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7 2001

FINANCE ACT, 2001

SCHEDULE 2

Changeover to Calendar Year of Assessment

Section 77.

Amendment of Taxes Consolidation Act, 1997

Subject to the provisions of paragraph 61, the Taxes Consolidation Act, 1997 , is amended in accordance with the following provisions of this Schedule.

Taxation of strips of securities

1. In section 55(1), in paragraph (a) of the definition of “relevant day”, for “the 5th day of April” there shall be substituted “31 December”.

Basis of assessment under Cases I and II of Schedule D

2. In section 65, after subsection (3) there shall be inserted the following:

“(3A) As respects the year of assessment 2001, subsection (2) shall apply as if in both paragraph (a) and paragraph (b) of that subsection ‘74 per cent of the profits or gains of the year ending on that date’ were substituted for ‘the profits or gains of the year ending on that date’,

(3B) For the purposes of subsection (2)(a), an account made up for a period of one year to a date falling in the period from 1 January 2002 to 5 April 2002 shall, in addition to being an account made up to a date in the year of assessment 2002, be deemed to be an account for a period of one year made up to a date within the year of assessment 2001, and the corresponding period in relation to the year of assessment 2000-2001 for the purposes of subsection (3) shall be determined accordingly.

(3C) Notwithstanding subsection (3), where the profits or gains of the year of assessment 2001 have been taken to be the full amount of the profits or gains of that year of assessment in accordance with subsection (2)(c), and the full amount of the profits or gains of the year of assessment 2000-2001 exceed the profits or gains charged to income tax for that year of assessment, then, the profits or gains of the year of assessment 2000-2001 shall be taken to be the full amount of the profits or gains of that year of assessment and the assessment shall be amended accordingly.

(3D) Notwithstanding subsection (3), where the profits or gains of a period of one year ending in the year of assessment 2002 have been taken to be the profits or gains of that year of assessment in accordance with subsection (2)(b), and the profits or gains charged to income tax for the year of assessment 2001 are less than 74 per cent of the profits or gains of the corresponding period relating to the year of assessment 2001, then, the profits or gains of the year of assessment 2001 shall be taken to be 74 per cent of the profits or gains of that corresponding period and the assessment shall be amended accordingly.

(3E) For the purposes of subsection (3D), where, apart from this subsection, a period (in this subsection referred to as the ‘relevant period’) would not be treated as the corresponding period relating to the year of assessment 2001 by virtue of the fact that the relevant period ends on a date falling in the period from 1 January 2001 to 5 April 2001, the relevant period shall, notwithstanding any other provision of the Income Tax Acts, be treated as the corresponding period relating to that year of assessment.

(3F) Notwithstanding subsection (3), where the profits or gains of the year of assessment 2002 have been taken to be the full amount of the profits or gains of that year of assessment in accordance with subsection (2)(c), and the full amount of the profits or gains of the year of assessment 2001 exceed the profits or gains charged to income tax for that year of assessment, then, the profits or gains of the year of assessment 2001 shall be taken to be the full amount of the profits or gains of that year of assessment and the assessment shall be amended accordingly.”.

Special basis at commencement of trade or profession

3. In section 66, after subsection (3) there shall be inserted the following:

“(3A) As respects the year of assessment 2001, subsection (2) shall apply as if in both paragraph (a) and paragraph (b) of that subsection ‘74 per cent of the full amount of the profits or gains’ were substituted for ‘the full amount of the profits or gains’.

(3B) As respects the year of assessment 2002—

(a) subsection (2) shall apply as if ‘within the period from 6 April 2001 to 31 December 2001’ were substituted for ‘within one year preceding the year of assessment’, and

(b) subsection (3) shall apply as if ‘within the period from 6 April 2000 to 5 April 2001’ were substituted for ‘within the year next before the year preceding the year of assessment’.

(3C) As respects the year of assessment 2003, subsection (3) shall apply as if ‘within the period from 6 April 2001 to 31 December 2001’ were substituted for ‘within the year next before the year preceding the year of assessment’.”.

Special basis on discontinuance of trade or profession

4. In section 67(1)(a)—

(a) in subparagraph (i), for “the 6th day of April in that year” there shall be substituted “the first day of the year of assessment”,

and

(b) for subparagraph (ii) there shall be substituted the following:

“(ii) if the full amount of the profits or gains of the year of assessment preceding the year of assessment in which the discontinuance occurs exceeds the amount on which that person has been charged for that preceding year of assessment, or would have been charged if no such deduction or set-off to which such person may be entitled under section 382 had been allowed, an additional assessment may be made on such person, so that such person shall be charged for that preceding year of assessment on the full amount of the profits or gains of that preceding year of assessment, subject to any such deduction or set-off to which such person may be entitled.”.

Schedule E: basis of assessment, persons chargeable and extent of charge

5. In section 112(1), for “shall be charged annually” there shall be substituted “shall be charged for each year of assessment”.

Fixed deduction for certain classes of persons

6. In section 115, for “the average annual amount” there shall be substituted “the average amount for a year of assessment”.

Expenses allowances and provisions relating to general benefits in kind charge

7. In section 116(3), for “£1,500” (in both places where it occurs) there shall be substituted “£1,110”.

Benefit of use of car

8. In section 121—

(a) in subsection (3), after paragraph (b) there shall be inserted the following:

“(c) Notwithstanding paragraphs (a) and (b), the cash equivalent of the benefit of a car for the year of assessment 2001 shall be 74 per cent of the amount of the cash equivalent of the car for that year as ascertained under those paragraphs.”,

(b) after subsection (4) there shall be inserted the following:

“(4A) As respects the year of assessment 2001, subsection (4) shall apply—

(a) as if in paragraph (a) of that subsection ‘11,100 miles’ were substituted for ‘15,000 miles’,

and

(b) as if the following were substituted for the Table to that subsection:

‘TABLE

Business mileage

Percentage

lower limit

upper limit

(1)

(2)

(3)

Miles

Miles

11,100

11,840

97.5 per cent

11,840

12,580

95 per cent

12,580

13,320

90 per cent

13,320

14,060

85 per cent

14,060

14,800

80 per cent

14,800

15,540

75 per cent

15,540

16,280

70 per cent

16,280

17,020

65 per cent

17,020

17,760

60 per cent

17,760

18,500

55 per cent

18,500

19,240

50 per cent

19,240

19,980

45 per cent

19,980

20,720

40 per cent

20,720

21,460

35 per cent

21,460

22,200

30 per cent

22,200

--

25 per cent

’.”,

(c) in subsection (5), after paragraph (a) there shall be inserted the following:

“(aa) As respects the year of assessment 2001, paragraph (a) shall apply as if in subparagraph (ii) of that paragraph ‘3,700 miles’ were substituted for ‘5,000 miles’.”,

and

(d) in subsection (6), after paragraph (b) there shall be inserted the following:

“(bb) As respects the year of assessment 2001, paragraph (b) shall apply as if ‘3,700 miles’ were substituted for ‘5,000 miles’.”.

Deferral of payment of tax under section 128 (share options)

9. In section 128A—

(a) in subsection (3), for “31 January” there shall be substituted “31 October”,

and

(b) in subsection (4), for “1 November” (in both places where it occurs) there shall be substituted “31 October”.

Attribution of distributions to accounting periods

10. In section 154(3)(a), for “the 6th day of April, 2002,” there shall be substituted “1 January 2003”.

Deduction of dividend withholding tax on settlement of market claims

11. In section 172LA(7), for “the 21st day of May” there shall be substituted “15 February”.

Relief for agreed pay restructuring

12. In section 202(2)(g), for “6 April 2003” there shall be substituted “1 January 2004”.

Relief for interest paid on certain home loans

13. In section 244(1)(a), in the definition of “relievable interest”, for “£4,000”, “£2,000”, “£5,000” and “£2,500” there shall be substituted “£2,960”, “£1,480”, “£3,700” and “£1,850”, respectively.

Extension of relief under section 248 to certain individuals in relation to loans applied in acquiring interest in certain companies

14. In section 250(3), for “£2,400” there shall be substituted “£1,776”.

Restriction of relief to individuals on loans applied in acquiring interest in companies which become quoted companies

15. In section 252(1), in paragraph (b) of the definition of “the specified date”, for “the 6th day of April” there shall be substituted “1 January”.

Deposit interest retention tax

16. In section 258—

(a) in subsection (4)(b), for “the 6th day of April” there shall be substituted “1 January”,

and

(b) after subsection (4) there shall be inserted the following:

“(4A) For the purposes of this section and subject to subsection (4B), interest payable by a relevant deposit taker in respect of a relevant deposit, other than interest which cannot be determined until the date of payment of such interest, notwithstanding that the terms under which the deposit was made are complied with fully, shall be deemed—

(a) to accrue from day to day, and

(b) to be relevant interest paid by the relevant deposit taker on 31 December in each year of assessment to the extent that—

(i) it is deemed to accrue in that year of assessment, and

(ii) it is not paid in that year of assessment,

and the relevant deposit taker shall account for appropriate tax accordingly.

(4B) (a) Where, apart from subsection (4A), a relevant deposit taker makes a payment of relevant interest which is or includes interest (in paragraph (b) referred to as ‘accrued interest’) which, by virtue of that subsection, is deemed to have been paid by the relevant deposit taker on 31 December in a year of assessment, the relevant deposit taker shall—

(i) deduct out of the whole of the amount of that payment the appropriate tax in relation to that payment in accordance with section 257, and

(ii) account for that appropriate tax under this section,

and that appropriate tax shall be due and payable by the relevant deposit taker in accordance with this section.

(b) So much of the appropriate tax paid by the relevant deposit taker by virtue of subsection (4A) as is referable to accrued interest included in a payment of relevant interest referred to in paragraph (a) shall be set off against any amount of appropriate tax due and payable by the relevant deposit taker for the year of assessment in which that payment of interest is made or against any amount, or amount on account of, appropriate tax due and payable by it for a year of assessment subsequent to that year (any such set-off being effected as far as may be against an amount so due and payable at an earlier date rather than a later date).”.

17. In section 259(2)—

(a) for “the period of 12 months” there shall be substituted “the period of 270 days”,

and

(b) in paragraph (c), for “the 5th day of April” there shall be substituted “31 December”.

18. In section 260(4)(a)(i), for “the 6th day of April,” there shall be substituted “1 January”.

Capital allowances: wear and tear allowances

19. In section 284, after subsection (3A) (inserted by the Finance Act, 1998 ) there shall be inserted the following:

“(3B) For the purposes of subsections (2)(b) and (3A)(c), and notwithstanding any other provision of the Income Tax Acts, the length of the basis period for the year of assessment 2001 shall be deemed to be—

(a) the length of that period as determined in accordance with section 306, or

(b) 270 days,

whichever is the lesser.”.

Owner-occupier allowance: Custom House Docks Area, Temple Bar Area, Designated Areas and Designated Streets, Dublin Docklands Area, Qualifying (Urban) Areas, Qualifying Rural Areas and Designated Areas of Certain Towns

20. In sections 328, 337, 349, 371, 372I, 372RA and 372AH, after subsection (2) in each of those sections there shall be inserted the following:

“(2A) Where the year of assessment first mentioned in subsection (2) or any of the 9 subsequent years of assessment is the year of assessment 2001, that subsection shall apply—

(a) as if for ‘any of the 9 subsequent years of assessment’ there were substituted ‘any of the 10 subsequent years of assessment’,

(b) as respects the year of assessment 2001, as if ‘3.7 per cent’ and ‘7.4 per cent’ were substituted for ‘5 per cent’ and ‘10 per cent’, respectively, and

(c) as respects the year of assessment which is the 10th year of assessment subsequent to the year of assessment first mentioned in that subsection, as if ‘1.3 per cent’ and ‘2.6 per cent’ were substituted for ‘5 per cent’ and ‘10 per cent’, respectively.”.

Owner-occupier allowance: Designated Islands and Park and Ride Facilities

21. In sections 364 and 372Y, after subsection (2) in each of those sections there shall be inserted the following:

“(2A) Where the year of assessment first mentioned in subsection (2)(a) or any of the 9 subsequent years of assessment is the year of assessment 2001, that subsection shall apply—

(a) as if for ‘any of the 9 subsequent years of assessment’ there were substituted ‘any of the 10 subsequent years of assessment’,

(b) as respects the year of assessment 2001, as if ‘3.7 per cent’ were substituted for ‘5 per cent’, and

(c) as respects the year of assessment which is the 10th year of assessment subsequent to the year of assessment first mentioned in that subsection, as if ‘1.3 per cent’ were substituted for ‘5 per cent’.”.

Relief for health expenses

22. In section 469(2)—

(a) in paragraph (a), for “£100” there shall be substituted “£74”,

and

(b) in paragraph (b), for “£200” (in both places where it occurs) there shall be substituted “£148”.

Relief for investment in films

23. In section 481—

(a) in subsection (6), for “£200” there shall be substituted “£148”,

and

(b) in subsection (7), for “£25,000” there shall be substituted “£18,500”.

Relief for expenditure on significant buildings and gardens

24. In section 482(1)(a)—

(a) in paragraph (ii) of the definition of “qualifying expenditure”, after “£5,000” there shall be inserted “or, where the chargeable period is the year of assessment 2001, £3,700”,

and

(b) in paragraph (i)(II) of the definition of “relevant expenditure”, after “£5,000” there shall be inserted “or, where the chargeable period is the year of assessment 2001, £3,700”.

Business Expansion Scheme: limits on relief

25. In section 490—

(a) in subsection (1)(a), for “£200” there shall be substituted “£148”,

and

(b) in subsection (2), for “£25,000” there shall be substituted “£18,500”.

Business Expansion Scheme: individuals qualifying for seed capital relief

26. In section 494(2)(a)(II), after “£15,000” there shall be inserted “or, in the case of the year of assessment 2001, £11,100”.

Profit Sharing Schemes: excess or unauthorised shares

27. In section 515, in both subsections (1) and (2), for “£10,000” there shall be substituted “£7,400”.

Professional Services Withholding Tax: interpretation

28. In section 520—

(a) in subsection (1)—

(i) for subparagraph (i) of paragraph (a) of the definition of “basis period for a year of assessment” there shall be substituted the following:

“(i) where 2 basis periods overlap, then, subject to subsection (3), the period common to both shall be deemed for the purposes of this Chapter to fall in the second basis period only,”,

and

(ii) for the definition of “income tax month” there shall be substituted the following:

“income tax month' means—

(a) in relation to a period prior to 6 December 2001, a month beginning on the 6th day of a month and ending on the 5th day of the next month,

(b) the period beginning on 6 December 2001 and ending on 31 December 2001, and

(c) thereafter, a calendar month;”,

and

(b) after subsection (2), there shall be inserted the following:

“(3) Where, by virtue of the application of subsections (2)(a) and (3B) of section 65, a specified person's basis period for the year of assessment 2002, being a 12 month period ending in the period from 1 January 2002 to 5 April 2002, is also treated as the specified person's basis period for the year of assessment 2001, that basis period shall be deemed for the purposes of this Chapter to be the basis period for the year of assessment 2001 only.”.

Professional Services Withholding Tax: returns and collection

29. In section 525(1), for “10 days” there shall be substituted “14 days”.

Professional Services Withholding Tax: interim refunds

30. In section 527, after subsection (3) there shall be inserted the following:

“(3A) Where a specified person makes a claim for an interim refund of the whole or part of the appropriate tax referable to the basis period for the year of assessment 2001 or the year of assessment 2002, subsection (3) shall apply as if the reference in that subsection to the amount of tax referred to in subsection (2)(b) were a reference to—

(a) in the case where the claim relates to the basis period for the year of assessment 2001, 74 per cent, and

(b) in the case where the claim relates to the basis period for the year of assessment 2002, 135 per cent,

of the amount of tax referred to in subsection (2)(b).”.

Relevant Contracts Tax: interpretation

31. In section 530(1)—

(a) for the definition of “income tax month” there shall be substituted the following:

“‘income tax month’ means—

(a) in relation to a period prior to 6 December 2001, a month beginning on the 6th day of a month and ending on the 5th day of the next month,

(b) the period beginning on 6 December 2001 and ending on 31 December 2001, and

(c) thereafter, a calendar month;”,

and

(b) in the definition of “qualifying period”, for “the 5th day of April” and “the 6th day of April” there shall be substituted “31 December” and “1 January”, respectively.

Relevant Contracts Tax: returns, payments and repayments

32. In section 531—

(a) in subsection (3A)(a), for “Within 9 days from the end of an income tax month” and “that income tax month” there shall be substituted “Not later than the 14th day of an income tax month” and “the previous income tax month”, respectively,

(b) in subsection (5)(b), for “commencing on the 6th day of April in a year of assessment and ending on the 5th day of the month following the date of the payment or, if the payment was made on or before the 5th day of a month, ending on the 5th day of that month” of “commencing on the 1st day of a year of assessment and ending on the last day of the income tax month in which the payment was made”,

and

(c) in subsection 12(d), for “income tax year” (in both places where it occurs) there shall be substituted “year of assessment”.

Capital Gains Tax: adjustment of allowable expenditure by reference to consumer price index

33. In section 556(1), in the definition of “the consumer price index number relevant to any year of assessment”, for “mid-February” there shall be substituted “mid-November”.

Capital Gains Tax: annual exempt amount

34. In section 601, for “£1,000” (in each place it occurs in subsections (1), (2) and (3)) there shall be substituted “£740”.

Capital Gains Tax: disposal of principal private residence

35. In section 604(12)(c), for “£15,000” there shall be substituted “£11,100”.

Capital Gains Tax: exclusion of certain disposals from taxation regime applying to development land

36. In section 650, for “£15,000” there shall be substituted “£11,100”.

Averaging of farming profits

37. In section 657—

(a) in subsection (5)—

(i) in paragraph (a), for “the 5th day of April” there shall be substituted “31 December”, and

(ii) after paragraph (a) there shall be inserted the following:

“(aa) As respects the year of assessment 2001, this subsection shall apply as if in paragraph (a) ‘74 per cent of the full amount of those profits or gains’ were substituted for ‘the full amount of those profits or gains’.

(ab) For the purposes of paragraph (a), where an individual makes up annual accounts to a date in the period from 1 January 2002 to 5 April 2002, those accounts shall, in addition to being accounts made up to a date in the year of assessment 2002, be treated as accounts made up to a date in the year of assessment 2001.”,

(b) after subsection (8) there shall be inserted the following:

“(8A) Where as respects the year of assessment 2002 an individual duly elects or is deemed to have elected in accordance with subsection (7), subsection (8) shall apply as if the following were substituted for paragraph (b) of that subsection:

(b) there shall be made such assessment or assessments, if any, as may be necessary to secure that the amount of the profits or gains from farming on which the individual is charged for each of the years of assessment 1999-2000 and 2000-2001 shall be not less than 135 per cent of the amount on which the individual is charged by virtue of subsection (6) in accordance with subsection (5) for the year of assessment 2001.'.

(8B) Where as respects the year of assessment 2003 an individual duly elects or is deemed to have elected in accordance with subsection (7), subsection (8) shall apply as if the following were substituted for paragraph (b) of that subsection:

‘(b) there shall be made such assessment or assessments, if any, as may be necessary to secure that the amount of the profits or gains from farming on which the individual is charged for the year of assessment 2000-2001 and the year of assessment 2001 shall be—

(i) in the case of the year of assessment 2000-2001, not less than, and

(ii) in the case of the year of assessment 2001, not less than 74 per cent of,

the amount on which the individual is charged by virtue of subsection (6) in accordance with subsection (5) for the year of assessment 2002.’.

(8C) Where as respects the year of assessment 2004 an individual duly elects or is deemed to have elected in accordance with subsection (7), subsection (8) shall apply as if the following were substituted for paragraph (b) of that subsection:

‘(b) there shall be made such assessment or assessments, if any, as may be necessary to secure that the amount of the profits or gains from farming on which the individual is charged for each of the years of assessment 2001 and 2002 shall be—

(i) in the case of the year of assessment 2001, not less than 74 per cent of, and

(ii) in the case of the year of assessment 2002, not less than,

the amount on which the individual is charged by virtue of subsection (6) in accordance with subsection (5) for the year of assessment 2003.’.”,

and

(c) after subsection (11) there shall be inserted the following:

“(11A) As respects the year of assessment 2001, subsection (11) shall apply as if in that subsection ‘74 per cent of one-third of the amount of such excess’ were substituted for ‘one-third of the amount of such excess’ and, where this subsection applies, the individual may claim that 26 per cent of one-third of the amount of the excess referred to in subsection (11) shall, notwithstanding anything to the contrary in that subsection, be carried forward under section 382 for deduction from or set-off against the profits or gains of the individual from farming for any subsequent year of assessment.”.

Farming: allowances for capital expenditure on the construction of farm buildings, etc., for control of pollution

38. In section 659(1)(c), for “6 April 2003” there shall be substituted “1 January 2004”.

Returns of share or loan interest by industrial and provided societies

39. In section 700(3)—

(a) for “the 1st day of May” there shall be substituted “31 January”,

and

(b) in paragraph (a), for “£70” there shall be substituted “£52”.

Special investment schemes

40. In section 737(8)(a)(i), for “the 5th day of April” there shall be substituted “31 December”.

Retirement annuities: nature and amount of relief for qualifying premiums

41. In section 787(2A), for “£200,000” there shall be substituted “£148,000”.

Residence of individuals

42. In section 819—

(a) in subsection (1)—

(i) in paragraph (a), for “183 days” there shall be substituted “135 days”, and

(ii) in paragraph (b), for “280 days” there shall be substituted “244 days”,

and

(b) in subsection (2), for “30 days” there shall be substituted “22 days”.

Application of sections 17 and 18(1) and Chapter 1 of Part 3 in case of persons ordinarily resident in the State

43. In section 821(1)(b), for “£3,000” there shall be substituted “£2,220”.

Residence treatment of donors of gifts to the State

44. In section 825(1), in paragraph (a) of the definition of “visits”, for “182 days” there shall be substituted “135 days”.

Reduction in income tax for certain income earned outside the State

45. In section 825A(1), in paragraph (b) of the definition of “qualifying employment” for “13 weeks” there shall be substituted “10 weeks”.

Special portfolio investment accounts

46. In section 838—

(a) in subsection (4)(e), for “the 5th day of April” there shall be substituted “31 December”,

and

(b) in subsection (6)—

(i) in paragraph (a)(i), for “the 5th day of April” there shall be substituted “31 December”,

and

(ii) in paragraph (c), for “the 1st day of November” there shall be substituted “31 October”.

Returns of income

47. In section 879, for subsection (3) there shall be substituted the following:

“(3) The amount of income from any source to be included in a return under this section shall be computed in accordance with the Income Tax Acts; but where under Chapter 3 of Part 4 the profits or gains (or, as respects the year of assessment 2001, 74 per cent of the profits or gains) of a particular 12 month period are to be taken to be the profits or gains of a year of assessment, the computation shall be made by reference to that period.”.

Partnership returns

48. In section 880, after subsection (3) there shall be inserted the following:

“(3A) For the purposes of subsection (3), an account made up for a period of one year to a date falling in the period from 1 January 2002 to 5 April 2002 shall, in addition to being an account made up to a date in the year of assessment 2002, be deemed to be an account made up to a date within the year of assessment 2001.”.

Returns of certain information by third parties

49. In section 894(1), in paragraph (a) of the definition of “specified return date for the chargeable period”, for “the 31st day of January” there shall be substituted “31 October”.

Returns in relation to foreign accounts

50. In section 895(1), in paragraph (a) of the definition of “specified return date for the chargeable period”, for “the 31st day of January” there shall be substituted “31 October”.

Returns of employees' emoluments, etc.

51. In section 897(2)(e), for “£1,500” there shall be substituted “£1,110”.

Due date for payment of income tax other than under self assessment

52. In section 960, for “the 1st day of November” (in both places where it occurs) there shall be substituted “31 October”.

PAYE system

53. In section 983, for the definition of “income tax month” there shall be substituted the following:

“‘income tax month’ means—

(a) in relation to a period prior to 6 December 2001, a month beginning on the 6th day of a month and ending on the 5th day of the next month,

(b) the period beginning on 6 December 2001 and ending on 31 December 2001, and

(c) thereafter, a calendar month;”.

Treatment for tax purposes of certain unpaid remuneration

54. In section 996(1), in paragraph (b)(ii) of the definition of “relevant date”, for “5th day of April” there shall be substituted “31st day of December”.

Restrictions on relief for losses, interest and capital allowances in case of certain partners

55. In section 1013(2C)—

(a) in paragraph (d)(iii), for “the year of assessment 2001-2002” there shall be substituted “the year of assessment 2002”,

and

(b) in paragraph (e)(II)—

(i) for “6 April 2004” there shall be substituted “1 January 2005”,

and

(ii) for “the year of assessment 2004-2005” (in both places where it occurs) there shall be substituted “the year of assessment 2005”.

Assessment of wife in respect of income of both spouses

56. In section 1019, for “the 6th day of July” (in both places where it occurs in subsections (2)(a)(ii) and (5)) there shall be substituted “1 April”.

Special provisions relating to year of marriage

57. In section 1020—

(a) in subsection (1), for the definition of “income tax month” there shall be substituted the following:

“‘income tax month’ means—

(a) in relation to a period prior to 6 December 2001, a month beginning on the 6th day of a month and ending on the 5th day of the next month,

(b) the period beginning on 6 December 2001 and ending on 31 December 2001, and

(c) thereafter, a calendar month;”,

and

(b) in the formula in subsection (3), for “12” there shall be substituted “9”.

Application for separate assessments

58. In section 1023, for “the 6th day of July” (in each place where it occurs in subsections (3) and (4)) there shall be substituted “1 April”.

Capital Gains Tax: assessment of married persons

59. In section 1028, for “the 6th day of July” (in each place where it occurs in subsections (2) and (3)) there shall be substituted “1 April”.

Profit Sharing Schemes: approval of schemes

60. In Schedule 11, in paragraph 3(4), for “£10,000” there shall be substituted “£7,400”.

Application

61. (a) Paragraphs 7, 13, 14, 17(a), 22, 23, 24, 25, 27, 34, 35, 36, 39(b) and 41, subparagraphs (a)(i) and (b) of paragraph 42, and paragraphs 43, 44, 45, 51, 57(b) and 60 shall apply only as respects the year of assessment 2001.

(b) Paragraph 9(a) shall apply where the relevant year (within the meaning of section 128A(3) of the Taxes Consolidation Act, 1997 ) is the year of assessment 2001 or any subsequent year of assessment.

(c) Paragraphs 11, 16(b), 17(b), 40, 46, 49, 50 and 52 shall apply as respects the year of assessment 2001 and subsequent years of assessment.

(d) Paragraphs 15, 29, 31(b), subparagraphs (a) and (b) of paragraph 32, and paragraph 33 shall apply as on and from 1 January 2002.

(e) Paragraphs 16(a), 18, 56, 58 and 59 shall apply as respects the year of assessment 2002 and subsequent years of assessment.

(f) Paragraph 39(a) shall apply in relation to a return due under section 700(3) of the Taxes Consolidation Act, 1997 , in respect of the year of assessment 2001 or any subsequent year of assessment.

(g) Paragraph 42(a)(ii) shall apply only as respects the year of assessment 2001 and the year of assessment 2002.