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22 1956

FINANCE ACT, 1956

PART I.

Income Tax.

Income tax and sur-tax for the year 1956-57.

1. —(1) Income tax shall be charged for the year beginning on the 6th day of April, 1956, at the rate of seven shillings and sixpence in the pound.

(2) Sur-tax for the year beginning on the 6th day of April, 1956, 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, 1955.

(3) The several statutory and other provisions which were in force on the 5th day of April, 1956, 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, 1956.

Amendment of section 32 of Income Tax Act, 1918.

2. —Section 32 of the Income Tax Act, 1918, as amended by subsequent enactments, is hereby further amended as follows:

(i) in paragraph (c) of subsection (3) “or, where special terms apply to the insurance on the life of the insured person, of the prescribed capital sum” shall be inserted after “capital sum assured” and “or the prescribed capital sum” shall be inserted after “any such capital sum” and after “the sum actually assured”;

(ii) after subsection (3) the following subsection shall be inserted:

“(3A) In paragraph (c) of subsection (3) of this section—

special terms’ in relation to an insurance means terms which, by reason of special circumstances concerning the health of the insured person, are less favourable as to the amounts of the premiums payable or as to the capital sum payable on death, than those which would otherwise be available from the same insurer;

the prescribed capital sum’ means, in relation to an insurance (in this definition referred to as the said insurance), to which special terms apply, on the life of an insured person, the capital sum which would have been payable by the insurer on the death of that person by virtue of an insurance to which special terms did not apply and which, except as regards the capital sum payable on death, was in all respects the same as the said insurance.”

Exemption of certain interest.

3. —(1) Where the total income of an individual for the year of assessment includes, or would but for this section include, any sums (in this section referred to as the said sums) paid or credited in respect of interest on deposits with a trustee savings bank, with the Post Office Savings Bank or with any of the commercial banks, the said sums shall be disregarded for all the purposes of the Income Tax Acts if or in so far as the said sums do not exceed twenty-five pounds, but the provisions of the Income Tax Acts as regards the making by the individual of a return of his total income shall apply as if this section had not been enacted.

(2) Subsection (1) of this section shall have effect subject to the proviso that where an application under Rule 17 of the General Rules applicable to Schedules A, B, C, D and E of the Income Tax Act, 1918, or under section 8 of that Act is made for the year of assessment by a married man or by his wife, and the aggregate of the said sums which are included, or which would but for this section be included, in the total incomes of the spouses exceeds twenty-five pounds, the amount of the said sums to be disregarded for that year in the case of each spouse shall be the amount which bears the same proportion to twenty-five pounds as the amount of the said sums which are included, or which would but for this section be included, in the total income of that spouse bears to the aggregate of the said sums which are included, or which would but for this section be included, in the total incomes of the spouses; and that, in the absence of any such application as aforesaid, a like apportionment shall, where necessary, be made.

(3) Where any sums arising to an individual are, by virtue of this section, to be disregarded, the individual shall not be treated, by reason of such disregarding, as having ceased to possess the whole of a single source within the meaning of section 10 of the Finance Act, 1929 (No. 32 of 1929).

(4) In this section—

total income” means total income from all sources as estimated in accordance with the provisions of the Income Tax Acts;

the commercial banks” means the Bank of Ireland, the Hibernian Bank, Limited, the Munster and Leinster Bank, Limited, the National Bank, Limited, the Northern Bank, Limited, the Provincial Bank of Ireland, Limited, the Royal Bank of Ireland, Limited, the Ulster Bank, Limited, Ansbacher & Company, Limited, the Commercial Banking Company, Limited, Guinness & Mahon and the National City Bank, Limited;

trustee savings bank” has the same meaning as in the Trustee Savings Banks Acts, 1863 to 1920.

Increase of personal allowance for married man.

4. —Subsection (1) of section 18 of the Finance Act, 1920, as amended by subsequent enactments, is hereby further amended by the substitution of “a deduction of three hundred and ten pounds” for “a deduction of three hundred pounds”.

Deductions in respect of children.

5. —(1) Subsection (1) of section 21 of the Finance Act, 1920, is hereby amended by the insertion at the end of that subsection of “and a child in respect of whom an adoption order under the Adoption Act, 1952 (No. 25 of 1952), is in force”.

(2) Subsection (2) of section 21 of the Finance Act, 1920, is hereby amended by the deletion of “at the commencement of that year” where those words firstly appear in that subsection.

Increase of deduction in respect of dependent relative.

6. —Subsection (1) of section 22 of the Finance Act, 1920, as amended by subsequent enactments, is hereby further amended by the substitution of “a deduction of sixty pounds” for “a deduction of fifty pounds”.

Amendment of section 7 of Finance Act, 1932.

7. —(1) In this section “the principal section” means section 7 of the Finance Act, 1932 (No. 20 of 1932).

(2) Where—

(a) a company has issued any stocks, shares or securities in respect of which a certificate under subsection (2) of the principal section has been given and continues to have effect, and

(b) the company subsequently issues, whether before or after the passing of this Act, any stocks, shares or securities—

(i) offered or allotted to the holders as such, at or about the time of such subsequent issue, of the first-mentioned stocks, shares or securities or of a particular class thereof, and

(ii) so offered or allotted on a basis calculated by reference to the respective holdings of those holders,

the stocks, shares or securities which the company subsequently issues as aforesaid shall, for the purposes of the principal section, be deemed to be issued for public subscription.

(3) Notwithstanding anything contained in paragraphs (b) and (c) of subsection (2) of the principal section, a certificate may be given under that subsection in respect of any stocks, shares or securities of a company which were or are issued as fully paid up and which, by virtue of subsection (2) of this section, are deemed to be issued for public subscription.

(4) Where a certificate is given under subsection (2) of the principal section in respect of any stocks, shares or securities which, by virtue of subsection (2) of this section, are deemed to be issued for public subscription, relief or repayment under subsection (1) of the principal section shall, nevertheless, not be granted in respect of any dividend or interest on the stocks, shares or securities which was payable before the date of the certificate.