← Ireland

Finance Act 2015

In short

This law, the Finance Act 2015, is about changing various taxes and duties in Ireland. It covers a wide range of financial matters, including income tax, corporation tax, and excise duties.

What it regulates

Who it concerns

Key points

Legal text

Finance Act 2015 Skip to content Disclaimer Feedback Helpdesk Gaeilge Léim go dtí an t-ábhar Séanadh Aiseolas Deasc chabhrach English Gaeilge English Produced by the Office of the Attorney General Táirgthe ag Oifig an Ard-Aighne Home Legislation Acts of the Oireachtas Statutory Instruments Pre-1922 Legislation Constitution External Resources Bills (Houses of the Oireachtas) Iris Oifigiúil / Official Gazette Revised Acts (LRC) Classified List of Legislation (LRC) Translations (acts.

  1. ie)Translations (Houses of the Oireachtas) Government Publications for Sale EU Law (EUR-Lex) FAQ Disclaimer Feedback Helpdesk Search Baile Reachtaíocht Achtanna an Oireachtais Ionstraimí Reachtúla Reachtaíocht Réamh-1922 Bunreacht Acmhainní Seachtracha Billí (Tithe an Oireachtais) Iris Oifigiúil Achtanna Athbhreithnithe (CAD) (An Coimisiún um Athchóiriú an Dlí) Liosta Rangaithe Reachtaíochta Aistriúcháin (achtanna.
  2. ie)Aistriúcháin (Tithe an Oireachtais) Foilseacháin Rialtais ar Díol Dlí AE (EUR-Lex) CCanna (Ceisteanna Coitianta) Séanadh Aiseolas Deasc chabhrach Cuardach TitleTeideal Year(
  3. s)or rangeBliain nó blianta nó raon TypeCineál All Legislation Acts Statutory Instruments Advanced SearchCuardach Casta HomeBaile ActsAchtanna 2015 Finance Act 2015 Finance Act 2015 Permanent Page URL View by SectionAmharc de réir Ailt View Full ActAmharc ar an Acht Iomlán Bill History Stair Bille Commencement, Amendments, SIs made under the Act Tosach Feidhme, Leasuithe, IRí arna ndéanamh faoin Acht Open PDFOscail PDF Print Full ActPriontáil an tAcht Iomlán Number 52 of 2015 FINANCE ACT 2015 CONTENTS PART 1 Universal Social Charge, Income Tax, Corporation Tax and Capital Gains Tax Chapter 1 Interpretation Section 1. Interpretation (Part 1) Chapter 2 Universal Social Charge 2. Amendment of Part 18D of Principal Act (universal social charge) Chapter 3 Income Tax 3. Earned income tax credit 4. Amendment of section 466A of Principal Act (home carer tax credit) 5. Amendment of section 192A of Principal Act (exemption in respect of certain payments under employment law) 6. Exemption in respect of certain expense payments for relevant directors 7. Exemption in respect of certain expenses of State Examinations Commission examiners 8. Amendment of section 470 of Principal Act (relief for insurance against expenses of illness) 9. Amendment of section 477B of Principal Act (home renovation incentive) 10. Professional services withholding tax 11. Granting of vouchers 12. Amendment of section 372AP of Principal Act (relief for lessors) 13. Amendment of section 959B of Principal Act (supplemental interpretation provisions) 14. Amendment of Schedule 25B to Principal Act (list of specified reliefs and method of determining amount of specified relief used in a tax year) Chapter 4 Income Tax, Corporation Tax and Capital Gains Tax 15. Amendment of section 97 of Principal Act (computational rules and allowable deductions) 16. Amendment of section 256 of Principal Act (interpretation (Chapter 4)) 17. Amendment of section 481 (relief for investment in films) and section 851A (confidentiality of taxpayer information) of Principal Act 18. Income tax relief for investment in corporate trades - employment and investment incentive and seed capital scheme 19. Farming and market gardening 20. Petroleum production tax 21. Amendment of Chapter 1 of Part 33 of Principal Act (anti-avoidance) 22. Amendment of Schedule 2 to Principal Act (machinery for assessment, charge and payment of tax under Schedule C and, in certain cases, Schedule D) 23. Amendment of section 730E of Principal Act (declarations) 24. Charities Regulatory Authority and Common Investment Fund 25. Amendment of Part 18 of Principal Act (payments in respect of professional services by certain persons and payments to subcontractors in certain industries) 26. Amendment of Part 27 of Principal Act (unit trusts and offshore funds) 27. Industrial building allowances: aviation services facilities 28. Amendment of section 1035A of Principal Act (relieving provision to section 1035) 29. Amendment of Part 36 of Principal Act (miscellaneous special provisions) Chapter 5 Corporation Tax 30. Amendment of section 486C of Principal Act (relief from tax for certain start-up companies) 31. Amendment of section 765 of Principal Act (allowances for capital expenditure on scientific research) 32. Amendment of Part 29 of Principal Act (patents, scientific and certain other research, know-how and certain training) 33. Country-by-country reporting 34. Amendment of section 831 of Principal Act (implementation of Council Directive No. 90/435/EEC concerning the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States) Chapter 6 Capital Gains Tax 35. Entrepreneur relief 36. Amendment of section 29 of Principal Act (persons chargeable) 37. Amendment of section 541B of Principal Act (restrictive covenants) 38. Amendment of section 542 of Principal Act (time of disposal and acquisition) 39. Amendment of section 590 of Principal Act (attribution to participators of chargeable gains accruing to non-resident company) 40. Amendment of Part 20 of Principal Act (companies’ chargeable gains) 41. Amendment of section 615 of Principal Act (company reconstruction or amalgamation: transfer of assets) 42. Amendment of section 980 of Principal Act (deduction from consideration on disposal of certain assets) PART 2 Excise 43. Amendment of Chapter 1 of Part 2 of Finance Act 2003 (alcohol products tax) 44. Amendment of Chapter 4 of Part 2 of Finance Act 2001 (powers of officers) 45. Rates of tobacco products tax 46. Amendment of section 99 of Finance Act 2001 (liability of persons) 47. Amendment of section 109 of Finance Act 2001 (authorisation of warehousekeepers and approval of tax warehouses) 48. Amendment of section 130 of Finance Act 1992 (interpretation) 49. Amendment of section 135D of Finance Act 1992 (repayment of amounts of vehicle registration tax on export of certain vehicles) 50. Amendment of section 141 of Finance Act 1992 (regulations) PART 3 Value-Added Tax 51. Interpretation (Part 3) 52. Supplies of gas, electricity, gas certificates and electricity certificates - reverse charge 53. Adjustments to returns 54. Exempted education activities 55. Amendment of section 64 of Principal Act (capital goods scheme) 56. Amendment of section 65 of Principal Act (registration) 57. Amendment of section 87 of Principal Act (margin scheme - taxable dealers) 58. Cancellation of a registration number - special provisions for notification and publication 59. Amendment of section 110 of Principal Act (estimation of tax due) 60. Amendment of Schedule 1 to Principal Act (exempt activities) PART 4 Stamp Duties 61. Interpretation (Part 4) 62. Amendment of Schedule 2B to Principal Act (qualifications for applying for relief from stamp duty in respect of transfers to young trained farmers) 63. Amendment of section 81AA of Principal Act (transfers to young trained farmers) 64. Amendment of section 123B of Principal Act (cash, combined and debit cards) 65. Amendment of section 124 of Principal Act (credit cards and charge cards) PART 5 Capital Acquisitions Tax 66. Interpretation (Part 5) 67. Amendment of Schedule 2 to Principal Act (computation of tax) PART 6 Miscellaneous 68. Interpretation (Part 6) 69. Tax treatment of return of value on certain shares where shareholders affected by postal delays 70. Marriage equality 71. Amendment of Chapter 3 of Part 33 of Principal Act (mandatory disclosure of certain transactions) 72. Amendment of section 851A of Principal Act (confidentiality of taxpayer information) 73. Amendment of section 886 of Principal Act (obligation to keep certain records) 74. Amendment of Part 38 of Principal Act (returns of income and gains, other obligations and returns, and Revenue powers) 75. Amendment of Chapter 4 of Part 38 of Principal Act (Revenue powers) 76. Amendment of section 888 of Principal Act (returns, etc. by lessors, lessees and agents) 77. Discharge of Revenue Commissioners’ and Collector-General’s functions 78. Amendment of section 1077E of Principal Act (penalty for deliberately or carelessly making incorrect returns, etc.) 79. Amendment of section 826 of Principal Act (agreements for relief from double taxation) 80. Amendment of Schedule 24A to Principal Act (arrangements made by the Government with the government of any territory outside the State in relation to affording relief from double taxation and exchanging information in relation to tax) 81. Fuel grant 82. Offences and penalties relating to fuel grant 83. Exemption in respect of fuel grant 84. Amendment of section 92 of Finance Act 1989 85. Exemption in respect of water conservation grant 86. Miscellaneous amendments of Principal Act in relation to authorisations granted under section 9A of Central Bank Act 1971 87. Amendment of section 54 of Finance Act 1970 88. Miscellaneous technical amendments in relation to tax 89. Care and management of taxes and duties 90. Short title, construction and commencement SCHEDULE Miscellaneous Amendments of Principal Act in relation to Authorisations granted under section 9A of Central Bank Act 1971 Acts Referred to Animal Health and Welfare Act 2013 (No. 15) Broadcasting Act 2009 (No. 18) Building Control Act 1990 (No. 3) Capital Acquisitions Tax Consolidation Act 2003 (No. 1) Capital Gains Tax Acts Central Bank Act 1971 (No. 24) Charities Act 1961 (No. 17) Civil Service Regulation Act 1956 (No. 46) Companies Act 1990 (No. 33) Copyright and Related Rights Act 2000 (No. 28) Credit Union Acts 1997 to 2012 Education Act 1998 (No. 51) Education and Training Boards Act 2013 (No. 11) Finance (Local Property Tax) Act 2012 (No. 52) Finance Act 1970 (No. 14) Finance Act 1989 (No. 10) Finance Act 1992 (No. 9) Finance Act 2001 (No. 7) Finance Act 2002 (No. 5) Finance Act 2003 (No. 3) Finance Act 2005 (No. 5) Finance Act 2013 (No. 8) Finance Act 2014 (No. 37) Further Education and Training Act 2013 (No. 25) Health (Nursing Homes) Act 1990 (No. 23) Health Insurance Act 1994 (No. 16) Housing (Miscellaneous Provisions) Act 1992 (No. 18) Housing (Miscellaneous Provisions) Act 2009 (No. 22) Housing (Miscellaneous Provisions) Act 2014 (No. 21) Irish Collective Asset-management Vehicles Act 2015 (No. 2) Partnership Act 1890 (53 & 54 Vict. c.39) Patents Act 1992 (No. 1) Plant Varieties (Proprietary Rights) Act 1980 (No. 24) Post Office Savings Bank Act 1861 (24 Vict. c.14) Qualifications and Quality Assurance (Education and Training) Act 2012 (No. 28) Residential Tenancies Act 2004 (No. 27) Social Welfare Consolidation Act 2005 (No. 26) Stamp Duties Consolidation Act 1999 (No. 31) Taxes Consolidation Act 1997 (No. 39) Value-Added Tax Consolidation Act 2010 (No. 31) Water Services Act 2014 (No. 44 of 2014) Number 52 of 2015 FINANCE ACT 2015 An Act to provide for the imposition, repeal, remission, alteration and regulation of taxation, of stamp duties and of duties relating to excise and otherwise to make further provision in connection with finance including the regulation of customs. [21 st December, 2015] Be it enacted by the Oireachtas as follows: PART 1 Universal Social Charge, Income Tax, Corporation Tax and Capital Gains Tax Chapter 1 Interpretation Interpretation (Part 1) 1. In this Part “Principal Act” means the Taxes Consolidation Act 1997 . Chapter 2 Universal Social Charge Amendment of Part 18D of Principal Act (universal social charge) 2.

(1)Part 18D of the Principal Act is amended— (
  1. a)in section 531AM— (
  2. i)in paragraph (
  3. a)of the Table to subsection
(1)— (I) in subparagraph (IV), by substituting “Schedule 3,” for “Schedule 3, and”, (II) in subparagraph (V), by substituting “782A
(3), and” for “782A
(3).”, and (III) by inserting the following subparagraph after subparagraph (V): “(VI) emoluments in the nature of a contribution by an employer to a PRSA (within the meaning of Chapter 2A of Part 30).”, and (ii) in subsection
(2), by substituting “€13,000” for “€12,012”, and (
  1. b)in section 531AN— (
  2. i)in subsection
(3)by substituting— (I)“€18,668” for “€17,576”, and (II)“3 per cent” for “3.5 per cent”, (
  1. ii)in subsection (3A)(
  2. a)by substituting “3 per cent” for “3.5 per cent”, (iii) by inserting the following after subsection
(4): “
(5)Subject to subsection
(7), where relevant emoluments are paid on 31 December in a tax year or, if that year is a leap year, on 30 or 31 December in that year (referred to in this section as the ‘relevant date’) to an individual who is paid weekly or fortnightly, the part of aggregate income specified in column
(1)of Part 1 or column
(1)of Part 2, as appropriate, of the Table to this section shall be increased by— (
  1. a)where the individual is paid weekly, one-fifty second of the amounts referred to in the appropriate column, and (
  2. b)where the individual is paid fortnightly, one-twenty sixth of the amounts referred to in the appropriate column, but where the relevant emoluments paid on the relevant date is less than the increase provided in paragraph (
  3. a)or (b), as appropriate, the increase in the part of the aggregate income shall be limited to the amount of the relevant emoluments.
(6)Where subsection
(5)applies in respect of an individual, each amount of aggregate income referred to in subsections
(1)and
(3)and section 531AM
(2)shall be increased by— (
  1. a)where the individual is paid weekly, one-fifty second of the amount, and (
  2. b)where the individual is paid fortnightly, one-twenty sixth of the amount, but where the amount of the relevant emoluments paid on the relevant date is less than the increase provided in paragraph (
  3. a)or (b), as appropriate, the increase shall be limited to the amount of the relevant emoluments.
(7)Subsection
(5)shall not apply where the normal day on which relevant emoluments are paid to an individual, who is paid weekly or fortnightly, during a tax year changes either during that year or the preceding year.”, and (iv) by substituting the following Table for the Table to that section: “TABLE PART 1 Part of aggregate income Rate of universal social charge
(1)
(2)The first €12,012 1 per cent The next €6,656 3 per cent The next €51,376 5.5 per cent The remainder 8 per cent PART 2 Part of aggregate income Rate of universal social charge
(1)
(2)The first €12,012 1 per cent The remainder 3 per cent ”.
(2)(a) Subsection
(1), other than subparagraph (iii) of paragraph (b), applies for the year of assessment 2016 and each subsequent year of assessment. (b) Subsection
(1)(b)(iii) applies for the year of assessment 2015 and each subsequent year of assessment. Chapter 3 Income Tax Earned income tax credit 3.
(1)The Principal Act is amended by inserting the following after section 472AA: “472AB.
(1)In this section— ‘appropriate percentage’, in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year; ‘qualifying earned income’ means earned income but does not include emoluments within the meaning of section 472.
(2)Subject to subsection
(3), where, for any year of assessment, a claimant proves that his or her total income for the year consists in whole or in part of qualifying earned income (including, in a case where the claimant is a married person assessed to tax in accordance with section 1017, or a civil partner assessed to tax in accordance with section 1031C, any qualifying earned income of the claimant’s spouse or civil partner deemed to be income of the claimant by either of those sections for the purposes referred to in the relevant section) the claimant shall be entitled to a tax credit (to be known as the ‘earned income tax credit’) of— (
  1. a)where the qualifying earned income (but not including, in the case where the claimant is a married person or a civil partner so assessed, the qualifying earned income, if any, of the claimant’s spouse or civil partner, as the case may
  2. be)arises to the claimant, the lesser of an amount equal to the appropriate percentage of the qualifying earned income and €550, and (
  3. b)where, in a case where the claimant is a married person or a civil partner so assessed, the qualifying earned income arises to the claimant’s spouse or civil partner, as the case may be, the lesser of an amount equal to the appropriate percentage of the qualifying earned income and €550.
(3)Where the claimant is entitled to— (a) employee tax credit in accordance with subsection
(4)(
  1. a)of section 472 and earned income tax credit under paragraph (
  2. a)of subsection
(2), the aggregate of those tax credits shall not exceed €1,650, and (b) employee tax credit in accordance with subsection
(4)(
  1. b)of section 472 and earned income tax credit under paragraph (
  2. b)of subsection
(2), the aggregate of those tax credits shall not exceed €1,650.”.
(2)Subsection
(1)applies for the year of assessment 2016 and each subsequent year of assessment. Amendment of section 466A of Principal Act (home carer tax credit) 4.
(1)Section 466A of the Principal Act is amended— (a) in subsection
(2), by substituting “€1,000” for “€810”, and (b) in subsection
(6)(a), by substituting “€7,200” for “€5,080”.
(2)Subsection
(1)applies for the year of assessment 2016 and each subsequent year of assessment. Amendment of section 192A of Principal Act (exemption in respect of certain payments under employment law) 5. Section 192A
(1)of the Principal Act is amended in the definition of “relevant authority” by substituting the following for paragraph (b): “(
  1. b)the Director of the Equality Tribunal, (
  2. ba)an adjudication officer of the Workplace Relations Commission, (
  3. bb)the Workplace Relations Commission, (
  4. bc)the District Court,”. Exemption in respect of certain expense payments for relevant directors 6. The Principal Act is amended by inserting the following section after section 195A: “Exemption in respect of certain expense payments for relevant directors 195B.
(1)In this section— ‘company’ has the same meaning as it has in section 4; ‘director’ has the same meaning as it has in section 770; ‘expenses’ means vouched expenses; ‘relevant director’, in relation to a company, means a director who is not resident in the State and is a non-executive director of that company; ‘relevant meeting’ means a meeting attended by a relevant director in his or her capacity as a director for the purposes of the conduct of the affairs of the company; ‘travel’ means travel by car, motorcycle, taxi, bus, rail, boat or aircraft.
(2)This section applies to payments made by a company to or on behalf of a relevant director of that company in respect of expenses of travel and subsistence incurred by the relevant director, on and from 1 January 2016, solely for the purpose of the attendance by him or her at a relevant meeting.
(3)So much of a payment to which this section applies shall be exempt from income tax and shall not be reckoned in computing income for the purposes of the Income Tax Acts.”. Exemption in respect of certain expenses of State Examinations Commission examiners 7. The Principal Act is amended by inserting the following section after section 195B: “Exemption in respect of certain expenses of State Examinations Commission examiners 195C.
(1)In this section— ‘civil servant’ has the meaning assigned to it by the Civil Service Regulation Act 1956 ; ‘employee’ has the same meaning as in section 983; ‘examination purposes’ means: (
  1. a)the development of examination papers or other examination materials; (
  2. b)the marking of such papers or other such materials; or (
  3. c)the carrying out of invigilator duties at an examination; ‘examination’ means any examination standing specified for the time being in Schedule 2 to the Education Act 1998; ‘examination paper’ includes any paper, plan, map, drawing, diagram, pictorial or graphic work or other document and any photograph, film or recording (whether of sound or images or both)— (
  4. a)in which questions are set for answer by candidates as part of an examination or which are related to such questions, or (
  5. b)in which projects or practical exercises are set which candidates are required to complete as part of an examination or which are related to such projects or exercises; ‘examiner’ means, other than a person employed as an Examinations and Assessment Manager, a person who is an employee of the relevant employer for examination purposes; ‘relevant employer’ means the State Examinations Commission; ‘travel’ means travel by car, motorcycle, taxi, bus or rail.
(2)This section applies to payments made by the relevant employer to or on behalf of an examiner in respect of expenses of travel and subsistence incurred by the examiner, on and from 1 January 2016, for examination purposes.
(3)So much of any payment to which this section applies, as does not exceed the upper of any relevant rate or rates laid down from time to time by the Minister for Public Expenditure and Reform in relation to the payment of expenses of travel and subsistence of a civil servant, shall be exempt from income tax and shall not be reckoned in computing income for the purposes of the Income Tax Acts.”. Amendment of section 470 of Principal Act (relief for insurance against expenses of illness) 8.
(1)Section 470 of the Principal Act is amended in subsection
(1)by substituting the following for the definition of “child”: “ ‘child’ means an individual under the age of 21 years in respect of whom the payment under a relevant contract has been reduced in accordance with paragraph (a)(ii) or (b)(i)(I) of section 7
(5)of the Health Insurance Act 1994 ;”.
(2)This section shall apply in respect of relevant contracts (within the meaning of section 470 of the Principal Act) entered into or renewed on or after 1 May
  1. Amendment of section 477B of Principal Act (home renovation incentive)
  2. Section 477B of the Principal Act is amended in subsection
(2)— (
  1. a)in paragraph (
  2. a)by substituting “2016” for “2015” in each place where it occurs, and (
  3. b)in paragraph (
  4. d)— (
  5. i)by substituting “2016” for “2015” in each place where it occurs, and (
  6. ii)by substituting “2017” for “2016” in each place where it occurs. Professional services withholding tax 10.
(1)The definition of “professional services” in section 520
(1)of the Principal Act is amended— (
  1. a)in paragraph (
  2. d)by substituting “other legal services, and” for “other legal services,”, (
  3. b)in paragraph (
  4. e)by substituting “geological services;” for “geological services, and”, and (
  5. c)by deleting paragraph (f).
(2)Schedule 13 to the Principal Act is amended— (
  1. a)by deleting paragraphs 24, 28, 100, 101, 103, 114, 121, 149 and 182, (
  2. b)by inserting the following paragraph after paragraph 195: “196. Irish Human Rights and Equality Commission. 197. Competition and Consumer Protection Commission. 198. Regulator of the National Lottery. 199. Shannon Group plc. 200. Charities Regulatory Authority.”, and (
  3. c)(
  4. i)in paragraph 35 by substituting “daa public limited company” for “Dublin Airport Authority public limited company”, (
  5. ii)in paragraph 40 by substituting “Ervia” for “Bord Gáis Éireann”, (iii) in paragraph 82 by substituting “The Pensions Authority” for “The Pensions Board”, and (
  6. iv)in paragraph 148 by substituting “Health Products Regulatory Authority” for “Irish Medicines Board”. Granting of vouchers 11.
(1)The Principal Act is amended by inserting the following after section 112A: “112B.
(1)In this section— ‘benefit’ means a tangible asset other than cash; ‘qualifying incentive’ means either a voucher or a benefit that is given to an employee by his or her employer in a year of assessment where the following conditions are satisfied: (
  1. a)the voucher or the benefit does not form part of a salary sacrifice arrangement; (
  2. b)the voucher can only be used to purchase goods or services and cannot be redeemed, in full or in part, for cash; (
  3. c)the voucher or the benefit cannot exceed €500 in value; (
  4. d)not more than one voucher or benefit can be given to that employee in any year of assessment; ‘salary sacrifice arrangement’ means any arrangement under which an employee forgoes the right to receive any part of his or her remuneration due under his or her terms or contract of employment and in return his or her employer agrees to provide him or her with a qualifying incentive.
(2)A qualifying incentive shall be exempt from income tax and shall not be reckoned in computing income for the purposes of the Income Tax Acts.”.
(2)Subsection
(1)comes into operation on 22 October 2015. Amendment of section 372AP of Principal Act (relief for lessors) 12.
(1)Section 372AP of the Principal Act is amended by inserting the following subsection after subsection
(13): “(13A) Section 555 shall apply as if a deduction under this section were a capital allowance and, where subsection
(7)applies, as if the amount represented by ‘A’ in the formula in that subsection were a balancing charge.”.
(2)Subsection
(1)shall have effect in relation to an event, referred to either in paragraph (a) or (b) of subsection
(7)of section 372AP of the Principal Act, occurring on or after 1 January 2012. Amendment of section 959B of Principal Act (supplemental interpretation provisions) 13.
(1)Section 959B of the Principal Act is amended in subsection
(1)(a) by substituting “€5,000” for “€3,174”.
(2)Subsection
(1)applies for the year of assessment 2016 and each subsequent year of assessment. Amendment of Schedule 25B to Principal Act (list of specified reliefs and method of determining amount of specified relief used in a tax year) 14.
(1)Schedule 25B to the Principal Act is amended by deleting the entry at Reference Number 7 and the matters set out opposite that reference number.
(2)Subsection
(1)applies as respects profits or gains, to which section 232 of the Principal Act applies, arising on or after 1 January 2016. Chapter 4 Income Tax, Corporation Tax and Capital Gains Tax Amendment of section 97 of Principal Act (computational rules and allowable deductions) 15.
(1)Section 97 of the Principal Act is amended by inserting the following subsection after subsection (2J): “(2K) (
  1. a)In this subsection— ‘Board’ means the Private Residential Tenancies Board; ‘household’ has the meaning assigned by the Housing (Miscellaneous Provisions) Act 2009 ; ‘housing authority’ has the meaning assigned by the Housing (Miscellaneous Provisions) Act 1992 ; ‘lease’ means any lease or tenancy in respect of a residential premises required to be registered by the person chargeable under Part 7 of the Residential Tenancies Act 2004 ; ‘Minister’ means Minister for the Environment, Community and Local Government; ‘qualifying lease’ means a lease granted by the person chargeable to a qualifying tenant; ‘qualifying tenant’, in relation to a qualifying lease, means— (
  2. i)a household in respect of which rent is payable by a housing authority— (I) in accordance with Part 4 of the Housing (Miscellaneous Provisions) Act 2014 , or (II) under a contract under section 19 of the Housing (Miscellaneous Provisions) Act 2009 , between the housing authority and the person chargeable, or (
  3. ii)an individual in respect of whom a rent supplement is payable by, or on behalf of, the Minister for Social Protection; ‘register’ means the private residential tenancies register maintained by the Board under Part 7 of the Residential Tenancies Act 2004 ; ‘relevant borrowings’ means borrowed money employed in the purchase, improvement or repair of a premises or a part of a premises which, at a time interest accrues on the borrowings, is a residential premises let under a qualifying lease; ‘relevant interest’, in relation to relevant borrowings and a specified period, means the amount by which the aggregate deductions authorised by subsection
(2)(
  1. e)are reduced by the application of subsection (2J) in respect of that part of the chargeable periods (within the meaning of section 321) that falls within the specified period and, for the purposes of this definition, interest shall be treated as accruing from day to day; ‘relevant undertaking’, in relation to a residential premises, means an undertaking under paragraph (
  2. b)(
  3. i); ‘rent supplement’ means any payment under section 198 of the Social Welfare Consolidation Act 2005 towards the amount of rent payable by an individual in respect of a residential premises; ‘specified period’ means a continuous period of 3 years commencing on or after 1 January 2016 but not later than 31 December 2019. (
  4. b)(
  5. i)The person chargeable shall submit to the Board, in such form and containing such information as shall be prescribed by the Minister for the purposes of this subsection, an undertaking to the effect that the person chargeable will let a residential premises under a qualifying lease for the duration of a specified period commencing on— (I) in the case of a qualifying lease commencing on or after 1 January 2016, the date of commencement of that lease, or (II) in the case of a lease that commenced prior to 1 January 2016, which would, if the lease commenced on that date, be a qualifying lease, 1 January 2016. (
  6. ii)The Board shall register the relevant undertaking in the register, and the provisions of Part 7 of the Residential Tenancies Act 2004 shall apply to information regarding a relevant undertaking registered in the register as they apply to information regarding a tenancy registered in the register, subject to any necessary modifications. (iii) A relevant undertaking shall be submitted to the Board under subparagraph (
  7. i)— (I) in the case of a lease referred to in clause (I) of that subparagraph, at the time the person chargeable is required to make an application to register the tenancy under section 134 of the Residential Tenancies Act 2004, and (II) in any other case, by 31 March 2016. (
  8. iv)Where the person chargeable submits a relevant undertaking in accordance with this paragraph and, following the end of the specified period (in this subparagraph referred to as the ‘first period’), submits a relevant undertaking (in this subparagraph referred to as the ‘subsequent undertaking’) in respect of a subsequent specified period (in this subparagraph referred to as the ‘second period’), the second period shall commence on— (I) in the case of a qualifying lease commencing on or after the day following the end of the first period, the date of commencement of that lease, and (II) in the case of a qualifying lease that commenced before the end of the first period, the day following the end of the first period, and the subsequent undertaking shall be submitted to the Board— (A) in the case of a lease referred to in clause (I), at the time referred to in subparagraph (iii)(I), and (B) in any other case, not later than 3 months after the second period commences, and subparagraph (
  9. ii)shall apply to a subsequent undertaking as it applies to an undertaking. (
  10. c)For the purposes of this subsection, where a lease has commenced before 1 January 2016, which would, if the lease commenced on that date, be a qualifying lease and a relevant undertaking is submitted to and registered by the Board, the lease shall be deemed to be a qualifying lease commencing on 1 January 2016. (
  11. d)(
  12. i)For the purposes of this subsection, where a qualifying lease (in this subparagraph referred to as the ‘first lease’) terminates during a specified period the currency of that lease shall be deemed to include a period immediately following its termination (in this paragraph referred to as the ‘intervening period’) if— (I) at the end of the intervening period, the person chargeable grants a subsequent qualifying lease in respect of the residential premises (in this paragraph referred to as the ‘subsequent lease’), and (II) during the intervening period— (A) the premises was not let under a lease that was not a qualifying lease, (B) the person chargeable immediately before the termination was not in occupation of the premises or any part of the premises but was entitled to possession of the premises, and (C) a person connected (within the meaning of section 10) with the person chargeable was not in occupation of the premises or any part of the premises, and the first lease and the subsequent lease shall be taken together and treated as one qualifying lease. (
  13. ii)More than one subsequent lease may be granted in respect of a premises under and in accordance with subparagraph (i). (
  14. e)For the purposes of this subsection, where a qualifying tenant ceases to be a qualifying tenant during a specified period, the lease shall nonetheless be treated as a qualifying lease for so much of that period as the tenant occupies the premises under the lease. (
  15. f)This subsection shall apply where the following conditions are met: (
  16. i)a residential premises is let under a qualifying lease for one or more than one specified period, and (
  17. ii)a relevant undertaking in respect of that premises for each specified period is submitted to and registered by the Board. (
  18. g)(
  19. i)Subject to this section, a person chargeable who meets the conditions referred to in paragraph (
  20. f)may, after the end of the specified period, make a claim to have a deduction authorised by subsection
(2)(
  1. e)in respect of the residential premises referred to in paragraph (
  2. f)computed as if the relevant interest for the specified period accrued on the day immediately following the end of that specified period, and subsection (2J) shall not apply to that relevant interest. (
  3. ii)The relevant interest referred to in subparagraph (
  4. i)shall not be included in any computation of relevant interest for a specified period subsequent to the specified period referred to in that subparagraph. (
  5. h)Any claim under this subsection shall— (
  6. i)contain a statement to the effect that the conditions referred to in paragraph (
  7. f)are satisfied, and (
  8. ii)be furnished to the Revenue Commissioners by electronic means and through such electronic systems as the Revenue Commissioners may make available for the time being for the purpose of a claim, and the relevant provisions of Chapter 6 of Part 38 shall apply. (
  9. i)Where a premises in respect of which the person chargeable is entitled to a rent is let in part under a qualifying lease and in part under a lease other than a qualifying lease (in this paragraph referred to as the ‘other lease’), the amount of deduction authorised under subsection
(2)(
  1. e)by reference to interest on borrowed money employed in the purchase, improvement or repair of those premises shall be computed on the amount of interest on that part of the borrowed money which can, on a just and reasonable basis, be respectively attributed to the parts of the premises which are let under the qualifying lease and the other lease. (
  2. j)Notwithstanding section 886, where a person chargeable makes a claim under this subsection, the period for which the linking documents and records (within the meaning of that section) relating to the claim are to be retained by the person required to keep the records under that section shall commence on the final day of the specified period in respect of which the claim is made.”.
(2)Subsection
(1)shall come into operation on 1 January
  1. Amendment of section 256 of Principal Act (interpretation (Chapter 4))
  2. Section 256
(1)of the Principal Act is amended in the definition of “relevant deposit” by inserting the following subparagraph after paragraph (a)(iiif): “(iiig) the Minister for Social Protection in respect of accounts held under section 9 of the Social Welfare Consolidation Act 2005 ,”. Amendment of section 481 (relief for investment in films) and section 851A (confidentiality of taxpayer information) of Principal Act 17.
(1)Section 481 of the Principal Act is amended— (a) in subsection
(1)— (
  1. i)by substituting the following for the definitions of “broadcast” and “broadcaster”: “ ‘broadcast’ has the meaning assigned to it by section 2 of the Broadcasting Act 2009 ; ‘broadcaster’ means a person who has responsibility for a ‘broadcasting service’ as defined in section 2 of the Broadcasting Act 2009 ;”, and (
  2. ii)in paragraph (
  3. c)of the definition of “film corporation tax credit” by substituting “€70,000,000” for “€50,000,000”, and (
  4. b)in subsection (3A)(c)(II) by substituting “fortieths” for “forty-firsts”.
(2)Section 851A of the Principal Act is amended— (a) in subsection
(1)by inserting the following definition after the definition of “agent”: “ ‘film corporation tax credit’ means that credit within the meaning assigned to it by section 481;”, and (
  1. b)in subsection (8A)— (
  2. i)by deleting paragraph (c), (
  3. ii)by substituting the following for paragraph (d): “(
  4. d)the amount of film corporation tax credit granted, by reference to ranges set out in page 30, paragraph 166(
  5. vi)of the Guidelines on State Aid to Promote Risk Finance1 , inserted by Communication from the Commission (2014/C 198/02)2 ;”, and (iii) by inserting the following paragraphs after paragraph (d): “(
  6. e)whether the company is— (
  7. i)a category of enterprise referred to Article 2.1 of Annex 1 to Commission Regulation (EU) No. 651/2014 of 17 June 20143 , or (
  8. ii)a category of enterprise which is larger than the categories of enterprise referred to in subparagraph (
  9. i); (
  10. f)the territorial unit, within the meaning of the NUTS Level 2 classification specified in Annex 1 to Regulation (EC) No. 1059/2003 of the European Parliament and of the Council of 26 May 20034 amended by Regulation (EC) No. 1888/2005 of the European Parliament and of the Council of 26 October 20055 , Commission Regulation (EC) No. 105/2007 of 1 February 20076 , Regulation (EC) No. 176/2008 of the European Parliament and of the Council of 20 February 20087 , Regulation (EC) No. 1137/2008 of the European Parliament and of the Council of 22 October 20088 , Commission Regulation (EU) No. 31/2011 of 17 January 20119 , Council Regulation (EU) No. 517/2013 of 13 May 201310 , Commission Regulation (EU) No. 1319/2013 of 9 December 2013 11 , and Commission Regulation (EU) No. 868/2014 of 8 August 201412 , in which the company is located; (
  11. g)the date on which film corporation tax credit is granted.”.
(3)(
  1. a)Paragraph (
  2. b)of subsection
(1)shall apply for the year of assessment 2016 and subsequent years. (b) Paragraph (a)(ii) of subsection
(1)shall come into operation on such day or days as the Minister for Finance may by order or orders appoint either generally or with reference to any particular purpose or provision of it and different days may be so appointed for different purposes or different provisions. Income tax relief for investment in corporate trades - employment and investment incentive and seed capital scheme 18.
(1)Section 27 of the Finance Act 2014 is amended— (a) in subsection
(1)(
  1. a)(ii), in paragraph (
  2. d)of the definition of “relevant period”, by substituting “ ‘relevant amount’ ” for “ ‘average relevant amount’ ”, (
  3. b)in subsection
(1)(
  1. g)by substituting “Article 11 of Commission Regulation (EU) No. 651/2014 of 17 June 201413 ” for “section 5.4 of the Community Guidelines on State aid to promote risk finance investments3”, and (
  2. c)in subsection
(2)by substituting the following for paragraph (b): “(
  1. b)Paragraphs (
  2. a)and (
  3. c)to (
  4. g)of subsection
(1)have effect in respect of shares issued on or after 13 October 2015.”.
(2)Part 16 of the Principal Act is amended— (a) in section 488
(1)— (
  1. i)by deleting the definitions of “average relevant amount” and “average threshold amount”, (
  2. ii)in the definition of “eligible shares” by substituting “the relevant period” for “the period of 3 years beginning on the date on which they are issued”, (iii) by substituting the following for the definition of “qualifying employee”: “‘qualifying employee’, in relation to a qualifying company, means an employee (within the meaning of section 983), other than a director, of that company— (
  3. i)who throughout his or her period of employment with that company is employed by that company for at least 30 hours duration per week, and (
  4. ii)his or her employment is capable of lasting at least 12 months;”, and (
  5. iv)by inserting the following definitions: “‘qualifying nursing home’ means— (
  6. a)a nursing home within the meaning of section 2 of the Health (Nursing Homes) Act 1990 and which is registered under section 4 of that Act, and (
  7. b)where applicable, a qualifying residential unit constructed on the site of, and operated by, a nursing home within the meaning of paragraph (a), but does not include any nursing home or qualifying residential unit which is subject to any power on the exercise of which the nursing home or residential units, or any part or interest in the nursing home or residential units, may be revested in the person from whom it was purchased or exchanged or in any person on behalf of such person; ‘qualifying residential unit’ means a house which— (
  8. a)is constructed on the site of, or on a site which is immediately adjacent to the site of, a registered nursing home, (
  9. b)is— (
  10. i)a single storey house, or (
  11. ii)a house that is comprised in a building of one or more storeys in relation to which building a fire safety certificate under Part III of the Building Control Regulations 1997 ( S.I. No. 496 of 1997 ) is required, and prior to the commencement of the construction works on the building, is granted by the building control authority (within the meaning of section 2 of the Building Control Act 1990 ) in whose functional area the building is situated where— (I) the house is, or (as the case may
  12. be)the house and the building in which it is comprised are, designed and constructed to meet the needs of persons with disabilities, including in particular the needs of persons who are confined to wheelchairs, and (II) the house consists of one or two bedrooms, a kitchen, a living room, bath or shower facilities, toilet facilities and a nurse call system linked to the registered nursing home, and (
  13. c)is comprised in a development where— (
  14. i)those units are operated or managed by the registered nursing home and an on-site caretaker is provided, and (
  15. ii)back-up medical care, including nursing care, is provided by the registered nursing home to the occupants of those units when required by those occupants; ‘relevant amount’ means total emoluments (other than non-pecuniary emoluments) paid by a qualifying company to qualifying employees as referred to in the definition of ‘employment relevant number’, in the year of assessment in which, in relation to a subscription for eligible shares, a relevant period ends; ‘threshold amount’ means the total of the emoluments (other than non- pecuniary emoluments) paid by a qualifying company to the qualifying employees referred to in the definition of ‘employment threshold number’, in the year of assessment preceding the year of assessment in which the subscription for eligible shares was made but where there was a general reduction in the basic pay rate of qualifying employees then the threshold amount shall be reduced accordingly;”, (
  16. b)in section 489— (
  17. i)by substituting the following for subsection
(1)(b): “(
  1. b)those shares are issued to the individual for the purpose of raising money by a qualifying company where that money was used, is being used or is intended to be used by the qualifying company— (
  2. i)for the purposes of carrying on relevant trading activities, (
  3. ii)in the case of a company which has not commenced to trade, in incurring expenditure on research and development within the meaning of section 766, or (iii) in the case of a company that owns and operates a qualifying nursing home, for the purposes of enlarging the capacity of the qualifying nursing home, and”, (
  4. ii)by inserting the following after subsection
(3): “(3A) Notwithstanding subsection
(3), where— (
  1. a)in accordance with section 506, relief is due in respect of an amount subscribed between 1 January 2014 and 31 December 2014 as nominee for a qualifying individual by the managers of a designated fund, and (
  2. b)the eligible shares in respect of which the amount is subscribed are issued between 1 January 2016 and 31 January 2016, the individual may elect by notice in writing to the inspector to have the relief due under subsection
(2)(a) given as a deduction from his or her total income for the year of assessment in which the amount was subscribed to the designated fund instead of (as provided for in subsection
(2)(a)) as a deduction from his or her total income for the year of assessment in which the shares are issued.”, and (iii) by substituting the following for subsection
(10)(a): “(
  1. a)(
  2. i)the employment relevant number exceeds the employment threshold number by at least one qualifying employee, and (
  3. ii)the relevant amount exceeds the threshold amount by at least the total emoluments of one qualifying employee in the year of assessment in which the relevant period ends, or”, and (
  4. c)in section 494— (
  5. i)by inserting the following after subsection
(4): “(4A) A company that does not meet the requirements of paragraphs 5 and 6 of Article 21 of Commission Regulation (EU) No. 651/2014 of 17 June 201414 shall not be a qualifying company.”, and (ii) by inserting the following after subsection
(7): “(7A) A company whose relevant trading activities includes operating a qualifying nursing home and is engaged in enlarging its capacity pursuant to section 489
(1)(b) (iii) shall cease to be a qualifying company unless it has expended all of the money subscribed for eligible shares on such activities, within a period ending 30 days before the end of the relevant period.”.
(3)Subsections
(1)and
(2)shall apply to shares issued on or after 13 October 2015. Farming and market gardening 19.
(1)Section 598 of the Principal Act is amended— (a) in subsection
(1)(a), by inserting the following definition: “ ‘farm partnership’ means a milk production partnership or a registered farm partnership (within the meaning of section 667C);”, and (b) in subsection
(1)(d)(iib), by substituting “farm partnership” for “milk production partnership” in both places where it occurs.
(2)Part 23 of the Principal Act is amended— (
  1. a)in section 657— (
  2. i)in subsection
(8)— (I) in paragraph (c), by substituting “section 959AA” for “section 959Z”, and (II) in paragraph (d), by substituting “section 959AA” for “section 959Z”, and (
  1. ii)in subsection (10A) by substituting “section 667C applies” for “European Communities (Milk Quota) (Amendment) Regulations 2002 (S.I. No. 97 of 2002) apply”, (
  2. b)in section 664— (
  3. i)in subsection
(1)(
  1. a)— (I) by inserting the following definition before the definition of “farm land”: “ ‘EU Single Payment Scheme’ means the scheme administered by the Minister for Agriculture, Food and the Marine under Regulation (EU) No. 1307/2013 of the European Parliament and of the Council of 17 December 201315 , amended by Commission Delegated Regulation (EU) No. 639/2014 of 11 March 201416 , Commission Delegated Regulation (EU) 994/2014 of 13 May 201417 , Commission Delegated Regulation (EU) 1001/2014 of 18 July 201418 , Commission Delegated Regulation (EU) 1378/2014 of 17 October 201419 and Commission Delegated Regulation (EU) 2015/851 of 27 March 201520 ;”, (II) in the definition of “the specified amount”— (A) in subparagraph (ii)(VII)(B) by deleting “or”, and (B) in subparagraph (ii)(VIII)(C) by substituting “case, or” for “case,”, (
  2. ii)in subsection
(7), by deleting “operated by the Department of Agriculture and Food under Council Regulation (EC) No. 1782/2003 of 29 September 2003 (OJ No. L270 of 21.10.2003, p 1)”, and (iii) by inserting the following subsection after subsection
(7): “
(8)A lease which would otherwise be a qualifying lease shall not be a qualifying lease if— (
  1. a)a qualifying lessee of the lease (the ‘first mentioned lease’), or a person connected with that qualifying lessee of the first mentioned lease, is a qualifying lessor of another qualifying lease (the ‘second mentioned lease’) where the qualifying lessee of the first mentioned lease is a qualifying lessor of the second mentioned lease, (
  2. b)a qualifying lessee of the lease (the ‘first mentioned lease’) is a qualifying lessor of another qualifying lease (the ‘second mentioned lease’) where that qualifying lessee of the first mentioned lease, or a person connected with that qualifying lessee, is a qualifying lessor of the second mentioned lease, or (
  3. c)the farm land which is the subject of the lease is farmed, in whole or in part, by the qualifying lessor.”, (
  4. c)in section 666
(4)— (
  1. i)in paragraph (a), by substituting “31 December 2018” for “31 December 2015”, and (
  2. ii)in paragraph (b), by substituting “year 2018” for “year 2015”, (
  3. d)in section 667B— (
  4. i)in subsection
(5)(b), by substituting “2018” for “2015”, and (
  1. ii)in paragraph 2 of the Table to that section— (I) in subparagraph (q), by substituting “Sustainable Agriculture,” for “Sustainable Agriculture.”, and (II) by inserting the following after subparagraph (q): “(
  2. r)Bachelor of Science (Honours) in Agriculture.”, (
  3. e)in section 667C— (
  4. i)in subsection
(1)by— (I) substituting “In this section and sections 667D to 667G” for “In this section”, (II) inserting the following definitions: “ ‘common agricultural payments’ means any payment arising directly to a partner under the Common Agricultural Policy of the European Union; ‘excluded farm asset’ means farm land or livestock or machinery used for any of the following farming activities where that activity is excluded, by the terms of the partnership agreement, from the partnership: (
  1. a)pig farming; (
  2. b)poultry farming; (
  3. c)mushroom farming; (
  4. d)forestry; (
  5. e)bloodstock farming; (
  6. f)intensive horticultural cropping; (
  7. g)on-farm milk processing, other than milking and storage of milk; (
  8. h)generation of fuel or electricity; ‘farm asset’, other than an excluded farm asset, means— (
  9. a)farm land, (
  10. b)an entitlement to common agricultural payments, and (
  11. c)livestock or machinery used for farming, but shall not include farm land which is to be disposed of to an authority possessing compulsory purchase powers where the disposal would not be made but for the exercise of those powers, or the giving by the authority concerned of formal notice of its intention to exercise those powers; ‘farm land’ means land which includes a building (other than a building or part of a building used as a dwelling) occupied by a partner for the purposes of farming that land; ‘Minister’ means Minister for Agriculture, Food and the Marine; ‘non-active partner’ means— (
  12. a)in the case of an individual, an individual who, during the accounting period spends not more than an average of at least 10 hours per week personally engaged in the activities of the several trade, or (
  13. b)in the case of a company, a company whose officers and employees, during the accounting period between them, spend an average of not more than 10 hours per week personally engaged in the activities of the several trade, where the activities of the several trade are carried on on a commercial basis and in such a way that profits of the several trade could reasonably be expected to be made in that period or within a reasonable time thereafter; ‘partner’ means a person who is a partner in a registered farm partnership; ‘primary participant’ means the precedent partner, within the meaning of section 1007; ‘register’ means the register of farm partnerships established and maintained by the Minister under and in accordance with this section and regulations under subsection (4A); ‘register of succession farm partnerships’ shall be construed in accordance with section 667D
(1); ‘several trade’ has the meaning given to it by section 1008.”, and (III) substituting the following for the definition of registered farm partnership: “ ‘registered farm partnership’ means a farm partnership entered on the register;”, and (ii) by inserting the following subsection after subsection
(1): “(1A) (
  1. a)A primary participant, in relation to a farm partnership, may apply to the Minister to enter the farm partnership on the register and shall comply with all requirements relating to the application specified in regulations made under subsection (4A). (
  2. b)In order to be entered on the register, a farm partnership shall comply with all of the following conditions: (
  3. i)the farm partnership shall exist wholly for the purpose of carrying on the trade of farming; (
  4. ii)the farm partnership agreement shall be in writing and shall: (I) comply with the Partnership Act 1890 ; (II) include information identifying the partners, the farm land farmed by the partnership, relating to their shares in the partnership and to the operation of the partnership; (III) commit the partners to the agreement to a period of operation as a farm partnership of not less than 5 years, (iii) subject to subsection (1C), the farm partnership shall have at least 2 members and not more than 10 members; (
  5. iv)no member of the farm partnership shall be a non-active partner; (
  6. v)of the members of the farm partnership— (I) at least one shall be a person who has been engaged in the trade of farming on farm land owned or leased by that person, consisting of at least 3 hectares of useable farm land, for at least 2 years immediately preceding the date of formation of the partnership, and (II) other than the person referred to in clause (I), at least one is a natural person and either satisfies the requirements of clause (I) or— (A) has a qualification in agriculture specified in regulations made under subsection (4A) or, if not so specified a qualification determined by Teagasc - the Agriculture and Food Development Authority, to the satisfaction of the Minister, as being equivalent to a qualification so specified, and (B) under the terms of the farm partnership, holds an entitlement to at least 20 per cent of the profits of the partnership; (
  7. vi)other than an excluded farm asset, a partner in a farm partnership shall not have an interest in any farm asset outside of the farm partnership at any time during the period of registration of the farm partnership, and for the purposes of this section, farm land owned or leased by a partner but licensed to the farm partnership concerned shall not be treated as the partner having an interest in land outside of the farm partnership; (vii) any payment arising to a partner in a farm partnership, from the trade of farming for the purposes of the farm partnership agreement is liable to be, and shall be paid by the partner to the farm partnership.”. (iii) by inserting the following subsection after subsection (1A) (inserted by subparagraph (ii)): “(1B) (
  8. a)The primary participant shall notify the Minister within 21 days of any change to the farm partnership or its activities and failure to do so shall result in the removal of the partnership from the register from the date of the change unless the Minister is satisfied that— (
  9. i)the change does not affect the farm partnership’s eligibility to be entered, and remain on, the register, and (
  10. ii)the failure was neither the result of careless nor deliberate behaviour on the part of the precedent partner and it is remedied without unreasonable delay upon the precedent partner becoming aware of the failure. (
  11. b)(
  12. i)The primary participant shall notify the Minister, prior to a new partner joining, or an existing partner ceasing to be a partner in the farm partnership (in this paragraph referred to as an ‘alteration’), of the proposed alteration and shall request the Minister to amend the relevant entry on the register accordingly. (
  13. ii)The Minister shall not approve a proposed alteration and amend the relevant entry on the register under subparagraph (
  14. i)unless he or she is satisfied that the farm partnership will continue to comply with the requirements of this section, and that the proposed alteration is made for bona fide commercial purposes.”, (
  15. iv)by inserting the following subsection after subsection (1B) (inserted by subparagraph (iii)): “(1C) A farm partnership shall not be eligible to be entered on the register if any partner in that partnership— (
  16. a)is a director of a company that is also a partner in that farm partnership, or (
  17. b)has a shareholding in a company— (
  18. i)that is also a partner in that farm partnership, or (
  19. ii)has a shareholding in a company which directly or indirectly has a shareholding in a company which is a partner in that farm partnership.”, (
  20. v)by inserting the following subsection after subsection (1C) (inserted by subparagraph (iv)): “(1D) (
  21. a)The Minister shall only enter a farm partnership on the register where he or she is satisfied that the farm partnership has met the conditions set out in subsection (1A). (
  22. b)Where the Minister is not satisfied that the farm partnership is continuing to meet the conditions set out in subsection (1A), then the Minister shall remove the partnership from the register with effect from the date upon which the partnership ceased to meet those conditions. (
  23. c)A farm partnership shall stand suspended from the register where an order has been made under section 9 of the Animal Health and Welfare Act 2013 , which relates to an area where any part of the farm land of the partnership is situated, but each partner in a partnership that is so suspended shall continue to be treated as a partner in a registered farm partnership for the purposes of subsection
(2).”. (vi) in subsection
(2)(b), by substituting “2018” for “2015” in both places where it occurs, (vii) in subsection (3A)(a), in paragraph (ii) of the definition of “qualifying period” by substituting “years of assessment” for “years of assessment where the specified person is not a company”, (viii) in subsection
(4)by substituting “2018” for “2015”, and (
  1. ix)in subsection (4A)(
  2. a)— (I) by substituting “The Minister,” for “The Minister for Agriculture, Food and the Marine (in this subsection referred to as the ‘Minister’),” (II) by substituting “and those regulations may make separate provision for different classes of farm partner and farm partnership and may provide for-” for “and those regulations may provide for-”, and (III) by substituting the following for subparagraphs (
  3. i)to (vi): “(
  4. i)different divisions of the register relating to different classes of registered farm partnership, (
  5. ii)the form and manner of, and information and documentation required for, an application for entry on the register, (iii) the form and manner of registration of a farm partnership on the register, (
  6. iv)the assignment of a unique identifier to a farm partnership entered on the register and purposes for which and conditions subject to which, it may be used, (
  7. v)procedures where subsection (1B) or subsection (1D)(
  8. b)applies, (
  9. vi)the agriculture qualifications required by a person for the purposes of subsection (1A)(c), (vii) conditions relating to what the Minister considers to be an appropriate distance between farm land to be used by the partners in carrying on the several trade, having regard to resources and best agricultural practice, provided that no part shall be more than 75 kilometres from another part, and (viii) such supplemental, transitional and incidental matters as appear to the Minister to be necessary and appropriate.”, (
  10. f)by inserting the following section after section 667C— “Succession farm partnerships 667D.
(1)A primary participant, in relation to a registered farm partnership may apply to the Minister to also enter the registered farm partnership on the register of succession farm partnerships established and maintained under and in accordance with this section and regulations under subsection
(7)(in this section referred to as the ‘register of succession farm partnerships’) and shall comply with all requirements relating to the application so specified.
(2)In order to be entered on the register of succession farm partnerships, a registered farm partnership shall comply with all of the following conditions: (a) subject to subsections
(3)and
(4), the farm partnership shall have at least 2 members, each of whom shall be a natural person, (
  1. b)of the members of the farm partnership— (
  2. i)at least one shall comply with clause (I) of section 667C(1A)(b)(v), in so far as that clause refers to owned farm land, (in this section referred to as the ‘farmer’), and (
  3. ii)of the others, each member shall not yet have reached 40 years of age and shall comply with subclauses (A) and (B) of section 667C(1A)(b)(v)(II) (in this section referred to as a ‘successor’), (
  4. c)the business plan of the farm partnership shall have been submitted to, and approved by, the Minister, (
  5. d)subject to subsection
(3)(a), the farmer shall enter an agreement with one or more than one of the successors (in this section referred to as an ‘agreement’) to transfer or sell at least 80 per cent of the farm assets to which the farm partnership applies, to the successor, or successors, at a time during the period beginning 3 years after and ending 10 years after the date that the application is made under subsection
(1), and (
  1. e)the terms of the partnership agreement shall include— (
  2. i)the farm assets of the farm partnership on the day that the application is made under subsection
(1), (
  1. ii)any conditions to which the transfer or sale will be subject, (iii) the year in which the proposed transfer may take place, and (
  2. iv)any other terms agreed between the farmer and successor, or successors, including in relation to the farm assets, the conduct of the farming trade or the creation of any rights of residence in dwellings on the farm land.
(3)Where the farm assets, or an interest in the farm assets, referred to in a succession farm partnership— (a) are jointly owned prior to the formation of the succession farm partnership, no agreement under subsection
(2)(d) shall be made unless each person who jointly owns or jointly holds an interest in the land concerned, gives full and informed consent to the agreement to the transfer of those assets under subsection
(2)(
  1. d)and joins in the agreement, (
  2. b)are jointly farmed prior to the formation of the succession farm partnership, whether jointly owned or not, any individual who jointly farmed the lands which are to be transferred under subsection
(2)(d) with the farmer, may, notwithstanding subsection
(2)(a), become a partner in the partnership notwithstanding that that individual would be a non-active partner.
(4)Where the farmer wishes to form a succession farm partnership with both the successor and that successor’s spouse or civil partner then that spouse or civil partner may become a partner in the partnership notwithstanding that that individual would be a non-active partner and the agreement under subsection
(2)(d) may provide for the joint transfer or sale of the farm assets concerned to both a successor and that successor’s spouse or civil partner.
(5)(a) The Minister shall only enter a farm partnership on the register of succession farm partnerships where he or she is satisfied that the farm partnership has met the conditions set out in subsection
(2). (b) Where the Minister is not satisfied that the farm partnership is continuing to meet the conditions set out in subsection
(2), then the Minister shall remove the partnership from the register of succession farm partnerships with effect from the date upon which the partnership ceased to meet those conditions.
(6)(
  1. a)Subject to paragraph (b), for the year of assessment in which the farm partnership is registered as a succession farm partnership and the 4 years of assessment immediately following that year of assessment, each partner in that partnership shall be entitled to a tax credit (to be known as the ‘succession tax credit’) of the lesser amount of— (
  2. i)€5,000 per year of assessment divided between the partners in accordance with their profit sharing ratio under their partnership agreement, or (
  3. ii)the assessable profits (after deducting any capital allowances related to that trade) of that partner’s several trade. (
  4. b)No partner in a succession farm partnership shall be entitled to the succession tax credit in a year of assessment where a successor has attained the age of 40 years at the commencement of that year of assessment. (
  5. c)If the farm assets are not transferred in accordance with the agreement under subsection
(2)(
  1. d)then, subject to paragraphs (
  2. d)and (e), the farmer shall be deemed to have paid an annual payment, to which section 238 applies, of €125,000, or such lower amount as would result in the tax due under section 238 equalling the succession tax credit claimed by all partners, in the latest year of assessment in which the transfer could have taken place. (
  3. d)If it is shown to the satisfaction of a Revenue officer that the farm assets would have been transferred in accordance with subsection
(2)(
  1. d)but the successor was no longer willing to proceed in accordance with the agreement under that subsection, then paragraph (
  2. c)shall apply as if references to the farmer were references to the successor. (
  3. e)If it is shown to the satisfaction of a Revenue officer that the farm assets were not transferred because of mutual agreement between the farmer and the successor, then each partner shall be deemed to have paid an annual payment in an amount that would result in the tax due pursuant to section 238 equalling the succession tax credit claimed by that partner, in the year of assessment in which the mutual agreement not to transfer the farm assets takes place.
(7)The Minister, having consulted and obtained the approval of the Minister for Finance, may, by regulations, establish and maintain a register of succession farm partnerships and those regulations may provide for— (a) the form and manner of, and information and documentation required for, an application for entry on the register of succession farm partnerships, and in particular, the form and content of the business plan referred to in subsection
(2)(c), and agreements and other evidence required to satisfy the Minister regarding compliance with subsection
(2)(
  1. d)or (e), (
  2. b)the form and manner of registration of a succession farm partnership on the register of succession farm partnerships, (
  3. c)the assignment of an identifier to a succession farm partnership the purposes for which and conditions subject to which, it may be used and any link to the unique identifier referred to in section 667C (4A)(iv), and (
  4. d)such supplemental and incidental matters as appear to the Minister to be necessary and appropriate.”, (
  5. g)by inserting the following section after section 667D (inserted by paragraph (f))— “Authorised officers 667E.
(1)In this section— ‘relevant statutory provisions’ means sections 667C and 667D; ‘person in charge’ means, in relation to a place, any of the following: (
  1. a)the owner; (
  2. b)the person under whose direction and control the activities at that place are being conducted; (
  3. c)the person whom the authorised officer has reasonable grounds for believing is in control of that place; (
  4. d)the driver of a vehicle; ‘place’ includes a vehicle or any attachment to a vehicle.
(2)(
  1. a)The Minister may appoint such and so many persons as he or she considers appropriate to be authorised officers for the purposes of the enforcement of the relevant statutory provisions. (
  2. b)Authorised officers appointed under paragraph (
  3. a)shall be furnished by the Minister with a warrant of their appointment as an authorised officer. (
  4. c)When exercising a power under this section, an authorised officer shall, if requested by a person affected, produce the warrant of his or her appointment, or a copy of it, to that person and a form of personal identification. (
  5. d)An appointment under this section may be revoked at any time by the Minister.
(3)An authorised officer shall, for the purposes of the relevant statutory provisions, have power to do any one or more of the following: (a) subject to subsection
(4), at all reasonable times enter, inspect, examine and search any lands or place to which the authorised officer has reasonable grounds for believing that this section applies, including for the purpose of surveying or mapping any land for any purpose under those provisions; (
  1. b)while on the lands or at the place referred to in paragraph (a), may inquire into, search, examine and inspect any records relating to the operation of the farm partnership, registered farm partnership or, as the case may be, succession farm partnership; (
  2. c)inspect and take copies of or extracts from any such records or any electronic information system at that place, including in the case of information in a non-legible form, copies of or extracts from such information in a permanent legible form or require that such copies be provided; (
  3. d)require the person in charge to give the authorised officer such information as the authorised officer may reasonably require for the purposes of any search, examination, investigation, inspection or inquiry under those provisions, including the name and address of the owner or manager of the lands; (
  4. e)require any person whom the authorised officer reasonably believes to be able to give to the authorised officer information relevant to any search, examination, investigation, inspection or inquiry under those provisions to answer such questions as the authorised officer may reasonably require relative to the search, examination, investigation, inspection or inquiry and to sign a declaration of the truth of the answers.
(4)An authorised officer shall not enter a dwelling other than— (
  1. a)with the consent of the occupier, or (
  2. b)in accordance with a warrant of the District Court issued under subsection
(6)authorising such entry.
(5)Where an authorised officer, in the exercise of his or her powers under this section, is prevented from entering any place or lands, an application may be made to the District Court for a warrant under subsection
(6)authorising such entry.
(6)Without prejudice to the powers conferred on an authorised officer under this section, if a judge of the District Court is satisfied, by information on oath by an authorised officer that there are reasonable grounds for believing that— (
  1. a)there is anything at any place or any records (including documents stored in a non-legible form) or information relating to a place or lands that the authorised officer requires to inspect for the purposes of the relevant statutory provisions, held at any place, or (
  2. b)there is, or such an inspection is likely to disclose, evidence of a contravention of the relevant statutory provisions, the judge may issue a warrant authorising an authorised officer, accompanied by such other authorised officers or such other competent persons as may be appropriate, at any time or times, within one month from the date of issue of the warrant, on production of the warrant if requested, to enter the place or lands, if necessary by the use of reasonable force, and perform the functions conferred on an authorised officer under the relevant statutory provisions.
(7)Where an authorised officer has reasonable grounds for apprehending any serious obstruction in the performance of his or her functions or otherwise considers it necessary, the officer may be accompanied by other authorised officers or any other person authorised by the Minister for this purpose, when performing any functions conferred on him or her by or under the relevant statutory provisions.”, (h) by inserting the following section after section 667E (inserted by paragraph (g)): “Appeals officer 667F.
(1)The Minister may appoint a person to be an appeals officer (in this section and section 667G referred to as an ‘appeals officer’) for the purposes of an appeal under section 667G.
(2)An appeals officer shall be either a practising solicitor or a practising barrister, either of whom shall have not less than 5 years experience.
(3)A solicitor or barrister in the full-time service of the State shall not be an appeals officer.
(4)An appeals officer shall— (a) hold office for a term of 3 years and, subject to subsection
(6), shall be eligible for reappointment on the expiry of that term of office, (
  1. b)be independent in the performance of his or her functions, (
  2. c)be paid such fees and allowances for expenses as the Minister, with the consent of the Minister for Public Expenditure and Reform, may determine, and (
  3. d)at such intervals and in relation to such periods as are specified by the Minister, submit a report in writing to the Minister in relation to the performance of his or her functions as an appeals officer during the period to which the report refers.
(5)An appeals officer may— (
  1. a)resign from office by letter addressed to the Minister and the resignation shall take effect on the date on which the Minister receives the letter, or (
  2. b)be removed from office by the Minister where in the opinion of the Minister the appeals officer— (
  3. i)has become incapable through ill-health of effectively performing his or her functions under this section, or (
  4. ii)has committed stated misbehaviour.
(6)An appeals officer may not serve more than two consecutive terms of office.
(7)The appeals officer may, in consultation with the Minister, establish the procedures to be followed by him or her regarding— (
  1. a)the holding of a hearing, (
  2. b)the examination by the appeals officer of the parties to the appeal or other persons, (
  3. c)requests by the appeals officer for information or further information, for the purposes of the appeal, from the parties to the appeal or other persons, (
  4. d)provision by the appeals officer to the parties to the appeal of all information for the purposes of the appeal, received by the appeals officer, and (
  5. e)any other matter as the appeals officer considers appropriate for the proper performance by the appeals officer of his or her functions.
(8)The Minister shall, subject to the provisions of any enactment or rule of law, indemnify an appeals officer appointed by the Minister in respect of any act done or omitted to be done by him or her in the performance or purported performance of his or her functions as such appeals officer, unless the act or omission concerned was done in bad faith.”, and (i) by inserting the following after section 667F (inserted by paragraph (h)): “Appeals 667G.
(1)The Minister shall give notice in writing to the primary participant concerned of his or her decision— (
  1. a)to refuse to enter, under section 667C(1D)(a), the farm partnership on the register, (
  2. b)to refuse to enter, under section 667D
(5)(a), the farm partnership on the register of succession farm partnerships, (
  1. c)to remove, under section 667C(1B)(a), the farm partnership from the register, (
  2. d)not to amend an entry on the register under section 667C(1B)(b), (
  3. e)to refuse to approve the business plan of a farm partnership for the purposes of section 667D
(2)(c), (
  1. f)to remove, under section 667C(1D)(b), the farm partnership from the register, or (
  2. g)to remove, under section 667D
(5)(b), the farm partnership from the register of succession farm partnerships.
(2)A notice under subsection
(1)shall— (
  1. a)include reasons for the decision, (
  2. b)inform the primary participant that— (
  3. i)he or she may appeal the decision, in writing, within 21 days of the date of the notice to the appeals officer, and (
  4. ii)the notice of appeal shall specify the grounds for the appeal, and (
  5. c)inform the primary participant that the decision shall be suspended until— (
  6. i)the decision becomes final under subsection
(3), or (ii) the disposal of an appeal under this section.
(3)If, on the expiration of the period of 21 days beginning on the date of the notice under subsection
(2), no appeal under this section is made by the primary participant, the Minister’s decision under subsection
(1)is final.
(4)A notice of appeal shall comply with subsection
(2)(b) and shall be accompanied by such fee as may be determined by the Minister from time to time and published in such manner as the Minister considers appropriate, including on the internet.
(5)For the purposes of an appeal the appeals officer— (
  1. a)shall notify the Minister of the appeal, (
  2. b)shall request submissions from the parties to the appeal and they shall furnish the submissions to the appeals officer within the period, which shall be not less than 7 days, specified in the request, (
  3. c)following consideration of the submissions, may hold a hearing, and (
  4. d)may request information from the parties to the appeal, or any other person as the appeals officer considers necessary for the proper performance of his or her functions and the parties to the appeal, or other person as the case may be, shall furnish the information to the appeals officer within the period specified in the request.
(6)If a hearing is held— (
  1. a)each of the parties to the appeal is entitled to be heard at the hearing, and (
  2. b)the appeals officer may adjourn the hearing of the matter at any stage in the proceedings until a date specified by the appeals officer.
(7)In considering an appeal under this section the appeals officer shall consider— (
  1. a)submissions from the parties to the appeal, (
  2. b)the evidence presented at any hearing of the matter, and (
  3. c)all information furnished to the appeals officer.
(8)On completion of his or her consideration of the appeal the appeals officer shall make a decision determining the appeal as soon as practicable in all the circumstances of the case, and in any case not more than 42 days after the date of the notice of appeal, which may be a decision to— (a) affirm the decision of the Minister, or (b) quash the decision of the Minister and allow the appeal.
(9)The appeals officer shall notify the parties to the appeal of the decision under subsection
(8)as soon as practicable after it is made.
(10)(
  1. a)A party to the appeal may apply to the High Court regarding a decision of the appeals officer on a point of law and the determination of the High Court on such an appeal shall be final and conclusive. (
  2. b)An application to the High Court under paragraph (
  3. a)shall be made not later than 14 days after the notification, under subsection
(9), to the parties of the decision of the appeals officer.”.
(3)Section 851A
(8)of the Principal Act is amended— (
  1. a)in paragraph (j), by substituting “enactment,” for “enactment, and”, (
  2. b)in paragraph (k), by substituting “purpose, and” for “purpose.”, and (
  3. c)by inserting the following after paragraph (k): “(
  4. l)where it relates to a failure, by a registered farm partnership, within the meaning of section 667C, to continue to meet conditions set out in section 667C(1A) or 667D
(2), as the case may be, and the information is disclosed only to the Minister for Agriculture, Food and the Marine.”.
(4)Regulations made under section 667C(4A) and in force immediately before the commencement of subsection
(2)shall continue in force as if they were regulations made under subsection (4A) amended under subsection
(2)and may be amended or revoked accordingly.
(5)Paragraph (f) of subsection
(2)shall come into operation on such day or days as the Minister for Finance may by order or orders appoint. Petroleum production tax 20. The Principal Act is amended in Part 24 by inserting the following Chapter after Chapter 3: “Chapter 4 Petroleum production Tax Interpretation and application (Chapter 4) 696G.
(1)In this Chapter— ‘cumulative field costs’, in relation to a relevant period of a company in respect of a taxable field, means the aggregate of field costs— (
  1. a)for that relevant period, and (
  2. b)for any preceding relevant period; ‘cumulative field gross revenue’, in relation to a relevant period of a company in respect of a taxable field, means the aggregate of the gross revenues— (
  3. a)for that relevant period, and (
  4. b)for any preceding relevant period, less the aggregate petroleum production tax payable by the company in respect of the same taxable field for all preceding relevant periods; ‘eligible expenditure’, in relation to a relevant period of a company in respect of a taxable field, means the aggregate of the amounts of— (
  5. a)all expenditure, including exploration and development expenditure wholly and exclusively incurred by the company in the carrying on of petroleum activities for the relevant period in respect of a taxable field, (
  6. b)all expenditure, including exploration and development expenditure wholly and exclusively incurred by the company in the carrying on of petroleum activities in respect of any preceding relevant period where such expenditure was not previously allowed as a deduction in computing petroleum production tax, and (
  7. c)all abandonment expenditure where an allowance may be claimed by reference to the provisions of section 695; ‘field costs’, in relation to a relevant period of a company in respect of a taxable field, means the aggregate of all expenditure, including exploration expenditure, development expenditure and transportation expenditure, wholly and exclusively incurred by the company in the carrying on of petroleum activities in respect of that taxable field; ‘gross revenue’ means all sales of petroleum extracted for a relevant period from a taxable field including any amounts derived from the assignment, disposal or sale of any assets, interests, options or rights attaching to or related to a taxable field; ‘net income’, in relation to a relevant period of a company in respect of a taxable field, means the gross revenue less eligible expenditure incurred in respect of that taxable field; ‘petroleum production tax’ has the meaning given to it by section 696H; ‘relevant period’ means an accounting period or part of an accounting period which commences on or after 18 June 2014; ‘R factor’ in relation to a relevant period of a company in respect of a taxable field, means an amount determined by the formula— A B where— A is the cumulative field gross revenue of the company in respect of the taxable field in relation to that relevant period, and B is the cumulative field costs of the company in respect of the taxable field in relation to that relevant period; ‘specified licence’ means— (
  8. a)an exploration licence (other than a licence arising from the exercise of a licensing option issued prior to 18 June 2014), (
  9. b)a reserved area licence, or (
  10. c)a licensing option, that is granted on or after 18 June 2014; ‘taxable field’ means an area which was the subject of a specified licence and which is now the subject of a petroleum lease; ‘transportation expenditure’ means expenses incurred wholly and exclusively on the transportation of petroleum via pipeline from the taxable field to a place where it is first landed in the State or if produced on a platform, from the wellhead to the carrier if the carrier serves as the point of export.
(2)In this Chapter, section 684 shall apply subject to the modification that the section shall be read, as if references to expenditure and activities carried on under a licence within the meaning of section 684, are references to expenditure and activities carried on under a specified licence and to any other necessary modifications.
(3)For the purposes of applying this Chapter— (
  1. a)where a part of an accounting period of a company is a relevant period, all amounts referable to the accounting period shall be apportioned, on the basis of the proportion which the length of the relevant period bears to the length of the accounting period of the company, for the purpose of ascertaining any amount required to be taken into account in respect of the relevant period, and (
  2. b)expenditure incurred on or after 18 June 2014 by a company in an area which is not a taxable field but which subsequently becomes a taxable field (or part of such a field) shall be treated as if it had been incurred by the company on the day on which the area first becomes a taxable field (or part of such a field). Charge to petroleum production tax 696H.
(1)(
  1. a)An additional duty (in this Chapter referred to as a ‘petroleum production tax’) shall be charged for each taxable field in a relevant period of a company and the amount so charged shall be an amount calculated in accordance with paragraph (b). (
  2. b)The amount calculated in accordance with this paragraph shall be the greater of— (
  3. i)5 per cent of the gross revenue less transportation expenditure, or (
  4. ii)(I) 10 per cent of the net income, where the R factor in relation to a taxable field is equal to 1.5, (II) an amount determined by the formula— multiplied by the net income, where the R factor in relation to a taxable field is greater than 1.5 and less than 4.5, or (III) 40 per cent of the net income, where the R factor in relation to a taxable field is equal to or greater than 4.5.
(2)For the purpose of calculating petroleum production tax for a relevant period, section 696 shall apply as if the provisions of that section were extended to petroleum related assets.
(3)No charge to profit resource rent tax under section 696C shall apply to a taxable field to which this section applies. Petroleum production tax and corporation tax 696I. In computing the amount of profits or gains to be charged to corporation tax a company shall be entitled to claim a deduction in respect of any petroleum production tax payable in respect of any taxable field for that relevant period. Provisions relating to groups 696J.
(1)Where eligible expenditure in respect of a taxable field is incurred by a company (in this section referred to as the ‘first company’), and (
  1. a)another company is a wholly-owned subsidiary of the first company, or (
  2. b)the first company is, at the time the eligible expenditure is incurred, a wholly-owned subsidiary of another company (in this section referred to as the ‘parent company’), then, the expenditure or so much of it as the first company specifies, may at the election of that company be deemed to be eligible expenditure in respect of the taxable field incurred— (
  3. i)in the case referred to in paragraph (a), by such other company (being a wholly-owned subsidiary of the first company) as the first company specifies, and (
  4. ii)in the case referred to in paragraph (b), by the parent company or by such other company (being a wholly-owned subsidiary of the parent company) as the first company specifies.
(2)Where under subsection
(1)eligible expenditure incurred by a first company is deemed to have been incurred by another company (in this subsection referred to as the ‘other company’)— (
  1. a)the expenditure shall be deemed to have been incurred by the other company at the time at which the expenditure was actually incurred by the first company, and (
  2. b)in the application of this Chapter the expenditure shall be deemed— (
  3. i)to have been incurred by the other company for the purposes of determining the cumulative field costs of that company, and (
  4. ii)not to have been incurred by the first company for the purposes of determining the cumulative field costs of that company.
(3)The same expenditure shall not be taken into account in relation to the determination of cumulative expenditure for more than one taxable field by virtue of this section.
(4)Subsection
(5)of section 694 applies for the purposes of subsection
(1)as it applies for the purposes of that subsection. Returns 696K.
(1)In this section ‘prescribed form’ means a form prescribed by the Revenue Commissioners or a form used under the authority of the Revenue Commissioners.
(2)A company carrying on petroleum activities in a taxable field shall, in addition to the return required to be delivered under section 959I, prepare and deliver to the Collector-General on or before the specified return date, within the meaning of Part 41A, for the relevant period a full and true statement in a prescribed form of the details required by the form in respect of— (
  1. a)the amounts constituting the aggregate of the cumulative field costs for each field, (
  2. b)the amounts constituting the aggregate of the cumulative field gross revenue for each field, (
  3. c)the breakdown of the amounts specified in paragraphs (
  4. a)and (b), and (
  5. d)the amount of petroleum production tax payable in respect of each field, and of such further particulars in relation to this Chapter as may be required by the prescribed form.
(3)A statement required under this section shall be made by electronic means and the relevant provisions of Chapter 6 of Part 38 shall apply.
(4)An officer of the Revenue Commissioners may make such enquiries or take such actions within his or her powers as he or she considers necessary for the purposes of determining the accuracy or otherwise of any details or particulars contained in the statement referred to in subsection
(2).
(5)Subsection
(5)of section 959I and subsections
(2)and
(3)of section 959O shall apply to a statement required to be delivered under this section as they apply to a return required to be delivered under Chapter 3 of Part 41A, and for that purpose a reference in those subsections to a return, other than a reference to the specified return date for the chargeable period, shall be construed as a reference to a statement under this section.
(6)Section 1052 shall apply to a failure by a person to deliver a statement under this section or the details or particulars referred to in subsection
(2)as it applies to a failure to deliver a return referred to in section 1052.
(7)Section 1077E shall apply to an incorrect statement delivered under this section as it applies to an incorrect return or statement of a kind mentioned in any of the provisions specified in column 1 of Schedule 29. Payment of tax 696L. Petroleum production tax appropriate to a relevant period is due and payable on or before the day on which a company carrying on petroleum activities in a taxable field is required to deliver a return, under section 959I, for that relevant period. Collection and general provisions 696M.
(1)The provisions of Part 41A relating to— (
  1. a)assessments to corporation tax, and (
  2. b)the collection and recovery of corporation tax, shall apply in relation to petroleum production tax as they apply to corporation tax charged otherwise than under this Chapter.
(2)Section 1080 shall apply, with any necessary modifications, to any tax due and payable under this section as if it was an amount of corporation tax due and payable for the relevant period.
(3)(
  1. a)Subject to paragraph (b), a company aggrieved by an assessment made on the company under this Chapter may appeal the assessment to the Appeal Commissioners, in accordance with section 949I, within the period of 30 days after the date of the notice of assessment. (
  2. b)Where, in accordance with this section, a company is required to make a return and account for petroleum production tax to the Collector-General, no appeal lies against an assessment until such time as the company makes the return and pays or has paid the amount of the petroleum production tax payable on the basis of that return.”. Amendment of Chapter 1 of Part 33 of Principal Act (anti-avoidance) 21.
(1)Chapter 1 of Part 33 of the Principal Act is amended— (a) in section 806 by inserting the following after subsection
(10): “
(11)(a) For the purposes of this subsection— ‘non-resident person’ means a person resident or domiciled out of the State as referred to in subsection
(3)or
(5); ‘relevant Member State’ means a state, other than the State, which is a Member State of the European Union, or not being such a Member State, a state which is a contracting party to 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; ‘relevant transactions’ has the same meaning as it has in subsection
(10). (b) Where a non-resident person is resident in a relevant Member State, subsection
(10)shall apply as if the following were substituted for paragraphs (b), (c), (d) and (e) of that subsection: ‘(b) Subsections
(4)and
(5)shall not apply where the individual concerned shows in writing or otherwise to the satisfaction of the Revenue Commissioners that— (
  1. i)it would not be reasonable to draw the conclusion that the relevant transactions form part of any arrangement or scheme of which the main purpose is, or one of the main purposes is, the avoidance of a liability to tax, and (
  2. ii)genuine economic activities are carried on by the non- resident person in the relevant Member State.’.”, (
  3. b)in section 807 by deleting subsection
(5), and (
  1. c)in section 807A— (
  2. i)by deleting subsection
(5), and (ii) in subsection
(7)by substituting “,
(10)and
(11)” for “and
(10)”.
(2)Paragraphs (
  1. b)and (c)(
  2. i)of subsection
(1)shall apply to income arising on or after 1 January
  1. Amendment of Schedule 2 to Principal Act (machinery for assessment, charge and payment of tax under Schedule C and, in certain cases, Schedule D)
  2. Schedule 2 to the Principal Act is amended in Part 4 by substituting “46 days” for “20 days” in paragraph 15
(1). Amendment of section 730E of Principal Act (declarations) 23.
(1)Section 730E
(2)of the Principal Act is amended by deleting “at or about the time of the inception of the life policy” in paragraph (a).
(2)(a) Subsection
(1)shall apply to any life policy (within the meaning of Part 26 of the Principal Act) commenced on or after 1 May 2006. (b) As respects chargeable events occurring on or prior to 31 December 2015 in relation to policies referred to in paragraph(a), section 865
(4)of the Principal Act shall apply as if the reference in that subsection to the making of a claim within 4 years after the end of the chargeable period to which the claim relates was a reference to the making of a claim within 4 years after the end of the chargeable period ending on 31 December 2016. Charities Regulatory Authority and Common Investment Fund 24.
(1)The Principal Act is amended by inserting the following section after section 207: “207A.
(1)In this section— ‘Fund’ means the Common Investment Fund (formerly known as the ‘The Commissioners Common Investment Fund’) established by the Commissioners of Charitable Donations and Bequests for Ireland under section 46 of the Charities Act 1961 with effect from 23 April 1985 and vested in the Charities Regulatory Authority on the establishment of that Authority on 16 October 2014; ‘relevant income’ means the income of the Fund.
(2)The Charities Regulatory Authority shall, in relation to relevant income, be deemed to be a body that has made a claim for, and has been granted, such exemption from income tax as is to be allowed under section 207.”.
(2)This section shall have effect on and from 16 October
  1. Amendment of Part 18 of Principal Act (payments in respect of professional services by certain persons and payments to subcontractors in certain industries)
  2. Part 18 of the Principal Act is amended— (a) in section 530
(1)by inserting the following definition: “‘designated area’ has the meaning assigned to it by section 13
(1);”, and (b) in section 530
(4)by inserting “or in a designated area” after “carried out in the State”. Amendment of Part 27 of Principal Act (unit trusts and offshore funds) 26. Chapter 1 of Part 27 of the Principal Act is amended in section 734
(1)(
  1. a)in the definition of “collective investment undertaking”— (
  2. a)by substituting “undertaking,” for “undertaking, and” in subparagraph (iii), (
  3. b)by substituting “investors,” for “investors;” in subparagraph (iv)(II)(B)(cc), and (
  4. c)by inserting the following after subparagraph (iv): “and (
  5. v)an authorised ICAV (within the meaning of section 2 of the Irish Collective Asset-management Vehicles Act 2015 (No. 2 of 2015));”. Industrial building allowances: aviation services facilities 27.
(1)The Principal Act is amended— (
  1. a)in section 268— (
  2. i)in subsection (1F), by substituting “then, notwithstanding that subsection, that capital expenditure shall not, as regards a claim for any allowance under this Part by any such person, be regarded as specified capital expenditure for the purposes of this Part,” for “then, notwithstanding that subsection, that building or structure shall not, as regards a claim for any allowance under this Part by any such person, be regarded as an industrial building or structure for the purposes of this Part,”, (
  3. ii)by substituting the following for subsection (5A): “(5A) Subject to subsection (5C), expenditure incurred by a person on the construction of an industrial building or structure (within the meaning of subsection
(1)(n)) shall be treated as specified capital expenditure for the purposes of this Part— (
  1. a)only to the extent that the aggregate of such expenditure does not exceed— (
  2. i)€5,000,000, where the person concerned is a company, and (
  3. ii)€1,250,000, where the person concerned is an individual, and (
  4. b)where the following information has been provided to the Revenue Commissioners before the first claim for a writing-down allowance is made, in accordance with section 272, by the person: (
  5. i)the name, address and tax reference number (within the meaning of section 477B
(1)) of the person making the claim; (
  1. ii)the address of the building or structure in respect of which the expenditure was incurred or deemed to have been incurred; (iii) details of the aggregate of the amount of such expenditure which has been incurred or deemed to have been incurred by the person making the claim.”, (iii) in subsection (5B)— (I) by substituting “subsection (5A)(
  2. b)” for “subsection (5A)(
  3. c)”, and (II) by substituting “necessary to ensure compliance with the provisions of this Part and any European Commission guidelines, regulations or other reporting requirements, as the case may be, that may be relevant.” for “reasonably related to achieving the following objective.”, (
  4. iv)by substituting the following for subsection (5C): “(5C) Where capital expenditure has been incurred, or deemed to have been incurred, on the construction of an industrial building or structure (within the meaning of subsection
(1)(n)) by 2 or more persons, being either individuals or companies, or both, the amount of such expenditure which is to be treated as specified capital expenditure for the purposes of this Part shall, if necessary and notwithstanding section 279, be reduced such that the amount determined by the formula— (A x 50 per cent) + (B x 12½ per cent) does not exceed €625,000, where— A is the aggregate of all such specified capital expenditure which has been incurred, or deemed to have been incurred, by the individual or individuals concerned, and B is the aggregate of all such specified capital expenditure which has been incurred, or deemed to have been incurred, by the company or companies concerned.”, (v) by deleting subsections (5D) and (5E), (vi) in subsection
(9), by substituting the following for paragraph (k): “(
  1. k)by reference to paragraph (n), as respects— (
  2. i)specified capital expenditure incurred in the period commencing on the date of the coming into operation of section 31 of the Finance Act 2013 and ending on the fifth anniversary of that date, and (
  3. ii)capital expenditure other than specified capital expenditure incurred on or after the date of the coming into operation of section 31 of the Finance Act 2013 .”, and (vii) by inserting the following after subsection
(11): “(11A) Notwithstanding any other provision of this Part, capital expenditure which has been incurred on the construction of an industrial building (within the meaning of subsection
(1)(n)) shall not be treated as specified capital expenditure where any part of that expenditure has been or is to be met, directly or indirectly, by grant assistance or any other assistance which is granted by or through the State, any board established by statute, any public or local authority or any other agency of the State.”, (b) in section 272— (i) by substituting the following for paragraph (k) of subsection
(3): “(
  1. k)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of paragraph (
  2. n)of section 268
(1)— (i) 15 per cent of the expenditure referred to in subsection
(2)(c), if that expenditure is specified capital expenditure, and (ii) 4 per cent of the expenditure referred to in subsection
(2)(c), if that expenditure is not specified capital expenditure.”, and (
  1. ii)by substituting the following for paragraph (
  2. k)of subsection
(4): “(
  1. k)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of paragraph (
  2. n)of section 268
(1)— (
  1. i)where the expenditure is specified capital expenditure, 7 years beginning with the time when— (I) the building or structure was first used, or (II) where the expenditure is incurred on refurbishment, the building or structure was first used subsequent to the incurring of that expenditure, and (
  2. ii)where the expenditure is not specified capital expenditure, 25 years beginning with the time when— (I) the building or structure was first used, or (II) where the expenditure is incurred on refurbishment, the building or structure was first used subsequent to the incurring of that expenditure.”, (
  3. c)in section 274
(1)(
  1. b)by substituting the following for subparagraph (x): “(
  2. x)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of paragraph (
  3. n)of section 268
(1)— (I) where the expenditure is specified capital expenditure— (A) 7 years after the building or structure was first used, or (B) where the expenditure is incurred on refurbishment of the building or structure, 7 years after the building or structure was first used subsequent to the incurring of that expenditure, and (II) where the expenditure is not specified capital expenditure— (A) 25 years after the building or structure was first used, or (B) where the expenditure is incurred on refurbishment of the building or structure, 25 years after the building or structure was first used subsequent to the incurring of that expenditure.”, and (d) in Schedule 25B— (i) by substituting the following for clause (VIII) of paragraph (a)(i) of the matter set out opposite reference number 13: “(VIII) section 268
(1)(
  1. n)(inserted by the Finance Act 2013 ) to the extent that the writing-down allowances are referable to specified capital expenditure (within the meaning of section 268),”, and (
  2. ii)by substituting the following for clause (VIII) of paragraph (a)(
  3. i)of the matter set out opposite reference number 15: “(VIII) section 268
(1)(n) (inserted by the Finance Act 2013 ) to the extent that the balancing allowances are referable to specified capital expenditure (within the meaning of section 268),”.
(2)Section 31 of the Finance Act 2013 is amended by substituting the following for subsection
(2): “
(2)This section comes into operation on 13 October 2015.”.
(3)Section 33 of the Finance Act 2014 is amended by substituting the following for subsection
(2): “
(2)This section comes into operation on 13 October 2015.”. Amendment of section 1035A of Principal Act (relieving provision to section 1035) 28. Section 1035A of the Principal Act is amended in subsection
(1)— (
  1. a)by inserting the following definitions: “ ‘AIF’ has the same meaning as in section 747G; ‘AIFM’ has the same meaning as in section 747G; ‘branch or agency’ has the same meaning as in section 4; ‘EEA state’ has the same meaning as in section 747B; ‘relevant AIFM Directives’ has the same meaning as in section 747G;”, and (
  2. b)in the definition of “authorised agent”— (
  3. i)by substituting “revoked,” for “revoked, or” in paragraph (b), and (
  4. ii)by inserting the following after paragraph (c): “or (
  5. d)an AIFM authorised— (
  6. i)under any laws of the State which implement the relevant AIFM Directives, or (
  7. ii)under the laws of an EEA state and which manages one, or more than one, AIF through a branch or agency in the State,”. Amendment of Part 36 of Principal Act (miscellaneous special provisions) 29. Part 36 of the Principal Act is amended by inserting the following after section 845B: “Treatment of Additional Tier 1 instruments 845C.
(1)In this section— ‘Additional Tier 1 instrument’ means an instrument which qualifies, or has qualified, as an Additional Tier 1 instrument under Article 52 of the Capital Requirements Regulation; ‘Capital Requirements Regulation’ means Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 201321 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No. 648/201222 ; ‘coupon’ means a distribution, within the meaning of Article 4 of the Capital Requirements Regulation, in respect of an Additional Tier 1 instrument.
(2)For the purposes of the Tax Acts, an Additional Tier 1 instrument shall be regarded as a debt instrument.
(3)For the purposes of the Tax Acts, a coupon in respect of an Additional Tier 1 instrument— (
  1. a)shall be regarded as interest, and (
  2. b)shall not be regarded as a distribution or a charge on income.
(4)Section 64 shall apply, with any necessary modifications, to an Additional Tier 1 instrument as it applies to a quoted Eurobond.
(5)This section shall not apply to an Additional Tier 1 instrument that forms part of any arrangement or scheme the main purpose, or one of the main purposes, of which is avoidance of liability to tax.”. Chapter 5 Corporation Tax Amendment of section 486C of Principal Act (relief from tax for certain start-up companies) 30. Section 486C of the Principal Act is amended in subsection
(2)(
  1. a)by substituting “31 December 2018” for “31 December 2015”. Amendment of section 765 of Principal Act (allowances for capital expenditure on scientific research) 31. Section 765 of the Principal Act is amended— (
  2. a)in subsection
(1), by substituting the following paragraph for paragraph (d): “(
  1. d)so applies— (
  2. i)in the case where the expenditure was incurred while carrying on the trade, within 24 months after the end of the chargeable period in which it was incurred, or (
  3. ii)in the case where the expenditure was incurred before the setting up and commencement of the trade, within 24 months after the end of the chargeable period in which the trade was set up and commenced, and any asset representing such capital expenditure on scientific research is in use for the purposes of scientific research at the end of the chargeable period,”, and (
  4. b)in subsection
(4)by inserting “or any subsequent” after “284 for that”. Amendment of Part 29 of Principal Act (patents, scientific and certain other research, know-how and certain training) 32.
(1)The Principal Act is amended— (a) in Part 29 by inserting the following Chapter after Chapter 4: “Chapter 5 Taxation of Companies Engaged in Knowledge Development Interpretation and general 769G.
(1)In this Chapter— ‘accounting period’ in relation to a company, means an accounting period determined in accordance with section 27; ‘acquisition costs’, in relation to expenditure incurred on a qualifying asset, means the expenditure incurred on the acquisition of intellectual property, or rights over intellectual property, where that intellectual property is reflected in the value of the qualifying asset, but where expenditure incurred on acquiring the intellectual property is incurred otherwise than by means of a bargain made at arm’s length, that acquisition shall, for the purposes of this Chapter, be deemed to be for a consideration equal to the open market value of the intellectual property; ‘group’ means a company and all of its 51 per cent subsidiaries; ‘group outsourcing costs’, in relation to a qualifying asset, means any amount incurred in carrying on research and development activities which results in a qualifying asset, where that amount is not qualifying expenditure but would be qualifying expenditure on a qualifying asset— (a) if the research and development activities were carried on in a Member State, or (b) but for subsection
(2)(b)(iii) or (vi), and shall not include any amount of qualifying expenditure or acquisition costs; ‘intellectual property’, other than for the purposes of the definition of ‘acquisition costs’ or ‘marketing-related intellectual property’ in this subsection and without prejudice to section 769R, means— (
  1. a)a computer program, within the meaning of the Copyright and Related Rights Act 2000 , but, where a computer program is a derivative work or adaptation, the portion of the computer program that represents the derivative work or the adaptation of the original work and the original work shall be treated as two separate computer programs, or (
  2. b)an invention protected by— (
  3. i)a qualifying patent, (
  4. ii)any supplementary protection certificate issued under Council Regulation (EC) No. 469/2009 of 6 May 200923 concerning protection for medicinal products or any such certificate extended in accordance with Article 36 of Regulation (EC) 1901/2006, (iii) any supplementary protection certificate issued under Regulation (EC) No. 1610/96 of the European Parliament and of the Council of 23 July 199624 concerning protection for plant protection products, or (
  5. iv)any plant breeders’ rights within the meaning of section 4 of the Plant Varieties (Proprietary Rights) Act 1980 ; ‘interest’, unless the context otherwise requires, includes any interest payable on a debt instrument, any discount on the issue of such an instrument, and any premiums paid or payable on redemption of such an instrument, or on the capital represented by such an instrument; ‘marketing-related intellectual property’ includes trademarks, brands, image rights and other intellectual property used to market goods or services; ‘Member State’ has the same meaning as ‘relevant Member State’ has in section 766; ‘overall expenditure on the qualifying asset’, means— (
  6. a)the qualifying expenditure incurred in relation to that qualifying asset, and (
  7. b)the aggregate of the acquisition costs and the group outsourcing costs relating to that qualifying asset, incurred in any accounting period; ‘overall income from the qualifying asset’ means the following amounts arising in respect of an accounting period— (
  8. a)any royalty or other sums in respect of the use of that qualifying asset, (
  9. b)where the sales price of a product or service, excluding both duty due or payable and any amount of value-added tax charged in the sales price, includes an amount which is attributable to a qualifying asset, such portion of the income from those sales as, on a just and reasonable basis, is attributable to the value of the qualifying asset, (
  10. c)any amount for the grant of a licence to exploit that qualifying asset, and (
  11. d)any amount of insurance, damages or compensation in relation to the qualifying asset, where that amount is taken into account in computing, for the purposes of assessment to corporation tax, the profits of a trade, and overall income from qualifying assets shall be construed accordingly; ‘qualifying asset’ means an asset which is intellectual property, other than marketing-related intellectual property, and which is the result of research and development activities; ‘qualifying expenditure on the qualifying asset’ has the meaning assigned to it in subsection
(2)and qualifying expenditure in relation to all qualifying assets shall be construed accordingly; ‘qualifying patent’ means— (
  1. a)a patent granted following substantive examination for novelty and inventive step, or (
  2. b)a patent, other than a short term patent within the meaning of section 63 of the Patents Act 1992 , or an equivalent provision in another jurisdiction, where— (
  3. i)the Patents Office in the State, or equivalent Office elsewhere, has caused a search to be undertaken in relation to the invention and a search report (within the meaning of section 29 of the Patents Act 1992 ) prepared, and (
  4. ii)either— (I) the patent was granted prior to 1 January 2016, or (II) the patent was granted on or after 1 January 2016 and before 1 January 2017 and a patent agent, within the meaning of section 106 of the Patents Act 1992 , certifies that in his or her opinion such a patent meets the patentability criteria, in that the invention is susceptible of industrial application, new and involves an inventive step, but this paragraph is subject to section 769I
(6)(a)(i)(VII); ‘relevant company’ means a company which carries on a specified trade and is within the charge to tax in the State, and where two or more companies carry on that specified trade in partnership then each company that is within the charge to tax in the State shall be a relevant company; ‘research and development activities’ has the meaning assigned to it in section 766; ‘specified trade’ has the meaning assigned to it in subsection
(3); ‘up-lift expenditure’, in relation to a qualifying asset, is the lower of— (
  1. a)30 per cent of the amount of the qualifying expenditure on the qualifying asset, or (
  2. b)the aggregate of acquisition costs and group outsourcing costs.
(2)(
  1. a)Subject to paragraph (b), for the purposes of this Chapter, qualifying expenditure in relation to the qualifying asset, in respect of a company, means expenditure incurred by a relevant company, in any accounting period, wholly and exclusively in the carrying on by it of research and development activities in a Member State where such activities lead to the development, improvement or creation of the qualifying asset, being an amount— (
  2. i)which is allowable as a deduction in computing the profits or gains from a trade (otherwise than by virtue of section 307), or would be so allowable but for the fact that for accounting purposes it is brought into account in determining the value of an asset, (
  3. ii)expended on machinery or plant (other than specified intangible assets within the meaning of section 291A treated as machinery or plant by virtue of subsection
(2)of that section where the specified intangible asset was acquired directly or indirectly from a member of the group) which qualifies for any allowance under Part 9, and for the purposes of this section, where a company engages a person who is not a member of the group, to carry on research and development activities on behalf of that company, then any sum payable to that person in respect of those activities shall be treated as if it were expenditure incurred by the company in the carrying on by it of research and development activities in a Member State. (
  1. b)Qualifying expenditure on the qualifying asset shall not include— (
  2. i)any amount of acquisition costs in relation to the qualifying asset, (
  3. ii)any amount of interest paid or payable, (iii) an amount paid or payable directly or indirectly to a member of the group to carry on research and development activities, whether under a cost sharing arrangement or otherwise, (
  4. iv)expenditure incurred under a cost sharing arrangement with another company to the extent that such expenditure exceeds an amount that would be determined by means of a bargain made at arm’s length, (
  5. v)any additional amount, agreed between members of the group, on an expense paid or payable indirectly through a group member to a person who is not a member of the group to carry on research and development activities, where that additional amount is to be retained by the group member, or (
  6. vi)any amount incurred if that amount— (I) may be taken into account as an expense in computing income of the company, (II) is expenditure in respect of which an allowance for capital expenditure may be made to the company, or (III) may otherwise be allowed or relieved in relation to the company, for the purposes of tax in a territory other than the State.
(3)(
  1. a)Subject to paragraph (b), for the purposes of this Chapter, specified trade means a trade or part of a trade, other than an excepted trade within the meaning of section 21A, consisting of or including one or more of the following categories of activities— (
  2. i)the managing, developing, maintaining, protecting, enhancing or exploiting of intellectual property, (
  3. ii)the researching, planning, processing, experimenting, testing, devising, developing or other similar activity leading to an invention or creation of intellectual property, or (iii) the sale of goods or the supply of services that derive part of their value from activities described in subparagraphs (
  4. i)and (ii), where those activities were carried on by the relevant company. (
  5. b)In the case of a trade consisting partly of the carrying on of such activities, as described in paragraph (a), and partly of the carrying on of other activities, that part of the trade consisting solely of the carrying on of activities described in paragraph (
  6. a)shall be a specified trade.
(4)Where a relevant company incurs expenditure for the purposes of a specified trade before the time that trade has been set up and commenced, then for the purposes of this Chapter other than section 769O, that expenditure shall be deemed to have been incurred in the first accounting period of that company. Families of products and assets 769H.
(1)This section has effect where— (
  1. a)a relevant company has a number of qualifying assets, and (
  2. b)owing to the interlinked nature of the qualifying assets and their use in the specified trade, it would be reasonable to conclude that it would not be possible for the relevant company to identify the overall expenditure on each qualifying asset or the overall income from each qualifying asset.
(2)In subsection
(3)‘family of assets’ means the smallest grouping of assets referred to in subsection
(1)for which the expenditure and income referred to in that subsection can reasonably be identified.
(3)Where— (
  1. a)this section has effect, and (
  2. b)the relevant company opts for this Chapter to so apply, then this Chapter shall apply, in relation to the relevant company, as if references to qualifying assets were references to a family of assets. Corporation tax referable to a specified trade 769I.
(1)For the purposes of this section qualifying profits, in relation to a qualifying asset, shall be the amount determined by the formula— where— QE is the qualifying expenditure on the qualifying asset, UE is the uplift expenditure, OE is the overall expenditure on the qualifying asset, and QA is the profit of the specified trade relevant to the qualifying asset before taking account of any allowance available under subsection
(5).
(2)(
  1. a)Where qualifying profits in respect of a qualifying asset arise in the course of a specified trade, then a relevant company may make a claim in respect of that qualifying asset under this section, in the return required to be filed pursuant to section 959I. (
  2. b)Subject to section 769P, any claim under this section shall be made once in respect of each qualifying asset and shall be made within 24 months from the end of the accounting period to which the claim relates. (
  3. c)Where under this section a claim is made to include the overall income from the qualifying asset in the income of a specified trade in any accounting period, then all amounts of income and expenditure related to that qualifying asset shall be taken to continue to relate to that specified trade until such time as the qualifying asset is disposed of or ceases to be used.
(3)Where during an accounting period a relevant company, which has made a claim under this section, carries on a specified trade, those activities shall be treated for the purposes of this Chapter, Chapter 2 of Part 8, Chapter 3 of Part 12 and Part 41A, as a separate trade distinct from any other trade carried on by the company.
(4)(
  1. a)Subject to paragraph (b), in order to determine the profits or gains of the specified trade to be charged to tax under Case I of Schedule D— (
  2. i)the income of the trade shall be the overall income from qualifying assets in respect of which a claim has been made under this section, and (
  3. ii)any necessar

🔗 To official source

AI explanation based on the official legal text. Indicative, not a substitute for legal advice.