Link Report

(a) in section 381 by substituting the following for subsections (6) and (7):

(b) any group relief given to the company in accordance with Chapter 5 of Part 12 for any accounting period in the specified period,

is less than 25 per cent of such profits or assets (as the case may be) of the subsidiary company at such time, and sections 413, 414, 415 and 418 shall, with any necessary modifications but without regards to section 411(1)(c) in so far as it relates to those sections, apply to the determination of the percentage of those profits or assets (as the case may be) to which a company is beneficially entitled as they apply to the determination for the purposes of Chapter 5 of Part 12 of the percentage of any such profits or assets to which a company is so entitled.

Section 381 (right to repayment of tax by reference to losses).

To the extent that any loss or any part of a loss sustained by the individual in the tax year is referable to a further deduction given to the individual under section 324, 333, 345, 354 or paragraph 13 of Schedule 32, the amount of the loss or any portion of the loss that is so referable in respect of which relief is given to the individual for the tax year under section 381 less any amount of such loss as is carried forward under section 382.

Section 381 (right to repayment of tax by reference to losses) as extended by section 392 (option to treat capital allowances as creating or augmenting a loss).

To the extent that any loss or any part of a loss sustained by the individual in the tax year is referable to capital allowances, being allowances which are specified reliefs, made to the individual for the tax year, the amount of the loss or any portion of the loss that is so referable in respect of which relief is given to the individual for the tax year under section 381 less any amount of such loss as is carried forward under section 382.

The amount of qualifying expenditure (within the meaning of section 482) incurred by the individual in the tax year for which relief is given for the tax year under section 381, including any amounts in respect of which relief is given in that year by virtue of section 482(3).

L is the amount of the loss for that year in respect of which the individual was entitled to make a claim under section 381 in respect of that trade or profession, and

CA is the amount of any claim made in that year by the individual in respect of that trade or profession by virtue of the provisions of Chapter 2 of Part 12,

but the allowances made to the individual in respect of any year shall only be included in the aggregate if a claim was made in respect of those allowances for that year by virtue of the provisions of Chapter 2 of Part 12,

TL is the aggregate of the amounts of losses eligible for relief under section 381 in respect of that trade or profession for the tax year 2006 and each of the 3 preceding tax years less the amount of any claim made in any of those years by the individual in respect of that trade or profession by virtue of the provisions of Chapter 2 of Part 12, and

TL is the aggregate of the amounts of losses eligible for relief under section 381 in respect of that trade or profession for the tax year 2006 and each of the 3 preceding tax years less the amount of any claim made in any of those years by the individual in respect of that trade or profession by virtue of the provisions of Chapter 2 of Part 12, and

but the allowances made to the individual in respect of any year shall only be included in the aggregate if a claim was made in respect of those allowances for that year by virtue of the provisions of Chapter 2 of Part 12.

(2) Where a determination has become final and conclusive or, in the case of a determination under subsection (6) of section 1010 has become final and conclusive subject to paragraph (b) of that subsection, no question as to its correctness shall be raised on the hearing or on the rehearing of an appeal with the Appeal Commissioners on an appeal by any partner either against an assessment in respect of the profits or gains of that partner’s several trade or against a determination by the inspector on a claim under section 381.

(a) in the case of an individual, sections 245 to 255, 305 and 381, and

(b) Notwithstanding section 381, where relief is claimed under that section in respect of a loss sustained in a qualifying trade, the amount of that loss, in so far as by virtue of section 392 it is referable to an allowance under this section, shall be treated for the purposes of subsections (1) and (3)(b) of section 381 as reducing income only from a letting to which paragraph (a) refers and shall not be treated as reducing any other income.

(b) Notwithstanding section 381, where relief is claimed under that section in respect of a loss sustained in a qualifying trade, the amount of that loss, in so far as by virtue of section 392 it is referable to an allowance under this section, shall be treated for the purposes of subsections (1) and (3)(b) of section 381 as reducing income only from a letting to which paragraph (a) refers and shall not be treated as reducing any other income.

(b) neither section 381 nor section 396(2) shall apply as respects the whole or part, as the case may be, of any loss which would not have arisen but for the making of that allowance.

(2) Subject to subsection (3), a claim to repayment of income tax under section 381 may not be made as respects a specified loss sustained by a specified trader in a tax year where the specified loss—

(3) Section 381 shall not apply as respects any specified loss where the disposal of the land to which subsection (2)(b) refers is to a connected person (within the meaning of section 10).

(1)(a) In this section “relevant loss” means a loss in a trade or profession (including any amount in respect of allowances which, pursuant to section 392, is to be treated as a loss for the purposes of section 381) but does not include a loss which arises from—

(2) (a) Subject to paragraphs (b) and (c), where a person carries on a trade or profession in a non-active capacity during a year of assessment then for the purposes of section 381, the amount of any relevant loss sustained by that person in that trade or profession in that year of assessment shall be the actual amount of the loss so sustained, or €31,750, whichever is the lower.

(c) Where a person carries on 2 or more trades or professions to which this subsection applies, then for the purposes of section 381, the aggregate of the amount of the losses sustained by that person in those trades or professions in any year of assessment shall be the aggregate of the actual amount of the losses so sustained, or €31,750, whichever is the lower.

“relevant loss” means a loss in a trade or profession (including any amount in respect of allowances which, pursuant to section 392, is to be treated as a loss for the purposes of section 381) but does not include a loss which arises from—

“relevant tax avoidance arrangements” means arrangements the main purpose, or one of the main purposes of which, is to give rise to a claim under section 381.

(2) Where a person carries on a trade or profession in a non-active capacity in the relevant period for a year of assessment and sustains a relevant loss in that trade or profession for that year of assessment and that loss arises in whole or in part, directly or indirectly, in consequence of or otherwise in connection with relevant tax avoidance arrangements, then for the purposes of section 381 that person shall be deemed not to have sustained a loss in that trade or profession for that year of assessment.

(1) Where, in any trade or profession carried on by a person, either solely or in partnership, such person has sustained a loss (to be computed in the like manner as profits or gains under the provisions of the Income Tax Acts applicable to Cases I and II of Schedule D) in respect of which relief has not been wholly given under section 381 or under any other provision of the Income Tax Acts, such person may claim that any portion of the loss for which relief has not been so given shall be carried forward and, in so far as may be, deducted from or set off against the amount of profits or gains on which such person is assessed under Schedule D in respect of that trade or profession for any subsequent year of assessment, except that, if and in so far as relief in respect of any loss has been given to any person under this section, that person shall not be entitled to claim relief in respect of that loss under any other provision of the Income Tax Acts.

“year of claim”, in relation to any claim under section 381, means the year of assessment for which the claim is made.

(1) Subject to this Chapter, any claim made under section 381 for relief in respect of a loss sustained in any trade in any year of assessment (in this Chapter referred to as “the year of the loss”) may require the amount of the loss to be determined as if an amount equal to the capital allowances for the year of the loss were to be deducted in computing the profits or gains or losses of the trade in the year of the loss, and a claim may be so made notwithstanding that apart from those allowances a loss had not been sustained in the trade in the year of the loss.

(2) Where on any claim made by virtue of this Chapter relief is not given under section 381 for the full amount of the loss determined under subsection (1), the relief shall be referred, as far as may be, to the loss sustained in the trade rather than to the capital allowances in respect of the trade.

394 Effect of giving relief under section 381 by reference to capital allowances.

Where for any year of claim relief is given under section 381 by reference to any capital allowances, then, for the purposes of the Income Tax Acts, effect shall be deemed to have been given to those allowances up to the amount in respect of which relief is so given, and any relief previously given for a subsequent year on the basis that effect had not been so given to those allowances shall be adjusted, where necessary, by additional assessment by amended assessment.

(3) (a) Notwithstanding section 381, where relief is claimed under that section in respect of a loss sustained in a trade of leasing, the amount of that loss, in so far as by virtue of section 392 it is referable to the specified capital allowances, shall be treated for the purposes of subsections (1) and (3)(b) of section 381 as reducing profits or gains of that trade of leasing only and shall not be treated as reducing any other income.

(3) (a) Notwithstanding section 381, where relief is claimed under that section in respect of a loss sustained in a trade of leasing, the amount of that loss, in so far as by virtue of section 392 it is referable to the specified capital allowances, shall be treated for the purposes of subsections (1) and (3)(b) of section 381 as reducing profits or gains of that trade of leasing only and shall not be treated as reducing any other income.

(b) Where paragraph (a) applies in the case of any claimant to relief under section 381—

(ii) notwithstanding section 392(2) (but without prejudice to paragraph (a) and to the order in which income is to be treated as reduced under section 381(3)(b)), the claimant may specify the extent to which any reduction of income treated as occurring by virtue of section 381 is to be referred to so much of the loss as is attributable to the loss, if any, actually sustained in the trade of leasing, the specified capital allowances or any other capital allowances, and, where the claimant so specifies, section 394 shall apply in accordance with the claimant’s specification and not in accordance with section 392(2).

(ii) notwithstanding section 392(2) (but without prejudice to paragraph (a) and to the order in which income is to be treated as reduced under section 381(3)(b)), the claimant may specify the extent to which any reduction of income treated as occurring by virtue of section 381 is to be referred to so much of the loss as is attributable to the loss, if any, actually sustained in the trade of leasing, the specified capital allowances or any other capital allowances, and, where the claimant so specifies, section 394 shall apply in accordance with the claimant’s specification and not in accordance with section 392(2).

(III) the amount of any loss which was treated by virtue of a claim under section 381 as reducing income,

(b) neither section 381 nor section 396(2) shall apply as respects the whole or part (as the case may be) of any loss which would not have arisen but for the making of that allowance.

(c) relief is claimed under section 381 in respect of the loss referred to in paragraph (a).

(4) Where this section applies, the amount of the loss referred to in subsection (3)(a) which can be treated as reducing income for a year of assessment under section 381(1) shall be—

(4A) (a) Notwithstanding subsection (4), where this section applies for the year of assessment 2010 or a later year of assessment, the amount of the loss referred to in subsection (3)(a) which can be treated as reducing income for each such year of assessment under section 381(1) shall be nil.

“specified provisions” means sections 305 and 381;

(i) the amount of the allowance made in the tax year to which effect is given in taxing the individual’s trade or profession for that tax year, other than where effect is given by making a claim under section 381 by virtue of section 392, and

(3) Where, in respect of a tax year before the tax year 2009, a claim is made by a person (in this subsection and subsections (4) to (7) referred to as the “claimant”) in accordance with subsection (6) of section 381, which claim is in respect of, or includes, a relevant loss, then, notwithstanding subsection (1) of that section, unless the claim is made to and received by the Revenue Commissioners before 7 April 2009, that subsection shall not apply to so much of the loss as is a relevant loss and the claimant shall instead be entitled as regards the relevant loss to such repayment of tax as is provided for by subsection (4).

(b) For the purposes of this subsection and subsections (6)(a) and (7)(a), the references to the “interim amount of tax payable by the claimant for the tax year” shall be taken to mean the tax which would have been borne by that person for that tax year following any reduction in the income of that person for that tax year, to which the person is entitled in accordance with section 381(1), by—

(2)(a) Any loss (including any amount in respect of allowances which by virtue of section 392 is to be treated as a loss) incurred in a trade of farming or market gardening shall not be available for relief under section 381 unless it is shown that, for the year of assessment in which the loss is claimed to have been incurred, the trade was being carried on on a commercial basis and with a view to the realisation of profits in the trade.

(b) Without prejudice to paragraph (a), any loss (including any amount in respect of allowances which by virtue of section 392 is to be treated as a loss) incurred in any year of assessment in a trade of farming or market gardening shall not be available for relief under section 381 if in each of the prior 3 years a loss was incurred in carrying on that trade.

(1) Notwithstanding sections 381 and 396(2)—

(i) under section 381 against any income other than income arising from petroleum activities, or

(i) under section 381 against income arising from petroleum activities, or

(b) Relief under paragraph (a) in respect of a loss shall be deemed for the purposes of the Tax Acts to be relief given under section 381(1) such that—

(i) no further relief shall be given under section 381(1) in respect of so much of an abandonment loss as is an amount in respect of which relief has been given under paragraph (a), and

(ii) subsections (3) to (7) of section 381 and section 392 shall apply to relief under paragraph (a) as they apply to relief under section 381.

(ii) subsections (3) to (7) of section 381 and section 392 shall apply to relief under paragraph (a) as they apply to relief under section 381.

(a) where the person is not a company, under section 381 or 383, or

(a) where the person is not a company, under section 381 or 383, or

(a) for the purposes of income tax, whether any, and if so what, repayment of tax is to be made to the first buyer under section 381 by reference to any loss sustained in the trade for the year of assessment the first buyer’s income for which includes the interest, there shall be disregarded—

(a) for the purposes of income tax, whether any or what repayment of tax is to be made to that person or body of persons under section 381 by reference to any loss sustained in the trade for that year of assessment, there shall be disregarded—

(3) The amount of any expenditure to be treated under subsection (2) as incurred at the time that a trade or profession has been set up and commenced shall not be so treated for the purposes of section 381, 396(2) or 420.