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13 1994

FINANCE ACT, 1994

PART V

Residential Property Tax

Definition ( Part V ).

113. —In this Part “the Act of 1983” means the Finance Act, 1983 .

Application ( Part V ).

114. —This Part shall apply and have effect where tax is chargeable on a valuation date (as defined by section 95 (1) of the Act of 1983) in relation to any year commencing with the year 1994.

Amendment of section 95 (interpretation) of Act of 1983.

115. —Section 95 of the Act of 1983 is hereby amended in subsection (1)—

(a) as respects any valuation date (within the meaning assigned by the said subsection (1)) commencing with the year 1983, in the definition of “income”—

(i) by the substitution in paragraph (a) of “sections 340, 353, 354 and 463” for “sections 340, 353 and 354”,

(ii) by the insertion in paragraph (a) of “ section 18 of the Finance Act, 1970 ,” after “ section 37 of the Finance Act, 1968 ,”, and

(iii) by the insertion of the following paragraph after paragraph (e)—

“(ee) income arising from savings bonds duly issued under section 54 of the Finance Act, 1970 ,”,

and the said definition, as so amended, is set out in the Table to this section,

(b) by the insertion, in the definition of “relevant person” of “a person who has attained the age of 65 years and is not an assessable person, or a person who is permanently incapacitated by reason of mental or physical infirmity from maintaining himself and is not an assessable person, or” after “other than”, and the said definition, as so amended, is set out in the Table to this section, and

(c) by the insertion, in the definition of “residential property” of “, where the Commissioners are satisfied that reasonable access is afforded to the public having regard to subsection (4) (b) (ii) of the said section 19 as amended by the Finance Act, 1994” after “ Finance Act, 1982 ” and the said definition, as so amended, is set out in the Table to this section.

TABLE

income” means total income from all sources as estimated in accordance with the provisions of the Income Tax Acts but without regard to—

(a) any of the provisions of those Acts (apart from sections 340 , 353 , 354 and 463 of the Income Tax Act, 1967 , section 37 of the Finance Act, 1968 , section 18 of the Finance Act, 1970 , section 19 of the Finance Act, 1973 , and section 9 of the Finance Act, 1982 ) which provide that any income is exempt from income tax or that any income is to be disregarded for the purposes of those Acts or which otherwise provide that any amount of income or any part thereof is not subject to Irish income tax,

(b) sections 89 , 236 , 251 , 254 and 496 of the Income Tax Act, 1967 ,

(c) Chapter I of Part IX of the Income Tax Act, 1967 ,

(d) Chapter I of Part XIX of the Income Tax Act, 1967 ,

(e) section 11 of the Finance Act, 1967 ,

(ee) income arising from savings bonds duly issued under section 54 of the Finance Act, 1970 ,

(f) section 26 of the Finance Act, 1971 ,

(g) Chapter II of Part I of the Finance Act, 1972 ,

(h) section 14 of the Finance Act, 1977 ,

(i) section 25 of the Finance Act, 1978 , and

(j) sections 23 and 24 of the Finance Act, 1981 ;

relevant person”, in relation to an assessable person, means, as respect any valuation date, any person (other than a person who has attained the age of 65 years and is not an assessable person, or a person who is permanently incapacitated by reason of mental or physical infirmity from maintaining himself and is not an assessable person, or a person who is an employee of the assessable person and whose employment is wholly or mainly connected with the relevant residential property) who in the year ended on that date normally resided at any relevant residential property of the assessable person and who, or whose spouse,—

(a) made no payment of rent or other like payment in respect of such residence, or

(b) made a payment of rent or other like payment in respect of that residence of such amount that, if it had been paid by a person to whom subsection (2) (b) (iv) applies in respect of the relevant residential property under a lease, agreement or licence referred to in subsection (2) (b) (iv), that last-mentioned person would, by virtue of subsection (2) (b) (iv), be the owner in relation to the relevant residential property;

residential property” means—

(a) a building or part of a building used or suitable for use as a dwelling, and

(b) land (other than a garden such as is specified in section 39 (1) of the Finance Act, 1978 ) which the occupier of a building or part of a building used as a dwelling has for his own occupation and enjoyment with the said building or part as its garden or grounds of an ornamental nature,

but does not include an approved building within the meaning of section 19 of the Finance Act, 1982 , where the Commissioners are satisfied that reasonable access is afforded to the public having regard to subsection (4) (b) (ii) of the said section 19 as amended by the Finance Act, 1994;

Amendment of section 96 (charge of residential property tax) of Act of 1983.

116. —Section 96 of the Act of 1983 is hereby amended, as respects any valuation date commencing with the year 1994, by the deletion of “the rate of tax shall be one and one-half per cent. of that net market value” and the substitution of “the tax chargeable on that net market value shall be computed in accordance with the Seventh Schedule to the Finance Act, 1994”.

Amendment of section 98 (market value of property) of Act of 1983.

117. —Section 98 of the Act of 1983 is hereby amended by the insertion of the following subsection after subsection (2):

“(2A) (a) Notwithstanding the provisions of subsections (1) and (2), in estimating the market value of any property on the relevant valuation date, a reduction may be made in respect of such value which is attributable on that date to qualifying improvements.

(b) ‘Qualifying improvements’ for the purposes of this subsection, means necessary improvements or alterations to the property for the purposes only of accommodating or facilitating a person who is permanently incapacitated by reason of mental or physical infirmity from maintaining himself.

(c)A reduction shall not be available by virtue of this subsection unless the incapacitated person concerned normally resided at the property in the year ended on the relevant valuation date.”.

Amendment of section 100 (market value exemption limit) of Act of 1983.

118. —Section 100 of the Act of 1983 is hereby amended in subsection (1) by the substitution in the definition of “general exemption limit” of “£75,000” for “£90,000” (inserted by the Finance Act, 1992 ) and of “1994” for “1992” (as so inserted).

Amendment of section 101 (income exemption limit) of Act of 1983.

119. —Section 101 of the Act of 1983 is hereby amended—

(a) by the insertion of the following proviso to subsection (1):

“Provided that the income of a relevant person (other than a person who is an assessable person) shall be disregarded in computing aggregate relevant income—

(a) where, in relation to a valuation date, a unit of residential property is comprised in the relevant residential property of one or more persons, and—

(i) any of those persons has attained the age of 65 years, or

(ii) any of those persons is permanently incapacitated by reason of mental or physical infirmity from maintaining himself and the relevant person resides in the unit of residential property as a consequence of that infirmity;

(b) where, in relation to a valuation date, the assessable person is a widowed person and the relevant

person resides in the relevant residential property as a consequence of the assessable person having a qualifying child.”,

and

(b) by the substitution in subsection (2) of “£25,000” for “£27,500” (inserted by the Finance Act, 1992 ) and of “1994” for “1992” (as so inserted).

Amendment of section 102 (marginal reliefs) of Act of 1983.

120. —Section 102 of the Act of 1983 is hereby amended in subsection (1)—

(a) by the substitution of “£10,000” for “£5,000” and of “10,000” for “5,000” in the formula, and

(b) by the addition of the following provisos:

“Provided that—

(a) where, in relation to a valuation date, a unit of residential property is comprised in the relevant residential property of one or more persons and any of those persons has attained the age of 65 years, “£15,000” shall be substituted for “£10,000” and “15,000” shall be substituted for “10,000” in the formula, and

(b) where the amount of the aggregate relevant income is not a multiple of £1,000, it shall, for the purposes of relief under this section, be rounded down to the next £1,000.”,

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

TABLE

(1) Where an assessable person makes a claim in that behalf and proves that his aggregate relevant income as respects any valuation date does not exceed an amount equal to the aggregate of the income exemption limit applying on that valuation date and £10,000, he shall be entitled to have the tax, if any, payable by him in respect of the net market value of his relevant residential property on that valuation date reduced to an amount equal to the amount determined by the formula—

T ×

A − E

_______

10,000

where—

A is the amount of the aggregate relevant income,

E is the income exemption limit, and

T is the tax which, apart from this subsection and subsection (2), would be payable:

Provided that—

(a) where, in relation to a valuation date, a unit of residential property is comprised in the relevant residential property of one or more persons and any of those persons has attained the age of 65 years, “£15,000” shall be substituted for “£10,000” and “15,000” shall be substituted for “10,000” in the formula, and

(b) where the amount of the aggregate relevant income is not a multiple of £1,000, it shall, for the purposes of relief under this section, be rounded down to the next £1,000.

Amendment of section 104 (assessment and payment of tax) of Act of 1983.

121. —Section 104 of the Act of 1983 is hereby amended by the insertion after subsection (1) of the following subsections:

“(1A) (a) Notwithstanding the provisions of subsection (1) and subject to such regulations as the Commissioners may make in accordance with section 115 (1A), tax which is due and payable in accordance with this section may, at the option of the person delivering the return, be discharged by making an initial payment of 25 per cent. of the tax due on the 1st day of October immediately following the valuation date to which the return relates and the balance of the tax due, together with an amount equal to 5 per cent. of that balance, shall be paid in ten equal monthly instalments, the first of which shall be due on the 15th day of November immediately following such valuation date and the remaining instalments shall be due on the 15th day of each subsequent month.

(b) In the event that a person exercising the option under subsection (1A) (a) fails to make an initial payment by the due date or any subsequent instalment payment in accordance with such regulations as the Commissioners may make under section 115 (1A), the provisions of section 110 of the Finance Act, 1983 , as to the recovery of tax shall apply to the outstanding balance of the tax liability as if the said person had not exercised the said option.

(c) This subsection shall not have effect in respect of any tax or additional tax due under an assessment of tax or an amended assessment of tax made by the Commissioners under subsections (2) or (3).

(1B) Where the Commissioners are satisfied that tax payable in respect of any relevant residential property cannot without excessive hardship be paid in accordance with subsection (1) or (1A), as the case may be, they may allow payment to be postponed for such period, to such extent and on such terms as they think fit.

(1C) Where, in the opinion of the Commissioners, the complication of circumstances affecting any relevant residential property are such as to justify them in doing so, they may compound the tax payable on the relevant residential property upon such terms as they shall think fit.”.

Amendment of section 105 (interest on tax) of Act of 1983.

122. —Section 105 of the Act of 1983 is hereby amended by the insertion after subsection (1) of the following subsection:

“(1A) Notwithstanding the provisions of subsection (1), interest shall not be chargeable where tax is paid in accordance with the provisions of section 104 (1A) (a) and such regulations as the Commissioners may make under section 115 (1A).”.

Amendment of section 115 (regulations) of Act of 1983.

123. —Section 115 of the Act of 1983 is hereby amended by the insertion after subsection (1) of the following subsection:

“(1A) Without prejudice to the generality of subsection (1), the Commissioners may make such regulations as seem to them to be necessary for the purpose of giving effect to the payment of tax by instalments under section 104 (1A) (a).”.