Finance Act, 1949
Acts of the Oireachtas
Source: Acts of the Oireachtas

num: 1
paragraphs: —(1) Income tax shall be charged for the year beginning on the 6th day of April, 1949, at the rate of six shillings and six pence in the pound.
(2) Sur-tax for the year beginning on the 6th day of April, 1949, shall be charged in respect of the income of any individual the total of which from all sources exceeds one thousand five hundred pounds and shall be so charged at the same rates as those at which it is charged for the year beginning on the 6th day of April, 1948.
(3) The several statutory and other provisions which were in force on the 5th day of April, 1949, in relation to income tax and sur-tax shall, subject to the provisions of this Act, have effect in relation to the income tax and sur-tax to be charged as aforesaid for the year beginning on the 6th day of April, 1949.
num: 2
paragraphs: —Rule 4 of the Rules applicable to Cases I and II of Schedule D of the Income Tax Act, 1918, as amended by section 31 of the Finance Act, 1920 , shall have effect as if in paragraph (1) thereof the words from the commencement of the paragraph to the word “paid”, where that word occurs thirdly, were deleted and in lieu thereof the following words were substituted:
“Where any company has paid corporation profits tax in respect of any accounting period, the amount so paid shall, in computing for purposes of income tax the profits or gains of the company, be allowed to be deducted as an expense incurred in that accounting period”.
num: 3
paragraphs: —(1) Throughout Rule 6 (as amended by section 2 of the Finance Act, 1944 (No. 18 of 1944)) and Rule 7 of the Rules applicable to Cases I and II of Schedule D of the Income Tax Act, 1918, references to the profits or gains of a trade shall be construed as including references to the profits or gains, whether assessable under Schedule D or otherwise, of a profession, employment, vocation or office, and the said Rules 6 and 7 shall apply and have effect accordingly.
(2) Section 5 of the Finance Act, 1936 (No. 31 of 1936), is hereby repealed.
num: 4
paragraphs: —Subsection (1) of section 19 of the Finance Act, 1920 (which relates to deductions in respect of relatives taking charge of widower's or widow's children) shall be construed and have effect as if the words “one hundred pounds” were substituted for the words “forty-five pounds”.
num: 5
paragraphs: — Section 20 of the Finance Act, 1920 (which relates to deductions in respect of widowed mother, etc.) shall be construed and have effect as if the words “one hundred pounds” were substituted for the words “forty-five pounds”.
num: 6
paragraphs: —Subsection (1) of section 21 of the Finance Act, 1920 (which relates to deductions in respect of children) shall be construed and have effect as if the words “living at any time during the year of assessment” were substituted for the words “living at the commencement of the year of assessment”.
num: 7
paragraphs: —Subsection (1) of section 22 of the Finance Act, 1920 , as amended by section 5 of the Finance Act, 1944 (No. 18 of 1944) (which relates to deductions in respect of dependent relatives) shall be construed and have effect as if the words “fifty pounds” were substituted for the words “twenty-five pounds”.
num: 8
paragraphs: —(1) Where by any means whatsoever (including indirect means or means consisting of a series of operations and whether adopted before or after the passing of this Act), a trade, which at any time before the adoption of such means was carried on by any person solely or in partnership, becomes a trade carried on by one or more than one child of such person or by way of a partnership in which such person and one or more than one child of such person are partners, the following provisions shall have effect:
(a) such means shall, for the purposes of section 2 of the Finance Act, 1937 (No. 18 of 1937), be deemed to constitute a settlement as respects which such person shall be deemed to be the settlor,
(b) the profits or gains arising from the trade after the adoption of such means, in so far as they arise to (as the case may be) one or more than one child of such person or such person and one or more than one child of such person, shall for the purposes of the said section 2, be deemed to be the same income as would have arisen to such person had such means not been adopted, and
(c) the word “income” where it first occurs in the said section 2 shall be deemed to include the said profits or gains in so far as they arise to one or more than one child of such person.
(2) In subsection (1) of this section, the word “child” includes a stepchild, an adopted child, and an illegitimate child.
(3) The amount of the income of a person from the profits or gains of a trade which is to be deemed by virtue of subsection (1) of this section to be income of another person shall, if the first-mentioned person is engaged actively in the carrying on of the trade, be the full amount of the said income reduced by a sum (in subsection (4) of this section referred to as the appropriate sum) equal to the amount which would have been allowed in computing the said profits or gains in respect of the first-mentioned person if he, instead of being a person engaged in the carrying on of the trade, had been a person employed by a person or persons carrying on the trade.
num: 9
paragraphs: —Subsection (1) of section 17 of the Finance Act, 1932 (No. 20 of 1932), is hereby amended as on and from the 5th day of May, 1949—
(a) by the insertion of the words “news reel films and” before the words “blank film on which no picture has been impressed” in both places where the latter words occur, and
(b) by the substitution of the words “news reel films” for the words “films which are shown to the satisfaction of the Revenue Commissioners to consist mainly of records of news”.
num: 10
paragraphs: —(1) In this section the expression “firearm certificate” means a firearm certificate granted under the Firearms Act, 1925 (No. 17 of 1925).
num: 11
paragraphs: —The allowance payable under section 1 of the Revenue Act, 1906 , section 11 of the Finance Act, 1920 , and section 15 of the Finance Act, 1921 , in respect of spirits used for making power methylated spirits, shall cease to be payable as respects spirits so used on or after the 1st day of October, 1949.
num: 12
paragraphs: —(1) In this section the expression “entertainments duty” means the excise duty referred to by that name in and chargeable under section 1 of the Finance (New Duties) Act, 1916 , as amended by subsequent enactments.
(2) As on and from the 1st day of July, 1949, section 1 of the Finance (New Duties) Act, 1916 , shall be construed and have effect as if the word “entertainment” as defined in that section included any ball or dance, and entertainments duty shall, on and from the 1st day of July, 1949, be charged, levied and paid on all payments for admission to any ball or dance whether the admission is for the purpose of dancing or taking part in such ball or dance or as a spectator thereof and shall be charged, levied and paid as aforesaid at the following rates:—
Where the payment for admission, excluding duty.
Rate of Duty
s. d.
exceeds
4d.
and
does
not
exceed
6½d.
1½
”
6½d.
”
”
”
”
8d.
2
”
8d.
”
”
”
”
1s. 0d.
3
”
1s. 0d.
”
”
”
”
1s. 8d.
4
”
1s. 8d.
”
”
”
”
2s. 0d.
6
”
2s. 0d.
”
”
”
”
3s. 0d.
9
”
3s. 0d.
”
”
”
”
4s. 0d.
1 0
”
4s. 0d.
1s. for the first 4s. and 1s. for every additional 4s. or part of 4s.
(3) Subsection (1) of section 13 of the Finance Act, 1946 (No. 15 of 1946), is hereby repealed as on and from the 1st day of July, 1949.
num: 13
paragraphs: —Entertainments duty within the meaning of and chargeable under section 1 of the Finance (New Duties) Act, 1916 , as amended by subsequent enactments, shall not be charged or levied in relation to any entertainment held on or after the 1st day of June, 1949, in a place not situated in or within three miles of any of the following:
(a) a county or other borough,
(b) an urban district,
(c) a town having commissioners under the Towns Improvement (Ireland) Act, 1854 ,
(d) a town—
(i) which is designated as such in the census of population which is for the time being the latest such census, and
(ii) has, according to such census, a population exceeding five hundred.
num: 14
paragraphs: —The customs duties on wine imposed by section 5 of the Finance Act, 1948 (No. 12 of 1948), shall, in the case of wine other than sparkling wine, be charged, levied and paid as on and fromthe 5th day of May, 1949, as follows in lieu of as provided for by that section, that is to say:—
Wine—
£
s.
d.
Not exceeding 25 degrees of proof spirit
the gallon
0
6
0
Exceeding 25 but not exceeding 30 degrees of proof spirit
the gallon
0
10
0
Exceeding 30 but not exceeding 42 degrees of proof spirit
the gallon
1
4
0
And for every degree or fraction of a degree beyond the highest above charged, an additional duty
the gallon
0
2
0
Wine not exceeding 25 degrees of proof spirit in bottle, an additional duty
the gallon
0
4
0
Wine exceeding 25 degrees of proof spirit in bottle, an additional duty
the gallon
0
8
0
num: 15
paragraphs: —(1) In the case of unmanufactured tobacco, the provisions of section 8 of the Finance Act, 1919 , shall apply to the duties imposed thereon by section 20 of the Finance Act, 1932 (No. 20 of 1932), with the substitution of the expression “the area of application of the Acts of the Oireachtas” for the expression “Great Britain and Ireland” and as though unmanufactured tobacco were mentioned separately in the first column of the Second Schedule to the said Finance Act, 1919 , and the preferential rates specified in Second Schedule to this Act were specified in respect thereof in the second column of the said Second Schedule to the Finance Act, 1919 .
(2) This section shall have effect notwithstanding section 24 of the Finance Act, 1924 (No. 27 of 1924), but shall not affect subsection (2) of that section.
num: 16
paragraphs: —(1) The duty of excise imposed by section 19 of the Finance Act, 1934 (No. 31 of 1934), shall be charged, levied and paid at the several rates specified in the Third Schedule to this Act in lieu of at the several rates specified in Part II of the Second Schedule to the Finance Act, 1948 (No. 12 of 1948).
num: 17
paragraphs: —Subsection (15) of section 21 of the Finance Act, 1935 (No. 28 of 1935), as amended by subsection (6) of section 8 of the Finance Act, 1942 (No. 14 of 1942), is hereby further amended by the insertion of the words “or a road roller” in the definition of “motor vehicle” after the words “but does not include a tractor which is designed and constructed for use for agricultural purposes”.
num: 18
paragraphs: —Paragraph (e) of subsection (1) of section 2 of the Finance Act, 1894 (being the paragraph inserted in that subsection by subsection (1) of section 32 of the Finance Act, 1924 (No. 27 of 1924)) is hereby amended by the insertion after the words “at least three years before the death of the deceased,” of the words “or, in the case of a gift for public or charitable purposes, at least one year before the death of the deceased,”.
num: 19
paragraphs: —(1) Subject to the provisions of this section, the relief specified therein shall be granted where, on the death of a person who has made a disposition of property in favour of a relative of his or a company (hereinafter in this section referred to as the disposition), any estate duty becomes, or would but for this section become, payable by virtue of section 31 of the Finance Act, 1941 (No. 14 of 1941) (which relates to purchases of annuities or other interests from relatives).
(2) The sum on which estate duty would be payable apart from this section on the death in respect of the property which was the subject matter of the disposition or in respect of the property liable to a debt or incumbrance created by the deceased which was the subject matter of the disposition, as the case may be, shall first be computed and, subject to the limitations provided for by subsection (3) of this section, there shall then be allowed as a deduction from that sum—
(a) the amount, if any, by which the aggregate of the payments which have been made on account of the annuity or other interest for the period from the date when the annuity or other interest began to accrue in favour of the deceased until his death, exceeds the aggregate of the income derived from the deceased by virtue of the disposition for the period from the date of the disposition until his death; and
(b) simple interest on so much, if any, of the amount aforesaid, and for such period, as, in the opinion of the Revenue Commissioners, is in all the circumstances just, at the rates from time to time payable during that period on death duties in arrear.
In this subsection, the expression “the aggregate of the income derived from the deceased by virtue of the disposition” means—
(i) in relation to so much of the property which was the subject matter of the disposition as did not consist of a debt or incumbrance created by the deceased, such amount as, in the opinion of the Revenue Commissioners, is in all the circumstances equal to a reasonable return from the property; and
(ii) in relation to so much of the property which was the subject matter of the disposition as did consist of a debt or incumbrance created by the deceased, the aggregate amount of the interest paid or payable by the deceased in respect of that debt or incumbrance.
num: 20
paragraphs: —(1) For the purposes of the last paragraph of subsection (1) of section 11 of the Customs and Inland Revenue Act, 1889 (which, as applied for the purposes of estate duty, provides that money received under a policy of assurance effected by the deceased person on his life and kept up by him shall be treated as passing on his death), so much of the premiums paid on any policy of assurance as was, by virtue or in consequence of a settlement made by the deceased, paid out of property, whether or not provided by the deceased, comprised in the settlement, or out of income, whether or not provided by the deceased, arising under the settlement, shall, subject to subsection (2) of this section, be treated as having been paid by the deceased.
(2) Any payments referred to in subsection (1) of this section which were not made either out of property provided directly or indirectly by the deceased for the purposes of the settlement, or out of property representing that property, or out of income provided directly or indirectly by the deceased whether arising from such property or otherwise, shall not be treated as having been made by the deceased if the Revenue Commissioners are satisfied that those payments were not made as part of any reciprocal arrangements between the deceased and any other person.
(3) For the purposes of the said enactment in the Customs and Inland Revenue Act, 1889 , a policy of assurance on the life of a deceased person effected by virtue or in consequence of a settlement made by the deceased shall be treated as having been effected by the deceased.
(4) This section shall be deemed to have had effect as respects persons dying on or after the 4th day of May, 1949.
(5) For the purposes of this section—
(a) the expression “settlement” includes any disposition, trust, covenant, agreement or arrangement; and
(b) a person shall be deemed to have made a settlement if he has made or entered into the settlement directly or indirectly, and in particular (but without prejudice to the generality of the foregoing words of this paragraph) if he has provided or undertaken to provide funds directly or indirectly for the purposes of the settlement, or has made with any other person a reciprocal arrangement for that person to make or enter into the settlement.
num: 21
paragraphs: —(1) The agreement (in this section referred to as the scheduled agreement), set forth in Part I of the Fifth Schedule to this Act and made on the 18th day of May, 1949, between the Government and the United Kingdom Government, is hereby confirmed and shall have the force of law.
num: 22
paragraphs: —(1) Section 31 of the Finance Act, 1928 (No. 11 of 1928), as amended by section 47 of the Finance Act, 1932 (No. 20 of 1932), and by section 35 of the Finance Act, 1941 (No. 14 of 1941), shall cease to have effect in relation to profits arising in accounting periods beginning on or after the 1st day of January, 1949, and corporation profits tax chargeable on profits of a foreign company in respect of any such accounting period shall accordingly be charged, levied and paid as if section 31 of the Finance Act, 1928 , and the provisions amending that section contained in section 47 of the Finance Act, 1932 , and in section 35 of the Finance Act, 1941 , had not been enacted.
(2) The following provisions shall have effect in relation to an accounting period of a foreign company, being a period beginning before and ending on or after the 1st day of January, 1949, as respects which the company does not satisfy the Revenue Commissioners that one of the conditions prescribed by subsection (2) of section 31 of the Finance Act, 1928 , is fulfilled, that is to say:
(a) the profits arising in the period shall be apportioned between the part of the period before the 1st day of January, 1949, and the remaining part of the period in proportion to the respective lengths of those parts,
(b) corporation profits tax shall not be charged on so much of the profits apportioned to the part of the period before the 1st day of January, 1949, as bears to £2,500 the same proportion as that part bears to twelve months and shall be charged on the remainder of the profits apportioned to that part at the rate of twelve and one-half per cent.,
(c) corporation profits tax shall not be charged on so much of the profits apportioned to the remaining part of the period as bears to £2,500 the same proportion as that part bears to twelve months and shall be charged on the remainder of the profits apportioned to that part at the rate of ten per cent.
num: 23
paragraphs: —This Part of this Act and the Fifth Schedule to this Act shall be read and construed together with Part V of the Finance Act, 1920 , as amended or extended by subsequent enactments.
num: 24
paragraphs: —(1) The stamp duties chargeable under paragraph (3) of the heading “Lease or Tack” in the First Schedule to the Stamp Act, 1891, as amended by subsequent enactments, in respect of any consideration which consists of any money, stock or security (other than rent) for a lease shall, notwithstanding any other Act, be at the rate of two pounds ten shillings for every fifty pounds or fractional part of fifty pounds of the amount or value of such consideration.
(2) Where—
(a) the consideration, or any part of the consideration, for a lease consists of any money, stock or security (other than rent) the amount or value of which does not exceed five hundred pounds, and
(b) the lease contains a statement that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value or the aggregate amount or value of the consideration other than rent exceeds five hundred pounds, and
(c) the lease is not a lease as respects which part of the consideration therefor consists of a rent exceeding twenty pounds a year,
subsection (1) of this section shall not apply to the duty chargeable in respect of the consideration, or part thereof, which consists of any money, stock or security.
(3) Where—
(a) the consideration, or any part of the consideration, for a lease consists of any money, stock or security (other than rent) the amount or value of which exceeds five hundred pounds but does not exceed one thousand pounds, and
(b) the lease contains a statement that the transaction effected thereby does not form part of a larger transaction or a series of transactions, and
(c) the lease is not a lease as respects which part of the consideration therefor consists of a rent exceeding twenty pounds a year,
subsection (1) of this section shall not apply to the duty chargeable in respect of the consideration, or part thereof, which consists of any money, stock or security, but duty shall, notwithstanding any other Act, be chargeable in respect thereof as follows:
Where the amount or value of the consideration, or part thereof—
Exceeds
£500
and
does
not
exceed
£550
£7 10s.
”
£550
”
”
”
”
£600
£10
”
£650
”
”
”
”
£700
£20
”
£700
”
”
”
”
£750
£25
”
£750
”
”
”
”
£800
£30
”
£800
”
”
”
”
£850
£35
”
£850
”
”
”
”
£900
£40
”
£900
”
”
”
”
£950
£45
”
£950
”
”
”
”
£1,000
£50
(4) The foregoing provisions of this section shall have effect if, but only if, the lease contains a statement by the lesse certifyingthat the person who becomes entitled to the entire beneficial interest in the lessee's interest under the lease (or, where more than one person becomes entitled to a beneficial interest therein, each of them) is some specified one of the following:
(a) an Irish citizen,
(b) a person who is for the time being ordinarily resident in the State and who was ordinarily resident in the State continuously during the three years immediately preceding the 15th day of October, 1947,
(c) a body corporate incorporated in the State on or before the 15th day of October, 1947,
(d) a body corporate incorporated outside the State which, on or before the 15th day of October, 1947, has filed with the registrar of companies the documents and particulars mentioned in subsection (1) of section 274 of the Companies (Consolidation) Act, 1908,
(e) a person lawfully carrying on a business which comes within the provisions of any paragraph of subsection (1) of section 9 of the Control of Manufactures Act, 1934 (No. 36 of 1934), or
(f) a body corporate incorporated in the State after the 15th day of October, 1947, where the issued shares of each class are, to an extent exceeding one-half (in nominal value) thereof, in the beneficial ownership of persons each of whom is within one of paragraphs (a) to (e) of this subsection.
num: 25
paragraphs: —(1) Where—
num: 26
paragraphs: —(1) In this section—
num: 27
paragraphs: —(1) In this section—
num: 28
paragraphs: —With a view to providing moneys to meet general charges which will fall upon the Central Fund, the sum of three hundred thousand pounds shall be transferred and paid from the Road Fund to the Exchequer at such time or times in the financial year ending on the 31st day of March, 1950, and in such manner as the Minister for Finance shall direct.
num: 29
paragraphs: —(1) The latest date for winding-up the Transition Development Fund shall be the 31st day of March, 1950, in lieu of the date, the 31st day of March, 1949, stipulated in section 15 of the Finance Act, 1948 (No. 12 of 1948).
(2) Subsection (1) of this section shall be deemed to have come into operation on the 31st day of March, 1949.
num: 30
paragraphs: —(1) Every re-hearing of an appeal by the Circuit Court under section 196 of the Income Tax Act, 1918, shall be held in camera, and every hearing by the High Court or the Supreme Court of a case stated under section 149 of the said Act, or under that section as extended by section 10 of the Finance Act, 1924 (No. 27 of 1924), shall, if the person whose chargeability to tax is the subject of the case so desires, be held in camera.
(2) The holding in camera, in pursuance of this section, of the hearing by the High Court or the Supreme Court of a case stated shall not preclude the publication, in the law reports published by the Incorporated Council of Law Reporting for Ireland or in any other recognised law reports or in any reports printed with the permission of the said Incorporated Council, of a report of the proceedings before, or the judgements given by, the High Court or the Supreme Court, but no such report shall disclose the name of the person whose chargeability to tax is the subject of the case.
(3) This section shall apply with the necessary modifications to appeals against assessments to sur-tax or corporation profits tax.
num: 31
paragraphs: —All taxes and duties imposed by this Act are hereby placed under the care and management of the Revenue Commissioners.
num: 32
paragraphs: —(1) This Act may be cited as the Finance Act, 1949.
(2) Part I of this Act shall be construed together with the Income Tax Acts.
(3) Part II of this Act, so far as it relates to duties of customs, shall be construed together with the Customs Acts and, so far as it relates to duties of excise, shall be construed together with the Statutes which relate to the duties of excise and the management of those duties.
(4) Part V of this Act shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act.
(5) Part I of this Act shall be deemed to come into force on and shall take effect as on and from the 6th day of April, 1949.