Number 11 of 2007

FINANCE ACT 2007

ARRANGEMENT OF SECTIONS

PART 1

Income Tax, Corporation Tax and Capital Gains Tax

Chapter 1

Interpretation

Section

1.Interpretation (Part 1).

Chapter 2

Income Tax

2. Amendment of section 15 (rate of charge) of Principal Act.

3. Personal tax credits.

4. Age exemption.

5. Amendment of section 473 (allowance for rent paid by certain tenants) of Principal Act.

6. Amendment of section 244 (relief for interest paid on certain home loans) of Principal Act.

7. Amendment of section 122 (preferential loan arrangements) of Principal Act.

8. Employees of certain agencies: foreign service allowances.

9. Personal reliefs: returns of certain information by third parties, etc.

10. Amendment of section 126 (tax treatment of certain benefits payable under Social Welfare Acts) of Principal Act.

11. Exemption from tax on certain income.

12. Exemption in respect of certain expense payments.

13. Amendment of Schedule 13 (accountable persons for purposes of Chapter 1 of Part 18) to Principal Act.

14. Amendment of section 216A (rent-a-room relief) of Principal Act.

15. Amendment of section 216C (childcare services relief) of Principal Act.

16. Amendment of section 664 (relief for certain income from leasing of farm land) of Principal Act.

17. Retirement benefits.

18. Provisions relating to Chapter 2A (limitation on amount of certain reliefs used by certain high income individuals) of Part 15 of Principal Act.

Chapter 3

Income Tax, Corporation Tax and Capital Gains Tax

19. Amendment of Part 16 (income tax relief for investment in corporate trades — business expansion scheme and seed capital scheme) of Principal Act.

20. Amendment of Part 40 (appeals) of Principal Act.

21. Amendment of section 373 (interpretation (Part 11)) of Principal Act.

22. Amendment of section 657A (taxation of certain farm payments) of Principal Act.

23. Restructuring aid for sugar beet growers.

24. Amendment of Chapter 2 (farming: relief for increase in stock values) of Part 23 of Principal Act.

25. Amendment of section 669A (interpretation) of Principal Act.

26. Taxation of stallion profits and gains.

27. Amendment of Schedule 26A (donations to approved bodies, etc. ) to Principal Act.

28. Capital allowances for qualifying residential units associated with registered nursing homes.

29. Mid-Shannon corridor tourism infrastructure investment scheme.

30. Amendment of section 1008 (separate assessment of partners) of Principal Act.

31. Amendment of Chapter 2 (payments to subcontractors in certain industries) of Part 18 of Principal Act.

32. Amendment of Part 36A (special savings incentive accounts) of Principal Act.

33. Amendment of Part 36B (pensions: incentive tax credits) of Principal Act.

34. Certain interest payments by deposit takers.

35. Relief from double taxation.

36. Unilateral relief from double taxation.

37. Amendment of section 81 (general rule as to deductions) of Principal Act.

38. Dividend withholding tax.

39. Amendment of Part 27 (unit trusts and offshore funds) of Principal Act.

40. Investment undertakings and certain offshore funds: taxation of personal portfolio investment undertakings.

41. Amendment of section 739D (gain arising on a chargeable event) of Principal Act.

42. Amendment of section 730H (interpretation and application) of Principal Act.

43. Amendment of Chapter 5 (policyholders — new basis) of Part 26 of Principal Act.

44. Amendment of Chapter 1 (transfer of assets abroad) of Part 33 of Principal Act.

45. Amendment of section 234 (certain income derived from patent royalties) of Principal Act.

Chapter 4

Corporation Tax

46. Amendment of section 766 (tax credit for research and development expenditure) of Principal Act.

47. Amendment of section 958 (date for payment of tax) of Principal Act.

48. Group relief for certain foreign losses.

49. Amendment of section 79B (matching of foreign currency assets with certain foreign currency share capital) of Principal Act.

50. Amendment of section 452 (application of section 130 to certain interest) of Principal Act.

51. Amendment of section 486B (relief for investment in renewable energy generation) of Principal Act.

Chapter 5

Capital Gains Tax

52. Amendment of Chapter 6 (transfers of business assets) of Part 19 of Principal Act.

53. Amendment of section 603A (disposal of site to child) of Principal Act.

54. Amendment of Schedule 15 (list of bodies for purposes of section 610) to Principal Act.

55. Amendment of section 746 (offshore income gains accruing to persons resident or domiciled abroad) of Principal Act.

56. Amendment of section 980 (deduction from consideration on disposal of certain assets) of Principal Act.

PART 2

Excise

57. Amendment of section 144 (power to deal with seizures, before and after condemnation) of Finance Act 2001.

58. Miscellaneous excise repeals.

59. Rates of mineral oil tax.

60. Mineral oil tax rates for substitute fuels.

61. Mineral oil tax offences.

62. Rates of tobacco products tax.

63. Amendment of section 130 (interpretation) of Finance Act 1992.

64. Amendment of section 135 (temporary exemption from registration) of Finance Act 1992.

65. Remission or repayment in respect of vehicle registration tax on certain hybrid electric vehicles, or certain flexible fuel vehicles, or certain electric vehicles.

66. Amendment of section 21 (hours of business in registered premises) of Betting Act 1931.

67. Excise duty on registration of firearms dealers.

68. Excise duty on firearm certificate.

69. Excise duty on firearm certificate for non-resident.

70. Excise duty on authorisation of rifle or pistol club or shooting range.

71. Excise duty on firearms training certificate.

72. Excise duty on licence for reloading of ammunition.

73. Excise duty on authorisation to possess, use, carry, sell or expose for sale a restricted firearm.

74. Excise: designation of secure premises for keeping of detained or seized goods.

PART 3

Value-Added Tax

75. Interpretation (Part 3).

76. Amendment of section 3 (supply of goods) of Principal Act.

77. Amendment of section 5 (supply of services) of Principal Act.

78. Amendment of section 7 (waiver of exemption) of Principal Act.

79. Amendment of section 8 (taxable persons) of Principal Act.

80. Amendment of section 10 (amount on which tax is chargeable) of Principal Act.

81. Amendment of section 10A (margin scheme goods) of Principal Act.

82. Amendment of section 10B (special scheme for auctioneers) of Principal Act.

83. Amendment of section 12 (deduction for tax borne or paid) of Principal Act.

84. Amendment of section 12A (special provisions for tax invoiced by flat-rate farmers) of Principal Act.

85. Amendment of section 12B (special scheme for means of transport supplied by taxable dealers) of Principal Act.

86. Amendment of section 12C (special scheme for agricultural machinery) of Principal Act.

87. Amendment of section 14 (determination of tax due by reference to cash receipts) of Principal Act.

88. Amendment of section 15B (goods in transit (additional provisions)) of Principal Act.

89. Amendment of section 16 (duty to keep records) of Principal Act.

90. Amendment of section 17 (invoices) of Principal Act.

91. Amendment of section 25 (appeals) of Principal Act.

92. Amendment of section 32 (regulations) of Principal Act.

93. Amendment of First Schedule to Principal Act.

94. Amendment of Second Schedule to Principal Act.

95. Amendment of Fourth Schedule to Principal Act.

96. Amendment of Sixth Schedule to Principal Act.

97. Miscellaneous amendments relating to Council Directive 2006/112/EC.

98. Revocation, etc. (Part 3).

PART 4

Stamp Duties

99. Interpretation (Part 4).

100. Mortgages.

101. Simplification measures.

102. Amendment of section 81A (further relief from stamp duty in respect of transfers to young trained farmers) of Principal Act.

103. Transfers to young trained farmers and qualifications.

104. Further farm consolidation relief.

105. Approved sports bodies.

106. Amendment of section 83A (transfer of site to child) of Principal Act.

107. Certain family farm transfers.

108. Amendment of section 92B (residential property first time purchaser relief) of Principal Act.

109. Amendment of Part 6 (special provisions relating to uncertificated securities) of Principal Act.

110. Land: special provisions.

111. Amendment of section 159A (time limits for claiming a repayment of stamp duty) of Principal Act.

PART 5

Capital Acquisitions Tax

112. Interpretation (Part 5).

113. Amendment of section 18 (computation of tax) of Principal Act.

114. Amendment of section 21 (application of this Act) of Principal Act.

115. Amendment of section 51 (payment of tax and interest on tax) of Principal Act.

116. Amendment of section 86 (exemption relating to certain dwellings) of Principal Act.

117. Amendment of section 89 (provisions relating to agricultural property) of Principal Act.

PART 6

Residential Property Tax

118. Amendment of section 110A (clearance on sale of certain residential property) of Finance Act 1983.

PART 7

Miscellaneous

119. Interpretation (Part 7).

120. Amendment of section 1001 (liability to tax, etc. of holder of fixed charge on book debts of company) of Principal Act.

121. Amendment of provisions relating to interest on repayments.

122. Amendment of section 1003A (payment of tax by means of donation of heritage property to an Irish heritage trust) of Principal Act.

123. Amendment of Part 38 (returns of income and gains, other obligations and returns, and revenue powers) of Principal Act.

124. Amendment of Chapter 4 (revenue powers) of Part 38 of Principal Act.

125. Amendment of section 1003 (payment of tax by means of donation of heritage items) of Principal Act.

126. Amendment of section 1078 (revenue offences) of Principal Act.

127. Customs Acts: designation of secure premises for keeping of detained or seized goods.

128. Miscellaneous technical amendments in relation to tax.

129. Care and management of taxes and duties.

130. Short title, construction and commencement.

SCHEDULE 1

Amendments Consequential on Changes in Personal Tax Credits

SCHEDULE 2

Miscellaneous Technical Amendments in Relation to Arrangements for Relief from Double Taxation

SCHEDULE 3

Miscellaneous Amendments Relating to Council Directive 2006/112/EC

SCHEDULE 4

Miscellaneous Technical Amendments in Relation to Tax

Acts Referred to

Number 11 of 2007

FINANCE ACT 2007

AN ACT TO PROVIDE FOR THE IMPOSITION, REPEAL, REMISSION, ALTERATION AND REGULATION OF TAXATION, OF STAMP DUTIES AND OF DUTIES RELATING TO EXCISE AND OTHERWISE TO MAKE FURTHER PROVISION IN CONNECTION WITH FINANCE INCLUDING THE REGULATION OF CUSTOMS.

[2nd April, 2007]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

PART 1

Income Tax, Corporation Tax and Capital Gains Tax

Chapter 1

Interpretation

Interpretation (Part 1).

1.— In this Part “ Principal Act ” means the Taxes Consolidation Act 1997 .

Chapter 2

Income Tax

Amendment of section 15 (rate of charge) of Principal Act.

2.— As respects the year of assessment 2007 and subsequent years of assessment, section 15 of the Principal Act is amended—

(a) by substituting “€25,000” for “€23,000” (inserted by the Finance Act 2006 ) in subsection (3), and

(b) by substituting the following Table for the Table (as so inserted) to that section:

“TABLE

PART 1

PART 2

PART 3

”.

Personal tax credits.

3.— (1) Where an individual is entitled under a provision of the Principal Act mentioned in column (1) of the Table to this subsection to have the income tax to be charged on the individual, other than in accordance with the provisions of section 16(2) of the Principal Act, reduced for the year of assessment 2007 or any subsequent year of assessment and the amount of the reduction would, but for this section, be an amount which is the lesser of—

(a) the amount specified in column (2) of that Table, and

(b) the amount which reduces that liability to nil,

the amount of the reduction in accordance with paragraph (a) shall be the amount of the tax credit specified in column (3) of the Table.

TABLE

(2) Section 3 (as amended by the Finance Act 2006 ) of the Finance Act 2002 shall have effect subject to the provisions of this section.

(3) Schedule 1 shall apply for the purposes of supplementing subsection (1).

Age exemption.

4.— As respects the year of assessment 2007 and subsequent years of assessment, section 188 of the Principal Act is amended, in subsection (2), by substituting “€38,000” for “€34,000” (inserted by the Finance Act 2006 ) and “€19,000” for “€17,000” (as so inserted).

Amendment of section 473 (allowance for rent paid by certain tenants) of Principal Act.

5.— Section 473 of the Principal Act is amended, as respects the year of assessment 2007 and subsequent years of assessment, by the substitution in subsection (1) of the following definition for the definition of “specified limit” (inserted by the Finance Act 2006 ):

“ ‘ specified limit ’, in relation to an individual for a year of assessment, means—

(a) in the case of—

(i) a married person assessed to tax in accordance with section 1017, or

(ii) a widowed person,

€3,600; but, if at any time during the year of assessment the individual was of the age of 55 years or over, ‘specified limit’ means €7,200, and

(b) in any other case, €1,800; but, if at any time during the year of assessment the individual was of the age of 55 years or over, ‘specified limit’ means €3,600;”.

Amendment of section 244 (relief for interest paid on certain home loans) of Principal Act.

6.— As respects the year of assessment 2007 and subsequent years of assessment, section 244 of the Principal Act is amended in the definition of “ relievable interest ” in subsection (1)(a)—

(a) by substituting “€6,000” for “€5,080”,

(b) by substituting “€3,000” for “€2,540”,

(c) by substituting “€16,000” for “€8,000”, and

(d) by substituting “€8,000” for “€4,000”.

Amendment of section 122 (preferential loan arrangements) of Principal Act.

7.— As respects the year of assessment 2007 and subsequent years of assessment, section 122 of the Principal Act is amended in the definition of “ the specified rate” in subsection (1)(a)—

(a) by substituting “4.5 per cent” for “3.5 per cent” (inserted by the Finance Act 2004 ) in both places where it occurs, and

(b) by substituting “12 per cent” for “11 per cent” (inserted by the Finance Act 2003 ).

Employees of certain agencies: foreign service allowances.

8.— (1) The Principal Act is amended in Chapter 1 of Part 7 by inserting the following after section 196A (inserted by the Finance Act 2005 ):

“196B.— (1) (a) In this section ‘ emoluments ’ means emoluments to which section 985A applies.

(b) The agencies to which this section applies are as follows:

(i) Enterprise Ireland;

(ii) An Bord Bia;

(iii) Tourism Ireland Ltd;

(iv) The Industrial Development Agency (Ireland).

(2) Where any allowance to, or emoluments of, employees of the agencies to which this section applies are certified by the Minister for Finance, having consulted with the Minister for Foreign Affairs, or with such Minister of the Government as the Minister for Finance considers appropriate in the circumstances, to represent compensation for the extra cost of having to live outside the State in order to perform his or her duties, that allowance, or those emoluments, shall be disregarded as income for the purposes of the Income Tax Acts.”.

(2) This section is deemed to have taken effect as on and from 1 January 2007.

Personal reliefs: returns of certain information by third parties, etc.

9.— (1) The Principal Act is amended—

(a) in section 459 by inserting the following after subsection (5):

“(6) Where, on the basis of the information furnished to them under section 894A(2) or any other information in their possession, the Revenue Commissioners are satisfied as to the title of an individual to relief under any of the provisions specified in the Table to section 458 or under section 187 or 188 then, notwithstanding any other provision of the Income Tax Acts to the contrary, if the Revenue Commissioners consider it appropriate in the circumstances, the relief due may be given to the individual without the making of and proving of a claim for that relief.”,

(b) in section 469—

(i) in subsection (1)—

(I) in paragraph (i) of the definition of “ health expenses ” by substituting “person” for “dependant of the individual referred to in paragraphs (a) and (b)(ii) of the definition of dependant”, and

(II) by deleting the definitions of “ dependant ”, “ qualified person ” and “ relative ”,

(ii) by substituting the following for subsection (2):

“(2) Subject to this section, where an individual for a year of assessment proves that in the year of assessment he or she defrayed health expenses incurred for the provision of health care, the individual shall be entitled, for the purpose of ascertaining the amount of the income on which he or she is to be charged to income tax, to have a deduction made from his or her total income of the amount proved to have been so defrayed.”,

and

(iii) by inserting the following after subsection (6):

“(7) Where relief is given under this section to any individual in respect of an amount used to defray health expenses, relief shall not be given under any other provision of the Income Tax Acts to that individual in respect of that amount.”,

(c) in section 472C (inserted by the Finance Act 2001 )—

(i) in subsection (7), by substituting “may on receipt of a request” for “shall on receipt of a request”, and

(ii) by inserting the following after subsection (7):

“(7A) Notwithstanding the provisions of any other enactment, where trade union subscriptions of employees of an employer are deducted by the employer from the emoluments of those employees and remitted to the trade union concerned, the employer may, for the purposes of enabling that trade union to make a return under the provisions of subsection (7) and for that purpose only, on receipt of a request in that behalf from the trade union furnish to the trade union the names and the Personal Public Service Numbers of the employees who are members of that trade union, and only those employees, from whose emoluments those deductions have been made.”,

(d) in section 473A (inserted by the Finance Act 2001 )—

(i) in subsection (1), by deleting the definition of “dependant”,

(ii) in subsection (2), by deleting “, on his or her own behalf or on behalf of his or her dependant,”,

(iii) in subsection (4), by substituting “the person by whom the course is being, or was, undertaken” for “his or her dependant”,

(iv) in subsection (6)(b), by deleting “by the individual or his or her dependant”, and

(v) by inserting the following after subsection (8):

“(9) Where relief is given under this section to any individual in respect of a payment of qualifying fees, relief shall not be given under any other provision of the Income Tax Acts to that individual in respect of that payment.”,

and

(e) in Chapter 3 of Part 38, by inserting the following after section 894:

“Returns by third parties in relation to personal reliefs.

894A.— (1) In this section—

‘PPS Number’, in relation to an individual, means the individual’s Personal Public Service Number within the meaning of section 262 of the Social Welfare Consolidation Act 2005 ;

‘personal relief’ means a relief under any of the provisions specified in the Table to section 458.

(2) Where a person is in possession of information concerning expenditure defrayed by an individual that is relevant to establishing the title of that individual to a personal relief, or the amount of such a relief, that person may, notwithstanding anything contained in any other enactment or any obligation to maintain secrecy or other restriction on the disclosure of information, furnish details regarding the amount of such expenditure to the Revenue Commissioners if requested by them to do so.

(3) Information furnished to the Revenue Commissioners in accordance with subsection (2) shall, unless the Revenue Commissioners otherwise direct, be in an electronic format approved by the Revenue Commissioners and shall contain the name and address and, where known, the PPS Number of the individual in relation to whom the information is being furnished.

(4) Notwithstanding any other provision to the contrary, for the purposes of making a return under subsection (3), a person not in possession of the PPS Number of an individual shall be entitled to request that number from the individual and shall inform the individual of the purpose for requesting the number.

(5) Information furnished to them in accordance with subsection (2) shall be used by the Revenue Commissioners only for the purpose of establishing the title of an individual to the personal relief concerned, or the amount of that relief and, notwithstanding section 872, shall be used for no other purpose.

(6) Any act to be performed or function to be discharged by the Revenue Commissioners, which is authorised by this section, may be performed or discharged by any of their officers acting under their authority.”.

(2) (a) Paragraphs (a), >(c) and (e) of subsection (1) apply with effect from the passing of this Act.

(b) Paragraphs (b) and (d) of subsection (1) apply as respects the year of assessment 2007 and subsequent years of assessment.

Amendment of section 126 (tax treatment of certain benefits payable under Social Welfare Acts) of Principal Act.

10.— Section 126 of the Principal Act is amended—

(a) by substituting the following for subsection (1):

“(1) In this section ‘the Acts’ means the Social Welfare Acts.”,

(b) in subsection (3)—

(i) in paragraph (b) by substituting “section 2(3) of the Social Welfare Consolidation Act 2005 ” for “section 2(3)(a) of the Social Welfare (Consolidation) Act, 1993 ”,

(ii) by inserting the following after paragraph (b):

“(c) (i) In this paragraph ‘ short-time employment ’ has the same meaning as it has for the purposes of the Acts.

(ii) Notwithstanding paragraphs (a) and (b) and the Finance Act 1992 (Commencement of Section 15) (Unemployment Benefit and Pay-Related Benefit) Order 1994 ( S.I. No. 19 of 1994 ), paragraph (b) shall not apply in relation to unemployment benefit paid or payable, to a person employed in short-time employment.”,

and

(c) by deleting subsection (8).

Exemption from tax on certain income.

11.— The Principal Act is amended—

(a) in the definition of “relevant income” in section 189(2)(a) by substituting “section 59, 745 or 747E” for “section 59 or section 745”,

(b) in the definition of “relevant income” in section 189A(4)(a) by substituting “section 59, 745 or 747E” for “section 59 or section 745”, and

(c) in section 192(2) by substituting “section 59, 745 or 747E” for “section 59 or section 745”.

Exemption in respect of certain expense payments.

12.— As respects the year of assessment 2007 and subsequent years of assessment, the Principal Act is amended by inserting the following after section 195:

“195A.— (1) In this section—

‘ body ’ means an unincorporated body of persons or a body corporate, being—

(a) any board, council or committee, however expressed, or

(b) any body of persons exercising some or all of the functions of such a board, council or committee,

where the duties, other than incidental duties such as attendance at conventions or meetings as delegates on behalf of the body, of the office of members of the body are discharged in the course of meetings of the body concerned, or preparation for such meetings;

‘ civil servant ’ has the meaning assigned to it by section 1(1) of the Civil Service Regulation Act 1956 ;

‘ member ’, in relation to a body, means a person holding office as a member of that body—

(a) who has no other duties directly or indirectly, whether as an employee of the body or of a person connected with that body, in relation to that body, and

(b) whose annualised amount of the emoluments from the office for the year of assessment 2006 and for each subsequent year in which the person is a member of the body, other than payments to which this section applies, does not exceed—

(i) in the case of a member who is the chairperson of the body, not being a body referred to in paragraph (b) of the definition of ‘body’, €24,000, and

(ii) in any other case, €14,000;

‘ non-commercial body ’ means a body—

(a) organised solely for purposes other than profit, where the declared purposes of the body can be ascertained from documents of record,

(b) which, in fact, operates solely for purposes other than profit and, for this purpose, any activity generating income carried on by the body—

(i) which is carried on for the purposes of assisting the body to achieve its purposes, and

(ii) the income of which is used for those purposes,

shall be regarded as operating for purposes other than profit, and

(c) any benefit, or part of the income or accumulated income, of which, cannot be paid to, or cannot otherwise be made available to, any officer, employee or member of the body for the personal benefit of that person or a person connected with that person other than—

(i) any wages, salaries, fees or honorariums for services rendered to the body but only if the amounts paid are no more than reasonable amounts that would be paid in a transaction at arm’s length for similar services by a body organised solely for purposes other than profit, being a body operating in accordance with paragraph (b),

(ii) any payment to which this section applies,

(iii) any payment made to officers, employees or members to assist in the covering of expenses to attend conventions or meetings as delegates on behalf of the body where such attendance is to further the purposes of the body, and

(iv) where the officer, employee or member concerned, or a person connected with such officer, employee or member, is also an object of the purposes of the body, a benefit which is in furtherance of the purposes of the body.

(2) This section applies to payments made by a non-commercial body to or on behalf of a member of the body in respect of expenses of travel and subsistence incurred by the member in the attendance by him or her at meetings of the body.

(3) So much of any payments to which this section applies, as does not exceed the upper of any relevant rate or rates laid down from time to time by the Minister for Finance in relation to the payment of expenses of travel and subsistence of a civil servant, shall be disregarded for all the purposes of the Income Tax Acts.”.

Amendment of Schedule 13 (accountable persons for purposes of Chapter 1 of Part 18) to Principal Act.

13.— (1) Schedule 13 to the Principal Act is amended—

(a) by substituting the following for paragraph 5:

“5. Primary Care Reimbursement Service.”,

(b) by substituting the following for paragraph 118:

“118. National Sports Campus Development Authority.”,

(c) by deleting paragraphs 4 and 147, and

(d) by inserting the following after paragraph 157 (inserted by the Finance Act 2006 ):

“158. The Road Safety Authority.

159. Grangegorman Development Agency.

160. The Railway Safety Commission.

161. The Teaching Council.

162. EirGrid.

163. The Further Education and Training Awards Council.

164. Irish Auditing and Accounting Supervisory Authority.”.

(2) (a) Subsection (1)(a) is deemed to have taken effect as and from 1 January 2005.

(b) Subsection (1)(b) is deemed to have taken effect as and from 1 January 2007.

(c) Subsection (1)(c) is deemed to have taken effect as and from 1 January 2007.

(d) Subsection (1)(d) takes effect as and from 1 May 2007.

Amendment of section 216A (rent-a-room relief) of Principal Act.

14.— As respects the year of assessment 2007 and subsequent years of assessment, section 216A of the Principal Act is amended by inserting the following after subsection (3):

“(3A) Subsection (2) shall not apply for a year of assessment where the relevant sums arising to the individual are received from a child of the individual.”.

Amendment of section 216C (childcare services relief) of Principal Act.

15.— Section 216C of the Principal Act is amended in subsection (5) by substituting “€15,000” for “€10,000”.

Amendment of section 664 (relief for certain income from leasing of farm land) of Principal Act.

16.— (1) Section 664 of the Principal Act is amended—

(a) in subsection (1)(a) in the definition of “the specified amount”—

(i) in paragraph (ii)(VI)(B) of that definition by deleting “or” where it last occurs,

(ii) by substituting the following for paragraph (ii)(VII) of that definition:

“(VII) in the period beginning on 1 January 2006 and ending on 31 December 2006—

(A) €15,000, in a case where the qualifying lease or qualifying leases is or are for a definite term of 7 years or more, and

(B) €12,000, in any other case,

or

(VIII) on or after 1 January 2007—

(A) €20,000, in a case where the qualifying lease or qualifying leases is or are for a definite term of 10 years or more,

(B) €15,000, in a case where the qualifying lease or qualifying leases is or are for a definite term of 7 years or more, other than a case to which clause (A) applies, and

(C) €12,000, in any other case,”,

and

(iii) in paragraph (iii) of that definition by substituting “subparagraph (I), (II), (III), (IV), (V), (VI), (VII) or (VIII), as may be appropriate, of paragraph (ii) of this definition” for “clause (I), (II), (III), (IV) or (V), as may be appropriate, of subparagraph (ii)”,

and

(b) in subsection (1)(b) by substituting the following for subparagraph (v):

“(v) from a qualifying lease or qualifying leases made in the period beginning on 1 January 2006 and ending on 31 December 2006, and from a qualifying lease made before 1 January 2006, the specified amount shall not exceed—

(I) €15,000, in a case where the qualifying lease or qualifying leases is or are for a definite term of 7 years or more, and

(II) €12,000, in any other case;

(vi) from a qualifying lease or qualifying leases made on or after 1 January 2007, and from a qualifying lease made at any other time, the specified amount shall not exceed—

(I) €20,000, in a case where the qualifying lease or qualifying leases is or are for a definite term of 10 years or more,

(II) €15,000, in a case where the qualifying lease or qualifying leases is or are for a definite term of 7 years or more, other than a case to which clause (I) applies, and

(III) €12,000, in any other case.”.

(2) (a) Subject to paragraph (b), subsection (1) applies as follows:

(i) as respects subparagraphs (i) and (ii) of paragraph (a) and paragraph (b), as on and from 1 January 2007; and

(ii) as respects paragraph (a)(iii), as on and from 1 February 2007.

(b) Subsection (1) comes into operation on the making of an order to that effect by the Minister for Finance.

Retirement benefits.

17.— (1) Part 30 of the Principal Act is amended—

(a) in Chapter 1 by inserting the following after section 772:

“Approval of retirement benefits products.

772A.— (1) In this section—

‘ promoter ’ means a person lawfully carrying on the business of granting annuities on human life and, where that person—

(a) is not resident in the State, or

(b) is not trading in the State through a fixed place of business,

that person is an insurance undertaking authorised to transact insurance business in the State under Directive 2002/83/EC of the European Parliament and of the Council of 5 November 2002 ¹ ;

‘retirement benefits product’ means a product for the provision of relevant benefits in respect of which an application for approval has been made by a promoter to the Revenue Commissioners under this section and under which, if and when approved, a single member retirement benefits scheme may be established by way of a contract entered into with the promoter to secure the scheme;

‘single member retirement benefits scheme’, in relation to a retirement benefits product, means a retirement benefits scheme that relates to a single employee;

‘terms and rules’, in relation to a retirement benefits product, means the provisions governing a retirement benefits scheme to be established under the product, by whatever name such provisions are called.

(2) Subject to this section, the Revenue Commissioners may, if they think fit, and subject to such conditions, if any, as they think proper to attach to the approval, approve a retirement benefits product for the purposes of this Chapter.

(3) Subject to subsection (6), a retirement benefits scheme, established under a retirement benefits product for the time being approved by the Revenue Commissioners under subsection (2), shall be taken to be a retirement benefits scheme for the time being approved by the Revenue Commissioners for the purposes of this Chapter, and the provisions of this Chapter shall apply accordingly, except as otherwise provided for by this section.

(4) For the purposes of approval under subsection (2), the promoter of a retirement benefits product shall make an application to the Revenue Commissioners in writing and the application shall be in such form and contain such information and particulars as the Revenue Commissioners may from time to time determine.

(5) The Revenue Commissioners shall not approve a retirement benefits product unless the terms and rules provide that—

(a) contributions to be paid in any year, whether by an employee or by, or on behalf of, an employer in respect of that employee, may not, when aggregated, exceed the aggregate amount of annual contributions allowed to be deducted in any year by an individual in accordance with section 774(7)(c), and

(b) the provisions of section 772(3A) apply.

(6) Where an alteration has been made to the terms and rules governing a retirement benefits scheme established under a retirement benefits product for the time being approved by the Revenue Commissioners under subsection (2), then no approval taken to be given to the scheme for the time being under subsection (3) before the date of the alteration shall apply after the date of the alteration unless the alteration has been approved by the Revenue Commissioners.

(7) Where in the opinion of the Revenue Commissioners the facts concerning any retirement benefits product cease to warrant the continuance of their approval of the product, then they may at any time, by notice in writing to the promoter, withdraw their approval on such grounds, and from such date, as may be specified in the notice.

(8) Where approval of a product is withdrawn pursuant to subsection (7), there shall be made such assessments or amendment of assessments as may be appropriate for the purpose of withdrawing any relief given under this Chapter consequent on the grant of the approval.

(9) Where an alteration has been made to a retirement benefits product, then no approval given as regards the product before the alteration shall apply after the date of the alteration unless the alteration has been approved by the Revenue Commissioners.”,

(b) in Chapter 2, in section 784A(1BA)(b) by substituting “not later than the second month of the year of assessment” for “in the first month of the year of assessment”, and

(c) in Chapter 2C—

(i) in section 787O by inserting the following after subsection (4):

“(5) (a) In this subsection—

‘ applied ’, in relation to a transfer amount, means the application of the transfer amount in accordance with subsection (5), (6), (8) or (9) of section 12 of the Family Law Act 1995 or, as the case may be, subsection (5), (6), (8) or (9) of section 17 of the Family Law (Divorce) Act 1996 ;

‘ pension adjustment order ’ means an order made in accordance with section 12(2) of the Family Law Act 1995 or, as the case may be, section 17(2) of the Family Law (Divorce) Act 1996 or any variation of such an order made by an order under section 18(2) or, as the case may be, section 22(2), respectively, of those Acts, the operation of which has not been suspended (or if suspended, or further suspended, has been revived) or discharged by an order made under the said section 18(2) or, as the case may be, section 22(2) of those Acts;

‘ designated benefit ’ and ‘transfer amount’ have the meaning and construction assigned to them, respectively, in section 12 of the Family Law Act 1995 or, as the case may be, section 17 of the Family Law (Divorce) Act 1996 .

(b) For the purposes of this Chapter and Schedule 23B, where, on or after the specified date, an individual is a member of a relevant pension arrangement and the relevant pension arrangement is, or becomes, subject to a pension adjustment order, then, notwithstanding the pension adjustment order, in calculating the amount crystallised by a benefit crystallisation event occurring on or after the specified date in relation to the individual under the relevant pension arrangement—

(i) the designated benefit payable pursuant to the order, or

(ii) where the transfer amount has been applied, the designated benefit that would have been payable pursuant to the order if the transfer amount had not been so applied,

in respect of that benefit crystallisation event, shall be included in that calculation as if the pension adjustment order had not been made.”,

and

(ii) in section 787R(1)(a) by substituting “at the rate of 41 per cent” for “at the rate of 42 per cent”.

(2) (a) Subject to paragraphs (b), (c) and (d), subsection (1) has effect as on and from the date of passing of this Act.

(b) Paragraph (b) of subsection (1) shall be taken to have effect as on and from 1 January 2006.

(c) Paragraph (c)(i) of subsection (1) shall be taken to have effect as on and from 7 December 2005.

(d) Paragraph >(c)(ii) of subsection (1) shall have effect as on and from 1 January 2007.

Provisions relating to Chapter 2A (limitation on amount of certain reliefs used by certain high income individuals) of Part 15 of Principal Act.

18.— (1) Chapter 2A of Part 15 of the Principal Act is amended—

(a) in section 485C—

(i) in subsection (1)—

(I) by substituting “In this Chapter and in Schedules 25B and 25C,” for “In this Chapter and Schedule 25B,”,

(II) by substituting the following for the construction of “T” in the formula to the definition of “adjusted income”:

“T is the amount of the individual’s taxable income for the tax year determined on the basis that—

(a) this Chapter, other than section 485F, does not apply to the individual for the tax year, and

(b) if the individual, being a married person, is assessable to tax for the tax year otherwise than under section 1016, the provisions under which the individual is assessable are modified in accordance with paragraphs (i) to (vi) of section 485FA,”,

(III) by inserting the following after the definition of “excess relief”:

“ ‘ Revenue officer ’ means an officer of the Revenue Commissioners;”,

(IV) by substituting the following paragraphs for paragraph (b) of the definition of “ring-fenced income”:

“(b) income referred to in section 261B or 267M,

(c) income charged to tax in accordance with clause (I) or (II)(B) of section 730J(1)(a)(i) or section 730K(1)(b), and

(d) income charged to tax in accordance with section 747D(a)(i) or section 747E(1)(b);”,

and

(V) by substituting “any relief arising under, or by virtue of, any of the provisions” for “any of the reliefs” in the definition of “specified relief”,

(ii) by substituting the following paragraphs for paragraph (a) of subsection (3):

“(a) where, in relation to any tax year and the capital allowances to be given effect to in that year, any provision of the Tax Acts requires allowances (in this paragraph referred to as the ‘first-mentioned allowances’) for one period to be given effect to, or to be deemed to be given effect to, in priority to allowances for another period (in this paragraph referred to as the ‘second-mentioned allowances’), then—

(i) as respects the first-mentioned allowances, effect shall be given, or be deemed to be given, as the case may be, for an allowance which is not a specified relief in priority to any such allowance which is a specified relief and in priority to the second-mentioned allowances, and

(ii) as respects the second-mentioned allowances, effect shall be given, or be deemed to be given, as the case may be, for an allowance which is not a specified relief in priority to any such allowance which is a specified relief,

(ab) a deduction authorised by subsection (2) of section 97 shall be allowed in respect of a matter which is specifically referred to in that subsection in priority to a deduction authorised to be made under that subsection by virtue of a specified relief,

(ac) a deduction from total income shall be made in respect of a relief due for a tax year which is not a specified relief in priority to any such deduction due for the tax year which is a specified relief,”,

and

(iii) by substituting the following for subsection (4):

“(4) Schedules 25B and 25C shall have effect for the purposes of this Chapter.”,

(b) in section 485D(b) by substituting “the specified reliefs used by the individual in respect of the tax year” for “the specified reliefs used by the individual in the tax year”,

(c) by substituting “sections 485F and 485FA” for “section 485F” in the construction of “T” in the formula in section 485E,

(d) by inserting the following after section 485F:

“Adaptation of provisions relating to taxation of married persons.

485FA.— Where this Chapter applies to an individual or his or her spouse for a tax year, and—

(a) an election under section 1018 (including a deemed election under that section) to be assessed to tax in accordance with section 1017 has effect for the tax year,

(b) an application under section 1023 has effect for that year, or

(c) the provisions of section 1019(3) apply for that year,

in respect of the individual and his or her spouse, then the following provisions shall apply:

(i) the definition of ‘chargeable tax’ in section 3(1) shall apply as if the references to total income were references to taxable income;

(ii) subsection (1) of section 1017 shall apply as if the following paragraph was substituted for paragraph (a) of that subsection:

‘(a) the husband shall be assessed and charged to income tax, not only in respect of his taxable income (if any) for that year, but also in respect of his wife’s taxable income (if any) for any part of that year of assessment during which she is living with him and, for this purpose and for the purposes of the Income Tax Acts, the last-mentioned income shall be deemed to be his income,’;

(iii) the references to total income in—

(I) subsection (3),

(II) paragraph (a) of subsection (4) other than the references in subparagraph (ii) of that paragraph, and

(III) subsection (4)(b),

of section 1019 shall be construed as references to taxable income;

(iv) the reference to so assessed and charged for each subsequent year of assessment in section 1019(4)(a) shall be construed as a reference to—

(I) assessed and charged in respect of her taxable income (if any) and the taxable income (if any) of her husband for each subsequent year of assessment, where this Chapter applies for a tax year to either or both spouses, and

(II) assessed and charged in respect of her total income (if any) and the total income (if any) of her husband for each subsequent year of assessment, in any other case;

(v) the reference to so assessed to income tax for the year of assessment in which that notice or application is withdrawn and for each subsequent year of assessment in section 1019(4)(b) shall be construed as a reference to—

(I) assessed to income tax in respect of her own taxable income (if any) and the taxable income (if any) of her husband for the year of assessment in which that notice or application is withdrawn and for each subsequent year of assessment, where this Chapter applies for a tax year to either or both spouses, and

(II) assessed to income tax in respect of her own total income (if any) and the total income (if any) of her husband for the year of assessment in which that notice or application is withdrawn and for each subsequent year of assessment, in any other case;

and

(vi) where paragraph (a) or (c) apply to an individual and his or her spouse for a tax year, then to the extent that—

(I) the benefit flowing from such deductions as are specified in the provisions referred to in Part 1 of the Table to section 458 for the tax year exceeds the income tax chargeable on the individual’s income for the tax year, the balance shall be applied to reduce the income tax chargeable on the income of the individual’s spouse for that year, and

(II) the benefit flowing from such deductions exceed the income tax chargeable on the spouse’s income for that year, the balance shall be applied to reduce the income tax chargeable on the income of the individual for that year.

Requirement to provide estimates and information.

485FB.— (1) In this section—

‘ chargeable person ’ and ‘ specified return date for the chargeable period’ have the same meanings as in Part 41;

‘ prescribed form ’ means a form prescribed by the Revenue Commissioners or a form used under the authority of the Revenue Commissioners, and includes a form which involves the delivery of a statement by any electronic, photographic or other process approved of by the Revenue Commissioners.

(2) Where this Chapter applies to an individual for a tax year that individual shall, if not otherwise a chargeable person, be deemed to be a chargeable person for such year for the purposes of Part 41.

(3) Where this Chapter applies to an individual for a tax year that individual shall, in addition to the return required to be delivered under section 951, prepare and deliver to the Collector-General at the same time as, and together with, the return required under section 951 on or before the specified return date for the chargeable period a full and true statement in a prescribed form of the details required by the form in respect of—

(a) the amounts constituting the aggregate of the specified reliefs,

(b) the determination of those amounts, and

(c) the estimates required by subsection (4),

and of such further particulars in relation to this Chapter as may be required by the prescribed form.

(4) The estimates required by this subsection are estimates of—

(a) the individual’s taxable income for the year determined as if this Chapter, other than section 485F, did not apply to the individual for that year,

(b) the individual’s taxable income determined in accordance with section 485E, and

(c) the amount of tax that should be assessed on the individual as a consequence of the application of this Chapter,

which estimates shall be made to the best of the individual’s knowledge and belief.

(5) Where this Chapter applies to both a husband and a wife, not being persons to whom section 1016 applies, then separate statements under this section shall be required from both the husband and the wife and both statements shall be made on the same prescribed form (in this subsection referred to as a ‘combined statement’) and references in this section, other than in this subsection, to a statement required to be delivered under this section shall include references to a combined statement.

(6) (a) For the purposes of determining—

(i) the accuracy or otherwise of any details, particulars or estimates contained in the statement referred to in subsection (3), or

(ii) whether or not an individual who has not provided a statement under this section is an individual to whom this Chapter applies,

a Revenue officer may make such enquiries or take such actions within his or her powers as he or she considers necessary for the purposes of determining the matters set out in subparagraph (i) or (ii), including, in the case of subparagraph (ii), requiring by notice in writing the individual to furnish in writing to the officer within such time, not being less than 14 days, as may be provided by the notice, details of each provision in respect of which the individual is claiming tax relief for a tax year together with the amount of each separate claim and the particulars of each separate claim under that provision.

(b) Subparagraph (ii) of paragraph (a) shall only apply to an individual who has made a return under section 951 for a tax year and whose income, including income exempt from tax, from all sources and disregarding all deductions, allowances and other tax reliefs is equal to or greater than the threshold amount.

(7) Subsections (9) and (10) of section 951 shall apply to a statement required to be delivered under this section in the same way as they apply to a return required to be delivered under that section, and for this purpose a reference in those subsections to a return, other than a reference to the specified return date for the chargeable period, shall be construed as a reference to a statement under this section.

(8) Section 1052 shall apply to a failure by an individual to deliver a statement under this section or the details, amounts and particulars referred to in subsection (6) as it applies to a failure to deliver a return referred to in section 1052.”,

and

(e) in section 485G—

(i) by substituting the following for subparagraph (i) of subsection (2)(a):

“(i) for the purposes of Part 9 and that Part as applied for the purposes of any other provision of the Tax Acts, the amount of any specified relief used by the individual in the tax year shall be determined without regard to the application to the individual for that year of section 485E,”,

(ii) in subparagraph (iii) of subsection (2)(a) by substituting for “the amount of the individual’s excess relief for the year in which the balancing charge arises plus any excess relief carried forward to that year and not deducted or not fully deducted for that year” the following:

“the sum of—

(I) the amount of the individual’s excess relief for the year in which the balancing charge arises, and

(II) the amount of any excess relief carried forward to that year that is not deducted for that year,”,

(iii) by substituting the following for clause (I) of subsection (2)(b)(i):

“(I) the amount of the individual’s excess relief carried forward to the year in which the balancing charge arises and not deducted or not fully deducted for that year, before any reduction by reference to paragraph (a)(iii), and”,

and

(iv) by substituting the following for subsection (3):

“(3) (a) Where this Chapter applies to an individual for a tax year, then, to the extent that the individual’s taxable income determined in accordance with section 485E exceeds the amount of the profits, gains or income in respect of which the individual is chargeable under Schedules C, D, E and F the amount of the excess shall, notwithstanding any other provision of the Tax Acts, be deemed to be an amount of income chargeable to income tax under Case IV of Schedule D, but—

(i) the amount so chargeable shall not be reckoned in computing the individual’s total income for that year, and

(ii) this paragraph shall be disregarded for the purpose of determining—

(I) whether this Chapter should apply to an individual for a tax year, and

(II) the amount of “T” in the formula in the definition of ‘adjusted income’ in section 485C(1) and in the formula in section 485E.

(b) Any assessment to income tax to be made on an individual for a tax year shall, notwithstanding any other provision of the Tax Acts, include, in addition to any income, profits or gains of the individual otherwise chargeable to income tax, any amount chargeable to income tax on the individual by virtue of paragraph (a), and the provisions of the Tax Acts, including in particular those provisions relating to the assessment, collection and recovery of tax and the payment of interest on unpaid tax, shall apply as respects any amount chargeable to income tax by virtue of paragraph (a).

(c) Where, but for this Chapter, no assessment to income tax would be made on an individual for a tax year, then a Revenue officer shall, notwithstanding any other provision of the Tax Acts, make an assessment to income tax on the individual to the best of the officer’s judgement of the amounts chargeable to income tax, including any amount chargeable by virtue of paragraph (a), and the provisions of the Tax Acts, including in particular those provisions relating to the assessment, collection and recovery of tax and the payment of interest on unpaid tax, shall apply as respects—

(i) any amount chargeable to income tax by virtue of paragraph (a), and

(ii) any assessment to income tax made on the individual by virtue of this paragraph.”.

(2) Schedule 25B to the Principal Act is amended—

(a) at reference number 13, in column (3), by substituting the following for subparagraph (iii) of paragraph (a):

“(iii) a building or structure which is deemed to be a building or structure in use for the purposes of a trade referred to in section 268(1)(g) by virtue of section 268(3B),

but there shall not be included in the aggregate any allowance referred to in section 272(3)(c)(iii),”,

(b) after the entry at reference number 15, to insert the following:

“

”,

(c) at reference number 38, in column (3), by substituting the following for paragraph (b):

“(b) the amount determined by the formula—

(G + E) — (D + R)

where—

G is the aggregate of the gross amount of each rent received by the individual for the tax year,

E is the individual’s total receipts from easements for the tax year,

D is the total amount of deductions authorised by section 97(2) to which the individual is entitled for the tax year apart from any deduction authorised by section 372AP or section 372AU, and

R is the amount determined under this Schedule as the amount of specified relief in respect of section 372AP, but the amount so determined shall not exceed the amount determined by the formula—

(G + E) — D

where G, E and D have the same meanings as they have in the first formula in this paragraph,”,

(d) at reference number 41, in column (3), by substituting “a specified relief” for “capital allowances, being allowances which are specified reliefs”,

(e) at reference number 43, in column (3), by substituting the following for the existing material:

“To the extent that the excess referred to in section 384 is referable to a specified relief, the amount of the excess or any portion of the excess that is so referable in respect of which the individual is given relief under that section for the tax year less any part of that excess for which relief cannot be given under that section for that year.”,

(f) at reference number 51, in column (3), by substituting “deducted from or set off against any income of the individual” for “deducted from the individual’s total income”, and

(g) at reference number 52, in column (3), by substituting “deducted from or set off against any income of the individual” for “deducted from the individual’s total income”.

(3) The Principal Act is amended by the insertion after Schedule 25B of the following:

“Section 485C.

SCHEDULE 25C

Determination of Amount of Relief to be Treated as Referable to Specified Reliefs as Respects Relief Carried Forward from Tax Year 2006 to Tax Year 2007

Determination of amount of capital allowances carried forward under section 304 which are referable to specified reliefs.

1. (1) Where, in relation to any trade or profession carried on by an individual, any allowances or part of any such allowances made under Part 9, including that Part as applied by any other provision of the Tax Acts, for the tax year 2006 to the individual in taxing the individual’s trade or profession—

(a) are, in accordance with section 304(4), added to the amount of the allowances to be made to the individual under that Part for the tax year 2007, or

(b) if there are no such allowances in 2007, are, in accordance with that section, deemed to be the allowances under that Part for that year,

then, the amount so added or so deemed (referred to in subparagraph (2) as the ‘relief forward’) which is to be treated as referable to specified reliefs shall be determined for the tax year 2007 in accordance with subparagraph (2).

(2) The amount referred to in subparagraph (1) is an amount determined in accordance with the formula—

RF x SR

TR

where—

RF is the relief forward,

SR is the aggregate of the amounts of the allowances made to the individual under Chapter 1 of Part 9 (being allowances made in respect of a specified relief or specified reliefs) in taxing the trade or profession of the individual in respect of the tax year 2006 and each of the 3 preceding tax years, other than any such allowances or part of such allowances which—

(a) were added to the allowances to be made for any of those years by section 304(4), or

(b) were deemed to be the allowances for any of those years by that section,

and

TR is the aggregate of the amounts of the allowances made to the individual under Part 9, including that Part as applied by any other provision of the Tax Acts, in taxing the trade or profession of the individual in respect of the tax year 2006 and each of the 3 preceding tax years, other than any such allowances or part of such allowances which—

(a) were added to the allowances to be made for any of those years by section 304(4), or

(b) which were deemed to be the allowances for any of those years by that section.

Determination of amount of losses carried forward under section 382 which are referable to specified reliefs.

2. (1) Where, in relation to any trade or profession carried on by an individual, a loss is carried forward from the tax year 2006 to the tax year 2007 in accordance with section 382, then the amount of the loss so carried forward (in subparagraph (2) referred to as the ‘relief forward’) to be treated as referable to specified reliefs shall, for the purposes of Schedule 25B, be determined for the tax year 2007 in accordance with subparagraph (2).

(2) The amount referred to in subparagraph (1) is the amount determined in accordance with the formula—

RF x SR

TR

where—

RF is the amount of the relief forward,

SR is the sum of—

(DR + SA)

where—

DR is the aggregate of the amounts of the further deductions the individual was entitled to under sections 324, 333, 345, 354 and paragraph 13 of Schedule 32 in respect of the trade or profession for the tax year 2006 and the 3 preceding tax years, but the amount in respect of each year to be included in the aggregate shall not exceed an amount determined by the formula—

(L — CA)

where—

L is the amount of the loss for that year in respect of which the individual was entitled to make a claim under section 381 in respect of that trade or profession, and

CA is the amount of any claim made in that year by the individual in respect of that trade or profession by virtue of the provisions of Chapter 2 of Part 12,

and

SA is the aggregate of the amounts of the allowances made to the individual under Chapter 1 of Part 9, including that Chapter as applied by any other provision of the Tax Acts, (being allowances made in respect of a specified relief or specified reliefs) in taxing the trade or profession of the individual in respect of the tax year 2006 and each of the 3 preceding tax years, other than any such allowances or part of such allowances which—

(a) were added to the allowances to be made for any of those years by section 304(4), or

(b) were deemed to be the allowances for any of those years by that section,

but the allowances made to the individual in respect of any year shall only be included in the aggregate if a claim was made in respect of those allowances for that year by virtue of the provisions of Chapter 2 of Part 12,

TR is the sum of—

(TL + TA)

where—

TL is the aggregate of the amounts of losses eligible for relief under section 381 in respect of that trade or profession for the tax year 2006 and each of the 3 preceding tax years less the amount of any claim made in any of those years by the individual in respect of that trade or profession by virtue of the provisions of Chapter 2 of Part 12, and

TA is the aggregate of the amounts of the allowances made to the individual under Part 9, including that Part as applied by any other provision of the Tax Acts, in taxing the trade or profession of the individual in respect of the tax year 2006 and each of the 3 preceding tax years, other than any such allowances or part of such allowances which—

(a) were added to the allowances to be made for any of those years by section 304(4), or

(b) which were deemed to be the allowances for any of those years by that section,

but the allowances made to the individual in respect of any year shall only be included in the aggregate if a claim was made in respect of those allowances for that year by virtue of the provisions of Chapter 2 of Part 12.

Determination of the amount of capital allowances made in charging income under Case V of Schedule D and carried forward under section 305 that is referable to specified reliefs.

3. (1) Where—

(a) the balance of any allowances or part of such allowances made under Chapter 1 of Part 9, including that Chapter as applied by any other provision of the Tax Acts, for the tax year 2006 to an individual in charging income under Case V of Schedule D, or

(b) if an election is made in accordance with section 305(1)(b) in respect of those allowances or part of those allowances, the balance of the excess in respect of that year referred to in section 305(1)(b)(ii),

is, in accordance with section 305(1), available for deduction from or set off against the individual’s income chargeable under Case V of Schedule D for the tax year 2007, then the amount of the balance or, as the case may be, the amount of the balance of the excess (in subparagraph (2) referred to as the ‘relief forward’) which is to be treated as referable to specified reliefs shall be determined for the tax year 2007 in accordance with subparagraph (2).

(2) The amount referred to in subparagraph (1) is an amount determined in accordance with the formula—

RF x SR

TR

where—

RF is the amount of the relief forward,

SR is the aggregate of the amounts of the allowances (being allowances made in respect of a specified relief or specified reliefs) made to the individual under Chapter 1 of Part 9, including that Chapter as applied by any other provision of the Tax Acts, in charging the individual’s income for the tax year 2006 and each of the 3 preceding tax years under Case V of Schedule D, and

TR is the aggregate of the amounts of the allowances made to the individual under Chapter 1 of Part 9, including that Chapter as applied by any other provision of the Tax Acts, in charging the individual’s income for the tax year 2006 and each of the 3 preceding tax years under Case V of Schedule D.

Determination of the amount of the excess carried forward under section 384 which is referable to specified reliefs.

4. (1) Where, in accordance with section 384, an excess such as is referred to in that section is carried forward from the tax year 2006 to the tax year 2007 and is available to be deducted from or set off against the amount of the individual’s profits or gains chargeable to tax under Case V of Schedule D, then the amount of the excess so carried forward (in subparagraph (2) referred to as the ‘relief forward’) which is to be treated as referable to specified reliefs shall, for the purposes of Schedule 25B, be determined for the tax year 2007 in accordance with subparagraph (2).

(2) The amount referred to in subparagraph (1) is an amount determined in accordance with the formula—

RF x SR

TR

where—

RF is the amount of the relief forward,

SR is the aggregate of the amounts of the deductions the individual was entitled to deduct under sections 372AP and 372AU, for the tax year 2006 and each of the 3 preceding tax years, and

TR is the aggregate of the amounts of the deductions the individual was entitled to deduct under section 97(2), including deductions authorised under that section by virtue of sections 372AP and 372AU, for the tax year 2006 and each of the 3 preceding tax years.

Right to seek a different apportionment basis.

5. (1) If an individual is not satisfied with the determination of any amount under paragraphs 1 to 4 he or she may apply by notice in writing to the Revenue Commissioners for the amount to be replaced by an amount determined by reference to such longer or shorter continuous period before the tax year 2006, but always including that tax year, that in the opinion of the individual gives a more just and reasonable result.

(2) Where an application is made under subparagraph (1), the Revenue Commissioners shall issue a determination in writing to the individual either accepting the amount or amounts on the basis proposed by the individual, setting out an amount which is just and reasonable determined by reference to some other time period or confirming the amount determined under paragraphs 1 to 4.

(3) If an individual is not satisfied with the determination of the Revenue Commissioners under subparagraph (2), he or she may by notice in writing given to the Revenue Commissioners within 30 days of the receipt of the determination under subparagraph (2) appeal to the Appeal Commissioners.

(4) The Appeal Commissioners shall hear and determine an appeal made to them under subparagraph (3) as if it were an appeal against an assessment to income tax and the provisions of the Income Tax Acts relating to such appeals and to the rehearing of an appeal and to the statement of a case for the opinion of the High Court on a point of law shall apply accordingly with any necessary modifications.

(5) In considering an application under subparagraph (1) or an appeal under subparagraph (3) neither the Revenue Commissioners nor the Appeal Commissioners shall have any regard to an application or appeal that—

(a) requires specified reliefs to have been given effect to before reliefs that are not specified reliefs, unless a provision of the Tax Acts authorises such priority, or

(b) subject to subparagraphs (1) to (4), requires that an amount be determined otherwise than is provided for by this Schedule.

(6) Where an amount determined under paragraph 1, 2, 3 or 4 is replaced by an amount determined in accordance with this paragraph (in this paragraph referred to as the ‘new amount’), the new amount shall be deemed to be the amount determined under paragraph 1, 2, 3 or 4, as the case may be.”.

(4) This section applies for the year of assessment 2007 and subsequent years of assessment.

Chapter 3

Income Tax, Corporation Tax and Capital Gains Tax

Amendment of Part 16 (income tax relief for investment in corporate trades — business expansion scheme and seed capital scheme) of Principal Act.

19.— (1) Part 16 of the Principal Act is amended—

(a) in section 488(1)—

(i) in paragraph (d) of the definition of “relevant period” by substituting “one year” for “2 years” in both places where it occurs, and

(ii) in the definition of “unquoted company” by substituting “Irish Enterprise Exchange” for “Developing Companies Market” in each place where it occurs,

(b) in section 489—

(i) by inserting the following after subsection (4B)(inserted by the Finance Act 2004 ):

“(4C) Notwithstanding any other provision of this section, where—

(a) (i) in accordance with section 508 relief is due in respect of an amount subscribed as nominee for a qualifying individual by the managers of a designated fund,

(ii) the amount so subscribed was subscribed to the designated fund in the period beginning on 1 January 2007 and ending on 31 January 2007, and

(iii) the eligible shares in respect of which the amount is subscribed by the managers of the designated fund are issued on or before 31 December 2007,

or

(b) eligible shares are issued by a qualifying company to a qualifying individual in the period beginning on 1 January 2007 and ending on 31 January 2007,

then the qualifying individual may elect, by notice in writing to the inspector, to have the relief due given as a deduction from his or her total income for the year of assessment 2006 instead of (as provided for in subsection (3)) as a deduction from his or her total income for the year of assessment 2007 and, where an election is so made, the relief to be given for the year of assessment 2006 shall be in accordance with section 490(2) as it applied for that year.”,

and

(ii) in subsection (15) by substituting “31 December 2013” for “31 December 2006”,

(c) in section 490—

(i) in subsection (2) by substituting “€100,000 in the case of a relevant investment, or €150,000 in any other case” for “€31,750”,

(ii) in subsection (3)(a) by substituting “, (4B) or (4C)” for “or (4B)”, and

(iii) in subsections (3)(b) and (4)(b) by substituting “2013” for “2006”,

(d) in section 491—

(i) in subsections (2)(a) and (3)(a)—

(I) by substituting “1 January 2007” for “1 January 2002”, and

(II) by substituting the following for the definition of “A” in the formula:

“A is €2,000,000,”,

(ii) by deleting subsections (2)(b) and (3)(b), and

(iii) in subsection (3A)—

(I) by substituting “12 months” for “6 months”, and

(II) by substituting “€1,500,000” for “€750,000”,

(e) in section 493 in subsection (8)(a)(i) by substituting “€500,000” for “€317,500”,

(f) in section 496—

(i) in subsection (2)(a)—

(I) in subparagraph (ii)(I) by substituting the following for subclause (A):

“(A) the making of a grant towards the employment of persons under section 25 of the Industrial Development Act 1986 (as amended by section 29 of the Industrial Development (Science Foundation Ireland) Act 2003 ), was approved by Forbairt or the Industrial Development Agency (Ireland), or”,

(II) by substituting the following for subparagraph (v):

“(v) in respect of a relevant investment, the rendering of services referred to in subparagraph (ii) in respect of which an industrial development agency or a County Enterprise Board (being a board referred to in the Schedule to the Industrial Development Act 1995 ) has provided a certificate confirming eligibility for the grant of financial support of not less than €2,540 towards the undertaking of a feasibility study by a person approved of by the agency or the County Enterprise Board into the potential commercial viability of the services to be rendered,”,

(III) by deleting “and” at the end of subparagraph (xiii) and inserting “and” at the end of subparagraph (xv), and

(IV) by inserting the following after subparagraph (xv):

“(xvi) recycling activities in relation to waste material, within the meaning of subsection (9A).”,

and deleting “and” where it last occurs in paragraph (a),

and

(ii) after subsection (9) by inserting the following:

“(9A) (a) For the purposes of subsection (2)(a)(xvi) ‘recycling activities in relation to waste material’ means the subjection of the waste material to any process or treatment which results in value-added material that is reusable and, in respect of which activities, a grant or financial assistance has been made available by an industrial development agency.

(b) For the purposes of paragraph (a) ‘waste material’ means any of the following:

(i) packaging;

(ii) construction and demolition waste;

(iii) metals, wood, glass and plastics;

(iv) electrical and electronic equipment;

(v) batteries;

(vi) end of life mechanically propelled vehicles.”,

and

(g) by inserting the following after section 508:

“Reporting of relief.

508A.— (1) A person (being a qualifying company or the managers of a designated fund) shall, when required to do so by notice in writing by the Revenue Commissioners, furnish the Revenue Commissioners within such time as may be specified in the notice (not being less than 30 days) with such information, in relation to the relief provided for in this Part, as the Revenue Commissioners may reasonably require from that person for the purpose of the annual reports required in accordance with section 7.1 of the Community Guidelines on State Aid to Promote Risk Capital Investments in Small and Medium-Sized Enterprises 2 .

(2) Notwithstanding any obligation as to secrecy imposed on them by the Tax Acts or the Official Secrets Act 1963 , the Revenue Commissioners may furnish the information obtained in accordance with subsection (1) to the person submitting the annual reports referred to in that subsection.

(3) The Revenue Commissioners may nominate any of their officers to discharge any function authorised by this section to be discharged by the Revenue Commissioners.

(4) Where any person fails to comply with a requirement to furnish the information in accordance with subsection (1), that person shall be liable to a penalty of €2,000 and, if that failure continues after the period of 30 days referred to in that subsection, a further penalty of €50 for each day on which the failure so continues.”.

(2) (a) Subject to paragraph (b), subsection (1) applies as follows:

(i) as respects paragraphs (a)(i) and (f)(i)(II), in relation to relevant investments made on or after 1 January 2007;

(ii) as respects paragraph (a)(ii), as on and from 12 April 2005;

(iii) as respects paragraphs (b), (c)(ii), (c)(iii), (d)(ii), (f)(i)(III), (f)(ii) and (g), as on and from 1 January 2007;

(iv) as respects paragraphs (c)(i), (d)(i), (d)(iii), (e) and (f)(i)(IV), in relation to eligible shares issued on or after 1 January 2007; and

(v) as respects paragraph (f)(i)(I), as respects subscriptions for eligible shares issued on or after 1 January 2007.

(b) Subsection (1) comes into operation on the making of an order to that effect by the Minister for Finance.

Amendment of Part 40 (appeals) of Principal Act.

20.— (1) Part 40 of the Principal Act (as amended by the Finance Act 2005 ) is amended—

(a) in section 934, by substituting the following for subsection (6):

“(6) Where an appeal is determined by the Appeal Commissioners, the inspector or other officer shall, unless either—

(a) the person assessed requires that that person’s appeal shall be reheard under section 942, or

(b) under the Tax Acts a case is required to be stated for the opinion of the High Court,

give effect to the Appeal Commissioners’ determination and thereupon, if the determination is that the assessment is to stand or is to be amended, the assessment or the amended assessment, as the case may be, shall have the same force and effect as if it were an assessment in respect of which no notice of appeal had been given.”,

(b) in section 941, by substituting the following for subsection (9):

“(9) If the amount of the assessment is altered by the order or judgment of the Supreme Court or the High Court, then—

(a) if too much tax has been paid, the amount overpaid shall be refunded with interest in accordance with section 865A, or

(b) if too little tax has been paid, the amount unpaid shall be deemed to be arrears of tax (except in so far as any penalty is incurred on account of arrears) and shall be paid and recovered accordingly.”,

(c) in section 942, by substituting the following for subsection (6):

“(6) Where an appeal is determined by the judge, the inspector or other officer shall, unless under the Tax Acts a case is required to be stated for the opinion of the High Court, give effect to the judge’s determination and thereupon, if the determination is that the assessment is to stand or is to be amended, the assessment or the amended assessment, as the case may be, shall have the same force and effect as if it were an assessment in respect of which no notice of appeal had been given.”,

and

(d) in section 945(2), by inserting “and” at the end of paragraph (h) and by deleting paragraph (i).

(2) Subsection (1) applies in relation to appeals determined by the Appeal Commissioners, or by a judge of the Circuit Court, on or after the date of the passing of this Act.

Amendment of section 373 (interpretation (Part 11)) of Principal Act.

21.— Section 373 of the Principal Act is amended in subsection (2)—

(a) by substituting “1 January 2006;” for “1 January 2006.” in paragraph (o)(ii), and

(b) by inserting the following after paragraph (o):

“(p) €24,000, where the expenditure was incurred—

(i) in an accounting period ending on or after 1 January 2007, or

(ii) in a basis period for a year of assessment, where that basis period ends on or after 1 January 2007.”.

Amendment of section 657A (taxation of certain farm payments) of Principal Act.

22.— Section 657A of the Principal Act is amended—

(a) in subsection (1) in the definition of “relevant individual” by substituting “the same year of assessment” for “the year of assessment 2005” in the first place it occurs and by substituting “that year of assessment” in the second place it occurs,

(b) by substituting the following for subsection (3):

“(3) Notwithstanding any other provision of the Income Tax Acts apart from subsection (4), where an individual elects in accordance with subsection (2), then the relevant payment or relevant payments shall—

(a) be disregarded as respects the ‘same year of assessment’ referred to in the definition of ‘relevant individual’ in subsection (1), and

(b) instead be treated for the purposes of the Income Tax Acts as arising in equal instalments in the year of assessment that is such same year of assessment and in the 2 immediately succeeding years of assessment.”,

and

(c) by substituting the following for subsection (5):

“(5) An election under subsection (2) by a person to whom this section applies, shall be made by notice in writing on or before 31 October in the year following the ‘same year of assessment’ referred to in the definition of ‘relevant individual’ in subsection (1), and shall be included in the annual statement required to be delivered on or before that date under the Income Tax Acts of the profits or gains from farming for the year of assessment that is such same year of assessment.”.

Restructuring aid for sugar beet growers.

23.— Chapter 1 of Part 23 of the Principal Act is amended by inserting the following after section 657A:

“657B.— (1) In this section—

‘ specified individual ’ means an individual who carries on in the year of assessment 2007 or in any subsequent year of assessment the trade of farming in respect of which the individual is within the charge to tax under Case I of Schedule D;

‘ specified payment ’ means a payment to a specified individual under the EU temporary scheme for the restructuring of the sugar industry in the Community, operated by the Department of Agriculture and Food under Article 3(6) first indent, of Council Regulation (EC) No. 320/2006 3 of 20 February 2006, in respect of which the specified individual would, apart from this section, be chargeable to income tax on the profits or gains from farming for the year of assessment 2007 or for any subsequent year of assessment.

(2) A specified individual may elect to have the aggregate of all specified payments made to the individual which would, apart from this section, be chargeable to income tax for a year of assessment treated in accordance with subsections (3) to (6), and each such election shall be made in such form and contain such information as the Revenue Commissioners may require.

(3) Notwithstanding any other provision of the Income Tax Acts apart from subsection (4), where a specified individual elects in accordance with subsection (2), the specified payment or specified payments shall be disregarded as respects the year of assessment referred to in subsection (2) and shall instead be treated for the purposes of the Income Tax Acts as chargeable in equal instalments for the year of assessment so referred to in subsection (2) and for the 5 succeeding years of assessment.

(4) Where a trade of farming is permanently discontinued, tax shall be charged under Case IV of Schedule D for the year of assessment in which such discontinuation takes place in respect of the amount of any specified payment which would, but for such discontinuance, be treated by virtue of subsection (3) as chargeable for a year of assessment or years of assessment ending after such discontinuance.

(5) An election under subsection (2) by an individual to whom this section applies, shall be made by notice in writing on or before 31 October in the year of assessment following the year of assessment referred to in subsection (2).

(6) Subject to subsection (4), an election made under subsection (2) shall not be altered or varied during the period to which it relates.”.

Amendment of Chapter 2 (farming: relief for increase in stock values) of Part 23 of Principal Act.

24.— (1) Chapter 2 of Part 23 of the Principal Act is amended—

(a) in section 666(4) by substituting “31 December 2008” for “31 December 2006” in paragraph (a) and “year 2008” for “year 2006” in paragraph (b),

(b) in section 667A by substituting “31 December 2008” for “31 December 2006” in subsection (6)(b), and

(c) by inserting the following new section after section 667A:

“New arrangements for qualifying farmers.

667B.— (1) In this section ‘ qualifying farmer ’ means an individual who—

(a) in the year 2007 or any subsequent year of assessment first qualifies for grant aid under the scheme of Installation Aid for Young Farmers operated by the Department of Agriculture and Food under Council Regulation (EEC) No. 797/85 of 12 March 1985 4 or that Regulation as may be revised from time to time, or

(b) (i) first becomes chargeable to income tax under Case I of Schedule D in respect of profits or gains from the trade of farming for the year 2007 or any subsequent year of assessment,

(ii) has not attained the age of 35 years at the commencement of the year of assessment referred to in subparagraph (i), and

(iii) at any time in the year of assessment so referred to satisfies the conditions set out in subsection (2) or (3).

(2) The conditions required by this subsection are that the individual, referred to in the definition of ‘qualifying farmer’ in subsection (1), is the holder of a qualification set out in the Table to this section (in this section referred to as the ‘Table’).

(3) The conditions required by this subsection are that the individual, referred to in the definition of ‘qualifying farmer’ in subsection (1), is the holder of a letter of confirmation from Teagasc confirming satisfactory completion of a course of training, approved by Teagasc, for persons who in the opinion of Teagasc are restricted in their learning capacity due to physical, sensory, or intellectual disability or to mental health.

(4) For the purposes of subsection (2) where Teagasc certifies that—

(a) any other qualification corresponds to a qualification set out in the Table, and

(b) that other qualification is deemed by the National Qualifications Authority of Ireland to be at least at a level equivalent to that of the qualification set out in the Table,

then that other qualification will be treated as if it were the qualification set out in the Table.

(5) In the case of a qualifying farmer—

(a) section 666(1) will apply as if ‘100 per cent’ were substituted for ‘25 per cent’, and

(b) paragraph (a) will apply in computing a person’s trading profits for an accounting period in the case of an individual who becomes a qualifying farmer at any time in the period beginning on or after 1 January 2007 and ending on or before 31 December 2008, for the year of assessment in which the individual becomes a qualifying farmer and for each of the 3 immediately succeeding years of assessment.

(6) An individual who, at any time before 31 March 2008, satisfies the conditions referred to in paragraph (b)(iii) of the definition of ‘qualifying farmer’ in section 667A (1) will be deemed to satisfy the conditions referred to in paragraph (b)(iii) of the definition of ‘qualifying farmer’ in subsection (1).

TABLE

1. Qualifications awarded by the Further Education and Training Awards Council:

(a) Level 6 Advanced Certificate in Farming;

(b) Level 6 Advanced Certificate in Agriculture;

(c) Level 6 Advanced Certificate in Dairy Herd Management;

(d) Level 6 Advanced Certificate in Drystock Management;

(e) Level 6 Advanced Certificate in Agricultural Mechanisation;

(f) Level 6 Advanced Certificate in Farm Management;

(g) Level 6 Advanced Certificate in Machinery and Crop Management;

(h) Level 6 Advanced Certificate in Horticulture;

(i) Level 6 Advanced Certificate in Forestry;

(j) Level 6 Advanced Certificate in Stud Management;

(k) Level 6 Advanced Certificate in Horsemanship.

2. Qualifications awarded by the Higher Education and Training Awards Council:

(a) Higher Certificate in Agriculture;

(b) Bachelor of Science in Agriculture;

(c) Higher Certificate in Agricultural Science;

(d) Bachelor of Science in Agricultural Science;

(e) Bachelor of Science (Honours) in Land Management, Agriculture;

(f) Bachelor of Science (Honours) in Land Management, Horticulture;

(g) Bachelor of Science (Honours) in Land Management, Forestry;

(h) Higher Certificate in Engineering in Agricultural Mechanisation;

(i) Bachelor of Science in Rural Enterprise and Agri-Business;

(j) Bachelor of Science in Agriculture and Environmental Management;

(k) Bachelor of Science in Horticulture;

(l) Bachelor of Arts (Honours) in Horticultural Management;

(m) Bachelor of Science in Forestry;

(n) Higher Certificate in Business in Equine Studies;

(o) Bachelor of Science in Equine Studies.

3. Qualifications awarded by other third level institutions:

(a) Bachelor of Agricultural Science — Animal Crop Production awarded by University College Dublin;

(b) Bachelor of Agricultural Science — Animal Science awarded by University College Dublin;

(c) Bachelor of Agricultural Science — Food and Agribusiness Management awarded by University College Dublin;

(d) Bachelor of Agricultural Science — Forestry awarded by University College Dublin;

(e) Bachelor of Agricultural Science — Horticulture, Landscape and Sportsturf Management awarded by University College Dublin;

(f) Bachelor of Veterinary Medicine awarded by University College Dublin;

(g) Bachelor of Science in Equine Science awarded by the University of Limerick;

(h) Diploma in Equine Science awarded by the University of Limerick.”.

(2) Subsection (1) comes into operation on the making of an order to that effect by the Minister for Finance.

Amendment of section 669A (interpretation) of Principal Act.

25.— Section 669A of the Principal Act is amended in the definition of “ qualifying expenditure ” by substituting the following for paragraph (b)(ii):

“(ii) the amount of capital expenditure which would have been incurred on the purchase of that milk quota if the price paid were set otherwise than by the Minister for Agriculture and Food for the purposes of a Milk Quota Restructuring Scheme in the area in which the land, with which that milk quota is associated, is situated;”.

Taxation of stallion profits and gains.

26.— (1) The Principal Act is amended—

(a) in section 381 by inserting the following after subsection (2):

“(2A) Subsection (2) shall cease to have effect as respects losses arising on or after 1 August 2008 and, as respects the chargeable period in which 1 August 2008 occurs, the amount of such losses will be determined by the formula—

A x B

C

where—

A is the total amount of losses arising in the chargeable period,

B is the length, in days, of the period beginning on 1 August 2008 and ending on the last day of the chargeable period in which 1 August 2008 occurs, and

C is the length, in days, of the chargeable period.”,

and

(b) by inserting the following Chapter into Part 23 after Chapter 3:

“Chapter 4

Taxation of stallion profits and gains

Interpretation (Chapter 4).

669G.— In this Chapter—

‘ excess relief ’ has the same meaning as in section 485C;

‘ initial value ’ in relation to a stallion means its market value on—

(a) 1 August 2008, or

(b) the day it is either acquired for, or appropriated to, stud activities, as the case may be,

whichever is later, and any reference to a stallion includes a reference to an interest in a stallion;

‘ market value ’, at any time in relation to a stallion, means the price which the stallion might reasonably be expected to fetch on a sale in the open market and in a case where a person (the ‘purchaser’) acquires the stallion from another person (the ‘vendor’)—

(a) at arm’s length, and

(b) the purchaser and the vendor are not connected persons (within the meaning of section 10),

then the market value is the price paid;

‘ relevant amount ’, in relation to a year of assessment and an individual, means an amount determined by the formula—

A — B

where—

A is the amount of income tax payable by the individual for the year of assessment, and

B is the amount of income tax which would be payable by the individual for the year of assessment if—

(a) the entry at Reference Number 6 of Schedule 25B had not been enacted, and

(b) for the purposes of the entry at Reference Number 1 of Schedule 25B the definition of ‘exempt profits’ in section 140(1) did not include profits or gains which by virtue of section 231 were not charged to tax;

‘ relevant excess relief ’, in relation to a year of assessment and an individual, means an amount determined by the formula—

C — D

where—

C is the amount of excess relief which is carried forward to the next year of assessment and which the individual is entitled to deduct from his or her total income for that year, and

D is the amount of excess relief which would be carried forward to the next year of assessment and which the individual would be entitled to deduct from his or her total income for that year if—

(a) the entry at Reference Number 6 of Schedule 25B had not been enacted, and

(b) for the purposes of the entry at Reference Number 1 of Schedule 25B the definition of ‘exempt profits’ in section 140(1) did not include profits or gains which by virtue of section 231 were not charged to tax;

‘ residual value ’, in relation to a stallion, at any time, means—

(a) an amount equal to the initial value of the stallion, or

(b) if less, the amount by which the initial value of the stallion exceeds—

(i) the amount which has been allowed as a deduction under section 669I for a chargeable period ending before that time, or

(ii) where there is more than one such amount, the aggregate of such amounts.

Charging provisions.

669H.— (1) The profits or gains arising in any chargeable period to the owner or part-owner of a stallion from the sale of services of mares by the stallion or rights to such services shall be chargeable to income tax or corporation tax, as the case may be, in accordance with subsection (2).

(2) (a) In a case in which the owner or part-owner of a stallion carries on in the chargeable period referred to in subsection (1) the trade of farming in respect of which the owner or part-owner is within the charge to tax under Case I of Schedule D, the profits or gains referred to in subsection (1) and any amount chargeable under subsection (3)(c) of section 669I shall be chargeable under that Case of that Schedule as part of that trade.

(b) In a case, other than one referred to in paragraph (a), the profits or gains referred to in subsection (1) and any amount chargeable under subsection (3)(c) of section 669I shall be chargeable under Case IV of Schedule D.

Provisions as to deductions.

669I.— (1) Where any person acquires ownership or part-ownership of a stallion, the profits or gains in relation to which are chargeable in accordance with section 669H(2), then that person, in computing the amount of income to be charged to tax under the Tax Acts for any chargeable period, shall not be entitled, other than in accordance with subsection (2), to any deduction in respect of expenditure incurred on such acquisition.

(2) (a) Where the profits or gains referred to in subsection (1) are chargeable in accordance with section 669H(2)(a), for each of 4 consecutive chargeable periods, the first of which begins with the chargeable period in which—

(i) 1 August 2008 occurs, in a case where the stallion is owned or part-owned on that day, or

(ii) in any other case, the stallion is either acquired for, or appropriated to, stud activities, as the case may be,

the owner or part-owner of the stallion shall, in computing for the purposes of tax the trading income of the trade of farming referred to in that section, be entitled to a deduction under this section equal to 25 per cent of the initial value of the stallion, as if the deduction were a trading expense incurred in the chargeable period.

(b) Subject to section 669K(3), where the profits or gains referred to in subsection (1) are chargeable in accordance with section 669H(2)(b), in determining the amount of income to be charged to tax under Case IV of Schedule D, such income shall be computed in accordance with the provisions applicable to Case I of Schedule D, taking into account this Chapter.

(3) Where, in any chargeable period a stallion to which this Chapter applies is disposed of or dies, then—

(a) no deduction which would otherwise be allowed under subsection (2)(a) or (2)(b), as the case may be, in respect of the initial value of that stallion shall be allowed for that chargeable period or for any subsequent chargeable period,

(b) a deduction of an amount equal to the residual value of the stallion at the time of its disposal or death shall be allowed for that chargeable period as if it were a deduction under subsection (2)(a), and

(c) the owner or part-owner of the stallion shall be chargeable to income tax or corporation tax, as the case may be, on—

(i) the amount received in money or money’s worth, in respect of its disposal or death, or

(ii) in the case of a disposal, if greater, the price which the stallion might reasonably have been expected to fetch at the time of its disposal on a sale, at arm’s length between persons who are not connected (within the meaning of section 10), in the open market.

Credit for tax paid.

669J.— (1) Subject to the provisions of this section, any individual, to whom Chapter 2A of Part 15 applies for any year of assessment, who has made a payment which includes a relevant amount in respect of that year of assessment shall, without prejudice to the payment so made, be treated as having made a payment on account of income tax of an amount equal to the relevant amount.

(2) So much of a payment of tax (referred to in this section as the ‘deemed payment on account of tax’) for a year of assessment by an individual as is treated in accordance with subsection (1) shall, in so far as possible, be set against any liability to income tax of the individual, for the year of assessment following the first-mentioned year of assessment.

(3) To the extent that the deemed payment on account of tax has not been set off in accordance with subsection (2), the balance remaining shall be set off against a liability to income tax for any subsequent year of assessment of the individual who is treated as having made the payment, in the order of being set off against a liability for an earlier period in priority to a liability for a later period.

(4) Only the excess of an overpayment of income tax for any year of assessment over the deemed payment on account of tax to be made for that year of assessment by virtue of this section may be repaid and interest shall not be payable in respect of any part of such overpayment other than the excess.

(5) Where in any year of assessment section 485E applies to an individual, then for the purposes of section 485F the excess relief for the year shall be reduced by an amount equal to the amount of the relevant excess relief.

Miscellaneous (Chapter 4).

669K.— (1) For the purposes of determining the market value of a stallion to which this Chapter applies, the Revenue Commissioners may consult with such person or body of persons as, in their opinion, may be of assistance to them.

(2) Notwithstanding any other provisions of the Tax Acts, trading stock comprising stallions shall be disregarded for all purposes of section 666.

(3) In a case in which in any chargeable period the computation of the amount of income of a person to be charged to tax under Case IV of Schedule D under this Chapter results in a loss, then, notwithstanding section 383, the amount of the loss may not be deducted from or set off against other income charged to tax under Case IV of Schedule D arising in that chargeable period, and any loss, when carried forward to a subsequent chargeable period, may only be deducted from or set off against income to which section 669H(2)(b) applies arising in that subsequent chargeable period.”.

(2) Subsection (1) comes into operation on the making of an order to that effect by the Minister for Finance.

Amendment of Schedule 26A (donations to approved bodies, etc.) to Principal Act.

27.— (1) Schedule 26A to the Principal Act is amended—

(a) in Part 1—

(i) by deleting “in the State” in each place it occurs in paragraphs 3 to 7, and

(ii) by deleting paragraphs 8 to 16, and paragraph 18,

and

(b) in Part 2 by substituting the following for the definition of “approved body” in paragraph 1:

“ ‘ approved body ’ means any body or institution which may be approved of by the Minister for Finance and which—

(a) provides any course one of the conditions of entry to which is related to the results of the Leaving Certificate Examination, a matriculation examination of a recognised university in the State or an equivalent examination held outside the State, or

(b) (i) is established on a permanent basis solely for the advancement of one or more approved subjects,

(ii) contributes to the advancement of that subject or those subjects on a national or regional basis, and

(iii) is prohibited by its constitution from distributing to its members any of its assets or profits;”.

(2) Subsection (1) applies as on and from 1 February 2007.

Capital allowances for qualifying residential units associated with registered nursing homes.

28.— (1) Part 9 of the Principal Act is amended―

(a) in section 268―

(i) in subsection (3A)―

(I) by substituting “Subject to subsections (3B) to (3E), in this section” for “In this section”, and

(II) by substituting the following for subparagraph (i) of paragraph (d):

“(i) is leased to a person and, as the case may be, the spouse of that person―

(I) who is or, as the case may be, are not connected (within the meaning of section 10) with the lessor,

(II) who has or have been selected as the occupant or occupants of the house by the registered nursing home, and

(III) either the person or the spouse of that person has been certified by a person, who is registered in the General Register of Medical Practitioners, as requiring such accommodation by reason of old age or infirmity,

or”,

(ii) by substituting the following for subsection (3B):

“(3B) (a) For the purposes of this section ‘house’, in relation to a qualifying residential unit, has the same meaning as in section 372AK.

(b) For the purposes only of the making of allowances and charges under this Part but subject to subsection (3C) and sections 270 and 316 (as amended by the Finance Act 2007), as respects capital expenditure incurred in the period commencing on 25 March 2002 and ending on 30 April 2010, a house in use as a qualifying residential unit shall be deemed to be a building in use for the purposes of a trade referred to in subsection (1)(g).”,

and

(iii) by inserting the following after subsection (3C):

“(3D) Where the relevant interest in relation to capital expenditure incurred on the construction or refurbishment of all qualifying residential units in a development is held by a company (within the meaning of section 4(1)) then subsection (3A) shall apply as if subparagraphs (iv) and (v) of paragraph (c) of that subsection were deleted.

(3E) A house shall not be a qualifying residential unit for the purposes of this section unless―

(a) the following information has been provided to the Health Service Executive, by the person who is entitled to the relevant interest in relation to the capital expenditure incurred on the construction or refurbishment of the house, for onward transmission to the Minister for Health and Children and the Minister for Finance:

(i) the amount of the capital expenditure actually incurred on the construction or refurbishment of the house;

(ii) the number and nature of the investors that are investing in the house;

(iii) the amount to be invested by each investor; and

(iv) the nature of the structures which are being put in place to facilitate the investment in the house,

together with such other information as may be specified by the Minister for Finance, in consultation with the Minister for Health and Children, as being of assistance in evaluating the costs, including but not limited to exchequer costs, and the benefits arising from the operation of tax relief under this Part for qualifying residential units,

(b) the Health Service Executive, in consultation with the Minister for Health and Children, gives a certificate in writing after the house is first leased or, where capital expenditure is incurred on the refurbishment of a house, first leased subsequent to the incurring of that expenditure stating that it is satisfied that―

(i) the house and the development in which it is comprised complies with all the conditions mentioned in paragraphs (a), (b), (c) and (d) of subsection (3A), and

(ii) the information required in accordance with paragraph (a) of this subsection has been provided,

and

(c) an annual report in writing is provided, by the person who is entitled to the relevant interest in relation to the capital expenditure incurred on the construction or refurbishment of the house, to the Health Service Executive, for onward transmission to the Minister for Health and Children and the Minister for Finance, by the end of each year in the 20 year period referred to in section 272(4)(fa) (inserted by the Finance Act 2007), which―

(i) confirms whether the house and the development in which it is comprised continue to comply with all the conditions mentioned in paragraphs (a), (b), (c) and (d) of subsection (3A), and

(ii) provides details of the level of occupation of the house for the previous year including the age of and, as the case may be, the nature of the infirmity of the occupants.”,

(b) in section 270 by inserting the following subsection after subsection (7):

“(8) Where capital expenditure is incurred on or after 1 May 2007 under a contract or agreement which is entered into on or after that date for the construction, refurbishment or development of a qualifying residential unit as is referred to in subsection (4)(i), then―

(a) subsection (4) shall apply as if the reference to ‘31 July 2008’ were a reference to ‘30 April 2010’,

(b) subsection (5) shall apply as if―

(i) the reference to ‘subject to subsections (6) and (7)’ were a reference to ‘subject to subsections (6) to (8)’, and

(ii) the following paragraphs were substituted for paragraphs (a) and (b):

‘(a) in the case of expenditure incurred by a company (within the meaning of section 4(1)) in the period from 1 May 2007 to 30 April 2010, to 75 per cent, and

(b) in the case of expenditure incurred by a person other than a company (within the meaning of section 4(1)) in the period from 1 May 2007 to 30 April 2010, to 50 per cent,’,”,

(c) in section 272(4)―

(i) in paragraph (f), by inserting “subject to paragraph (fa),” before “in relation to”, and

(ii) by inserting the following paragraph after paragraph (f):

“(fa) where subsection (8) of section 270 applies in relation to a qualifying residential unit as is referred to in subsection (4)(i) of that section―

(i) 20 years beginning with the time when the unit was first used, or

(ii) where capital expenditure on the refurbishment of the unit is incurred, 20 years beginning with the time when the unit was first used subsequent to the incurring of that expenditure,”,

(d) in section 274(1)(b)―

(i) in subparagraph (iia), by inserting “subject to subparagraph (iib),” before “in relation to”, and

(ii) by inserting the following subparagraph after subparagraph (iia):

“(iib) where subsection (8) of section 270 applies in relation to a qualifying residential unit as is referred to in subsection (4)(i) of that section―

(I) 20 years after the unit was first used, or

(II) where capital expenditure on the refurbishment of the unit is incurred, 20 years after the unit was first used subsequent to the incurring of that expenditure,”,

and

(e) in section 316(2B)―

(i) by deleting “or” at the end of paragraph (b) and by substituting “31 July 2008, or” for “31 July 2008,” in paragraph (c), and

(ii) by inserting the following paragraph after paragraph (c):

“(d) where subsection (8) of section 270 applies in relation to a qualifying residential unit as is referred to in subsection (4)(i) of that section, the period from 1 May 2007 to 30 April 2010,”.

(2) Subsection (1) of this section applies as respects capital expenditure incurred on or after 1 May 2007 under a contract or agreement for the construction, refurbishment or development of a qualifying residential unit (within the meaning of section 268(3A) of the Principal Act) which is entered into on or after that date.

Mid-Shannon corridor tourism infrastructure investment scheme.

29.— (1) The Principal Act is amended—

(a) in Part 10, by inserting the following after Chapter 11:

“Chapter 12

Mid-Shannon Corridor Tourism Infrastructure Investment Scheme

Interpretation, applications for approval and certification.

372AW.— (1) In this Chapter—

‘ accommodation building ’, in relation to a project, means a building or structure or part of a building or structure which consists of accommodation facilities or which is to be used or is suitable for use for the provision of such facilities;

‘ market value ’, in relation to a building or structure, means the price which the unencumbered fee simple of the building or structure would fetch if sold in the open market in such manner and subject to such conditions as might reasonably be calculated to obtain for the vendor the best price for the building or structure, less the part of that price which would be attributable to the acquisition of, or of rights in or over, the land on which the building or structure is constructed;

‘ mid-Shannon corridor ’ means the corridor of land comprising all qualifying mid-Shannon areas;

‘ mid-Shannon Tourism Infrastructure Board ’ means a board consisting of not more than 5 persons selected for the purposes of this Chapter by the Minister in consultation with the Minister for Finance;

‘ Minister ’ means the Minister for Arts, Sport and Tourism;

‘ project ’ means the construction or refurbishment of buildings and structures comprising—

(a) a holiday camp of the type referred to in section 372AX(1)(b), or

(b) one or more qualifying tourism infrastructure facilities,

the site or sites of which is or are wholly within a qualifying mid-Shannon area;

‘ property developer ’ means a person carrying on a trade which consists wholly or mainly of the construction or refurbishment of buildings or structures with a view to their sale;

‘ qualifying mid-Shannon area ’ means any area described in Schedule 8B;

‘ qualifying period ’ means a period of 3 years commencing on the date on which this Chapter comes into effect;

‘ qualifying tourism infrastructure facilities ’ means such class or classes of facilities, comprising of buildings and structures only, as may be approved for the purposes of this Chapter by the Minister, in consultation with the Minister for Finance, and published in the relevant guidelines;

‘ refurbishment ’, in relation to a building or structure, means any work of construction, reconstruction, repair or renewal, including the provision or improvement of water, sewerage or heating facilities, carried out in the course of—

(a) the repair or restoration, or

(b) maintenance in the nature of repair or restoration,

of the building or structure;

‘ relevant guidelines ’ mean guidelines issued in accordance with subsection (3) of this section or any guidelines issued in accordance with that subsection which amend or replace those guidelines.

(2) (a) Notwithstanding sections 372AX and 372AY, but subject to the subsequent provisions of this section and to section 372AZ, no relief from income tax or corporation tax, as the case may be, may be granted by virtue of this Chapter in respect of capital expenditure incurred in the qualifying period on the construction or refurbishment of a building or structure unless the mid-Shannon Tourism Infrastructure Board has—

(i) prior to such expenditure being incurred, but subject to paragraph (b), granted approval in principle in relation to the construction or refurbishment of the building or structure, and

(ii) after the expenditure is incurred, certified in writing that the construction or refurbishment which was carried out is in accordance with the criteria specified in the relevant guidelines, having regard to any relevant conditions and requirements imposed by the Board in the approval granted under subparagraph (i).

(b) Approval in principle shall not be granted in accordance with paragraph (a)(i) unless an application for such approval, in which the information and details as may be required in accordance with subsection (3)(h) are included, is received by the mid-Shannon Tourism Infrastructure Board within a period of one year commencing on the date on which this Chapter comes into effect.

(3) Subject to subsection (4), for the purposes of approval and certification in accordance with subsection (2) and, as the case may be, certification in accordance with section 372AX(1)(d) or 372AY(1)(g) the Minister shall, in consultation with the Minister for Finance, issue guidelines to which the mid-Shannon Tourism Infrastructure Board shall have regard in deciding whether to grant approval in principle or to issue certification in relation to any building or structure and which guidelines may include criteria in relation to all or any one or more of the following:

(a) the nature and extent of the contribution which the project, in which the building or structure is comprised, makes to tourism development in the mid-Shannon corridor or the qualifying mid-Shannon area;

(b) coherence with national tourism strategy;

(c) environmental sensitivity, having particular regard to any area which is—

(i) a European site within the meaning of the European Communities (Natural Habitats) Regulations 1997 ( S.I. No. 94 of 1997 ), or

(ii) a natural heritage area, a nature reserve or a refuge for fauna for the purposes of the Wildlife Acts 1976 and 2000;

(d) the amenities and facilities required to be provided in each type of project;

(e) the nature of and maximum extent to which accommodation buildings (if any) are allowable in each type of project;

(f) specific standards of design and construction in relation to buildings and structures which may qualify for relief under this Chapter;

(g) relevant planning matters, including the need for consistency with the requirements of a development plan or a local area plan within the meaning of those terms in the Planning and Development Act 2000 ;

(h) the details and information required to be provided in an application for approval or certification in accordance with section 372AW(2) and, as the case may be, an application for certification in accordance with section 372AX(1)(d) or 372AY(1)(g); and

(i) matters relating to the provision of information in accordance with sections 372AX(1)(c) and 372AY(1)(f),

together with such other matters as the Minister, in consultation with the Minister for Finance, may consider are required to be included.

(4) (a) Subject to paragraphs (b) and (c), approval and certification in accordance with subsection (2) shall not be granted or issued by the mid-Shannon Tourism Infrastructure Board in relation to capital expenditure incurred in the qualifying period on the construction or refurbishment of one or more than one accommodation building comprised in a project to the extent that such expenditure exceeds (or, where an application for approval is involved, is projected to exceed) an amount (referred to in this subsection as the ‘limit amount’) which is equal to the lesser of—

(i) 50 per cent, or such lower percentage as may be specified (in accordance with subsection (3)(e)) in the relevant guidelines for the type of project involved, of the total amount of the capital expenditure incurred in the qualifying period on the construction or refurbishment of all the buildings or structures comprised in the project, and

(ii) the amount of the capital expenditure incurred in the qualifying period on the construction or refurbishment of buildings and structures comprised in the project which are other than accommodation buildings.

(b) In any case where—

(i) there is more than one accommodation building comprised in a project, and

(ii) the aggregate of the amounts of capital expenditure incurred in the qualifying period on the construction or refurbishment of each accommodation building exceeds the limit amount,

then that aggregate shall, for the purposes of an application for approval or for certification in accordance with subsection (2), be reduced to an amount equivalent to the limit amount and that equivalent amount shall be apportioned on a just and reasonable basis between all the accommodation buildings comprised in the project.

(c) Subject to the criteria in the relevant guidelines being satisfied, the mid-Shannon Tourism Infrastructure Board may grant approval or issue certification in accordance with subsection (2) in relation to an accommodation building—

(i) where there is one accommodation building comprised in a project, only in relation to the amount of the capital expenditure incurred on the construction or refurbishment of the building in the qualifying period as does not exceed the limit amount, and

(ii) where paragraph (b) applies, provided that it is satisfied with the basis on which the apportionment has been made, only in relation to that part of the equivalent amount (as referred to in paragraph (b)) which is attributable to the buildingfollowing the apportionment made in accordance with that paragraph.

Accelerated capital allowances in relation to the construction or refurbishment of certain registered holiday camps.

372AX.— (1) In this section ‘ building or structure to which this section applies ’ means a building or structure—

(a) the site of which is wholly within a qualifying mid-Shannon area,

(b) which is in use as a holiday camp—

(i) registered in the register of holiday camps kept under the Tourist Traffic Acts 1939 to 2003, and

(ii) which meets the requirements of the relevant guidelines in relation to the types of amenities and facilities that need to be provided in a holiday camp for the purposes of this Chapter,

(c) in relation to which the following data has been provided to the mid-Shannon Tourism Infrastructure Board for onward transmission to the Minister and the Minister for Finance:

(i) (I) the amount of the capital expenditure actually incurred in the qualifying period on the construction or refurbishment of the building or structure, and

(II) where subsection (4) of section 372AW applies in relation to an accommodation building, the amount of such expenditure which is eligible for certification in accordance with that section;

(ii) the number and nature of the investors that are investing in the building or structure;

(iii) the amount to be invested by each investor; and

(iv) the nature of the structures which are being put in place to facilitate the investment in the building or structure;

together with such other information as may be specified in the relevant guidelines as being of assistance to the Minister for Finance in evaluating the costs, including but not limited to exchequer costs, and the benefits arising from the operation of tax relief for buildings and structures under this Chapter, and

(d) in respect of which the mid-Shannon Tourism Infrastructure Board gives a certificate in writing after the building or structure is first used or, where capital expenditure is incurred on the refurbishment of a building or structure, first used subsequent to the incurring of that expenditure—

(i) stating that it is satisfied that the conditions in paragraphs (a), (b) and (c) have been met,

(ii) confirming the date of first use or, as the case may be, first use after refurbishment, and

(iii) which includes certification in accordance with section 372AW(2)(a)(ii) or a copy of such certification (if previously issued).

(2) Subject to subsections (3) and (4) and to section 372AZ, Chapter 1 of Part 9 applies in relation to capital expenditure incurred in the qualifying period on the construction or refurbishment of a building or structure to which this section applies as if—

(a) in section 272—

(i) in subsection (3), the following were substituted for paragraph (c):

‘(c) in relation to a building or structure to which section 372AX applies, 15 per cent of the capital expenditure referred to in subsection (2) of that section,’,

and

(ii) in subsection (4), the following were substituted for paragraph (c):

‘(c) in relation to a building or structure to which section 372AX applies, 15 years beginning with the time when the building or structure was first used or, where capital expenditure on the refurbishment of the building or structure is incurred, 15 years beginning with the time when the building or structure was first used subsequent to the incurring of that expenditure,’,

and

(b) in section 274(1)(b), the following were substituted for subparagraph (iii):

‘(iii) in relation to a building or structure to which section 372AX applies, 15 years after the building or structure was first used or, where capital expenditure on the refurbishment of the building or structure is incurred, 15 years after the building or structure was first used subsequent to the incurring of that expenditure,’.

(3) In the case where capital expenditure is incurred in the qualifying period on the refurbishment of a building or structure to which this section applies, subsection (2) shall apply only if the total amount of the capital expenditure so incurred is not less than an amount equal to 20 per cent of the market value of the building or structure immediately before that expenditure was incurred.

(4) In determining for the purposes of this Chapter whether and to what extent capital expenditure incurred on the construction or refurbishment of a building or structure to which this section applies is incurred or not incurred in the qualifying period, such an amount of that capital expenditure as is properly attributable to work on the construction or, as the case may be, refurbishment of the building or structure actually carried out during the qualifying period shall (notwithstanding any other provision of the Tax Acts as to the time when any capital expenditure is or is to be treated as incurred) be treated as having been incurred in that period.

Capital allowances in relation to the construction or refurbishment of certain tourism infrastructure facilities.

372AY.— (1) In this section ‘ qualifying premises ’ means a building or structure—

(a) the site of which is wholly within a qualifying mid-Shannon area,

(b) which apart from this section is not an industrial building or structure within the meaning of section 268 or deemed to be such a building or structure,

(c) which is in use for the purposes of the operation of one or more qualifying tourism infrastructure facilities,

(d) (i) subject to subparagraph (ii), which does not include a building or structure or part of a building or structure which is a licensed premises (as defined in section 2 of the Intoxicating Liquor Act 1988 ), but

(ii) which may include a building or structure or part of a building or structure which is a restaurant (as defined in section 6 of the Intoxicating Liquor Act 1988 ) in relation to which—

(I) a wine retailer’s on-licence, within the meaning of the Finance (1909-10) Act 1910, is currently in force, or

(II) a special restaurant licence, within the meaning of the Intoxicating Liquor Act 1988 , has been granted under section 9 of that Act,

(e) which does not include a building or structure or part of a building or structure in use as a facility in which gambling, gaming or wagering of any sort is carried on for valuable consideration or which supports the carrying on of such activities,

(f) in relation to which the following data has been provided to the mid-Shannon Tourism Infrastructure Board for onward transmission to the Minister and the Minister for Finance:

(i) (I) the amount of the capital expenditure actually incurred in the qualifying period on the construction or refurbishment of the building or structure; and

(II) where subsection (4) of section 372AW applies in relation to an accommodation building, the amount of such expenditure which is eligible for certification in accordance with that section;

(ii) the number and nature of the investors that are investing in the building or structure;

(iii) the amount to be invested by each investor; and

(iv) the nature of the structures which are being put in place to facilitate the investment in the building or structure;

together with such other information as may be specified in the relevant guidelines as being of assistance to the Minister for Finance in evaluating the costs, including but not limited to exchequer costs, and the benefits arising from the operation of tax relief for buildings and structures under this Chapter, and

(g) in respect of which the mid-Shannon Tourism Infrastructure Board gives a certificate in writing after the building or structure is first used or, where capital expenditure is incurred on the refurbishment of the building or structure, first used subsequent to the incurring of that expenditure—

(i) stating that it is satisfied that the conditions in paragraphs (a), (b), (c), (d), (e) and (f) have been met,

(ii) confirming the date of first use or, as the case may be, first use after refurbishment, and

(iii) which includes certification in accordance with section 372AW(2)(a)(ii) or a copy of such certification (if previously issued).

(2) (a) Subject to paragraph (b), subsections (3) to (5) and section 372AZ, the provisions of the Tax Acts relating to the making of allowances and charges in respect of capital expenditure incurred on the construction or refurbishment of an industrial building or structure shall, notwithstanding anything to the contrary in those provisions, apply—

(i) as if the qualifying premises were, at all times at which it is a qualifying premises, a building or structure in respect of which an allowance is to be made for the purposes of income tax or corporation tax, as the case may be, under Chapter 1 of Part 9 by reason of its use for a purpose specified in section 268(1)(a), and

(ii) where any activity carried on in the qualifying premises is not a trade, as if (for the purposes only of the making of allowances and charges by virtue of subparagraph (i)), it were a trade.

(b) An allowance shall be given by virtue of this subsection in respect of any capital expenditure incurred on the construction or refurbishment of a qualifying premises only in so far as that expenditure is incurred in the qualifying period.

(3) In the case where capital expenditure is incurred in the qualifying period on the refurbishment of a qualifying premises, subsection (2) shall apply only if the total amount of the capital expenditure so incurred is not less than an amount equal to 20 per cent of the market value of the building or structure immediately before that expenditure was incurred.

(4) For the purposes of the application, by subsection (2), of Chapter 1 of Part 9 in relation to capital expenditure incurred in the qualifying period on the construction or refurbishment of a qualifying premises—

(a) section 272 shall apply as if—

(i) in subsection (3), the following were substituted for paragraph (a):

‘(a) in relation to a building or structure to which section 372AY applies, 15 per cent of the capital expenditure referred to in subsection (2)(b) of that section,’,

and

(ii) in subsection (4), the following were substituted for paragraph (a):

‘(a) in relation to a building or structure to which section 372AY applies, 15 years beginning with the time when the building or structure was first used or, where capital expenditure on the refurbishment of the building or structure is incurred, 15 years beginning with the time when the building or structure was first used subsequent to the incurring of that expenditure,’,

and

(b) section 274(1)(b) shall apply as if the following were substituted for subparagraph (i):

‘(i) in relation to a building or structure to which section 372AY applies, 15 years after the building or structure was first used or, where capital expenditure on the refurbishment of the building or structure is incurred, 15 years after the building or structure was first used subsequent to the incurring of that expenditure,’.

(5) In determining for the purposes of this Chapter whether and to what extent capital expenditure incurred on the construction or refurbishment of a qualifying premises is incurred or not incurred in the qualifying period, such an amount of that capital expenditure as is properly attributable to work on the construction or, as the case may be, refurbishment of the premises actually carried out during the qualifying period shall (notwithstanding any other provision of the Tax Acts as to the time when any capital expenditure is or is to be treated as incurred) be treated as having been incurred in that period.

Restrictions on relief, non-application of relief in certain cases and provision against double relief.

372AZ.— (1) Notwithstanding any other provision of this Chapter, sections 372AX and 372AY shall not apply in respect of expenditure incurred on the construction or refurbishment of a building or structure—

(a) (i) where a property developer is entitled to the relevant interest, within the meaning of section 269, in relation to that expenditure, and

(ii) either the person referred to in subparagraph (i) or a person connected (within the meaning of section 10) with that person incurred the expenditure on the construction or refurbishment of the building or structure concerned,

(b) where any part of such expenditure has been or is to be met, directly or indirectly, by grant assistance or any other assistance which is granted by or through the State, any board established by statute, any public or local authority or any other agency of the State,

(c) unless the potential capital allowances in relation to the building or structure concerned and the project in which it is comprised comply with the requirements of Commission Regulation (EC) No 1628/2006 of 24 October 2006 on the application of Articles 87 and 88 of the European Communities Treaty to national regional investment aid 5 .

(2) Where relief is given by virtue of section 372AX or 372AY in relation to capital expenditure incurred on the construction or refurbishment of a building or structure, relief shall not be given in respect of that expenditure under any other provision of the Tax Acts.

(3) Where—

(a) capital expenditure is incurred in the qualifying period on the construction or refurbishment of an accommodation building, and

(b) subsection (4) of section 372AW applies so as to reduce the amount of such expenditure which is eligible for certification in accordance with that section by the mid-Shannon Tourism Infrastructure Board,

then the amount of the capital expenditure actually incurred in the qualifying period on the construction or refurbishment of the accommodation building which is to be treated as incurred—

(i) for the purposes of the making of allowances and charges under Chapter 1 of Part 9, by virtue of section 372AX or 372AY, (including the making of balancing allowances and charges under section 274 and the calculation of the residue of expenditure under section 277), but

(ii) prior to the operation of subsection (4),

shall be reduced to the amount of the capital expenditure which was eligible for certification by the mid-Shannon Tourism Infrastructure Board in relation to that building.

(4) Where relief under Chapter 1 of Part 9 is, by virtue of section 372AX or 372AY, to apply in relation to capital expenditure incurred in the qualifying period on the construction or refurbishment of a building or structure the site of which is wholly within a qualifying mid-Shannon area described in either Part 1 or Part 5 of Schedule 8B (as inserted by the Finance Act 2007), then the amount of that capital expenditure which is to be treated as incurred for the purposes of the making of allowances and charges under that Chapter (including the making of balancing allowances and charges under section 274 and the calculation of the residue of expenditure under section 277) shall be reduced to 80 per cent of the amount which, apart from this subsection, would otherwise be so treated.

(5) (a) For the purposes of the making of allowances and charges under Chapter 1 of Part 9 as is referred to in subsections (3) and (4), references in the Tax Acts, other than those in section 279 as applied by paragraph (b), to expenditure incurred on the construction or, as the case may be, refurbishment of a building or structure shall be construed as a reference to such expenditure as reduced in accordance with either or both of those subsections.

(b) Section 279 shall apply in relation to a building or structure to which either or both subsections (3) and (4) apply as if—

(i) in subsection (1) of that section, the following were substituted for the definition of ‘the net price paid’:

‘ “ the net price paid ” means the amount represented by A in the equation—

A = B x DCD

D + E

where—

B is the amount paid by a person on the purchase of the relevant interest in the building or structure,

C is the amount of the expenditure actually incurred on the construction of the building or structure as reduced in accordance with either or both subsections (3) and (4) of section 372AZ,

D is the amount of the expenditure actually incurred on the construction of the building or structure, and

E is the amount of any expenditure actually incurred which is expenditure for the purposes of paragraph (a), (b) or (c) of section 270(2).’,

(ii) in subsection (2) of that section, the following were substituted for paragraph (b):

‘(b) the person who buys that interest shall be deemed for those purposes to have incurred, on the date when the purchase price becomes payable, expenditure on the construction of the building or structure equal to that expenditure as reduced in accordance with either or both subsections (3) and (4) of section 372AZ or to the net price paid (within the meaning of that term as applied by section 372AZ(5)) by such person for that interest, whichever is the less;’,

and

(iii) in subsection (3) of that section, the reference to ‘that expenditure or to’ were a reference to ‘that expenditure as reduced in accordance with either or both subsections (3) and (4) of section 372AZ or to’.”,

(b) by inserting the following after Schedule 8A:

“Section 372AW.

SCHEDULE 8B

Description of Qualifying Mid-Shannon Areas

PART 1

Description of qualifying mid-Shannon areas of Clare

The District Electoral Divisions of Ayle, Ballynahinch, Boherglass, Caherhurley, Cappaghabaun, Carrowbaun, Cloonusker, Coolreagh, Corlea, Derrynagittagh, Drummaan, Fahymore, Feakle, Inishcaltra North, Inishcaltra South, Killaloe, Killokennedy, Killuran, Kilseily, Lackareagh, Loughea, Mountshannon, O’Briensbridge, Ogonnelloe and Scarriff.

PART 2

Description of qualifying mid-Shannon areas of Galway

The District Electoral Divisions of Abbeygormacan, Abbeyville, Balinasloe Rural, Ballinasloe Urban, Ballyglass, Ballynagar, Bracklagh, Clonfert, Clontuskert, Coos, Derrew, Drumkeary, Drummin, Eyrecourt, Kellysgrove, Killimor (Portumna rural area), Kilmacshane, Kilmalinoge, Kilquain, Kiltormer, Kylemore, Laurencetown, Leitrim, Lismanny, Loughatorick, Marblehill, Meelick, Moat, Pallas, Portumna, Tiranascragh, Tynagh and Woodford.

PART 3

Description of qualifying mid-Shannon areas of Offaly

The District Electoral Divisions of Ballycumber, Banagher, Birr Rural, Birr Urban, Broughal, Cloghan, Clonmacnoise, Derryad, Doon, Drumcullen, Eglish, Ferbane, Gallen, Hinds, Hunston, Killyon, Lumcloon, Lusmagh, Mounterin, Moyclare, Shannonbridge, Shannonharbour, Srah and Tinamuck.

PART 4

Description of qualifying mid-Shannon areas of Roscommon

The District Electoral Divisions of Athleague East, Athleague West, Athlone West Rural, Ballydangan, Ballynamona, Castlesampson, Caltragh, Cams, Carnagh, Carrowreagh, Cloonburren, Cloonown, Crannagh, Creagh, Culliagh, Drumlosh, Dysart, Fuerty, Kilcar, Kiltoom, Lackan, Lecarrow, Lismaha, Moore, Mote, Rockhill, Roscommon Rural, Roscommon Urban, Scregg, Taghmaconnell, Thomastown and Turrock.

PART 5

Description of qualifying mid-Shannon areas of Tipperary

The District Electoral Divisions of Aglishcloghane, Ardcrony, Ballina, Ballingarry (in Borrisokane rural area), Ballygibbon, Ballylusky, Ballymackey, Ballynaclogh, Birdhill, Borrisokane, Burgesbeg, Carrig, Carrigatogher, Castletown, Cloghprior, Clohaskin, Cloghjordan, Derrycastle, Finnoe, Graigue (in Borrisokane rural area), Greenhall, Kilbarron, Kilcomenty, Killoscully, Kilkeary, Kilmore, Kilnarath, Knigh, Lackagh, Lorrha East, Lorrha West, Mertonhall, Monsea, Nenagh East Urban, Nenagh Rural, Nenagh West Urban, Newport, Rathcabban, Redwood, Riverstown, Terryglass, Uskane and Youghalarra.

PART 6

Description of qualifying mid-Shannon areas of Westmeath

The District Electoral Divisions of Athlone East Rural, Athlone East Urban, Athlone West Urban, Ardnagragh, Auburn, Ballymore, Bellanalack, Carn, Castledaly, Doonis, Drumraney, Glassan, Killinure, Moate, Mount Temple, Moydrum, Muckanagh, Noughaval, Templepatrick, Tubbrit, Umma and Winetown.”,

and

(c) in Schedule 25B by inserting the following after the matter set out opposite reference number 36:

“

”.

(2) This section comes into operation on such day or days as the Minister for Finance may by order appoint and different days may be appointed for different purposes or different provisions.

Amendment of section 1008 (separate assessment of partners) of Principal Act.

30.— (1) Section 1008 of the Principal Act is amended—

(a) in subsection (2)(a)—

(i) by renumbering the existing text as subparagraph (i), and

(ii) by inserting the following subparagraph after subparagraph (i):

“(ii) Where for any year or period within the relevant period the aggregate of the respective amounts (in this subparagraph referred to as the ‘aggregate’) of the profits or gains which under subparagraph (i) are taken as arising to each partner in the partnership is less than the full amount of the profits or gains of the partnership trade for that year or period, then the amount of the difference (in this subparagraph referred to as the ‘balance’) between that full amount and the aggregate shall for the purposes of subsection (1) be apportioned in full between the partners—

(I) in the ratio which is expressed between the partners in relation to the apportionment of the balance, or

(II) where there is no such ratio expressed—

(A) in the same ratio as the ratio which applies between the respective amounts of the profits or gains which, under subparagraph (i), were taken as arising to each partner, or

(B) where no amount of profits or gains was, under subparagraph (i), taken as arising to any individual partner, in equal shares.”,

and

(b) by deleting subsection (4).

(2) Subsection (1) of this section applies as respects the full amount of the profits or gains of a partnership trade (as provided for in subsection (3)(a) of section 1008 of the Principal Act for the purposes of subsection (2) of that section) for any year or period ending on or after 1 January 2007.