,000” (inserted by the Finance Act, 1982 ), of “£6,600” for “£6,000” (inserted by the Finance Act, 1982 ), of “£2,800” for “£2,500” (inserted by the Finance Act, 1982 ) and of “£3,300” for “£3,000”(inserted by the Finance Act, 1982 ),

and the said subsections (2) and (6), as so amended, are set out in the Table to this section.

TABLE

(2) In this section “the specified amount” means—

(a) in a case where the individual would, apart from this section, be entitled to a deduction specified in section 138 (a) of the Income Tax Act, 1967 , £5,000, and

(b) in any other case, £2,500.

(6) In this section “the specified amount” means—

(a) in a case where the individual would, apart from this section, be entitled to a deduction specified in paragraph (a) of the said section 138, £5,600:

Provided that, if at any time during the year of assessment either the individual or his spouse was of the age of seventy-five years or upwards, “the specified amount” means £6,600;

(b) in any other case, £2,800:

Provided that, if at any time during the year of assessment the individual was of the age of seventy-five years or upwards, “the specified amount” means £3,300.

Charge of income tax for 1984-85 and subsequent years.

2. —(1) Where a person who is charged to income tax for the year 1984-85 or any subsequent year of assessment is an individual (other than an individual acting in a fiduciary or representative capacity), he shall, notwithstanding anything in the Income Tax Acts but subject to section 5 (3) of the Finance Act, 1974 , be charged to tax on his taxable income—

(a) in a case in which he is assessed to tax otherwise than in accordance with the provisions of section 194 (inserted by the Finance Act, 1980 ) of the Income Tax Act, 1967 , at the rates specified in Part I of the Table to this section, or

(b) in a case in which he is assessed to tax in accordance with the provisions of the said section 194, at the rates specified in Part II of the said Table,

and the rates in each Part of that Table, shall be known, respectively, by the description specified in column (3), in each such Part opposite the mention of the rate or rates, as the case may be, in column (2) of that Part.

TABLE

PART I

Part of taxable income

Rate of tax

Description of rate

(1)

(2)

(3)

The first £4,000

35 per cent.

the standard rate

The next £2,000

45 per cent.

}

the higher rates.

The next £2,000

55 per cent

The next £2,000

60 per cent

The remainder

65 per cent

PART II

Part of taxable income

Rate of tax

Description of rate

(1)

(2)

(3)

The first £8,000

35 per cent.

the standard rate

The next £4,000

45 per cent.

}

the higher rates.

The next £4,000

55 per cent

The next £4,000

60 per cent

The remainder

65 per cent

(2) Paragraph 1 of the Part I of the First Schedule shall have effect for the purpose of supplementing subsection (1) and paragraph 2 of the said Part I shall have effect for the purpose of supplementing section 8 of the Finance Act, 1980 .

Personal reliefs.

3. —(1) Where a deduction falls to be made from the total income of an individual for the year 1984-85 or any subsequent year of assessment in respect of relief to which the individual is entitled under a provision mentioned in column (1) of the Table to this subsection and the amount of the deduction would, but for this section, be an amount specified in column (2) of the said Table, the amount of the deduction shall, in lieu of being the amount specified in the said column (2), be the amount specified in column (3) of the said Table opposite the mention of the amount in the said column (2).

TABLE

Statutory provision

Amount to be deducted from total income for 1983-84

Amount to be deducted from total income for 1984-85 and subsequent years

(1)

(2)

(3)

£

£

Income Tax Act, 1967 :

section 138

(married man)

2,900

3,600

(widowed person)

1,950

2,300

(widow bereaved in the year of assessment)

2,900

3,600

(single person)

1,450

1,800

section 138A

(additional allowance for widows and others in respect of children)

(widowed person)

950

1,300

(others)

1,450

1,800

(2) Section 2 of the Finance Act, 1982 , shall have effect subject to the provisions of this section.

(3) Part II of the First Schedule shall have effect for the purpose of supplementing subsection (1).

Amendment of section 6 (special allowance in respect of P.R.S.I for 1982-83) of Finance Act, 1982.

4. Section 6 of the Finance Act, 1982 , shall have effect for the purpose of ascertaining the amount of income on which an individual referred to therein is to be charged to income tax for the year 1984-85, as if in subsection (2)—

(a) “1984-85” were substituted for “1982-83”, and

(b) “£286” were substituted for “£312”, in each place where it occurs.

Amendment of section 142A (allowance for rent paid by certain tenants) of Income Tax Act, 1967.

5. Section 142A (inserted by the Finance Act, 1982 ) of the Income Tax Act, 1967 , is hereby amended, as respects the year 1984-85 and subsequent years of assessment, by the substitution in subsection (2) (a) (i) of “sixty years” for “sixty-five years”, and the said subsection (2) (a) (i), as so amended, is set out in the Table to this section.

TABLE

(i) at any time during the year of assessment he was of the age of sixty years or upwards, and

Amendment of section 432 (making of claims, etc., and appeals and rehearings) of Income Tax Act, 1967.

6. —As respects the year 1984-85 and subsequent years of assessment, subsection (1) of section 432 of the Income Tax Act, 1967 , is hereby amended—

(a) by the deletion in paragraph (c) of “of the Appeal Commissioners”, and

(b) by the substitution of “thirty” for “twenty-one”,

and the said subsection (1), as so amended, is set out in the Table to this section.

TABLE

(1) Notwithstanding any other provision of this Act—

(a) all claims of exemption or for any allowance or deduction under this Act,

(b) all claims for repayment of tax under this Act, and

(c) (i) all claims to relief under this Act where the relief is measured in the provision under which it is given, and

(ii) all matters and questions relating to any relief so measured,

in relation to which a right of appeal from a decision is, otherwise than by this section, not specifically provided,

shall be stated in such manner and form as the Revenue Commissioners may prescribe and shall be submitted to and determined by the Revenue Commissioners or such officer of the Revenue Commissioners (including an inspector) as they may authorise in that behalf, but any person aggrieved by any determination on any such claim, matter or question may, on giving notice in writing to the Revenue Commissioners or the officer within thirty days after notification to the person aggrieved of the determination, appeal to the Appeal Commissioners.

Amendment of section 41 (investment accounts in trustee savings banks) of Finance Act, 1968.

7. Section 41 (9) of the Finance Act, 1968 , shall not apply or have effect for the year 1984-85 or any subsequent year of assessment.

Amendment of section 3 (employed person taking care of incapacitated individual) of Finance Act, 1969.

8. Section 3 of the Finance Act, 1969 , is hereby amended, as respects the year 1984-85 and subsequent years of assessment, by the substitution, in subsection (1), for “be entitled to have a deduction of £700 made from his total income” of “be entitled to have a deduction made from his total income of £2,000, if the amount ultimately borne by him in the year of assessment in employing the employed person is not less than £2,000, or the amount so borne, if it is less than £2,000.”, and the said subsection (1), as so amended, is set out in the Table to this section.

TABLE

(1) Subject to the provisions of this section, an individual who, in the manner prescribed by the Income Tax Acts makes a claim in that behalf, makes a return in the prescribed form of his total income and proves—

(a) (i) that, throughout the year of assessment, he was totally incapacitated by physical or mental infirmity, or

(ii) that, being a husband who, for the relevant year of assessment, is assessed to tax in accordance with the provisions of section 194 of the Income Tax Act, 1967 , his wife was, throughout that year, totally incapacitated by physical or mental infirmity, and

(b) that for the year of assessment he has employed a person for the purpose of having the care of the person (being the individual or his wife) who is so incapacitated,

shall, in computing the amount of his taxable income, be entitled to have a deduction made from his total income of £2,000, if the amount ultimately borne by him in the year of assessment in employing the employed person is not less than £2,000, or the amount so borne, if it is less than £2,000.

Exemption for certain sports bodies.

9. —The Income Tax Act, 1967 , is hereby amended, as respects the year 1984-85 and subsequent years of assessment, by the substitution of the following section for section 349 :

“Exemption of bodies established for promotion of athletic or amateur games or sports.

349.—(1) In this section ‘approved body of persons’ means—

(a) any body of persons established for and existing for the sole purpose of promoting athletic or amateur games or sports, and

(b) any body of persons that, as respects the year 1983-84 or any earlier year of assessment, was granted exemption from income tax under the provisions of the Income Tax Act, 1967 , for which this section was substituted,

but does not include any such body of persons as aforesaid to which the Revenue Commissioners, after such consultation (if any) as may seem to them to be necessary with such person or body of persons as in their opinion may be of assistance to them, give a notice in writing stating that they are satisfied that the body—

(i) was not established for the sole purpose specified in paragraph (a) or was established wholly or partly for the purpose of securing a tax advantage, or

(ii) being so established for the sole purpose specified in paragraph (a) no longer exists for such purpose or commences to exist wholly or partly for the purpose of securing a tax advantage.

(2) Exemption from income tax shall be granted in respect of so much of the income of any approved body of persons as is shown to the satisfaction of the Revenue Commissioners to be income which has been or will be applied to the sole purpose specified in subsection (1) (a).

(3) Where a notice is given under subsection (1), the exemption from income tax accorded to the body of persons to which it relates shall cease to have effect—

(a) if the notice is a notice to which paragraph (i) of that subsection applies—

(i) as respects income tax, for the year of assessment in which the body of persons was established or the year 1984-85, whichever is the later, and for each subsequent year of assessment,

(ii) as respects corporation tax, for the first accounting period of the body of persons which commences on or after the 6th day of April, 1984, and for each subsequent accounting period,

(b) if the notice is a notice to which paragraph (ii) of that subsection applies—

(i) as respects income tax, for the year of assessment in which, in the opinion of the Revenue Commissioners, the body of persons ceased to exist for the sole purpose specified in subsection (1) (a) or the year in which it commenced to exist wholly or partly for the purpose of securing a tax advantage, whichever is the earlier, but not being a year earlier than the year 1984-85, and for each subsequent year of assessment,

(ii) as respects corporation tax, for the accounting period in which, in the opinion of the Revenue commissioners, the body of persons ceased to exist for the sole purpose specified in subsection (1) (a) or the accounting period in which it commenced to exist wholly or partly for the purpose of securing a tax advantage, whichever is the earlier, but not being an accounting period which ends before the 6th day of April, 1984, and for each subsequent accounting period.

(4) Section 432 shall apply to a notice under subsection (1) as if the notice were a determination by the Revenue Commissioners of a claim to an exemption under this Act.

(5) Anything required or permitted to be done by the Revenue Commissioners or any power or function conferred or imposed on them by this section may be done, exercised or performed, as appropriate, by an officer of the Revenue Commissioners authorised by them in that behalf.”.