PART I

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

Chapter I

Income Tax

1. —As respects the year of assessment 1993-94 and subsequent years of assessment, the Finance Act, 1980 , is hereby amended—

(a) in section 1—

(i) by the substitution, in subsection (2) (inserted by the Finance Act, 1989 ), of “£7,200” and “£3,600”, respectively, for “£7,000” and “£3,500” (inserted by the Finance Act, 1992 ), and

(ii) by the substitution, in paragraph (a) (inserted by the Finance Act, 1991 ) of subsection (3) (inserted by the Finance Act, 1989 ), of “£350” for “£300” in both places where it occurs and of “£550” for “£500”,

and

(b) in section 2 , by the substitution, in subsection (6) (inserted by the Finance Act, 1989 )—

(i) of “£8,200” and “£9,400”, respectively, for “£8,000” and “£9,200” (inserted by the Finance Act, 1992 ), in paragraph (a), and

(ii) of “£4,100” and “£4,700”, respectively, for “£4,000” and “£4,600” (inserted by the Finance Act, 1992 ), in paragraph (b),

and the said subsection (2), and the said paragraph (a) of subsection (3), of the said section 1 and the said subsection (6) of the said section 2, as so amended, are set out in the Table to this section.

TABLE

(2) In this section “the specified amount” means, subject to subsection (3)—

(a) in a case where the individual would, apart from this section, be entitled to a deduction specified in section 138 (a) of the Income Tax Act, 1967 , £7,200, and

(b) in any other case, £3,600.

(a) For the purposes of this section and section 2, where a claimant proves that he has living, at any time during the year of assessment, any qualifying child, then, subject to subsection (4), the specified amount (within the meaning of this section or section 2, as the case may be) shall be increased, for that year of assessment, by £350 in respect of the first such child, £350 in respect of the second such child and £550 in respect of each such child in excess of two.

(6) In this section “the specified amount” means, subject to subsection (3) of section 1—

(a) in a case where the individual would, apart from this section, be entitled to a deduction specified in section 138 (a) of the Income Tax Act, 1967 , £8,200:

Provided that, if at any time during the year of assessment either the individual or his spouse was of the age of seventy-five years or upwards, “the specified amount” means £9,400, and

(b) in any other case, £4,100:

Provided that, if at any time during the year of assessment the individual was of the age of seventy-five years or upwards, “the specified amount” means £4,700.

2. —(1) Section 2 of the Finance Act, 1991 , is hereby amended, as respects the year of assessment 1993-94 and subsequent years of assessment, by the substitution of the following Table for the Table to that section:

“TABLE

PART I

PART II

”.

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

3. —(1) Where a deduction falls to be made from the total income of an individual for the year of assessment 1993-94 or any subsequent year of assessment in respect of relief to which the individual is entitled under a provision mentioned in column (1) of the Table to this subsection and the amount of the deduction would, but for this section, be an amount specified in column (2) of the said Table, the amount of the deduction shall, in lieu of being the amount specified in the said column (2), be the amount specified in column (3) of the said Table opposite the mention of the amount in the said column (2).

TABLE

(2) Section 3 of the Finance Act, 1991 , shall have effect subject to the provisions of this section.

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

4. — Section 6 of the Finance Act, 1982 , shall have effect for the purpose of ascertaining the amount of income on which an individual referred to therein is to be charged to income tax for the year 1993-94, as if in subsection (2)—

(a) “1993-94” were substituted for “1982-83”, and

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

5. —(1) In this section “the principal sections” means sections 76 (1) and 496 of, and paragraph 1 (2) of Part III of Schedule 6 to, the Income Tax Act, 1967 .

(2) Section 496 of the Income Tax Act, 1967 , is hereby amended, as respects the year 1993-94 and subsequent years of assessment, by the substitution of the following subsection for subsection (2A) (inserted by the Finance Act, 1980 ):

“(2A) In relation to any interest paid in respect of any period beginning on or after the 6th day of April, 1993, and notwithstanding the provisions of subsection (1), no repayment of tax shall be made under this section for any year of assessment—

(a) in the case of a person who is assessed to tax for the year of assessment in accordance with the provisions of section 194, on the excess of the interest over £5,000,

(b) in the case of a widowed person, on the excess of the interest over £3,600, or

(c) in any other case, on the excess of the interest over £2,500.”.

(3) Section 7 of the Finance Act, 1989 , shall not apply or have effect in relation to any interest paid in respect of any period beginning on or after the 6th day of April, 1993, and ending on or before the 5th day of April, 1994.

(4) As respects the year of assessment 1993-94 and subsequent years of assessment, section 6 of the Finance Act, 1987 , shall not apply or have effect for the first three years of assessment for which relief falls to be given under the principal sections in respect of one or more than one qualifying loan (within the meaning of section 21 of the Finance Act, 1982 ):

Provided that for the purposes of calculating the additional relief, if any, which but for the enactment of this subsection would not have been given for a year of assessment, any relief given in accordance with the principal sections in the case of a person who has elected or could be deemed to have duly elected to be assessed to tax in accordance with the provisions of section 194 of the Income Tax Act, 1967 , for any year of assessment shall, notwithstanding any other provision of the Tax Acts, be treated as given equally to the person and that person's spouse for such year of assessment notwithstanding that—

(a) section 197 of the Income Tax Act, 1967 , may have applied for that year of assessment, and

(b) the payments in respect of which relief is given may not have been made in such proportions.

(5) In relation to any interest paid in respect of any period beginning on or after the 6th day of April, 1993, relief which falls to be granted under the principal sections shall, notwithstanding the foregoing provisions of this section, be reduced—

(a) in the case of a person who is assessed to tax for the year of assessment in accordance with the provisions of section 194 of the Income Tax Act, 1967 , by £200 or, if less, the amount of interest paid, or

(b) in any other case, by £100 or, if less, the amount of interest paid.

6. — Section 11 of the Finance Act, 1990 , is hereby amended by the substitution of the following section for section 11:

“11.—Notwithstanding the provisions of section 34 of the Finance Act, 1974 , and section 8 of the Finance Act, 1978 , relief shall not be given under the said section 34 or the said section 8 in respect of any payment of interest on any loan applied in acquiring shares issued—

(a) on or after the 20th day of April, 1990 (being shares forming part of the ordinary share capital of a company) if a claim for relief under Chapter III of Part I of the Finance Act, 1984 , is made in respect of the amount subscribed for those shares, or

(b) on or after the 6th day of May, 1993 (being shares forming part of the ordinary share capital of a company) if a claim for relief under section 35 (as amended by the Finance Act, 1993) of the Finance Act, 1987 , is made in respect of the amount subscribed for those shares.”.

7. —(1) Section 115 of the Income Tax Act, 1967 , is hereby amended by the insertion of the following subsection after subsection (1):

“(1A) (a) Paragraph (d) of subsection (1) shall not apply to the following payments, that is to say—

(i) a termination allowance payable in accordance with the provisions of section 5 of the Oireachtas (Allowances to Members) and Ministerial and Parliamentary Offices (Amendment) Act, 1992, and any regulations made thereunder,

(ii) a severance allowance or a special allowance payable in accordance with the provisions of Part V (inserted by the Oireachtas (Allowances to Members) and Ministerial and Parliamentary Offices (Amendment) Act, 1992) of the Ministerial and Parliamentary Offices Act, 1938 , or

(iii) a special severance gratuity payable under section 7 of the Superannuation and Pensions Act, 1963 , or any analogous payment payable under or by virtue of any other enactment.

(b) (i) Subparagraphs (i) and (ii) of paragraph (a) shall apply and have effect in relation to payments made on or after the 1st day of November, 1992.

(ii) Subparagraph (iii) of paragraph (a) shall apply and have effect in relation to payments made on or after the 6th day of May, 1993.”.

(2) (a) This subsection applies to the following payments, that is to say—

(i) a termination allowance (other than that part of the allowance which comprises a lump sum) payable in accordance with the provisions of section 5 of the Oireachtas (Allowances to Members) and Ministerial and Parliamentary Offices (Amendment) Act, 1992, and any regulations made thereunder, and

(ii) a severance allowance or a special allowance payable in accordance with the provisions of Part V (inserted by the Oireachtas (Allowances to Members) and Ministerial and Parliamentary Offices (Amendment) Act, 1992) of the Ministerial and Parliamentary Offices Act, 1938 .

(b) Notwithstanding any other provision of the Income Tax Acts, payments to which this subsection applies, made on or after the 1st day of November, 1992, shall be deemed to be—

(i) profits or gains accruing from an office or employment and, accordingly—

(I) tax under Schedule E shall be charged thereon, and

(II) the tax so chargeable shall be computed under section 110 (1) (inserted by the Finance Act, 1991 ) of the Income Tax Act, 1967 ,

and

(ii) emoluments to which the provisions of Chapter IV of Part V of the Income Tax Act, 1967 , are applied by section 125 of that Act.

8. —As respects payments made on or after the 6th day of May, 1993, the Income Tax Act, 1967 , is hereby amended—

(a) in section 115 (as amended by section 7 )—

(i) by the substitution in subsection (3) (including the proviso thereto) of—

(I) “not exceeding the basic exemption” for “not exceeding £6,000”,

(II) “the amount of the said basic exemption” for “the said sum of £6,000”, and

(III) “the amount of the said basic exemption” for “the said sum”,

and

(ii) by the insertion of the following subsection after subsection (5):

“(5A) In this section and in Schedule 3 ‘the basic exemption’ means £6,000 together with £500 for each complete year of the service, up to the relevant date, of the holder in the office or employment in respect of which the payment is made.”,

and

(b) in Schedule 3—

(i) by the substitution in paragraph 3 of “the basic exemption” for “£6,000”,

(ii) by the substitution in subparagraph (b) of paragraph 4 of “one-fifteenth” for “one-twentieth”, and

(iii) by the substitution in the second proviso to paragraph 6 of “the basic exemption” for “£6,000” in both places where it occurs.