Finance Act, 1998 (No. 3)

AI Summary of Finance Act, 1998 (No. 3)

The Finance Act 1998 (No. 3) provides statutory authority for that year’s Budget measures, making significant amendments to various tax laws, including those governing income tax, corporation tax, and capital taxes. The Act updates tax bands and credits, enhances reliefs and allowances, and introduces specific incentives aimed at promoting economic activity. It plays a crucial role in refining the fiscal framework and ensuring that the tax system remains responsive to contemporary economic conditions.

Moreover, the Act strengthens the powers of Revenue, modernising tax administration to improve efficiency and compliance. In addition, it aligns Irish tax law with EU requirements, ensuring conformity with broader regulatory standards. As a vital instrument shaping fiscal policy, the Finance Act 1998 is essential for maintaining the integrity and functionality of the tax system.

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Version status: Partly in force | Document consolidation status: Updated to reflect all known changes

Published date: 27 March 1998

		Future version	Amendment requiring commencement	Draft proposed change
	Introductory Text
	Acts Referred to
	Part 1 Income Tax, Corporation Tax and Capital Gains Tax (ss. 1-77)
	Chapter 1 Interpretation (s. 1)
	1. Interpretation.
	Chapter 2 Income Tax (ss. 2-15)
	2. Amendment of provisions relating to exemption from income tax.
	3. Alteration of rates of income tax.
	4. Personal reliefs.
	5. Amendment of section 463 (special allowance for widowed parent following death of spouse) of Principal Act.
	6. Amendment of section 126 (tax treatment of certain benefits payable under Social Welfare Acts) of Principal Act.
	7. Income under dispositions for short periods.
	8. Amendment of section 66 (special basis at commencement of trade or profession) of Principal Act.
	9. Amendment of section 191 (taxation treatment of Hepatitis C compensation payments) of Principal Act.
	10. Amendment of section 202 (relief for agreed pay restructuring) of Principal Act.
	11. Amendment of section 479 (relief for new shares purchased on issue by employees) of Principal Act.
	12. Amendment of Chapter 1 (transfer of assets abroad) of Part 33 of Principal Act.
	13. Reduction in income tax for certain income earned outside the State.
	14. Seafarer allowance, etc.
	15. Notional loans relating to shares, etc.
	Chapter 3 Income Tax, Corporation Tax and Capital Gains Tax (ss. 16-54)
	16. Relief for the long-term unemployed.
	17. Relief for gifts made to designated schools.
	18. Amendment of section 200 (certain foreign pensions) of Principal Act.
	19. Amendment of section 268 (meaning of "industrial building or structure") of Principal Act.
	20. Capital allowances for airport buildings and structures.
	21. Amendment of provisions relating to certain capital allowances.
	22. Capital allowances for private nursing homes.
	23. Capital allowances for certain sea fishing boats.
	24. Amendment of Chapter 3 (designated areas, designated streets, enterprise areas and multi-storey car parks in certain urban areas) of Part 10 of Principal Act.
	25. Amendment of Chapter 1 (Custom House Docks Area) of Part 10 of Principal Act.
	26. Amendment of section 344 (capital allowances in relation to construction or refurbishment of certain multi-storey car parks) of Principal Act.
	27. Amendment of section 351 (interpretation (Chapter 4)) of Principal Act.
	28. Amendment of Chapter 6 (Dublin Docklands Area) of Part 10 of Principal Act.
	29. Capital allowances for, and deduction in respect of, vehicles.
	30. Treatment of certain losses and capital allowances.
	31. Amendment of section 403 (restriction on use of capital allowances for certain leased assets) of Principal Act.
	32. Amendment of section 481 (relief for investment in films) of Principal Act.
	33. Amendment of section 482 (relief for expenditure on significant buildings and gardens) of Principal Act.
	34. Restriction of relief as respects eligible shares issued on or after 3rd December, 1997.
	35. Transitional arrangements in relation to section 34.
	36. Employee share schemes.
	37. Payments to subcontractors in certain industries.
	38. Amendment of section 659 (farming: allowances for capital expenditure on the construction of farm buildings, etc. for control of pollution) of Principal Act.
	39. Amendment of section 667 (special provisions for qualifying farmers) of Principal Act.
	40. Amendment of section 680 (annual allowance for mineral depletion) of Principal Act.
	41. Amendment of section 681 (allowance for mine rehabilitation expenditure) of Principal Act.
	42. Amendment of section 734 (taxation of collective investment undertakings) of Principal Act.
	43. Taxation of shares issued in place of cash dividends.
	44. Amendment of section 843 (capital allowances for buildings used for third level educational purposes) of Principal Act.
	45. Amendment of Part 41 (self assessment) of Principal Act.
	46. Amendment of section 787 (nature and amount of relief for qualifying premiums) of Principal Act.
	47. Amendments of Principal Act in consequence of a change in the currency of certain states.
	48. Amendment of Principal Act in consequence of convention with United States of America relating to double taxation, etc.
	49. Amendment of Part 26 (life assurance companies) of Principal Act.
	50. Amendment of section 1013 (limited partnerships) of Principal Act.
	51. Reduction in tax credits in respect of distributions.
	52. Abolition of tax credits.
	53. Amendment of definition of specified qualifying shares.
	54. Amendment of section 198 (certain interest not to be chargeable) of Principal Act.
	Chapter 4 Corporation Tax (ss. 55-64)
	55. Rate of corporation tax.
	56. Amendment of section 22 (reduced rate of corporation tax for certain income) of Principal Act.
	57. Amendment of section 713 (investment income reserved for policyholders) of Principal Act.
	58. Credit unions.
	59. Amendment of section 449 (credit for foreign tax not otherwise credited) of Principal Act.
	60. Relief for double taxation.
	61. Corporate donations to eligible charities.
	62. Relief for investment in renewable energy generation.
	63. Amendment of section 88 (deduction for gifts to Enterprise Trust Ltd.) of Principal Act.
	64. Amendment of section 715 (annuity business: separate charge on profits) of Principal Act.
	Chapter 5 Capital Gains Tax (ss. 65-75)
	65. Capital gains: rates of charge.
	66. Amendment of Part 27 (unit trusts and offshore funds) of Principal Act.
	67. Amendment of section 538 (disposals where assets lost or destroyed or become of negligible value) of Principal Act.
	68. Amendment of section 547 (disposals and acquisitions treated as made at market value) of Principal Act.
	69. Amendment of Chapter 3 (assets held in fiduciary or representative capacity, inheritances and settlements) of Part 19 of Principal Act.
	70. Repeal of section 592 (reduced rate of capital gains tax on certain disposals of shares by individuals) of Principal Act.
	71. Amendment of section 597 (replacement of business and other assets) of Principal Act.
	72. Amendment of section 598 (disposals of business or farm on retirement) of Principal Act.
	73. Amendment of section 652 (non-application of reliefs on replacement of assets in case of relevant disposals) of Principal Act.
	74. Amendment of section 980 (deduction from consideration on disposal of certain assets) of Principal Act.
	75. Amendment of section 1028 (married persons) of Principal Act.
	Chapter 6 Income Tax and Corporation Tax: Reliefs for Renewal and Improvement of Certain Urban and Rural Areas (ss. 76-77)
	76. 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.
	77. Reliefs for renewal and improvement of certain rural areas.
	Part 2 Customs and Excise (ss. 78-103)
	Chapter 1 Vehicle Registration Tax (ss. 78-82)
	78. Interpretation (Chapter 1).
	79. Amendment of section 130 (interpretation) of Act of 1992.
	80. Amendment of section 132 (charge of excise duty) of Act of 1992.
	81. Amendment of section 134 (permanent reliefs) of Act of 1992.
	82. Amendment of section 139 (offences and penalties) of Act of 1992.
	Chapter 2 Miscellaneous (ss. 83-103)
	83. Interpretation (Chapter 2).
	84. Amendment of provisions relating to refreshment houses licences.
	85. Amendment of section 21 (hours of business in registered premises) of Betting Act, 1931.
	86. Increase in duty on bookmaker's premises registration certificate.
	87. Amendment of section 43 (gaming machine licence duty) of Finance Act, 1975.
	88. Amendment of section 123 (rates of duty) of Finance Act, 1992.
	89. Hydrocarbons.
	90. Amendment of section 21 (duties on hydrocarbon oil) of Finance Act, 1935.
	91. Amendment of section 731 (exemption from rates) of Merchant Shipping Act, 1894.
	92. Amendment of paragraph 8 of Order of 1975.
	93. Deferment of duty on spirits.
	94. Tobacco products.
	95. Amendment of section 103 (interpretation (Chapter II)) of Finance Act, 1992.
	96. Amendment of section 111 (accompanying documents) of Finance Act, 1992.
	97. Treatment of losses.
	98. General mutual assistance.
	99. Mutual assistance for the recovery of claims.
	100. Amendment of section 87A (obligation to answer certain questions, detention and arrest) of Finance Act, 1995.
	101. Taking of samples and analysis (customs and excise).
	102. Transmission of samples for analysis.
	103. Institution of proceedings under Customs Acts, etc.
	Part 3 Value-Added Tax (ss. 104-117)
	104. Interpretation (Part 3).
	105. Amendment of section 3 (supply of goods) of Principal Act.
	106. Amendment of section 4 (special provisions in relation to the supply of immovable goods) of Principal Act.
	107. Amendment of section 5 (supply of services) of Principal Act.
	108. Amendment of section 8 (taxable persons) of Principal Act.
	109. Amendment of section 10 (amount on which tax is chargeable) of Principal Act.
	110. Amendment of section 11 (rates of tax) of Principal Act.
	111. Amendment of section 12 (deduction for tax borne or paid) of Principal Act.
	112. Amendment of section 12A (special provisions for tax invoiced by flat-rate farmers) of Principal Act.
	113. Amendment of section 13 (remission of tax on goods exported, etc.) of Principal Act.
	114. Amendment of section 20 (refund of tax) of Principal Act.
	115. Amendment of section 30 (time limits) of Principal Act.
	116. Amendment of Second Schedule to Principal Act.
	117. Amendment of Sixth Schedule to Principal Act.
	Part 4 Stamp Duties (ss. 118-125)
	118. Amendment of section 54 (meaning of "conveyance on sale") of Stamp Act, 1891.
	119. Amendment of section 59 (certain contracts to be chargeable as conveyances on sale) of Stamp Act, 1891.
	120. Amendment of First Schedule to Stamp Act, 1891.
	121. Amendment of section 92 (levy on certain premiums of insurance) of Finance Act, 1982.
	122. Amendment of section 203 (stamp duty in respect of cash cards) of Finance Act, 1992.
	123. Amendment of section 107 (relief for member firms) of Finance Act, 1996.
	124. Interest on unpaid or overpaid stamp duty.
	125. Repeals (Part 4).
	Part 5 Capital Acquisitions Tax (ss. 126-129)
	126. Amendment of section 117 (reduction in estimated market value of certain dwellings) of Finance Act, 1991.
	127. Amendment of section 117 (interest on tax) of Finance Act, 1993.
	128. Amendment of section 134 (exclusion of value of excepted assets) of Finance Act, 1994.
	129. Conditions before appeal may be made.
	Part 6 Miscellaneous (ss. 130-138)
	130. Capital Services Redemption Account.
	131. Interest payments by certain deposit takers.
	132. Tax clearance for criminal legal aid scheme.
	133. Interest on unpaid or overpaid taxes.
	134. Appeals.
	135. Amendment of Freedom of Information Act, 1997.
	136. Post-consolidation amendments.
	137. Care and management of taxes and duties.
	138. Short title, construction and commencement.
	Schedule 1 Amendments Consequential on Changes in Personal Reliefs
	Schedule 2 Provisions Amending Principal Act in Consequence of a Change in the Currency of Certain States
	Schedule 3 Amendment of Principal Act in Consequence of Convention with United States of America relating to Double Taxation, etc.
	Schedule 4 Amendments Consequential on Changes in Amounts of Tax Credits in Respect of Distributions
	Schedule 5 Abolition of Tax Credits
	Schedule 6 Change in Rate of Corporation Tax: Further Provisions
	Schedule 7 Rates of Excise Duty on Tobacco Products
	Schedule 8 Stamp Duty Enactments Repealed
	Schedule 9 Post-Consolidation Amendments