PART V

Residential Property Tax

121. —This Part shall apply and have effect where tax is chargeable on a valuation date (as defined by section 95 (1) of the Finance Act, 1983 ) in relation to any year commencing with the year 1990.

122. — Section 95 of the Finance Act, 1983 , is hereby amended by the deletion in subsection (1) of the definition of “child”.

123. — Section 100 of the Finance Act, 1983 , is hereby amended in subsection (1)—

(a) by the substitution of the following definition for the definition of “general exemption limit”:

“‘general exemption limit’ means the general market value exemption limit applying on a valuation date, that is to say, the amount obtained by multiplying £65,000 by the new house price index number relevant to that valuation date and dividing the product by the new house price index number relevant to the valuation date falling on the 5th day of April, 1983:

Provided that the amount so obtained shall be rounded up to the next £1,000;”,

and

(b) by the substitution, in the definition of “the new house price index number”, of “31st day of December next” for “31st day of March next”,

and the said definition of “the new house price index number”, as so amended, is set out in the Table to this section.

TABLE

“the new house price index number” means the Trends in Private New House Prices Index Number compiled by the Department of the Environment and the new house price index number relevant to any valuation date means the new house price index number for the three months ended on the 31st day of December next before that valuation date expressed on the basis that the new house price index number for the three months ended on the 31st day of March, 1973, is 100.

124. — Section 101 of the Finance Act, 1983 , is hereby amended by the substitution of the following subsection for subsection (2):

“(2) The income exemption limit applying on a valuation date is the amount obtained by multiplying £20,000 by the consumer price index number relevant to that valuation date and dividing the product by the consumer price index number relevant to the valuation date falling on the 5th day of April, 1983:

Provided that the amount so obtained shall be rounded up to the next £100.”.

125. — Section 102 of the Finance Act, 1983 , is hereby amended—

(a) by the substitution of the following subsection for subsection (2):

“(2) Where, for the year of assessment ending on a valuation date, an assessable person has one or more than one qualifying child normally residing with him at any relevant residential property of his, he shall be entitled to have the tax payable by him in respect of the net market value of his relevant residential property on that date reduced by the amount determined by the formula—

where—

C is the number of such qualifying children, up to a maximum of 10, and

T is the tax which, apart from this subsection, would be payable:

Provided that no reduction shall be allowed under this subsection for the valuation date in question in respect of a qualifying child—

(a) who is a child to whom section 138A (1) (b) (i) (III) (B) of the Income Tax Act, 1967 , relates and who is entitled in his own right to an income exceeding £1,320, or

(b) in any other case, who is entitled in his own right to an income exceeding £720,

in the year of assessment ending on that valuation date.”,

and

(b) by the addition of the following subsection after subsection (3):

“(4) In this section—

‘child’, in relation to an assessable person, includes—

(a) a stepchild,

(b) a child—

(i) adopted under the Adoption Acts, 1952 to 1988, or

(ii) duly adopted outside the State in another jurisdiction and the adoption corresponds to an adoption under the said Acts,

and

(c) a person who, for the year of assessment ending on the valuation date, is in the custody, and maintained at the expense, of either or both the assessable person and the spouse of that assessable person;

‘qualifying child’, in relation to an assessable person, means a child referred to in subsections (1) (b) (i) or (4) (a) of section 138A of the Income Tax Act, 1967 , as if the references therein to a child were references to a child within the meaning of this subsection;

‘year of assessment’ has the meaning assigned to it by section 1 of the Income Tax Act, 1967 .”.