“PART 36A

Special savings incentive accounts

Interpretation.

848B.—(1) In this Part—

‘deposit account’ means an account beneficially owned by an individual, which is—

(a) an account into which a deposit (within the meaning of section 256(1)) is made, or

(b) an account with a relevant European institution into which repayable funds are lodged;

‘investment undertaking’ has the meaning assigned to it in section 739B and ‘units in an investment undertaking’ shall be construed accordingly;

‘PPS Number’, in relation to an individual, means that individual's Personal Public Service Number within the meaning of section 223 of the Social Welfare (Consolidation) Act, 1993 ;

‘qualifying assets’, subject to section 848G, means—

(a) deposit accounts,

(b) shares within the meaning of section 2(1) of the Credit Union Act, 1997 ,

(c) units in an investment undertaking,

(d) units in, or shares of, a relevant UCITS,

(e) relevant life assurance policies,

(f) shares issued by a company, wherever incorporated, officially listed on a recognised stock exchange, and

(g) securities issued by or on behalf of a government;

‘qualifying individual’ means an individual who at the time of opening a special savings incentive account—

(a) is 18 years of age, or older, and

(b) is resident in the State;

‘qualifying savings manager’ means—

(a) a person who is a holder of a licence granted under section 9 of the Central Bank Act, 1971 , or a person who holds a licence or other similar authorisation under the law of any other Member State of the European Communities which corresponds to a licence granted under that section,

(b) a building society within the meaning of section 256,

(c) a trustee savings bank within the meaning of the Trustee Savings Banks Act, 1989 ,

(d) ACC Bank plc,

(e) the Post Office Savings Bank,

(f) a credit union within the meaning of the Credit Union Act, 1997 ,

(g) an investment undertaking,

(h) the holder of—

(i) an authorisation issued by the Minister for Enterprise, Trade and Employment under the European Communities (Life Assurance) Regulations of 1984 (S.I. No. 57 of 1984), as amended, or,

(ii) an authorisation granted by the authority charged by law with the duty of supervising the activities of insurance undertakings in a Member State of the European Communities, other than the State, in accordance with Article 6 of Directive No. 79/267/EEC¹ , who is carrying on the business of life assurance in the State, or

(iii) an official authorisation to undertake insurance in Iceland, Liechtenstein and Norway pursuant to the EEA Agreement within the meaning of the European Communities (Amendment) Act, 1993 , and who is carrying on the business of life assurance in the State,

(i) a person which is an authorised member firm of the Irish Stock Exchange, within the meaning of the Stock Exchange Act, 1995 , or a member firm (which carries on a trade in the State through a branch or agency) of a stock exchange of any other Member State of the European Communities,

(j) a firm approved under section 10 of the Investment Intermediaries Act, 1995 , which is authorised to hold client money, other than a firm authorised as a Restricted Activity Investment Product Intermediary, where the firm's authorisation permits it to engage in the proposed activities, or a business firm which has been authorised to provide similar investment business services under the laws of a Member State of the European Communities which correspond to that Act, or

(k) the Minister for Finance, acting through the Agency (within the meaning of section (1) of the National Treasury Management Agency Act, 1990 );

‘relevant European institution’ means an institution which is a credit institution (within the meaning of the European Communities (Licensing and Supervision of Credit Institutions) Regulations, 1992 (S.I. No. 395 of 1992)) which has been authorised by the Central Bank of Ireland to carry on business of a credit institution in accordance with the provisions of the supervisory enactments (within the meaning of those Regulations);

‘relevant UCITS’ means a UCITS situated in a Member State of the European Communities, other than the State, which has been authorised by the competent authorities of the Member State in which it is situated;

‘relevant life assurance policy’ means a policy of assurance which satisfies the conditions specified in subsection (3);

‘special savings incentive account’ has the meaning assigned to it in section 848C;

‘tax credit’, in relation to a subscription, has the meaning assigned to it in section 848D(1);

‘UCITS’ means undertakings for collective investment in transferable securities within the meaning of Article 1 of Council Directive 85/611² and references to—

(a) ‘the Member State in which UCITS is situated’

and

(b) a UCITS which has been ‘authorised by the competent authorities of the Member State in which it is situated’,

shall have the same meanings as in Articles 3 and 4 respectively of that Directive;

‘units in, or shares of, a relevant UCITS’ means the rights or interests (however described) of the holder of units or shares in that relevant UCITS.

(2) Nothing in this Part shall be construed as authorising or permitting a person who is a qualifying savings manager to provide any services which that person would not otherwise be authorised or permitted to provide in the State.

(3) The conditions referred to in the definition of ‘relevant life assurance policy’ in subsection (1) are that the policy of assurance is on the life of a person who beneficially owns the policy, and that the terms and conditions of the policy provide—

(a) for an express prohibition of any transfer of the policy, or the rights conferred by the policy or any share or interest in the policy or rights respectively, other than the cash proceeds from the termination of the policy or a partial surrender of the rights conferred by the policy, to that person,

(b) the policy, the rights conferred by the policy and any share or interest in the policy or rights respectively, shall not be capable of assignment, other than that the proceeds on the termination of the policy (other than on the death of the policyholder) may be transferred from a qualifying savings manager to another qualifying savings manager in accordance with the provisions of this Part, and

(c) the policy is not issued in the course of annuity business or pension business, within the meaning of section 706.

Special savings incentive account.

848C.—A special savings incentive account is a scheme of investment commenced on or after 1 May 2001 and on or before 30 April 2002 by a qualifying individual with a qualifying savings manager (who is registered in accordance with section 848R) under terms which include the following—

(a) apart from tax credits, in relation to subscriptions, subscribed by the qualifying savings manager under section 848E(1)(b)(ii) only the qualifying individual, or the spouse of that individual, may subscribe to the account,

(b) such subscriptions are funded by the qualifying individual, or the spouse of that individual, from funds available to either or both of them out of their own resources without recourse to borrowing, or the deferral of repayment (whether in respect of capital or interest) of sums already borrowed,

(c) subject to paragraph (d), such subscriptions, ignoring any amounts withdrawn from the account by the qualifying individual—

(i) in the month the account is commenced and in each of the 11 months immediately after that month, are of an amount agreed between the qualifying individual and the qualifying savings manager when the account is commenced, which amount shall not be less than £10, and

(ii) in any one month, do not exceed £200,

(d) such subscriptions, made in the month which is the month in which the fifth anniversary of the day of commencing the account falls, or thereafter, shall not be subscriptions for the purposes of section 848D,

(e) such subscriptions and tax credits, in relation to such subscriptions, are to be used, and used only, by the qualifying savings manager to acquire qualifying assets which—

(i) are held in the account and managed by the qualifying savings manager, and

(ii) are beneficially owned by the qualifying individual,

(f) all or any of the qualifying assets can not be assigned or otherwise pledged, as security for a loan,

(g) on commencing the account, the qualifying individual makes a declaration of a kind referred to in section 848F,

(h) for the account to be treated as maturing (otherwise than in respect of the death of the qualifying individual) in accordance with section 848H(1), the qualifying individual shall make a declaration of a kind referred to in section 848I within the period commencing 60 days before and ending 30 days after the fifth anniversary of the commencement of the account,

(i) that at the request of the qualifying individual, and within such time as shall be agreed, the account, with all rights and obligations of the parties thereto may be transferred to another qualifying savings manager in accordance with the provisions of this Part,

(j) that the qualifying savings manager will notify the qualifying individual if he or she ceases to be a qualifying savings manager, or ceases to be registered in accordance with section 848R, and

(k) that the qualifying savings manager will take reasonable measures—

(i) to establish that the PPS Number, contained in the declaration referred to in paragraph (g), made by a qualifying individual, is the PPS Number in relation to that individual, and

(ii) to ensure that the terms, provided for in this section, under which the account is commenced are and continue to be complied with, and

(l) that the qualifying savings manager will retain a copy of all material used to establish the correctness of each PPS Number contained in a declaration in accordance with paragraph (k)(i), for so long as the declaration is required to be retained under section 848R(11) and on being so required by an inspector, will make such material available for inspection.

Tax credits.

848D.—Where a qualifying individual, or the spouse of that individual, subscribes to a special savings incentive account—

(a) the qualifying individual shall be treated, for the purposes of the Tax Acts, as having paid a grossed up amount, which amount, after deducting income tax at the standard rate for the year of assessment 2001, leaves the amount of the subscription, and

(b) the qualifying individual shall be entitled to be credited with the amount of income tax (in this Part referred to as the ‘tax credit’, in relation to the subscription) treated as having been so deducted, in accordance with the provisions of this Part and not under any other provision of the Tax Acts.

Payment of tax credit.

848E.—(1) Where a qualifying individual subscribes to a special savings incentive account, and the qualifying savings manager of that account complies with the provisions of section 848P in relation to that subscription—

(a) the Revenue Commissioners shall, subject to that section, pay to the qualifying savings manager the tax credit in relation to that subscription, and

(b) that tax credit shall—

(i) be beneficially owned by the qualifying individual, and

(ii) on receipt, be immediately subscribed by the qualifying savings manager to the special savings incentive account.

(2) Subject to this Part, exemption from income tax and capital gains tax shall be allowed in respect of the income and chargeable gains arising in respect of qualifying assets held in a special savings incentive account.

(3) A deposit (within the meaning of section 256(1)) made to a deposit account which is a qualifying asset, shall not be a relevant deposit (within the meaning of that section) for the purposes of Chapter 4 of Part 8.

(4) Notwithstanding subsection (2), where in a year of assessment an individual commences a special savings incentive account, the individual is obliged to include in a return, required to be delivered by the individual under section 951, or as the case may be, section 879, in respect of that year of assessment, a statement to the effect that the individual has commenced such an account.

Declaration on commencement.

848F.—The declaration referred to in section 848C(g) is a declaration in writing made by the qualifying individual to the qualifying savings manager which—

(a) is made and signed by the qualifying individual,

(b) is made in such form—

(i) as may be prescribed or authorised by the Revenue Commissioners, and

(ii) which contains a reference to the offence of making a false declaration under section 848T,

(c) contains the qualifying individual's—

(i) name,

(ii) address of his or her permanent residence,

(iii) PPS Number, and

(iv) date of birth,

(d) declares at the time the declaration is made, that the qualifying individual—

(i) is resident in the State,

(ii) has not commenced another special savings incentive account,

(iii) is the person who will beneficially own the qualifying assets to be held in the account,

(iv) will subscribe to the account from funds available to him or her, or his or her spouse, from their own resources, without recourse to borrowing, or the deferral of repayment (whether in respect of capital or interest) of sums already borrowed, and

(v) will not assign or otherwise pledge qualifying assets to be held in the account as security for a loan,

and

(e) contains an undertaking that if at any time the declaration ceases to be materially correct, the qualifying individual will advise the qualifying savings manager accordingly.

Acquisition of qualifying assets.

848G.—(1) Qualifying assets held in a special savings incentive account, managed by a qualifying savings manager and beneficially owned by a qualifying individual may not at any time—

(a) be purchased (or otherwise acquired) by the qualifying savings manager, otherwise than—

(i) out of money which the qualifying savings manager holds in the account, and

(ii) by way of a bargain made at arm's length,

(b) be purchased from the qualifying individual or any person connected with that individual (within the meaning of section 10), or

(c) be connected with any other asset or liability of the qualifying individual or any other person connected with that individual (within the meaning of section 10) and for this purpose a qualifying asset is connected with another asset or a liability if the terms under which either asset or the liability is acquired and held would be different if the qualifying asset, the other asset or the liability, had not been acquired and held.

(2) Shares fulfil the condition as to official listing in paragraph (f) of the definition of ‘qualifying assets’ in section 848B(1) if in pursuance of a public offer, a qualifying savings manager applies for the allotment or allocation to him or her of shares in a company which are due to be admitted to such listing within 30 days of the allocation or allotment, and which, when admitted to such a listing, would be qualifying assets.

Termination of special savings incentive account.

848H.—(1) A special savings incentive account is treated as maturing—

(a) 30 days after the fifth anniversary of the end of the month in which a subscription was first made to the account where the qualifying individual has made a declaration of a kind referred to in section 848I, or,

(b) on the day of the death of the qualifying individual,

whichever event first occurs.

(2) A special savings incentive account is treated as ceasing, where at any time before the account is treated as maturing—

(a) any of the terms referred to in section 848C are not complied with, or

(b) the qualifying individual is neither resident nor ordinarily resident in the State.

(3) Where a special savings incentive account is treated as maturing or ceasing—

(a) the account thereafter shall not be a special savings incentive account for the purposes of section 848E, and

(b) the assets remaining in the account after having regard to all liabilities to tax on gains treated as accruing to the account under this Part shall—

(i) where the assets are shares, securities, or units in, or shares of, a relevant UCITS, be treated for the purposes of the Capital Gains Tax Acts, as having been acquired by the qualifying individual at their then market value at that time,

(ii) where the asset is a relevant life assurance policy, be treated as if it were a policy commenced at that time and in respect of which premiums in an amount equal to the market value of the policy at that time had been paid at that time, for the purposes of Chapter 5 of Part 26, and

(iii) where the asset is units in an investment undertaking, be treated as if the units had been acquired at that time, for their market value at that time, for the purposes of Chapter IA of Part 27.

Declaration on maturity.

848I.—The declaration referred to in section 848C(h) is a declaration in writing made by the qualifying individual to the qualifying savings manager which—

(a) is made and signed by the qualifying individual,

(b) is made in such form—

(i) as may be prescribed or authorised by the Revenue Commissioners, and

(ii) which contains a reference to the offence of making a false declaration under section 848T,

(c) contains the qualifying individual's—

(i) name,

(ii) address of his or her permanent residence,

(iii) PPS Number, and

(iv) date of birth,

(d) declares that at all times in the period from which the account was commenced until the date the declaration is made, the qualifying individual—

(i) was the beneficial owner of the qualifying assets held in the account,

(ii) had only one special savings incentive account,

(iii) was resident or ordinarily resident in the State,

(iv) subscribed to the account from funds available to the qualifying individual or his or her spouse without recourse to borrowing, or the deferral of repayment (whether of capital or interest) of sums borrowed when the account was commenced, and

(v) did not assign or otherwise pledge qualifying assets held in the account as security for a loan.

Gain on maturity.

848J.—(1) On the day on which a special savings incentive account is treated as maturing, a gain shall be treated as accruing on the account in an amount determined under subsection (2).

(2) The amount of the gain referred to in subsection (1) is an amount equal to the aggregate market value of all assets (including cash) held in the account on the day the account is treated as maturing, less the sum of all subscriptions (including subscriptions made by the qualifying savings manager under section 848E(1)(b)(ii)), made to the account on or before that day to the extent that they have not previously been treated, in accordance with subsection (3), as having been withdrawn from the account.

(3) For the purposes of subsection (2) where there is a withdrawal from an account, the amount withdrawn (before being reduced by any tax liability arising under this Part in respect of any gain treated as accruing to the account as a result of the withdrawal) shall be treated as a withdrawal of subscriptions to the extent that the amount withdrawn does not exceed the total amount of subscriptions (including subscriptions made by the qualifying savings manager in accordance with section 848E(1)(b)(ii)) made to the account since commencement, reduced by the amount of such subscriptions previously treated as subscriptions withdrawn from the account under this subsection.

(4) For the purposes of subsection (3) where there is a withdrawal of assets (other than cash) from an account the amount withdrawn shall be the amount which is the market value of those assets at the time of their withdrawal.

Gain on cessation.

848K.—(1) On the day on which a special savings incentive account is treated as ceasing, a gain shall be treated as accruing on the account in an amount determined under subsection (2).

(2) The amount of the gain referred to in subsection (1) is an amount equal to the aggregate market value of all assets (including cash) held in the account on the day the account is treated as ceasing.

Gain on withdrawal.

848L.—(1) Where before a special savings incentive account is treated as maturing or ceasing (as the case may be) a qualifying individual withdraws cash or other assets from the account, a gain shall be treated as accruing on the account in an amount determined under subsection (2).

(2) The amount of the gain referred to in subsection (1) is—

(a) where the withdrawal is in cash, the amount of that cash, and

(b) where the withdrawal is of assets (other than cash) an amount equal to the market value of such assets on the day of withdrawal.

Taxation of gains.

848M.—(1) A qualifying savings manager shall be liable to tax (in this Part referred to as ‘relevant tax’) on a gain treated under this Part as accruing to a special savings incentive account in an amount equal to 23 per cent of the amount of that gain.

(2) A qualifying savings manager who becomes liable under subsection (1) to an amount of relevant tax shall be entitled to withdraw sufficient funds from the account to which the gain is treated as accruing to satisfy that liability and the qualifying individual shall allow such withdrawal; but where there are no funds or insufficient funds available in the account out of which the qualifying savings manager may satisfy, or fully satisfy, such liability, the amount of relevant tax for which there are insufficient funds so available shall be a debt due to the qualifying savings manager from the qualifying individual.

(3) Subject to section 848P, the relevant tax in respect of a gain which in accordance with that section, is required to be included in a return, shall be due at the time by which the return is to be made and shall be paid by the qualifying fund manager without the making of an assessment; but relevant tax which has become so due may be assessed on the qualifying savings manager (whether or not it has been paid when the assessment is made) if that tax or any part of it is not paid on or before the due date.

(4) Where it appears to the inspector that there is any amount of relevant tax which ought to have been, but has not been, included in a return, or where the inspector is dissatisfied with any return, the inspector may make an assessment on the qualifying savings manager to the best of his or their judgment, and any amount of relevant tax due under an assessment made by virtue of this subsection shall be treated for the purposes of interest on unpaid tax as having been payable at the time when it would have been payable if a correct return had been made.

(5) (a) Any relevant tax assessed on a qualifying savings manager under this Chapter shall be due within one month after the issue of the notice of assessment (unless that tax is due earlier under subsection (3)) subject to any appeal against the assessment, but no such appeal shall affect the date when any amount is due under subsection (3).

(b) On the determination of an appeal against an assessment under this section any relevant tax overpaid shall be repaid.

(6) (a) The provisions of the Income Tax Acts relating to—

(i) assessments to income tax,

(ii) appeals against such assessments (including the rehearing of appeals and the statement of a case for the opinion of the High Court), and

(iii) the collection and recovery of income tax,

shall, in so far as they are applicable, apply to the assessment, collection and recovery of relevant tax.

(b) Any amount of relevant tax payable in accordance with this Part without the making of an assessment shall carry interest at the rate of 1 per cent for each month or part of a month from the date when the amount becomes due and payable.

(c) Subsections (2) to (4) of section 1080 shall apply in relation to interest payable under paragraph (b) as they apply in relation to interest payable under section 1080.

(d) In its application to any relevant tax charged by any assessment made in accordance with this section, section 1080 shall apply as if subsection (1)(b) of that section were deleted.

Transfer of special savings incentive account.

848N.—(1) Where arrangements are made by a qualifying individual to transfer his or her special savings incentive account from one qualifying savings manager (in this section referred to as the ‘transferor’) to another qualifying savings manager (in this section referred to as the ‘transferee’) or the account is transferred in consequence of the transferor ceasing to act or to be a qualifying savings manager, the following provisions of this section shall apply.

(2) Where a transfer takes place under subsection (1)—

(a) all subscriptions to the special savings incentive account in so far as they have not been applied to acquire qualifying assets, and all qualifying assets in the account, must be made to a single transferee,

(b) the qualifying individual shall make a declaration of a kind referred to in section 848O to the transferee, and

(c) the transferee shall thereafter for the purposes of this Part be the qualifying savings manager of the special savings incentive account transferred.

(3) The transferor shall within 30 days after the date of transfer—

(a) give to the transferee a notice containing the information specified in subsection (4) and the declaration specified in subsection (5), and

(b) pay to the transferee the aggregate of the amounts referred to in subsection (4)(b)(vi).

(4) The information referred to in subsection (3) is—

(a) as regards the qualifying individual his or her—

(i) name,

(ii) address of permanent residence,

(iii) date of birth,

(iv) PPS Number,

and

(b) as respects the special savings incentive account transferred pursuant to this section—

(i) the date of transfer,

(ii) the date the account was commenced,

(iii) the identification of the assets held in the account,

(iv) the total of all subscriptions made to the account by the qualifying individual, or the spouse of that individual,

(v) the total of all tax credits, in relation to subscriptions, subscribed to the account,

(vi) the amount of any dividends, and other amounts payable in respect of qualifying assets held in the account and amounts of tax credits, which have not been received by the transferor at the date of transfer, and

(vii) the amount of each withdrawal from the account and the date of each such withdrawal.

(5) The declaration referred to in subsection (3) is a declaration in writing made and signed by the transferor to the effect that—

(a) the transferor has fulfilled all obligations under this Part,

(b) the transferor has transferred to the transferee all money and qualifying assets held in the account and that where registration of any such transfer is required, the transferor has taken the necessary steps to ensure that those qualifying assets can be registered in the name of the transferee, and

(c) that, to the best of the qualifying savings manager's knowledge and belief, the information contained in the notice referred to in subsection (3) is correct.

(6) Notwithstanding section 848C, where a special savings incentive account is being transferred in accordance with this section it shall not be treated as ceasing should, during the period of the transfer, the qualifying assets held in the account, temporarily cease to be managed by a qualifying savings manager, or a qualifying savings manager who is registered in accordance with section 848R.

Declaration on transfer.

848O.—The declaration referred to in section 848N(2)(b) is a declaration in writing made by the qualifying individual to the qualifying savings manager who is the transferee referred to in that section, which—

(a) is made and signed by the qualifying individual,

(b) is made in such form—

(i) as may be prescribed or authorised by the Revenue Commissioners, and

(ii) which contains a reference to the offence of making a false declaration under section 848T.

(c) contains the qualifying individual's—

(i) name,

(ii) address of his or her permanent residence,

(iii) PPS Number, and

(iv) date of birth,

and

(d) declares—

(i) at the time the declaration is made, that the qualifying individual—

(I) has not commenced another special savings incentive account, and

(II) is the person who beneficially owns the qualifying assets held in the account being transferred,

(ii) at the time the special savings incentive account was commenced, the qualifying individual was resident in the State,

(iii) that subscriptions to the account have been and will continue to be made from funds available to him or her, or his or her spouse, out of their own resources without recourse to borrowing, or the deferral of repayment (whether in respect of capital or interest) of sums borrowed when the account was commenced, and

(iv) has not and will not assign or otherwise pledge qualifying assets held in the account as security for a loan.

Monthly returns.

848P.—A qualifying savings manager who is or was registered in accordance with section 848R, shall, within 15 days of the end of every month, make a return (including, where it is the case, a nil return) to the Revenue Commissioners, which—

(a) specifies in respect of all special savings incentive accounts managed by the qualifying savings manager in that month—

(i) the aggregate amount of tax credits, in relation to the aggregate of subscriptions made to those accounts in that month,

(ii) the aggregate amount of relevant tax to which the qualifying savings manager is liable in respect of gains treated as accuring on those accounts in that month, and

(iii) the net amount (being the difference between the amounts specified in paragraphs (a) and (b)) due from or, as the case may be, to, the Revenue Commissioners,

and

(b) contains a declaration in a form prescribed or authorised by the Revenue Commissioners that, to the best of the qualifying savings manager's knowledge and belief, the information referred to in paragraph (a) is correct.

Annual returns.

848Q.—A qualifying savings manager who is or was registered in accordance with section 848R shall in respect of each year of assessment, on or before 28 February in the year following the year of assessment, make a return (including, where it is the case, a nil return), to the Revenue Commissioners which in respect of the year of assessment—

(a) specifies in respect of each special incentive savings account managed by the qualifying savings manager—

(i) the name of the qualifying individual,

(ii) the address of that individual's permanent residence,

(iii) the PPS Number of the individual,

(iv) the date the account was commenced,

(v) the total amount of subscriptions made by the qualifying individual, or the spouse of that individual, to the account,

(vi) the total amount of tax credits, in respect of subscriptions, subscribed to the account, and

(vii) in respect of each gain accuring on the account—

(I) the amount of relevant tax to which the qualifying savings manager has thereby become liable, and

(II) whether the gain accrued under section 848J, 848K or 848L.

and

(b) containing a declaration, in a form prescribed or authorised by the Revenue Commissioners, that to the best of the qualifying savings manager's knowledge and belief—

(i) in respect of each special savings incentive account referred to in the return, the terms referred to in section 848C have been and are being complied with, and

(ii) the information referred to in paragraph (a) and the declaration referred to in subparagraph (i) is correct.

Registration etc.

848R.—(1) A person can not be a qualifying savings manager unless the person is included in a register maintained by the Revenue Commissioners of persons registered in accordance with subsection (5).

(2) Where at any time a qualifying savings manager does not have a branch or business establishment in the State, or has such a branch or business establishment but does not intend to carry out all the functions as a qualifying savings manager at that branch or business establishment, the qualifying savings manager shall not be registered in accordance with subsection (5) unless the qualifying savings manager appoints for the time being a person, who—

(a) where an individual, is resident in the State, and

(b) where not an individual, has a business establishment in the State,

to be responsible for securing the discharge of the obligations which fall to be discharged by the qualifying savings manager under this Part, and advises the Revenue Commissioners of the identity of that person and the fact of that person's appointment.

(3) Where a person has been appointed in accordance with subsection (2), and subject to subsection (4) that person shall—

(a) be entitled to act on the qualifying savings manager's behalf for any of the purposes of the provisions of this Part,

(b) shall secure (where appropriate by acting on the qualifying savings manager's behalf) the qualifying savings manager's compliance with and discharge of the obligations under this Part, and

(c) shall be personally liable in respect of any failure of the qualifying savings manager to comply with or discharge any such obligations as if the obligations imposed on the qualifying savings manager were imposed jointly and severally on the qualifying savings manager and the person concerned.

(4) The appointment of a person in accordance with subsection (2) shall be treated as terminated in circumstances where—

(a) the Revenue Commissioners have reason to believe that the person concerned—

(i) has failed to secure the discharge of any of the obligations imposed on a qualifying savings manager under this Part, or

(ii) does not have adequate resources to discharge those obligations,

and

(b) the Revenue Commissioners have notified the qualifying savings manager and that person that they propose to treat the appointment of that person as having terminated with effect from the date of the notice.

(5) If the Revenue Commissioners are satisfied that an applicant for registration is entitled to be registered, they shall register the applicant with effect from such date as may be specified by them.

(6) If it appears to the Revenue Commissioners at any time that a qualifying savings manager who is registered under this section—

(a) would not be entitled to be registered if it applied for registration at that time, or

(b) has not complied with the provisions of this Part,

the Revenue Commissioners may, by written notice given to the qualifying savings manager, cancel its registration with effect from such date as may be specified in the notice.

(7) Any qualifying savings manager who is aggrieved by the failure of the Revenue Commissioners to register it or by the cancellation of its registration, may, by notice given to the Revenue Commissioners before the end of the period of 30 days beginning with the date on which the qualifying savings manager was notified of the Revenue Commissioners decision, require the matter to be determined by the Appeal Commissioners and the Appeal Commissioners shall hear and determine the matter in like manner as an appeal.

(8) A qualifying savings manager shall give notice to the Revenue Commissioners and the qualifying individuals whose special savings incentive accounts he or she manages of his or her intention to cease to act as the qualifying savings manager not less than 30 days before he or she so ceases so that his or her obligations to the Revenue Commissioners can be conveniently discharged at or about the time he or she ceases to so act, and the notice to the qualifying individuals shall inform them of their right to transfer their special savings incentive accounts under section 848N.

(9) Subject to subsection (10), every return to be made by a qualifying savings manager under section 848P and 848Q shall be made in electronic format approved by the Revenue Commissioners and shall be accompanied by a declaration made by the qualifying savings manager, in a form prescribed or authorised for that purpose by the Revenue Commissioners, to the effect that the return is correct.

(10) Where the Revenue Commissioners are satisfied that a qualifying savings manager does not have the facilities to make a return under section 848P or 848Q in the format referred to in subsection (9), such returns shall be made in writing in a form prescribed or authorised by the Revenue Commissioners, and shall be accompanied by a declaration made by the qualifying savings manager, on a form prescribed or authorised for that purpose by the Revenue Commissioners, to the effect that the return is correct.

(11) A qualifying savings manager shall retain—

(a) in respect of each special savings incentive account which is treated as maturing, the declarations of a kind referred to in sections 848F, 848I and 848O for a period of 3 years after the date on which the account was treated as maturing, and

(b) in respect of each special savings incentive account which is treated as ceasing, the declarations of a kind referred to in sections 848F and 848O for a period of 3 years after the date on which the account was treated as ceasing,

and on being so required by notice given to him or her in writing by an inspector, make available for inspection all or any such declarations.

Regulations.

848S.—(1) The Revenue Commissioners shall make regulations providing generally as to the administration of this Part and those regulations may, in particular and without prejudice to the generality of the foregoing include provisions—

(a) as to the manner in which a qualifying savings manager is to register under section 848R,

(b) as to the manner in which a return is to be made under section 848P,

(c) as to the manner in which a return is to be made under section 848Q,

(d) as to the manner in which tax credits are to be paid under section 848E(1), or the net amount referred to in section 848P(a)(iii),

(e) as to the circumstances in which the Revenue Commissioners may require a qualifying savings manager to give a bond or guarantee to the Revenue Commissioners which is sufficient to indemnify the Commissioners against any loss arising by virtue of the fraud or negligence of the qualifying savings manager in relation to the operation of the provisions of this Part, and

(f) as to the manner in which a qualifying savings manager ensures compliance with the terms of special savings incentive accounts provided for in section 848C.

(2) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly but without prejudice to the validity of anything previously done thereunder.

Offences.

848T.—A person who makes a declaration under section 848F, section 848I, section 848O or section 848N(5) which is false, shall be guilty of an offence and shall be liable on summary conviction to a fine of £1,500, or, at the discretion of the court, to imprisonment for a term not exceeding 6 months or to both the fine and the imprisonment.

Disclosure of information.

848U.—Notwithstanding any obligation as to secrecy or other restriction upon disclosure of information imposed by or under statute or otherwise, where a qualifying savings manager has reasonable grounds to suspect that the terms, provided for under section 848C, under which a special savings incentive account was commenced, are not being complied with, the qualifying savings manager shall inform the Revenue Commissioners accordingly.”.

“Replacement of business assets by members of group.

620.—(1) For the purposes of this section ‘old assets’ and ‘new assets’ have the same meanings as in section 597.

(2) Subject to subsection (4), for the purposes of section 597 all the trades to which this section applies carried on by members of a group of companies shall be treated as a single trade (except in a case of one member of the group acquiring, or acquiring the interest in, the new assets from another member or disposing of, or disposing of the interest in, the old assets to another member).

(3) This section applies to—

(a) any trade carried on by a company which is resident in the State, and

(b) any trade carried on in the State through a branch or agency of a company which is not so resident.

(4) This section shall not apply unless—

(a) the company disposing of the old assets is resident in the State at the time of the disposal, or the assets are chargeable assets in relation to that company immediately before that time, and

(b) the company acquiring the new assets is resident in the State at the time of acquisition, or the assets are chargeable assets in relation to that company immediately after that time.”,

“Deemed disposal in certain circumstances.

620A.—(1) This section applies in relation to a company where—

(a) at any time on or after 15 February 2001 an asset ceases to be a chargeable asset in relation to the company—

(i) where at the time of the acquisition of the asset by the company the asset consisted of shares deriving their value or the greater part of their value from assets specified in paragraph (a) or (b) of section 29(3), by virtue of the assets ceasing to so derive their value or the greater part of their value, or

(ii) by virtue of the asset becoming situated outside the State,

and

(b) (i) the company acquired the asset in the course of—

(I) a transfer to which section 615 applies, or

(II) a disposal to which section 617 applies,

or

(ii) by virtue of section 620 the asset constitutes new assets for the purposes of section 597.

(2) Where this section applies in relation to a company, the company shall be deemed for the purposes of the Capital Gains Tax Acts and the Corporation Tax Acts—

(a) to have disposed of the asset immediately before the time when it ceased to be a chargeable asset in relation to the company, and

(b) immediately to have reacquired it,

at its market value at that time.”,

“Donations to approved bodies.

848A.—(1) (a) In this section—

‘appropriate certificate’, in relation to a relevant donation by a donor who is an individual, other than an individual referred to in subsection (7), to an approved body, means a certificate which is in such form as the Revenue Commissioners may prescribe and which contains—

(i) statements to the effect that—

(I) the donation satisfies the requirements of subsection (3), and

(II) the donor has paid or will pay to the Revenue Commissioners income tax of an amount equal to income tax at the standard rate or the higher rate or partly at the standard rate and partly at the higher rate, as the case may be, for the relevant year of assessment on the grossed up amount of the donation, but not being—

(A) income tax which the donor is entitled to charge against any other person or to deduct, retain or satisfy out of any payment which the donor is liable to make to any other person, or

(B) appropriate tax within the meaning of Chapter 4 of Part 8,

(ii) a statement specifying how much of the grossed up amount referred to in subparagraph (i)(II) has been or will be liable to income tax at the standard rate and the higher rate for the relevant year of assessment, and

(iii) the identifying number, known as the Personal Public Service Number (PPSN), of the donor;

‘approved body’ means a body specified in Part 1 of Schedule 26A;

‘relevant accounting period’ in relation to a relevant donation means the accounting period in which the relevant donation is made;

‘relevant donation’ means a donation which satisfies the requirements of subsection (3) and takes the form of the payment by a person (in this section referred to as the ‘donor’) of a sum or sums of money amounting to at least £200 to an approved body which is made—

(i) where the donor is a company, in an accounting period, and

(ii) where the donor is an individual, in a year of assessment;

‘relevant year of assessment’, in relation to a relevant donation, means the year of assessment in which the relevant donation is made.

(b) For the purposes of this section and in relation to a donation by a donor who is an individual (other than an individual referred to in subsection (7)), references to the grossed up amount are to the amount which after deducting income tax at the standard rate or the higher rate or partly at the standard rate and partly at the higher rate, as the case may be, for the relevant year of assessment leaves the amount of the donation.

(c) This section shall be construed together with Schedule 26A.

(2) Where it is proved to the satisfaction of the Revenue Commissioners that a person has made a relevant donation the provisions of subsection (4), subsection (7) or subsection (9), as the case may be, shall apply.

(3) A donation will satisfy the requirements of this section if—

(a) it is not subject to a condition as to repayment,

(b) neither the donor nor any person connected with the donor receives a benefit in consequence of making the donation, either directly or indirectly,

(c) it is not conditional on or associated with, or part of an arrangement involving, the acquisition of property by the approved body, otherwise than by way of gift, from the donor or a person connected with the donor,

(d) subject to subsection (4)—

(i) it would not be deductible in computing for the purposes of corporation tax the profits or gains of a trade or profession, and

(ii) it would not be an expense of management deductible in computing the total profits of a company,

(e) in respect of a donation made by an individual, the individual—

(i) is resident in the State for the relevant year of assessment,

(ii) has, except in the case of an individual referred to in subsection (7), given an appropriate certificate in relation to the donation to the approved body, and

(iii) has, except in the case of an individual referred to in subsection (7), paid the tax referred to in such appropriate certificate and is not entitled to claim a repayment of that tax or any part of that tax.

(4) Where a company makes a relevant donation in any accounting period and claims relief from tax by reference thereto, the amount thereof shall, for the purposes of corporation tax, be treated as—

(a) a deductible trading expense of a trade carried on by the company in, or

(b) an expense of management deductible in computing the total profits of the company for,

that accounting period.

(5) A claim by a company under this section shall be made with the return required to be delivered under section 951 for the accounting period in which the relevant donation is made.

(6) Where a relevant donation is made by a donor in an accounting period of a company or in a year of assessment which is less than 12 months, the amounts specified in the definition of ‘relevant donation’ shall be proportionately reduced.

(7) Where a relevant donation is made to an approved body in a year of assessment by an individual who is a chargeable person (within the meaning of Part 41) for the year of assessment, the amount of the donation shall be deducted from or set off against any income of the individual chargeable to income tax for that year of assessment and tax shall where necessary be discharged or repaid accordingly, and the total income of the individual or, where the individual's spouse is assessed to income tax in accordance with section 1017, the total income of the spouse shall be calculated accordingly; but any such deduction or set-off shall not be taken into account in determining the net relevant earnings (within the meaning of section 787) of the individual or, as the case may be, the individual's spouse for the year of assessment.

(8) Where a relevant donation is made to an approved body by an individual who is a chargeable person (within the meaning of Part 41) a claim under this section shall be made with the return required to be made by that individual under section 951 for the year of assessment in which the donation is made.

(9) Where a donation is a relevant donation made by a donor who is an individual (other than an individual referred to in subsection (7) to an approved body, the Tax Acts shall apply in relation to the approved body as if—

(a) the grossed up amount of the donation were an annual payment which was the income of the approved body received by it under deduction of tax, in the amounts and at the rates specified in the statement referred to in paragraph (ii) of the definition of ‘appropriate certificate’ for the relevant year of assessment, and

(b) the provisions of those Acts which apply in relation to a claim to repayment of tax applied in relation to any claim to repayment of such tax by an approved body;

but, if the total amount of the tax referred to in paragraph (ii) of the definition of ‘appropriate certificate’ is not paid, the amount of any repayment which would otherwise be made to an approved body in accordance with this section shall not exceed the amount of tax actually paid by the donor.

(10) The details contained in an appropriate certificate shall be given by the approved body to the Revenue Commissioners in an electronic format approved by the Revenue Commissioners in connection with the making of a claim to repayment of tax to which subsection (9)(b) refers and where it is so given it shall be accompanied by a declaration made by the approved body, on a form prescribed or authorised for that purpose by the Revenue Commissioners, to the effect that the details are correct and complete.

(11) Where the Revenue Commissioners are satisfied that an approved body does not have the facilities to give the details contained in an appropriate certificate in the electronic format referred to in subsection (10), such details shall be given in writing in a form prescribed or authorised by the Revenue Commissioners and shall be accompanied by a declaration made by the approved body to the effect that the claim is correct and complete.

(12) Section 764 shall apply as if subsection (1)(b) were deleted and subsection (2) shall be construed accordingly.

(13) Section 88, 484, 485, 485A, 485B, 486, 486A and 767, subparagraphs (ii) and (iii) of subsection (1)(b), and subsection (3), of section 792 and section 848 are repealed.

(14) Where any body to which Part 2 or Part 3 of Schedule 26A relates has been approved or is the holder of an authorisation, as the case may be, under any enactment and, that approval or authorisation has not been withdrawn on the day prior to the coming into operation of this section, such body shall be deemed to be an approved body for the purposes of this section.”.

“Section 848A.

SCHEDULE 26A

PART 1

List of approved bodies for the purposes of section 848A

1. A body approved for education in the arts in accordance with Part 2.

2. A body approved as an eligible charity in accordance with Part 3.

3. An institution of higher education within the meaning of section 1 of the Higher Education Authority Act, 1971 , or any body established in the State for the sole purpose of raising funds for such an institution.

4. An institution in the State in receipt of public funding which provides courses to which a scheme approved by the Minister for Education and Science under the Local Authorities (Higher Education Grants) Acts, 1968 to 1992, applies or any body established in the State for the sole purpose of raising funds for such an institution.

5. An institution of higher education in the State which provides courses which are validated by the Higher Education Training and Awards Council under the provisions of the Qualifications (Education and Training) Act, 1999 .

6. An institution or other body in the State which provides primary education up to the end of sixth standard, based on a programme prescribed or approved by the Minister for Education and Science.

7. An institution or other body in the State which provides post-primary education up to the level of either or both the Junior Certificate and the Leaving Certificate based on a programme prescribed or approved by the Minister for Education and Science.

8. STEIF which is the Scientific and Technological Education (Investment) Fund established under the Scientific and Technological Education (Investment) Fund Act, 1997 (as amended by the Scientific and Technological Education (Investment) Fund (Amendment) Act, 1998 ).

9. The company incorporated under the Companies Acts, 1963 to 1990, on 20 September 1990 as First Step Limited.

10. The Malting Research Committee of the Irish Malters Association.

11. The European Research Institute of Ireland.

12. The Equine Foundation.

13. The Dun Research Foundation.

14. The Institute of Ophthalmology.

15. The Mater College for Research and Postgraduate Education.

16. St. Luke's Institute of Cancer Research.

17. A body to which section 209 applies which is a body for the promotion of the observance of the Universal Declaration of Human Rights or the implementation of the European Convention for the Protection of Human Rights and Fundamental Freedoms or both the promotion of the observance of that Declaration and the implementation of that Convention.

18. The Foundation for Investing in Communities Limited or any of its 90 per cent subsidiaries as may be approved for the purposes of this Schedule by the Minister for Finance.

PART 2

Approval of a body for education in the arts

1. In this Part—

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

(a) provides in the State 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 wholly or mainly in the State 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;

‘approved subject’ means—

(a) the practice of architecture,

(b) the practice of art and design,

(c) the practice of music and musical composition,

(d) the practice of theatre arts,

(e) the practice of film arts, or

(f) any other subject approved of for the purpose of this Part by the Minister for Finance.

2. (a) The Minister for Finance may, by notice in writing given to the body or institution, as the case may be, withdraw the approval of any body or institution for the purposes of this Part, and on the giving of the notice the body or institution shall cease to be an approved body from the day after the date of the notice referred to in subparagraph (b).

(b) Where the Minister for Finance withdraws the approval of any body or institution for the purposes of this Part, notice of its withdrawal shall be published as soon as may be in Iris Oifigiúil.

PART 3

Approval of body as eligible charity

1. In this Part—

‘authorisation’ shall be construed in accordance with paragraph 3;

‘eligible charity’ means any body in the State that is the holder of an authorisation that is in force.

2. Subject to paragraph 3, the Revenue Commissioners may, on application to them by a body in the State, and on the furnishing of the body to the Revenue Commissioners of such information as they may reasonably require for the purpose of their functions under this Part, issue to the body a document (in this Part referred to as ‘an authorisation’) stating that the body is an eligible charity for the purposes of this Part.

3. An authorisation shall not be issued to a body unless it shows to the satisfaction of the Revenue Commissioners that—

(a) it is a body of persons or a trust established for charitable purposes only,

(b) the income of the body is applied for charitable purposes only,

(c) before the date of the making of the application concerned under paragraph 2, it has been granted exemption from tax for the purposes of section 207 for a period of not less than 3 years,

(d) it provides such other information to the Revenue Commissioners as they may require for the purposes of their functions under this Part, and

(e) it complies with such conditions, if any, as the Minister for Social, Community and Family Affairs may, from time to time, specify for the purposes of this Part.

4. An eligible charity shall publish such information in such manner as the Minister for Finance may reasonably require, including audited accounts of the charity comprising—

(a) an income and expenditure account or a profit and loss account, as appropriate, for its most recent accounting period, and

(b) a balance sheet as at the last day of that period.

5. Notwithstanding any obligations as to secrecy or other restriction upon disclosure of information imposed by or under any statute or otherwise, the Revenue Commissioners may make available to any person the name and address of an eligible charity.

6. Subject to paragraph 7, an authorisation shall have effect for such period, not exceeding 5 years, as the Revenue Commissioners may determine and specify therein.

7. Where the Revenue Commissioners are satisfied that an eligible charity has ceased to comply with paragraph 3 or 4, they shall, by notice in writing served by registered post on the charity, withdraw the authorisation of the charity and the withdrawal shall apply and have effect from such date, subsequent to the date of the notice, as is specified therein.”.

“Taxation of interest on special term accounts.

261A.—(1) Where interest is paid by a relevant deposit taker in respect of a relevant deposit held in a special term account, such interest shall be relevant interest for the purposes of this Chapter only to the extent provided for in this section.

(2) Interest paid in a year of assessment in respect of a relevant deposit held in a medium term account shall be relevant interest only to the extent that such interest exceeds £278.

(3) Interest paid in a year of assessment in respect of a relevant deposit held in a long term account shall be relevant interest only to the extent that such interest exceeds £370.

(4) Where an individual opens a medium term account, the individual may subsequently make an election in writing to the relevant deposit taker to have the account converted to a long term account.

(5) Where an election is made in accordance with subsection (4), interest paid in a year of assessment which commences on or after the date the election is made shall be relevant interest only to the extent that such interest exceeds £370.

(6) Subject to subsection (8), section 261 shall apply in relation to any relevant interest paid in respect of a relevant deposit held in a special term account, as if the following paragraph were substituted for paragraph (c) of that section:

‘(c) the amount of any payment of relevant interest paid in respect of any relevant deposit held in a special term account shall not, except for the purposes of a claim to repayment under section 267(3) in respect of the appropriate tax deducted from such relevant interest, be reckoned in computing total income for the purposes of the Income Tax Acts;’.

(7) An account shall cease to be a special term account if any of the conditions specified in section 264A(1) cease to be satisfied, and where that occurs—

(a) all interest paid on or after the occurrence in respect of relevant deposits held in the account shall be relevant interest,

(b) all interest (in this paragraph referred to as ‘past interest’) paid prior to the occurrence, in respect of relevant deposits held in the account, shall be treated by the relevant deposit taker as relevant interest to the extent that such interest has not already been treated as relevant interest, and—

(i) the provisions of section 257(1) shall apply as if the payment of past interest was being made on the date of the occurrence, and

(ii) where on that date the past interest has already been withdrawn from the account—

(I) the relevant deposit taker shall deduct from the relevant deposits held in the account on that date, an amount equal to the amount of the appropriate tax which would have been deducted from the past interest under subparagraph (i), but for the withdrawal, and such amount shall be treated as appropriate tax, and

(II) the provisions of paragraphs (b) and (c) of section 257(1) shall apply to such deduction as they apply to a deduction from relevant interest.

(8) Subsection (6) shall not apply to any interest in respect of any relevant deposit held in the account which is paid, or by virtue of subsection (7) treated as paid, on or after the date on which the account ceases to be a special term account.”,

“Conditions and declarations relating to special term accounts.

264A.—(1) The following are the conditions referred to in subparagraph (i) of the definition of ‘special term account’ in section 256(1):

(a) the account shall be opened and designated by the relevant deposit taker as a medium term account or, as the case may be, a long term account;

(b) the account shall not be denominated in a foreign currency;

(c) the account shall not be connected with any other account held by the account holder or any other person; and for this purpose an account shall be connected with another account if—

(i) (I) either account was opened with reference to the other account, or with a view to enabling the other account to be opened on particular terms, or with a view to facilitating the opening of the other account on particular terms, and

(II) the terms on which either account was opened would have been significantly less favourable to the account holder if the other account had not been opened,

or

(ii) the terms on which either account is operated are altered or affected in any way whatever because of the existence of the other account;

(d) all relevant deposits held in the account shall be subject to the same terms;

(e) there shall not be any agreement, arrangement or understanding in existence, whether express or implied, which influences or determines, or could influence or determine, the rate (other than an unspecified and variable rate) of interest which is paid or payable, in respect of the relevant deposit or relevant deposits held in the account, in or in respect of any period which is more than 12 months;

(f) interest paid or payable in respect of the relevant deposit or relevant deposits held in the account shall not directly or indirectly be linked to or determined by any change in the price or value of any shares, stocks, debentures or securities listed on a stock exchange or dealt in on an unlisted securities market;

(g) the account shall not be opened by or held in the name of an individual who is under 16 years of age;

(h) the account shall be opened by and held in the name of the individual beneficially entitled to the relevant interest payable in respect of the relevant deposit or relevant deposits held in the account;

(i) the account may be held jointly by not more than 2 individuals;

(j) subject to paragraph (k), an individual shall not simultaneously hold, whether solely or jointly, another special term account;

(k) where the account is held jointly by individuals who are married to each other they may simultaneously hold one other such account jointly;

(l) subject to paragraphs (m) and (n), the amount of a deposit or the aggregate amount of deposits which may be made to an account in any one month shall not exceed £500;

(m) at the time an individual opens an account with a relevant deposit taker, a deposit consisting of all or part of the relevant deposits of the individual which are at that time held by the same relevant deposit taker, may be transferred to the account;

(n) otherwise than by way of a transfer under paragraph (m), a deposit of not more than £6,000 may be made by an individual once and only once to an account during the period in which the account is a special term account;

(o) any interest credited to the account by the relevant deposit taker shall not be treated as a deposit for the purposes of paragraph (l) or (p), but such interest may not be withdrawn from the account, otherwise than in accordance with paragraph (q), unless the withdrawal is made within the period of 12 months from the date it was so credited;

(p) subject to paragraph (q), a deposit may not be withdrawn from an account held by an individual within—

(i) 3 years from the date the deposit was made, in the case of a medium term account, and

(ii) 5 years from the date the deposit was made, in the case of a long term account,

otherwise than on the death of the individual or, where the account is an account held jointly by 2 individuals, on the death of one of them;

(q) one and only one withdrawal may be made from an account by an individual who is 60 years of age or over on the date of the withdrawal, provided that the account was opened when the individual was under that age.

(2) The declaration referred to in subparagraph (ii) of the definition of ‘special term account’ in section 256(1) shall be a declaration in writing to a relevant deposit taker which—

(a) is made by the individual (in this subsection referred to as ‘the declarer’) who holds the account in respect of which the declaration is made is payable,

(b) is signed by the declarer,

(c) is made in such form as may be prescribed or authorised by the Revenue Commissioners,

(d) declares that at the time when the declaration is made the conditions referred to in paragraphs (g), (h), (j) and (k) of subsection (1) are satisfied in relation to the account in respect of which the declaration is made,

(e) contains the full name and address of the declarer,

(f) contains an undertaking by the declarer that, if the conditions referred to in paragraphs (g), (h), (j) and (k) of subsection (1) cease to be satisfied in respect of the account in respect of which the declaration is made, the declarer will notify the relevant deposit taker accordingly, and

(g) contains such other information as the Revenue Commissioners may reasonably require for the purposes of this Chapter.

(3) Section 263(2) shall apply as respects declarations of the kind mentioned in this section as it applies as respects declarations of the kind mentioned in that section.

Returns of special term accounts by relevant deposit takers.

264B.—(1) In this section ‘appropriate inspector’ means—

(a) the inspector who has last given notice in writing to the relevant deposit taker that he or she is the inspector to whom the relevant deposit taker is required to deliver the return referred to in subsection (2), or

(b) where there is no such inspector as is referred to in paragraph (a), the inspector of returns specified in section 950.

(2) On or before 31 March in each year of assessment, every relevant deposit taker shall prepare and deliver to the appropriate inspector a return, in such form as may be prescribed or authorised by the Revenue Commissioners specifying—

(a) the name and address of the holder or holders, as the case may be, of each special term account which was opened during the previous year of assessment,

(b) whether such account is a medium term account or a long term account, and

(c) the date of opening of such account.

(3) Sections 1052 and 1054 shall apply to a failure by a relevant deposit taker to deliver a return required by subsection (2) and to each and every such failure, as they apply to a failure to deliver a return referred to in section 1052.”,

Interpretation (Chapter 5).

267A.—(1) In this Chapter—

‘appropriate tax’ has the same meaning as in section 256(1);

‘dividend’ means a dividend on shares declared by a credit union at an annual general meeting of that credit union;

‘long term share account’ means an account opened by a member (being an individual) with a credit union on terms under which the member has agreed that each share subscribed for by the member to be held in the account is to be held in the account for a period of not less than 5 years;

‘medium term share account’ means an account opened by a member (being an individual) with a credit union on terms under which the member has agreed that each share subscribed for by the member to be held in the account is to be held in the account for a period of not less than 3 years;

‘relevant deposit’ has the same meaning as in section 256(1);

‘relevant deposit taker’ has the same meaning as in section 256(1);

‘relevant interest’ has the same meaning as in section 256(1);

‘savings’ includes shares and deposits;

‘share’ has the same meaning as in section 2(1) of the Credit Union Act, 1997 ;

‘special share account’ means an account in which shares subscribed for by a member are held by a credit union on terms under which the member has agreed with the credit union that for the purposes of Chapter 4 of this Part—

(a) the value of the shares held in the account at any time is to be treated as an amount of a relevant deposit held by the credit union at that time, and

(b) the value of any dividend paid on those shares at any time is to be treated as an amount of relevant interest paid in respect of such relevant deposit by the credit union at that time;

‘special term share account’ means—

(a) a medium term share account, or

(b) a long term share account,

being an account in which shares subscribed for by a member are held by a credit union and in respect of which—

(i) the conditions specified in section 267D(1) are satisfied, and

(ii) a declaration of the kind mentioned in section 267D(2) has been made to the credit union.

Election to open a special share account or a special term share account.

267B.—(1) A person, who is a member or is about to become a member of a credit union, may either or both—

(a) make an election in writing to the credit union to open an account which is a special share account, and

(b) where the person is an individual, make an election in writing to the credit union to open either a medium term share account or a long term share account.

(2) Where an election is made in accordance with subsection (1)(a), the credit union shall designate the account as a special share account and shall treat—

(a) the value of the shares held in the account at any time, as an amount of a relevant deposit held by it at that time, and

(b) the value of any dividend paid on those shares at any time, as an amount of relevant interest paid at that time in respect of such relevant deposit and the provisions of Chapter 4 of this Part shall apply to such relevant interest treated as paid by a credit union as they apply to relevant interest paid by a relevant deposit taker, and the appropriate tax in respect of such relevant interest shall be at a rate of 20 per cent.

(3) Where an election is made in accordance with subsection (1)(b), the credit union shall treat—

(a) the value of the shares held in the account at any time, as an amount of a relevant deposit held by it at that time, and

(b) subject to section 267C, the value of any dividend paid on those shares at any time, as an amount of relevant interest paid at that time in respect of such relevant deposit and the provisions of Chapter 4 of this Part shall apply to such relevant interest treated as paid by the credit union as they apply to relevant interest paid by a relevant deposit taker, and the appropriate tax in respect of such relevant interest shall be at a rate of 20 per cent.

Taxation of dividends on special term share accounts.

267C.—(1) The value of the dividend paid in a year of assessment on shares held in a medium term share account, shall be treated as an amount of relevant interest paid in that year of assessment, only to the extent that such value exceeds £278.

(2) The value of the dividend paid in a year of assessment on shares held in a long term share account, shall be treated as an amount of relevant interest paid in that year of assessment, only to the extent that such value exceeds £370.

(3) Where an account is opened by a member as a medium term share account, the member may subsequently make an election in writing to the credit union to have the account converted to a long term share account.

(4) Where an election is made in accordance with subsection (3), the value of the dividend paid on shares in a year of assessment which commences on or after the date the election is made shall be treated as an amount of relevant interest paid for that year of assessment, only to the extent that such value exceeds £370.

(5) An account shall cease to be a special term share account if any of the conditions specified in subsection (1) of section 267D cease to be satisfied and where that occurs—

(a) the account shall be treated as a special share account from the time of the occurrence, and

(b) the value of all dividends (in this paragraph referred to as ‘past dividends’) paid prior to the occurrence, on shares held in the account, shall be treated by the credit union as an amount of relevant interest to the extent that the value of such dividends has not already been treated as an amount of relevant interest, and—

(i) the provisions of section 257(1) shall apply as if the payment of past dividends was being made on the date of the occurrence, and

(ii) where on that date the past dividends have already been withdrawn from the account—

(I) the credit union shall deduct from the value of the shares in the account on that date, an amount equal to the amount of the appropriate tax which would have been deducted from the past dividends under subparagraph (i), but for the withdrawal, and such amount shall be treated as appropriate tax, and

(II) the provisions of paragraphs (b) and (c) of section 257(1) shall apply to such deduction as they apply to a deduction from relevant interest.

Conditions and declarations relating to special term share accounts.

267D.—(1) The following are the conditions referred to in subparagraph (i) of the definition of ‘special term share account’ in section 267A(1):

(a) the account shall be opened and designated by the credit union as a medium term share account or, as the case may be, a long term share account;

(b) the account shall not be denominated in a foreign currency;

(c) the account shall not be connected with any other share account or deposit account held by the member or any other person; and for this purpose an account shall be connected with another account if—

(i) (I) either account was opened with reference to the other account, or with a view to enabling the other account to be opened on particular terms, or with a view to facilitating the opening of the other account on particular terms, and

(II) the terms on which either account was opened would have been significantly less favourable to the member if the other account had not been opened,

or

(ii) the terms on which either account is operated are altered or affected in any way whatever because of the existence of the other account;

(d) all shares held in the account shall be subject to the same terms;

(e) there shall not be any agreement, arrangement or understanding in existence, whether express or implied, which influences or determines, or could influence or determine, the rate (other than an unspecified and variable rate) of dividend which is paid or payable, in respect of the share or shares held in the account, in or in respect of any period which is more than 12 months;

(f) dividends paid or payable in respect of the share or shares held in the account shall not directly or indirectly be linked to or determined by any change in the price or value of any shares, stocks, debentures or securities listed on a stock exchange or dealt in on an unlisted securities market;

(g) the account shall not be opened by or held in the name of a member who is under 16 years of age;

(h) the account shall be opened by and held in the name of the member beneficially entitled to the dividend payable in respect of the share or shares held in the account;

(i) an account may be held jointly by not more than 2 individual members;

(j) subject to paragraph (k), a member shall not simultaneously hold, whether solely or jointly, another special term share account;

(k) where the account is held jointly by individuals who are married to each other they may simultaneously hold one other such account jointly;

(l) subject to paragraph (m) and (n) the amount of a subscription or aggregate amount of subscriptions for shares which may be added to an account in any one month shall not exceed £500;

(m) at the time a member opens an account with a credit union, a single subscription for shares consisting of all or part of the savings of the member which are already held by the same credit union, may be transferred to the account;

(n) otherwise than by way of a transfer under paragraph (m), shares at a cost of not more than £6,000 may be added by a member once and only once to an account during the period in which the account is a special term share account;

(o) any disbursement of the surplus funds of a credit union, in the form of dividends or rebate of loan interest, which is added to the account shall not be treated as a subscription for shares for the purposes of paragraph (l) or (p), but such dividend or rebate of loan interest may not be withdrawn from the account, otherwise than in accordance with paragraph (q), unless the withdrawal is made within the period of 12 months from the date it was so added;

(p) subject to paragraph (q), a share may not be withdrawn from an account held by a member within—

(i) 3 years from the date the share was subscribed for, in the case of a medium term share account, and

(ii) 5 years from the date the share was subscribed for, in the case of a long term share account,

otherwise than on the death of the member or, where the account is an account held jointly by 2 members, on the death of one of them;

(q) one and only one withdrawal may be made from an account by a member who is 60 years of age or over on the date of the withdrawal, provided that the account was opened when the member was under that age;

(r) a transfer of shares from an account by a credit union to reduce a balance outstanding on a loan from the credit union to a member shall not be treated as a withdrawal from the account for the purposes of paragraph (p) where—

(i) such shares were pledged as security for the loan at the time the loan was granted,

(ii) a default (whether of interest or otherwise) in the terms of the repayment of the loan of not less than 6 months has occurred, and

(iii) the credit union has followed its standard procedures in seeking to recover the loan.

(2) The declaration referred to in subparagraph (ii) of the definition of ‘special term share account’ in section 267A(1) shall be a declaration in writing to the credit union which—

(a) is made by the member (in this subsection referred to as ‘the declarer’) who holds the account in respect of which the declaration is made is payable,

(b) is signed by the declarer,

(c) is made in such form as may be prescribed or authorised by the Revenue Commissioners,

(d) declares that at the time when the declaration is made the conditions referred to in paragraphs (g), (h), (j) and (k) of subsection (1) are satisfied in relation to the account in respect of which the declaration is made,

(e) contains the full name and address of the declarer,

(f) contains an undertaking by the declarer that, if the conditions referred to in paragraphs (g), (h), (j) and (k) of subsection (1) cease to be satisfied in respect of the account in respect of which the declaration is made, the declarer will notify the credit union accordingly, and

(g) contains such other information as the Revenue Commissioners may reasonably require for the purposes of this Chapter.

(3) Section 263(2) shall apply as respects declarations of the kind mentioned in this section as it applies as respects declarations of the kind mentioned in that section.

Returns of special term share accounts by credit unions.

267E.—(1) In this section ‘appropriate inspector’ means—

(a) the inspector who has last given notice in writing to the credit union that he or she is the inspector to whom the credit union is required to deliver the return required under subsection (2), or

(b) where there is no such inspector as is referred to in paragraph (a), the inspector of returns specified in section 950.

(2) On or before 31 March in each year of assessment, every credit union shall prepare and deliver to the appropriate inspector a return, in such form as may be prescribed or authorised by the Revenue Commissioners specifying—

(a) the name and address of the holder or holders, as the case may be, of each special term share account which was opened during the previous year of assessment,

(b) whether the account is a medium term share account or a long term share account, and

(c) the date of opening of such account.

(3) Sections 1052 and 1054 shall apply to a failure by a credit union to deliver a return required by subsection (2) and to each and every such failure, as they apply to a failure to deliver a return referred to in section 1052.

Supplementary provisions (Chapter 5).

267F.—(1) The provisions of section 904A shall apply to a credit union, treated under this Chapter as paying relevant interest, as they apply to a relevant deposit taker paying relevant interest.

(2) In applying Chapter 4 of this Part for the purposes of this Chapter, section 258(4) shall not apply.

(3) Section 261 shall apply in relation to any dividend paid on shares held in a special share account or a special term share account which under section 267B is treated in whole or in part as relevant interest paid in respect of a relevant deposit, as if the following paragraph were substituted for paragraph (c) of that section:

(c) the amount of any payment of relevant interest paid in respect of a relevant deposit shall not, except for the purposes of a claim to repayment under section 267(3) in respect of the appropriate tax deducted from such relevant interest, be reckoned in computing total income for the purposes of the Income Tax Acts;'.”,

“Qualifying streets.

372BA.—(1) The Minister for Finance may, on the recommendation of the Minister for the Environment and Local Government (which recommendation shall take into consideration proposals submitted by a relevant local authority to that Minister in respect of a street identified by it), by order direct that—

(a) a street described (being a street situated in the functional area of the relevant local authority) in the order shall be a qualifying street for the purposes of one or more sections of this Chapter,

(b) where such a street is to be a qualifying street for the purposes of section 372D, the categories of building or structure mentioned in subsection (2) shall not be a qualifying premises within the meaning of that section, and

(c) as respects any such street so described in the order, the definition of ‘qualifying period’ in section 372A shall be construed as a reference to such period as shall be specified in the order in relation to that street; but no such period specified in the order shall commence before 6 April 2001 or end after 31 December 2004.

(2) The categories of building or structure referred to in subsection (1)(b) shall be buildings or structures—

(a) other than those in use for the purposes of the retailing of goods or the provision of services only within the State,

(b) in use as offices, and

(c) in use for the provision of mail order or financial services.

(3) Every order made by the Minister for Finance under subsection (1) shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the order is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the order is laid before it, the order shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

(4) Notwithstanding an order under subsection (1), no relief from income tax or corporation tax, as the case may be, may be granted in respect of the construction, refurbishment or conversion of a building, structure or house which fronts on to a qualifying street unless the relevant local authority has certified in writing that such construction, refurbishment or conversion is consistent with the aims, objectives and criteria for the Living over the Shop Scheme, as outlined in a circular of the Department of the Environment and Local Government entitled ‘Living Over The Shop Scheme’, reference numbered UR 43A and dated 13 September 2000, or in any further circular of that Department amending paragraph 6 of the first-mentioned circular for the purposes of increasing the aggregate length of street allowable, to the manager of the relevant local authority concerned.”,

“Restriction on use of capital allowances on fixtures and fittings for furnished residential accommodation.

406.—Where a person incurs capital expenditure of the type to which subsection (7) of section 284 applies and an allowance is to be made in respect of that expenditure under that section, sections 305(1)(b), 308(4) and 420(2) shall not apply as respects that allowance.”,

Interpretation (Part 11B).

380G.—In this Part—

‘house’ includes any building or part of a building used or suitable for use as a dwelling and any outoffice, yard, garden or other land appurtenant to or usually enjoyed with that building or part of a building;

‘lease’, ‘lessee’, ‘lessor’, ‘premium’ and ‘rent’ have the same meanings, respectively, as in Chapter 8 of Part 4;

‘market value’, in relation to a house, means the price which the unencumbered fee simple of the house 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 house, 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 house is constructed;

‘qualifying period’ means the period commencing on 6 April 2001;

‘refurbishment’, in relation to a house, 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 the repair or restoration, or maintenance in the nature of repair or restoration, of the house or for the purposes of compliance with the requirements of the Housing (Standards for Rented Houses) Regulations, 1993 (S.I. No. 147 of 1993).

Rented residential accommodation: deduction for certain expenditure on refurbishment.

380H.—(1) In this section and section 380I—

‘non-residential unit’ has the same meaning that it has in the definition of ‘relevant expenditure’;

‘qualifying lease’, in relation to a house, means, subject to section 380I(2), a lease of the house the consideration for the grant of which consists—

(a) solely of periodic payments all of which are or are to be treated as rent for the purposes of Chapter 8 of Part 4, or

(b) of payments of the kind mentioned in paragraph (a), together with a payment by means of a premium—

(i) which is payable on or subsequent to the date of the completion of the refurbishment to which the relevant expenditure relates or which, if payable before that date, is so payable by reason of or otherwise in connection with the carrying out of the refurbishment, and

(ii) which does not exceed 10 per cent of the market value of the house on the date of completion of the refurbishment to which the relevant expenditure relates and, in the case of a house which is a part of a building and is not saleable apart from the building of which it is a part, the market value of the house on that date shall for the purposes of this subparagraph be taken to be an amount which bears to the market value of the building on that date the same proportion as the total floor area of the house bears to the total floor area of the building;

‘qualifying premises’ means, subject to subsection (3), to paragraph (a) and (b) of subsection (4) and to subsection (5) of section 380I, a house—

(a) which is used solely as a dwelling,

(b) which on the date of completion of the refurbishment to which the relevant expenditure relates is let (or, if not let on that date, is, without having been used after that date, first let) in its entirety under a qualifying lease and thereafter throughout the remainder of the relevant period (except for reasonable periods of temporary disuse between the ending of one qualifying lease and the commencement of another such lease) continues to be let under such a lease,

but excluding any house on which expenditure has been incurred, where that expenditure has qualified or would on due claim being made qualify for relief under any provision of Parts 10 or 11A;

‘relevant expenditure’ means, subject to section 380I(7), expenditure incurred on the refurbishment of a specified building, other than expenditure attributable to any part (in this section referred to as a ‘non-residential unit’) of the building which on completion of the refurbishment is not a house, and for the purposes of this definition where expenditure is attributable to the specified building in general (and not directly to any particular house or non-residential unit comprised in the building on completion of the refurbishment), such an amount of that expenditure shall be deemed to be attributable to a non-residential unit as bears to the whole of that expenditure the same proportion as the total floor area of the non-residential unit bears to the total floor area of the building;

‘relevant period’, in relation to a qualifying premises, means the period of 10 years beginning on the date of the completion of the refurbishment to which the relevant expenditure relates or, if the premises was not let under a qualifying lease on that date, the period of 10 years beginning on the date of the first such letting after the date of such completion;

‘specified building’ means a building or part of a building—

(a) in which before the refurbishment to which the relevant expenditure relates there is one or more than one house, and

(b) which on completion of that refurbishment contains (whether in addition to any non-residential unit or not) one or more than one house.

(2) Subject to subsection (3), where a person, having made a claim in that behalf, proves to have incurred relevant expenditure in relation to a house which is a qualifying premises—

(a) such person shall, subject to paragraph (b), be entitled, in computing for the purposes of section 97(1) the amount of a surplus or deficiency in respect of the rent from the qualifying premises, to a deduction of so much (if any) of the expenditure as is to be treated under section 380I(6) or under this section as having been incurred by such person in the qualifying period,

(b) the deduction to which paragraph (a) refers shall be given for the chargeable period in which the expenditure is incurred or, if the premises was not let under a qualifying lease during that chargeable period, the chargeable period beginning on the date of the first such letting after the expenditure is incurred, and for any of the subsequent chargeable periods in which the qualifying premises in respect of which the person incurred the relevant expenditure continues to be a qualifying premises and the deduction shall be of an amount equal to 15 per cent of the expenditure to which paragraph (a) refers; but, the total amount to be deducted shall not exceed 100 per cent of that expenditure,

(c) where a chargeable period consists of a period less than one year in length, the amount of the deduction to which paragraph (b) refers shall not exceed such portion of the amount specified in that paragraph as bears to that amount the same proportion as the length of the chargeable period bears to a period of one year, and

(d) Chapter 8 of Part 4 shall apply as if the deduction referred to in paragraph (a) were a deduction authorised by section 97(2).

(3) (a) This subsection shall apply to any premium or other sum which—

(i) is payable, directly or indirectly, under a qualifying lease or otherwise under the terms subject to which the lease is granted, to or for the benefit of the lessor or to or for the benefit of any person connected with the lessor, and

(ii) is payable on or subsequent to the date of completion of the refurbishment to which the relevant expenditure relates or, if payable before that date, is so payable by reason of or otherwise in connection with the carrying out of the refurbishment.

(b) Where any premium or other sum to which this subsection applies, or any part of such premium or such other sum, is not or is not treated as rent for the purposes of section 97, the relevant expenditure to be treated as having been incurred in the qualifying period in relation to the qualifying premises to which the qualifying lease relates shall be deemed for the purposes of subsection (2) to be reduced by the lesser of—

(i) the amount of such premium or such other sum or, as the case may be, that part of such premium or such other sum, and

(ii) the amount which bears to the amount mentioned in subparagraph (i) the same proportion as the amount of the relevant expenditure actually incurred in relation to the qualifying premises, which is to be treated under section 380I(6) as having been incurred in the qualifying period bears to the whole of the relevant expenditure incurred in relation to the qualifying premises.

(4) Where a qualifying premises forms a part of a building or is one of a number of buildings in a single development, or forms a part of a building which is itself one of a number of buildings in a single development, there shall be made such apportionment as is necessary of the relevant expenditure incurred on that building or those buildings for the purposes of determining the relevant expenditure incurred in relation to the qualifying premises.

(5) Where a house is a qualifying premises and at any time during the relevant period in relation to the premises either of the following events occurs—

(a) the house ceases to be a qualifying premises, or

(b) the ownership of the lessor's interest in the house passes to any other person but the house does not cease to be a qualifying premises,

then, the person who before the occurrence of the event received or was entitled to receive a deduction under subsection (2) in respect of relevant expenditure incurred in relation to the qualifying premises shall be deemed to have received on the day before the day of the occurrence of the event an amount as rent from the qualifying premises equal to the amount of the deduction.

(6) Where the event mentioned in subsection (5)(b) occurs in the relevant period in relation to a house which is a qualifying premises, the person to whom the ownership of the lessor's interest in the house passes shall be treated for the purposes of this section as having incurred in the qualifying period an amount of relevant expenditure in relation to the house equal to the amount of the relevant expenditure which under section 380I(6) or under this section (apart from subsection (3)(b)) the lessor was treated as having incurred in the qualifying period in relation to the house; but, in the case of a person who purchases such a house, the amount so treated as having been incurred by such person shall not exceed—

(a) the net price paid by such person on the purchase, or

(b) in case only a part of the relevant expenditure incurred in relation to the house is to be treated under section 380I(6) as having been incurred in the qualifying period, the amount which bears to that net price the same proportion as that part bears to the whole of the relevant expenditure incurred in relation to the house.

(7) Where relevant expenditure is incurred in relation to a house and before the house is used subsequent to the incurring of that expenditure it is sold, the person who purchases the house shall be treated for the purposes of this section as having incurred in the qualifying period relevant expenditure in relation to the house equal to the lesser of—

(a) the amount of such expenditure which is to be treated under section 380I(6) as having been incurred in the qualifying period, and

(b) (i) the net price paid by such person on the purchase, or

(ii) in case only a part of the relevant expenditure incurred in relation to the house is to be treated under section 380I(6) as having been incurred in the qualifying period, the amount which bears to that net price the same proportion as that part bears to the whole of the relevant expenditure incurred in relation to the house;

but, where the house is sold more than once before it is used subsequent to the incurring of the relevant expenditure in relation to the house, this subsection shall apply only in relation to the last of those sales.

(8) This section shall not apply in the case of any refurbishment unless planning permission, in so far as it is required, in respect of the work carried out in the course of the refurbishment has been granted under the Local Government (Planning and Development) Acts, 1963 to 1999, or the Planning and Development Act, 2000 .

(9) Expenditure in respect of which a person is entitled to relief under this section shall not include any expenditure in respect of which any person is entitled to a deduction, relief or allowance under any other provision of the Tax Acts.

(10) Section 380I shall apply for the purposes of supplementing this section.

Provisions supplementary to section 380H.

380I.—(1) A lease shall not be a qualifying lease for the purposes of section 380H if the terms of the lease contain any provision enabling the lessee or any other person, directly or indirectly, at any time to acquire any interest in the house to which the lease relates for a consideration less than that which might be expected to be given at that time for the acquisition of the interest if the negotiations for that acquisition were conducted in the open market at arm's length.

(2) A house shall not be a qualifying premises for the purposes of section 380H if—

(a) (i) it is occupied as a dwelling by any person connected with the person entitled, in relation to the expenditure incurred on the refurbishment of the house, to a deduction under section 380H(2), and

(ii) the terms of the qualifying lease in relation to the house are not such as might have been expected to be included in the lease if the negotiations for the lease had been at arm's length,

or

(b) the lessor has not complied with all the requirements of the following Regulations—

(i) the Housing (Standards for Rented Houses) Regulations, 1993 (S.I. No. 147 of 1993),

(ii) the Housing (Rent Books) Regulations, 1993 (S.I. No. 146 of 1993), and

(iii) the Housing (Registration of Rented Houses) Regulations, 1996 (S.I. No. 30 of 1996), as amended by the Housing (Registration of Rented Houses) (Amendment) Regulations, 2000 (S.I. No. 12 of 2000).

(3) (a) A house shall not be a qualifying premises for the purposes of section 380H unless it complies with such conditions, if any, as may be determined by the Minister for the Environment and Local Government from time to time for the purposes of section 5 of the Housing (Miscellaneous Provisions) Act, 1979 , in relation to standards for improvements of houses and the provision of water, sewerage and other services in houses.

(b) A house shall not be a qualifying premises for the purposes of section 380H unless the house or, in a case where the house is one of a number of houses in a single development, the development of which it is a part complies with such guidelines as may from time to time be issued by the Minister for the Environment and Local Government, with the consent of the Minister for Finance, in relation to the refurbishment of houses as qualifying premises for the purposes of section 380H and, without prejudice to the generality of the foregoing, such guidelines may include provisions in relation to the refurbishment of houses, and the provision of ancillary facilities and amenities in relation to houses.

(4) A house shall not be a qualifying premises for the purposes of section 380H unless persons authorised in writing by the Minister for the Environment and Local Government for the purposes of that section are permitted to inspect the house at all reasonable times on production, if so requested by a person affected, of their authorisations.

(5) For the purposes of determining, in relation to any claim under section 380H(2), whether and to what extent expenditure incurred on the refurbishment of a qualifying premises is incurred or not incurred during the qualifying period, only such an amount of that expenditure as is properly attributable to work on the refurbishment of the premises actually carried out during the qualifying period shall be treated as having been incurred.

(6) For the purposes of section 380H, other than the purposes mentioned in subsection (5), relevant expenditure incurred in relation to the refurbishment of a qualifying premises shall be deemed to have been incurred on the date of the commencement of the relevant period, in relation to the premises, determined as respects the refurbishment to which the relevant expenditure relates.

(7) For the purposes of section 380H, expenditure shall not be regarded as incurred by a person in so far as it has been or is to be met, directly or indirectly, by the State, by any board established by statute or by any public or local authority.

(8) Section 555 shall apply as if a deduction under section 380H(2) were a capital allowance and as if any rent deemed to have been received by a person under section 380H(5) were a balancing charge.

(9) An appeal to the Appeal Commissioners shall lie on any question arising under this section or under section 380H (other than a question on which an appeal lies under section 18 of the Housing (Miscellaneous Provisions) Act, 1979 ) in the like manner as an appeal would lie against an assessment to income tax or corporation tax, and the provisions of the Tax Acts relating to appeals shall apply accordingly.

Provision against double relief.

380J.—Where relief is given by virtue of any provision of this Part in relation to expenditure incurred on any premises, relief shall not be given in respect of that expenditure under any other provision of the Tax Acts.”.

Interpretation and application.

730H.—(1) In this Chapter—

‘chargeable period’ has the same meaning as in section 321(2);

‘EEA Agreement’ means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by the Protocol signed at Brussels on 17 March 1993;

‘EEA state’ means a State, other than the State, which is a Contracting Party to the EEA Agreement;

‘foreign life policy’ means a policy of assurance on the life of a person commenced—

(a) by a branch or agency, carrying on business in an offshore state, of an assurance company, or

(b) by an assurance company carrying on business in an offshore state, other than by its branch or agency carrying on business in the State;

‘OECD’ means the organisation known as the Organisation for Economic Co-operation and Development;

‘offshore state’ means a State other than the State which is—

(i) a Member State of the European Communities,

(ii) a State which is an EEA state, or

(iii) a State which is a member of the OECD, the government of which have entered into arrangements having the force of law by virtue of section 826;

‘relevant payment’ means any payment made to a person in respect of a foreign life policy where such payments are made annually or at more frequent intervals, other than a payment made in consideration of the disposal, in whole or in part, of the foreign life policy;

‘return of income’ has the meaning assigned to it by section 1084;

‘specified return date for the chargeable period’ has the meaning assigned to it by section 950;

‘standard rate per cent’ has the meaning assigned to it by section 4.

(2) For the purposes of this Chapter—

(a) there shall be a disposal of an asset if there would be such a disposal for the purposes of the Capital Gains Tax Acts,

(b) an income shall be correctly included in a return made by a person, only where that income is included in a return of income made by the person on or before the specified return date for the chargeable period in which the income arises, and

(c) details of a disposal shall be correctly included in a return made by a person, only where details of the disposal are included in a return of income made by the person or, where the person has died, his or her executor or administrator, on or before the specified return date for the chargeable period in which the disposal is made.

Returns on acquisition of foreign life policy.

730I.—Where in any chargeable period a person acquires a foreign life policy, the person shall, notwithstanding anything to the contrary in section 950 or 1084, be deemed for that chargeable period to be a chargeable person for the purposes of sections 951 and 1084, and the return of income to be delivered by the person for that chargeable period shall include the following particulars—

(a) the name and address of the person who commenced the foreign life policy,

(b) a description of the terms of the foreign life policy including premiums payable, and

(c) the name and address of the person through whom the foreign life policy was acquired.

Payment in respect of foreign life policy.

730J.— Where on or after 1 January 2001 a person who has a foreign life policy is in receipt of a payment in respect of the foreign life policy, then—

(a) where the person is not a company, and—

(i) the income represented by the payment is correctly included in a return made by the person, then, notwithstanding section 15, the rate of income tax to be charged on the income shall be—

(I) where the payment is a relevant payment, the standard rate per cent, and

(II) where the payment is not a relevant payment and is not made in consideration of the disposal, in whole or in part, of the foreign life policy, at the rate determined by the formula—

(S + 3) per cent,

where S is the standard rate per cent,

and

(ii) where the income represented by the payment is not correctly included in a return made by the person, the income shall be charged to income tax at a rate determined by section 15,

and

(b) where the person is a company, the income represented by the payment shall be charged to tax under Case III of Schedule D.

Disposal of foreign life policy.

730K.—(1) Where on or after 1 January 2001 a person disposes, in whole or in part, of a foreign life policy, and the disposal gives rise to a gain computed in accordance with subsection (2), and details of the disposal have been correctly included in a return made by the person, then notwithstanding section 594, the amount of the gain shall be treated as an amount of income chargeable to tax under Case IV of Schedule D, and where the person is not a company, the rate of income tax to be charged on that income shall be the rate determined by the formula—

(S + 3) per cent,

where S is the standard rate per cent.

(2) The amount of the gain accruing on a disposal referred to in subsection (1) is the amount of the relevant gain (within the meaning of section 594(2)) which would be computed if the gain accruing on the disposal were computed for the purposes of that section.

(3) Notwithstanding sections 538 and 546, where apart from this subsection the effect of any computation under subsection (2) would be to produce a loss, the gain on the disposal referred to in subsection (1) shall be treated as nil and accordingly for the purposes of this Chapter no loss shall be treated as accruing on such disposal.

(4) Where, as a result of a disposal by a person, an amount of income is chargeable to tax under Case IV of Schedule D in accordance with subsection (1), that amount shall not be reduced by a claim made by the person—

(a) where the person is not a company, under section 381 or 383, or

(b) where the person is a company, under section 396 or 399.

(5) Where an individual is chargeable to tax in accordance with subsection (1) in respect of an amount of income—

(a) the tax thereby payable, in so far as it is paid, shall be treated as an amount of capital gains tax paid for the purposes of section 63 of the Finance Act, 1985 , and

(b) that amount of income shall not be included in reckonable income (within the meaning of the Health Contributions Regulations, 1979 (S.I. No. 107 of 1979)) for the purposes of those Regulations.”.

B

“Chargeable event.

730C.—(1) Subject to the provisions of this section, in this Chapter—

(a) ‘chargeable event’, in relation to a life policy, means—

(i) the maturity of the life policy (including where payments are made on death or disability, which payments result in the termination of the life policy),

(ii) the surrender in whole or in part of the rights conferred by the life policy (including where payments are made on death or disability, which payments do not result in the termination of the life policy),

(iii) the assignment in whole or in part, of those rights,

and

(b) in the case of a life policy issued by an assurance company which could have made an election under section 730A(2), but did not so do, a chargeable event shall be deemed to happen on 31 December 2000, where the life policy was commenced before that date.

(2) No account shall be taken for the purposes of subsection (1) of an assignment in whole or in part effected—

(a) by way of security for a debt, or the discharge of a debt secured by the rights concerned, where the debt is a debt due to a financial institution (within the meaning of section 906A),

(b) between a husband and wife,

(c) between the spouses or former spouses concerned (as the case may be), by virtue or in consequence of an order made under Part III of the Family Law (Divorce) Act, 1996 , on or following the granting of a decree of divorce,

(d) between the spouses concerned, by virtue or in consequence of an order made under Part II of the Family Law Act, 1995 , on or following the granting of a decree of judicial separation within the meaning of that Act, or

(e) between the spouses or former spouses concerned (as the case may be), by virtue of an order or other determination of like effect, which is analogous to an order referred to in paragraph (c) or (d), of a court under the law of a territory other than the State made under or in consequence of the dissolution of a marriage or the legal separation of the spouses, being a dissolution or legal separation that is entitled to be recognised as valid in the State.

(3) (a) Where at any time a life policy, or an interest therein, gives rise to benefits in respect of death or disability, the amount or value of such benefits which shall be taken into account for the purposes of determining the amount of a gain under section 730D shall be the excess of the value of the policy or, as the case may be, the interest therein, immediately before that time, over the value of the policy or, as the case may be, the interest therein, immediately after that time.

(b) For the purposes of paragraph (a), the value of a policy or of an interest therein at a time means—

(i) in the case of a policy which has a surrender value, the surrender value of the policy or, as the case may be, of the interest therein, at that time, and

(ii) in the case of a policy which does not have a surrender value, the market value of the rights or other benefits conferred by the policy or, as the case may be, the interest therein, at that time.

(c) In determining the amount or value of benefits payable under a life policy for the purposes of paragraph (a) or (b), no account shall be taken of any amount of appropriate tax which may be required by this Chapter to be deducted from such benefits.”,

V  ,

V  ,

“Repayment of appropriate tax.

730GA.—For the purposes of a claim to relief, under section 189, 189A or 192, or a repayment of income tax in consequence thereof, the amount of a payment made to a policyholder by an assurance company shall be treated as a net amount of income from the gross amount of which has been deducted income tax, of an amount equal to the amount of appropriate tax (within the meaning of section 730F) deducted from the payment, and such amount of gross income shall be treated as chargeable to tax under Case III of Schedule D.

Capital acquisitions tax: set-off.

730GB.—Where appropriate tax is payable as a result of the death of a person, the amount of such tax, in so far as it has been paid, shall be treated as an amount of capital gains tax paid for the purposes of section 63 of the Finance Act, 1985 .”.

Interpretation and application.

747B.—(1) In this Chapter—

‘chargeable period’ has the same meaning as in section 321(2);

‘EEA Agreement’ means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by the Protocol signed at Brussels on 17 March 1993;

‘EEA state’ means a State, other than the State, which is a Contracting Party to the EEA Agreement;

‘material interest’ shall be construed in accordance with section 743;

‘OECD’ means the organisation known as the Organisation for Economic Co-operation and Development;

‘offshore fund’ has the meaning assigned to it by section 743;

‘offshore state’ means a State, other than the State, which is—

(i) a Member State of the European Communities,

(ii) a State which is an EEA state, or

(iii) a State which is a member of the OECD, the government of which have entered into arrangements having the force of law by virtue of section 826;

‘relevant payment’ means any payment including a distribution made to a person in respect of a material interest in an offshore fund, where such payments are made annually or at more frequent intervals, other than a payment made in consideration of the disposal of an interest in the offshore fund;

‘return of income’ has the meaning assigned to it by section 1084;

‘specified return date for the chargeable period’ has the meaning assigned to it by section 950;

‘standard rate per cent’ has the meaning assigned to it by section 4.

(2) This Chapter applies to an offshore fund which—

(a) being a company, the company is resident in,

(b) being a unit trust scheme, the trustees of the unit trust scheme are resident in, or

(c) being any arrangements referred to in section 743(1), those arrangements take effect by virtue of the law of,

an offshore state.

(3) For the purposes of this Chapter—

(a) (i) there shall be a disposal of an asset if there would be such a disposal for the purposes of the Capital Gains Tax Acts, and

(ii) where, on the death of a person, an asset which the person was competent to dispose, is a material interest in an offshore fund to which this Chapter applies, then, notwithstanding section 573(2)(b), such material interest shall be deemed to be disposed of and reacquired by the person immediately before the death of the person for a consideration equal to its then market value,

(b) an income shall be correctly included in a return made by a person, only where that income is included in a return of income made by the person on or before the specified return date for the chargeable period in which the income arises, and

(c) details of a disposal shall be correctly included in a return made by a person, only where details of the disposal are included in a return of income made by the person or, where the person has died, his or her executor or administrator, on or before the specified return date for the chargeable period in which the disposal is made.

Return on acquisition of material interest.

747C.—Where in any chargeable period a person acquires a material interest in an offshore fund, the person shall, notwithstanding anything to the contrary in section 950 or 1084, be deemed for that chargeable period to be a chargeable person for the purposes of sections 951 and 1084, and the return of income to be delivered by the person for that chargeable period shall include the following particulars—

(a) the name and address of the offshore fund,

(b) a description, including the cost to the person, of the material interest acquired, and

(c) the name and address of the person through whom the material interest was acquired.

Payment in respect of offshore funds.

747D.—Where on or after 1 January 2001 a person who has a material interest in an offshore fund, is in receipt of a payment from the offshore fund, then—

(a) where the person is not a company, and

(i) the income represented by the payment is correctly included in a return made by the person, then notwithstanding section 15, the rate of income tax to be charged on the income shall be—

(I) where the payment is a relevant payment, the standard rate per cent, and

(II) where the payment is not a relevant payment and is not made in consideration of the disposal of an interest in the offshore fund, at the rate determined by the formula—

(S + 3) per cent,

where S is the standard rate per cent,

and

(ii) where the income represented by the payment is not correctly included in a return made by the person, the income shall be charged to income tax at a rate determined by section 15,

and

(b) where the person is a company, the income represented by the payment shall be charged to tax under Case III of Schedule D.

Disposal of an interest in offshore funds.

747E.—(1) Where on or after 1 January 2001 a person who has a material interest in an offshore fund, disposes of an interest in the offshore fund and the disposal gives rise to a gain computed in accordance with subsection (2), then, notwithstanding sections 745 and 747, the amount of that gain shall be treated as an amount of income chargeable to tax under Case IV of Schedule D, and where the person is not a company, and the person has correctly included details of the disposal in a return made by the person, the rate of income tax to be charged on that income shall, notwithstanding section 15, be the rate determined by the formula—

(S + 3) per cent,

where S is the standard rate per cent.

(2) The amount of the gain accruing on a disposal referred to in subsection (1) is the amount which would be the amount of a gain accruing on the disposal for the purposes of the Capital Gains Tax Acts, if it were computed without regard to—

(a) any charge to tax by virtue of this section, and

(b) section 556(2).

(3) Notwithstanding sections 538 and 546, where apart from this subsection the effect of any computation under subsection (2) would be to produce a loss, the gain on the disposal referred to in subsection (1) shall be treated as nil and accordingly for the purposes of this Chapter no loss shall be treated as accruing on such disposal.

(4) Where, as a result of a disposal by a person, an amount of income is chargeable to tax under Case IV of Schedule D, that amount shall not be reduced by a claim made by the person—

(a) where the person is not a company, under section 381 or 383, or

(b) where the person is a company, under section 396 or 399.

(5) Where an individual is chargeable to tax in accordance with subsection (1) in respect of an amount of income—

(a) the tax thereby payable, in so far as it is paid, shall be treated as an amount of capital gains tax paid, for the purposes of section 63 of the Finance Act, 1985 , and

(b) that amount of income shall not be included in reckonable income (within the meaning of the Health Contributions Regulations, 1979 (S.I. No. 107 of 1979)) for the purposes of those Regulations.”.