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15 1983

FINANCE ACT, 1983

Chapter II

Taxation of Farming Profits

Charge of farming profits under Schedule D.

11. Part I of the Finance Act, 1974 , is hereby amended, as respects the year 1983-84 and subsequent years of assessment, by the substitution for section 15 of the following section:

“Farming profits to be charged under Schedule D.

15.—(1) All farming in the State shall be treated as the carrying on of a trade or, as the case may be, of part of a trade, and the profits or gains thereof shall be charged to tax under Case I of Schedule D accordingly.

(2) Notwithstanding anything to the contrary in Chapter III of Part IV of the Income Tax Act, 1967 , all farming carried on by any person whether solely or in partnership shall be treated as the carrying on of a single trade:

Provided that this subsection shall not prejudice or restrict the operation of section 58 of the Income Tax Act, 1967 , where a partnership trade of farming is set up and commenced or is permanently discontinued.”.

Application for 1983-84 of section 20A (optional basis of assessment) of Finance Act, 1974.

12. Section 20A (inserted by the Finance Act, 1978 ) of the Finance Act, 1974 , shall have effect for the year 1983-84 as if—

(a) in paragraph (a)—

(i) “1983-84” were substituted for “1978-79” in each place where it occurs,

(ii) “ section 15 of the Finance Act, 1974 (inserted by section 11 of the Finance Act, 1983)” were substituted for “ section 13 of the Finance Act, 1978 ” in subparagraph (ii), and

(iii) “1983” were substituted for “1978” in subparagraph (II),

and

(b) in paragraph (b), “1983-84” were substituted for “1978-79” in each place where it occurs.

Farming: provision relating to relief in respect of increase in stock values.

13. Section 13 (1) of the Finance Act, 1982 , is hereby amended by the substitution of “1982-83 or any subsequent year of assessment” for “1982-83”, and the said section 13 (1), as so amended, is set out in the Table to this section.

TABLE

(1) Where, in computing profits from the trade of farming for an accounting period, a deduction allowed by virtue of section 12 of the Finance Act, 1976 , has effect for the year 1982-83 or any subsequent year of assessment—

(a) section 31 (4) (a) of the Finance Act, 1975 (as applied by section 12 (2) (a) of the Finance Act, 1976 ), shall apply and have effect as if “less 20 per cent. of its trading profits for that period” were deleted,

(b) the said section 12 shall have effect as if subsection (2) (c) (inserted by the Finance Act, 1979 ) had not been enacted,

and

(c) the amount of the said deduction shall, subject to the provisions of subparagraph (i) of the said section 31 (4) (a), be eleven-tenths of the amount of the deduction for that accounting period computed in accordance with paragraphs (a) and (b) of this subsection.

Amendment of section 307 (relief for losses) of Income Tax Act, 1967.

14. Section 307 of the Income Tax Act, 1967 , is hereby amended, as respects the year 1983-84 and subsequent years of assessment, by the substitution of the following subsection for subsection (1A) (inserted by the Finance Act, 1974 ):

“(1A) This section applies in any case where farming is carried on other than in the case of an individual who has sustained a loss in the carrying on of farming and who is not chargeable to tax in respect of profits or gains from farming for the year of assessment in which the loss is sustained.”.

Amendment of section 22 (farm buildings: capital allowances) of Finance Act, 1974.

15. Section 22 (inserted by the Corporation Tax Act, 1976 ) of the Finance Act, 1974 , is hereby amended, as respects the year 1983-84 and subsequent years of assessment,—

(a) in subsection (1), by the substitution of “section 15” for “section 15(1)”, and

(b) by the substitution of the following subsection for subsection (2B):

“(2B) Where, for any year of assessment, an individual is not chargeable to tax in respect of profits or gains from farming in accordance with the provisions of section 58 of the Income Tax Act, 1967 , and that year is a year of assessment in respect of which, if he had been so chargeable, he could have claimed a farm buildings allowance under this section, that allowance shall, for the purposes of this section, be deemed to have been made for that year of assessment and shall not be carried forward and set off against profits or gains chargeable for any subsequent year of assessment.”,

and the said subsection (1), as so amended, is set out in the Table to this section.

TABLE

(1) This section applies to any person carrying on farming, the profits or gains of which are chargeable to tax in accordance with the provisions of section 15.