Table of Contents
Finance Act, 2001 (No. 7)Introductory TextActs Referred toPart 1 Income Tax, Corporation Tax and Capital Gains Tax (ss. 1-95)Chapter 1 Interpretation (s. 1)1. Interpretation (Part 1).Chapter 2 Income Tax (ss. 2-32)2. Tax credits.3. Alteration of rates of income tax.4. Age exemption.5. Amendment of section 122 (preferential loan arrangements) of Principal Act.6. Amendment of section 126 (tax treatment of certain benefits payable under Social Welfare Acts) of Principal Act.7. Amendment of section 467 (employed person taking care of incapacitated individual) of Principal Act.8. Amendment of section 469 (relief for health expenses) of Principal Act.9. Amendment of section 473 (allowance for rent paid by certain tenants) of Principal Act.10. Amendment of section 477 (relief for service charges) of Principal Act.11. Relief for trade union subscriptions.12. Amendment of Part 16 (income tax relief for investment in corporate trades - business expansion scheme and seed capital scheme) of Principal Act.13. Employee share ownership trusts - deceased beneficiaries.14. Amendment of Schedule 13 (accountable persons for purposes of Chapter 1 of Part 18) to Principal Act.15. Approved share option schemes.16. Amendment of provisions relating to employee share schemes.17. Provisions relating to certain approved profit sharing schemes and employee share ownership trusts.18. Amendment of Part 30 (occupational pension schemes, retirement annuities, purchased life annuities and certain pensions) of Principal Act.19. Amendment of section 470 (relief for insurance against expenses of illness) of Principal Act.20. Relief for premiums under qualifying long-term care policies, etc.21. Taxation of certain perquisites.22. Amendment of Chapter 4 (revenue powers) of Part 38 of Principal Act.23. Tax relief at source for certain interest.24. Provision of certain information: transitional.25. Amendment of section 120A (exemption from benefit-in-kind of certain childcare facilities) of Principal Act.26. Amendment of section 669A (interpretation (Chapter 3)) of Principal Act.27. Amendment of section 669C (effect of sale of quota) of Principal Act.28. Amendment of section 530 (interpretation (Chapter 2)) of Principal Act.29. Relief for fees paid for third level education, etc.30. Seafarer allowance, etc.31. Amendment of section 823 (deduction for income earned outside the State) of Principal Act.32. Rent-a-room relief.Chapter 3 Income Tax, Corporation Tax and Capital Gains Tax (ss. 33-81)33. Special savings incentive accounts.34. Amendment of section 97 (computational rules and allowable deductions) of Principal Act.35. Amendment of section 177 (conditions as to residence and period of ownership) of Principal Act.36. Amendment of section 198 (certain interest not to be chargeable) of Principal Act.37. Treatment of certain interest payments.38. Amendment of Part 20 (companies' chargeable gains) of Principal Act.39. Amendment of section 590 (attribution to participants of chargeable gains accruing to non-resident company) of Principal Act.40. Amendment of Schedule 18A (restriction on set-off of pre-entry losses) to Principal Act.41. Amendment of Schedule 24 (relief from income tax and corporation tax by means of credit in respect of foreign tax) to Principal Act.42. Amendment of section 89 (valuation of trading stock at discontinuance of trade) of Principal Act.43. Dividend withholding tax.44. Amendment of provisions relating to exploration and exploitation activities.45. Donations to approved bodies, etc.46. Amendment of section 665 (interpretation (Chapter 2)) of Principal Act.47. Amendment of section 666 (deduction for increase in stock values) of Principal Act.48. Amendment of section 667 (special provisions for qualifying farmers) of Principal Act.49. Amendment of section 668 (compulsory disposal of livestock) of Principal Act.50. Amendment of section 310 (allowances in respect of certain contributions to capital expenditure of local authorities) of Principal Act.51. Wear and tear allowances for licences for public hire vehicles.52. Wear and tear allowances for certain sea fishing boats.53. Wear and tear allowances.54. Amendment of section 274 (balancing allowances and balancing charges) of Principal Act.55. Amendment of Chapter 4 (interest payment by certain deposit takers) of Part 8 of Principal Act.56. Amendment of section 838 (special portfolio investment accounts) of Principal Act.57. Taxation of certain savings in credit unions and other financial institutions.58. Amendment of Chapter 9 (park and ride facilities and certain related developments) of Part 10 of Principal Act.59. Amendment of Part 10 (income tax and corporation tax: reliefs for renewal and improvement of certain urban areas, certain resort areas, and certain islands) of Principal Act.60. Living over the shop scheme.61. Amendment of Part 11 (capital allowances and expenses for certain road vehicles) of Principal Act.62. Amendment of provisions relating to treatment of certain losses and certain capital allowances.63. Relief for certain rented accommodation.64. Capital allowances for certain hospitals.65. Amendment of section 420 (losses, etc. which may be surrendered by means of group relief) of Principal Act.66. Amendment of section 594 (foreign life assurance and deferred annuities: taxation and returns) of Principal Act.67. Amendment of Part 26 (life assurance companies) of Principal Act.68. Amendment of section 723 (special investment policies) of Principal Act.69. Amendment of section 730A (profits of life business: new basis) of Principal Act.70. Amendment of Chapter 5 (policyholders - new basis) of Part 26 of Principal Act.71. Amendment of section 731 (chargeable gains accruing to unit trusts) of Principal Act.72. Amendment of Part 27 (unit trusts and offshore funds) of Principal Act.73. Amendment of section 737 (special investment schemes) of Principal Act.74. Amendment of Chapter 1A (investment undertakings) of Part 27 of Principal Act.75. Amendment of Schedule 2B (Investment undertakings declarations) of Principal Act.76. Amendment of section 843 (capital allowances for buildings used for third level educational purposes) of Principal Act.77. Changeover to calendar year of assessment78. Provisions relating to making of returns of income and chargeable gains and payment of income tax and capital gains tax.79. Amendment of provisions relating to Dublin Docklands Development Authority.80. Amendment of Chapter 10 (designated areas of certain towns) of Part 10 of Principal Act.81. Capital allowances for hotels.Chapter 4 Corporation Tax (ss. 82-91)82. Amendment of provisions relating to a shipping trade.83. Amendment of section 22A (reduction of corporation tax in respect of certain trading income) of Principal Act.84. Foundation for Investing in Communities.85. Amendment of section 130 (matters to be treated as distributions) of Principal Act.86. Amendment of section 222 (certain dividends from a non-resident subsidiary) of Principal Act.87. Amendment of Chapter 2 of Part 14 of Principal Act.88. Amendment of Part 36 of Principal Act.89. Amendment of section 847 (tax relief for certain branch profits) of Principal Act.90. Restriction of certain losses and charges.91. Close company surcharges.Chapter 5 Capital Gains Tax (ss. 92-95)92. Amendment of Chapter 6 (transfers of business assets) of Part 19 of Principal Act.93. Amendment of Chapter 7 (other reliefs and exemptions) of Part 19 of Principal Act.94. Amendment of section 649A (relevant disposals: rate of charge) of Principal Act.95. Amendment of section 652 (non-application of reliefs on replacement of assets in case of relevant disposals) of Principal Act.Part 2 Excise (ss. 96-153)Consolidation and Modernisation of General Excise Law (ss. 96-153)Chapter 1 Interpretation, Liability and Payment (ss. 96-109A)96. Interpretation (Part 2).97. Excisable products (Part 2).98. Importation from outside territory of European Union98A. Release for consumption.98B. Chargeability of excisable products released for consumption99. Liability of persons.99A. Assessment of excise duty payable.99AA. Estimation of excise duty due.99AB. Time limits.99B. Penalty for deliberately or carelessly making incorrect returns, etc.99C. Penalty for deliberately or carelessly making incorrect returns or failing to make certain returns, etc.100. Duties to apply to excisable products released for consumption in another Member State.101. All excisable products are liable for all liabilities, penalties and forfeitures of a warehousekeeper.102. Treatment of excisable products released for consumption.103. Payment.104. Reliefs.105. Repayments.105A. Underpayments.105B. Repayment of overpaid duty.105BA. Unjust enrichment.105C. Period for repayment claims.105D. Interest on repayment of duty.106. Remission of losses.107. General mutual assistance.108. Mutual assistance for the recovery of claims.108A. Warehousing.109. Authorisation of warehouse-keepers and approval of tax warehouses.109A. Authorisation of registered consignors.Chapter 2A Intra-European Union Movement under a Suspension Arrangement (ss. 109B-109P)109B. Interpretation (Chapter 2A).109C. Product scope (Chapter 2A).109D. Member State territories, exceptional arrangements (Chapter 2A).109E. Consignments to another Member State under a suspension arrangement.109F. Consignment to consignee in another Member State under computerised system.109G. Consignment to place of exportation in another Member State under computerised system.109H. Cancellation or amendment of electronic administrative document.109I. Consignment to another Member State where computerised system is unavailable.109IA. Authorisation of registered consignees.109J. Consignments to the State under suspension arrangement.109K. Completion of consignment.109L. Report of receipt.109M. Report of export.109N. Confirmation of receipt and export by alternative means.109O. Exceptional procedures.109P. Transitional arrangements.Chapter 2B Intra-European Union Movement of Duty-Paid Excisable Products (ss. 109Q-109Y)109Q. Interpretation (Chapter 2B).109R. Product scope (Chapter 2B).109RA. Movement of excisable products for commercial purposes109S. Member State territories, exceptional arrangements (Chapter 2B).109SA. Consignment of excisable products, duty-paid in the State, to another Member State for commercial purposes109SB. Consignment to the State of excisable products released for consumption in another Member State for commercial purposes109SC. Report of receipt of duty-paid consignment109T. Consignment to the State of excisable products released for consumption in another Member State.109TA. Consignment to the State where computerised system is unavailable109U. Distance selling from another Member State.109V. Consignment of excisable products, duty-paid in the State, to another Member State.109VA. Unavailability of the computerised system to a certified consignor in the State109W. Distance selling to another Member State.109X. Additional requirements.109Y. Transitional arrangementsChapter 2 Intra-Community Movement (ss. 110-117)110. Scope (Chapter 2).111. Treatment of excisable products released for consumption in another Member State.112. Provisions relating to vendors.113. Tax representatives.114. Application of Article 5.2 of Council Directive No. 92/12/EEC.115. Movement of excisable products under a suspension arrangement from the State to other Member States.116. Movement of excisable products under a suspension arrangement to the State from other Member States.117. Accompanying documents.Chapter 3 Offences, Penalties and Proceedings (ss. 118-132)118. Interpretation (Chapter 3).119. Evasion of excise duty.120. Amendment of section 34 (amendments relative to penalties) of Finance Act, 1963.121. Offences generally.122. Offences in relation to false returns, claims etc.123. Resisting, obstructing, giving false information.124. Penalty.124A. Administrative penalties for breach of provisions or regulations.125. Forfeiture.125A. Forfeiture of alcohol products on unlicensed premises.126. Proceedings in relation to offences.127. Notice of claim.128. Proceedings for condemnation by court.129. Damages.130. Mitigation.131. Presumptions.132. False evidence, punishment as for perjury.Chapter 4 Powers of Officers (ss. 133-144A)133. Interpretation (Chapter 4).134. Power to stop vehicles.135. Power to examine and search vehicles and to take samples.136. Entry and search of premises.136A. Power to stop, question and search for intraCommunity baggage.137. General provision concerning samples.137A. Substitute fuels.138. Powers of officers in respect of certain tobacco products.139. Power of arrest and detention of persons.139A. Excise: designation of secure premises for keeping of detained or seized goods.140. Detention of goods and vehicles.141. Seizure of goods and vehicles.142. Notice of seizure.143. Notice of claim.144. Power to deal with seizures, before and after condemnation.144A. Delegation of powers, functions and duties of Commissioners.Chapter 5 Miscellaneous (ss. 145-153)145. Appeals to Commissioners.146. Appeals to Appeal Commissioners.147. Payment of duty pending appeal.148. Exclusion of criminal matters.149. Repeals and revocations (Part 2).150. Saver.151. Continuity.152. Commencement.153. Regulations.Part 3 Customs and Excise (ss. 154-180)Miscellaneous (ss. 154-180)154. Tobacco products.155. Hydrocarbons and substitute motor fuel.156. Rates of mineral oil tax.157. Amendment of section 10 (tobacco products manufacturer's licence) of Finance (Excise Duty on Tobacco Products) Act, 1977.158. Amendment of section 10A (offences in relation to tax stamps) of Finance (Excise Duty on Tobacco Products) Act, 1977.159. Amendment of section 11 (offences) of Finance (Excise Duty on Tobacco Products) Act, 1977.160. Amendment of section 21 (duties on hydrocarbon oil) of Finance Act, 1935.161. Amendment of section 72 (removal of prescribed market, etc. from hydrocarbon oil) of Finance Act, 1986.162. Amendment of section 57 (removal of substances mixed with goods liable to excise duty) of Finance Act, 1988.163. Amendment of section 94 (interpretation, Chapter 1) of Finance Act, 1999.164. Amendment of section 99 (passenger road services) of Finance Act, 1999.165. Amendment of section 100 (reliefs from mineral oil tax for certain mineral oils) of Finance Act, 1999.166. Amendment of section 102 (offences) of Finance Act, 1999.167. Deferment of duty on beer, made wine, wine and spirits.168. Remission or repayment in respect of vehicle registration tax on certain hybrid electric vehicles.169. Amendment of section 130 (interpretation) of Finance Act, 1992.170. Excise duty on mineral oil licence.171. Imposition of duty on liquor licence for National Concert Hall.172. Tax clearance in relation to excise licences.173. Amendment of section 49 (grant of licences and date of expiration of licences) of Finance (1909-10) Act, 1910.174. Amendment of section 18 (firearm certificate duty) of Finance Act, 1964.175. Amendment of Chapter-III (amusement machine licence duty) of Part II of Finance Act, 1992.176. Amendment of section 43 (gaming machine licence duty) of Finance Act, 1975.177. Amendment of section 34 (amendments relative to penalties) of Finance Act, 1963.178. Amendment of section 89 (amendment of penalties under section 186 (illegally importing) of Customs Consolidation Act, 1876) of Finance Act, 1997.179. Amendment of Customs Consolidation Act, 1876.180. Repeal of the Customs Consolidation Act, 1876, Amendment Act, 1890.Part 4 Value-Added Tax (ss. 181-200)181. Interpretation (Part 4).182. Amendment of section 3 (supply of goods) of Principal Act.183. Amendment of section 5 (supply of services) of Principal Act.184. Amendment of section 8 (taxable persons) of Principal Act.185. Amendment of section 10A (margin scheme goods) of Principal Act.186. Amendment of section 10B (special scheme for auctioneers) of Principal Act.187. Amendment of section 11 (rates of tax) of Principal Act.188. Amendment of section 12 (deduction for tax borne or paid) of Principal Act.189. Amendment of section 12A (special provisions for tax invoiced by flat-rate farmers) of Principal Act.190. Amendment of section 12B (special scheme for means of transport supplied by taxable dealers) of Principal Act.191. Adjustment of tax deductible in certain circumstances.192. Amendment of section 13A (supplies to, and intra-Community acquisitions and imports by, certain taxable persons) of Principal Act.193. Amendment of section 17 (invoices) of Principal Act.194. Amendment of section 19 (tax due and payable) of Principal Act.195. Amendment of section 21 (interest) of Principal Act.196. Amendment of section 22 (estimation of tax due for a taxable period) of Principal Act.197. Amendment of section 27 (fraudulent returns, etc.) of Principal Act.198. Repeal of section 37 (substitution of agent, etc., for person not resident in State) of Principal Act.199. Amendment of First Schedule to Principal Act.200. Amendment of Second Schedule to Principal Act.Part 5 Stamp Duties (ss. 201-214)201. Interpretation (Part 5).202. Amendment of section 58 (security for future advances, how to be charged) of Principal Act.203. Repeal of section 60 (short-term life insurance policies) of Principal Act.204. Amendment of section 79 (conveyances and transfers of property between certain bodies corporate) of Principal Act.205. Dublin Docklands Development Authority.206. Transfer of site to child.207. Amendment of section 86 (certain loan stock) of Principal Act.208. Rent-a-room, etc.209. Amendment of Chapter 2 of Part 7 of Principal Act.210. Approved voluntary body.211. National Building Agency Limited.212. Certain policies of insurance.213. Amendment of Schedule 1 to Principal Act.214. Amendment of section 2 (commencement (Part 1)) of Finance (No. 2) Act, 2000.Part 6 Capital Acquisitions Tax (ss. 215-229)215. Interpretation (Part 6).216. Amendment of section 18 (taxable value of a taxable gift or taxable inheritance) of Principal Act.217. Amendment of section 19 (value of agricultural property) of Principal Act.218. Amendment of section 55 (exemption of certain objects) of Principal Act.219. Amendment of section 57 (exemption of certain securities) of Principal Act.220. Amendment of section 59C (exemption relating to certain dwellings) of Principal Act.221. Gifts and inheritances taken by foster children.222. Gifts and inheritances taken by adopted children from natural parent.223. Amendment of section 61 (payment of money standing in names of two or more persons) of Principal Act.224. Amendment of section 85 (exemption of specified collective investment undertakings) of Finance Act, 1989.225. Abolition of probate tax.226. Amendment of section 133 (exemption of certain policies of assurance) of Finance Act, 1993.227. Amendment of section 124 (interpretation (Chapter I)) of Finance Act, 1994.228. Amendment of section 127 (relevant business property) of Finance Act, 1994.229. Amendment of provisions relating to the taxation of discretionary trusts.Part 7 Anti-Speculative Property Tax (s. 230)230. Abolition of antispeculative property tax.Part 8 Miscellaneous (ss. 231-243)231. Interpretation (Part 8).232. Amendment of Chapter 3 (other obligations and returns) of Part 38 of Principal Act.233. Amendment of section 1078 (revenue offences) of Principal Act.234. Amendment of section 1094 (tax clearance in relation to certain licences) of Principal Act.235. Amendment of Chapter 6 (electronic transmission of returns of income, profits, etc., and of other Revenue returns) of Part 38 of Principal Act.236. Certificates in court procedings.237. Amendment of Chapter 4 (collection and recovery of income tax on certain emoluments (PAYE system) of Part 42 of Principal Act.238. Amendment of section 1002 (deduction from payments due to defaulters of amounts due in relation to tax) of Principal Act.239. Amendment of section 1006A (offset between taxes) of Principal Act.240. Amendment of enactments consequent on changeover to Euro.241. Deletion of certain references to Bord Telecom Éireann and Irish Telecommunications Investments plc. in Principal Act.242. Care and management of taxes and duties.243. Short title, construction and commencement.Schedule 1 Amendments Consequential on Changes in Personal ReliefsSchedule 2 Changeover to Calendar Year of AssessmentSchedule 3 Repeals and Revocations Relating to Excise LawSchedule 3, Part 1 RepealsSchedule 3, Part 2 RevocationsSchedule 4 Rates of Excise Duty on Tobacco ProductsSchedule 5 Amendment of Enactments Consequent on Changeover to EuroSchedule 5, Part 1 Income tax, corporation tax, capital gains tax, provisions in the Inland Revenue Regulation Act, 1890, and the Taxes Consolidation Act, 1997, applying also to other taxes and duties, and related mattersSchedule 5, Part 2 Customs and related mattersSchedule 5, Part 3 Excise duties and related mattersSchedule 5, Part 4 Value-Added Tax and related mattersSchedule 5, Part 5 Capital Acquisitions Tax and related mattersSchedule 5, Part 6 Stamp Duties and related mattersSchedule 5, Part 7 Residential Property Tax and related matters
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90. Restriction of certain losses and charges.
(1) The Principal Act is amended -
(a) in Part 8 by the insertion after section 243 of the following:
"243A. Restriction of relevant charges on income.
(1) In this section -
'relevant trading charges on income', in relation to an accounting period of a company, means the charges on income paid by the company in the accounting period wholly and exclusively for the purposes of a trade carried on by the company, other than so much of those charges as are charges on income paid for the purposes of an excepted trade within the meaning of section 21A;
'relevant trading income', in relation to an accounting period of a company, means the trading income of the company for the accounting period (not being income chargeable to tax under Case III of Schedule D) other than so much of that income as is income of an excepted trade within the meaning of section 21A.
(2) Notwithstanding section 243, relevant trading charges on income paid by a company in an accounting period shall not be allowed as deductions against the total profits of the company for the accounting period.
(3) Subject to section 454, where a company pays relevant trading charges on income in an accounting period and, apart from subsection (2), those charges would be allowed as deductions against the total profits of the company for the accounting period, those charges shall be allowed as deductions against -
(a) income specified in section 21A(4)(b), and