Finance Act, 1993

Amendment of Second Schedule (computation of tax) to Principal Act.

130.—As respects gifts or inheritances taken on or after the 24th day of February, 1993, paragraph 9 (inserted by the Finance Act, 1989 ) of Part I of the Second Schedule to the Principal Act is hereby amended—

(a) by the substitution of the following definition for the definition of “company”:

“‘company’ means a private company which, for the relevant period—

(a) is a private company controlled by the disponer and of which the disponer is a director, and

(b) is not a private non-trading company;”,

(b) by the deletion of the definition of “ompany controlled by the disponer”,

(c) by the insertion of the following definition after the definition of “control”:

“‘investment income’, in relation to a private company, means income which, if the company were an individual, would not be earned income within the meaning of section 2 of the Income Tax Act, 1967 ;”,


(d) by the insertion of the following definitions after the definition of “nominee”:

“‘private company’ has the meaning assigned to it by section 16 (2);

‘private company controlled by the disponer’ means a private company that is under the control of any one or more of the following, that is to say—

(a) the disponer,

(b) nominees of the disponer,

(c) the trustees of a settlement made by the disponer;

‘private non-trading company’ means a private company—

(a) whose income (if any) in the twelve months preceding the date at which a share therein is to be valued consisted wholly or mainly of investment income; and

(b) whose property, on the date referred to in paragraph (a), consisted wholly or mainly of property from which investment income is derived;”.