Revenue Note for Guidance

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Revenue Note for Guidance

320 Other interpretation (Part 9)


This section gives the meaning of certain terms and sets out rules for the construction of certain references used in Part 9.



(1) “income” includes the amount on which a balancing charge is made. This enables allowances which are being carried forward, because of insufficiency of income in previous years, to be given effect to by discharging or repaying the tax in respect of any balancing charge.

lease” includes an agreement for a lease where the term to be covered by the lease has begun, and any tenancy (but not a mortgage).


(2) References to any building, structure, machinery or plant include references to a part of any building, structure, machinery or plant except, in the case of a building or structure, where the reference is to the whole of the building or structure. Accordingly, where capital expenditure is incurred on, say, the construction of an addition to a factory, the addition is treated as if it were a separate building for the purposes of writing-off the expenditure over the usual 25-year period.

(3) Part 9 applies to shares in machinery or plant as it applies to part of machinery or plant. A share in machinery or plant is deemed to be used for the purposes of a trade only where the machinery or plant is used for the purposes of the trade.

(4) The time of any sale is to be taken as the time of completion of the sale or the time when possession is given, whichever is the earlier.

(5) References to the setting up of a trade and the permanent discontinuance of a trade include references to cases where the Income Tax Acts deem an event to be the permanent discontinuance of a trade, for example on a change of ownership (see section 69).

(6) The amount of any allowance which is carried forward, owing to an insufficiency of income in the year for which it was to be made, is to be regarded as allowed in that year for the purposes of construing references to the amount of expenditure unallowed at any time.

Relevant Date: Finance Act 2020