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39 1997

TAXES CONSOLIDATION ACT, 1997

PART 15

Personal Allowances and Reliefs and Certain Other Income Tax and Corporation Tax Reliefs

CHAPTER 1

Personal allowances and reliefs

Deductions allowed in ascertaining taxable income and provisions relating to reductions in tax.

[ITA67 s137; FA96 s132(1) and Sch5 par1(3); FA97 s8(8), s57(4) and s146(1) and Sch9 PtI par1(8)]

458.—(1) An individual who, in the manner prescribed by the Income Tax Acts, makes a claim in that behalf and makes a return in the prescribed form of the individual's total income shall be entitled—

(a) for the purpose of ascertaining the amount of the income on which he or she is to be charged to income tax (in the Income Tax Acts referred to as “the taxable income”) to have such deductions as are specified in the provisions referred to in Part 1 of the Table to this section, but subject to those provisions, made from the individual's total income, and

(b) to have such reductions as are specified in the provisions referred to in Part 2 of that Table, but subject to those provisions, made in the income tax to be charged on the individual.

(2) Subsections (3) and (4) of section 459 and paragraph 8 of Schedule 28 shall apply for the purposes of claims for—

(a) any such deductions from total income as are specified in the provisions referred to in Part 1 of the Table to this section, and

(b) any such reductions in tax as are specified in the provisions referred to in Part 2 of the Table to this section.

TABLE

Part 1

Section 328

Section 337

Section 349

Section 364

Section 371

Section 461

Section 462

Section 463

Section 464

Section 465

Section 466

Section 467

Section 468

Section 469

Section 471

Section 472

Section 473(2)

Section 479

Section 481

Section 489

Paragraphs 12 and 20 of Schedule 32

Part 2

Section 244

Section 470

Section 473(3)

Section 474

Section 475

Section 476

Section 477

Section 478

General provisions relating to allowances, deductions and reliefs.

[ITA67 s146, s149 and Sch4 par1(1) and par2(1) and (3) to (5); F(MP)A68 s3(4) and (5) and Sch PtIII and PtIV; FA96 s132(1) and Sch5 PtI par1(5) and (6)]

459. —(1) A claimant shall not be entitled to an allowance, deduction or relief under the provisions specified in the Table to section 458 in respect of any income the tax on which the claimant is entitled to charge against any other person, or to deduct, retain or satisfy out of any payment which the claimant is liable to make to any other person.

(2) Except where otherwise provided, any allowance, deduction or relief under the provisions specified in the Table to section 458 shall be given either by discharge or reduction of the assessment, or by repayment of the excess which has been paid, or by all of those means, as the case may require.

(3) Any claim shall be accompanied by a declaration and statement in the prescribed form signed by the claimant setting out—

(a) all the particular sources from which the claimant's income arises and the particular amount arising from each source,

(b) all particulars of any yearly interest or other annual payments reserved or charged on the claimant's income, whereby the claimant's income is or may be diminished, and

(c) all particulars of sums which the claimant has charged or may be entitled to charge on account of tax against any other person, or which the claimant has deducted, or may be entitled to deduct, out of any payment to which the claimant is or may be liable.

(4) (a) The claim shall be made and proved in accordance with the powers and provisions under which tax under Schedule D is ascertained and charged.

(b) Where a claimant is not in the State, an affidavit stating the particulars required by the Income Tax Acts, and taken before any person who has authority to administer in the place where the claimant resides an oath with regard to any matter relating to the public revenue of the State, may be received by the Revenue Commissioners.

(c) Where satisfactory proof is given that a claimant is unable to attend in person, a claim on the claimant's behalf may be made by any guardian, trustee, attorney, agent or factor acting for the claimant.

(d) Where a person is assessable on behalf of any other person, such person may make a claim on behalf of that other person.

Rate of tax at which repayments are to be made.

[ITA67 s497; FA76 s7; FA96 s132(2) and Sch5 par1(23)]

460. —(1) Subject to subsections (2) and (3), any repayment of income tax for any year of assessment to which any person may be entitled in respect of any allowance, deduction, relief or reduction under the provisions specified in the Table to section 458 shall, except where otherwise provided by the Income Tax Acts, be made at the standard rate of tax or at the higher rate, as the case may be.

(2) In the case of any person who proves as regards any year that, by reason of the allowances, deductions or reliefs to which that person is entitled, he or she has no taxable income for that year, any repayment to be made shall be a repayment of the whole amount of the tax paid by him or her, whether by deduction or otherwise, in respect of his or her income for that year.

(3) In relation to repayments of tax, the amount of tax to be repaid under this section to any person for any year shall not exceed a sum equal to the difference between the amount of tax paid by that person, whether by deduction or otherwise, in respect of his or her income for that year and the amount of tax which would be payable by him or her for that year if his or her total income had been charged to tax in accordance with the Income Tax Acts.

Married and single personal allowances.

[ITA67 s138; FA80 s3; FA82 s2(3) and Sch1 par1(a)(i); FA88 s3(3) and Sch1 par(a); FA97 s3(1) and (3) and Sch1 par1(a)]

461. —The deductions specified in this section for the purpose of ascertaining the taxable income of an individual for a year of assessment shall be—

(a) in a case in which the claimant is a married person who—

(i) is assessed to tax for the year of assessment in accordance with section 1017 , or

(ii) proves that his or her spouse is not living with him or her but is wholly or mainly maintained by him or her for the year of assessment and that the claimant is not entitled, in computing his or her income for tax purposes for that year, to make any deduction in respect of the sums paid by him or her for the maintenance of his or her spouse,

a deduction of £5,800,

(b) in a case in which the claimant in the year of assessment is—

(i) a widowed person, a deduction of £3,400, or

(ii) a widowed person, other than a person to whom paragraph (a) applies, whose spouse has died in that year of assessment, a deduction of £5,800, and

(c) in any other case, a deduction of £2,900.

Additional amount for widowed parents and other single parents.

[ITA67 s138A(1) to (6); FA85 s4; FA97 s3(1) and (3) and Sch1 par1(b)]

462. —(1) (a) In this section, “qualifying child”, in relation to any claimant and year of assessment, means—

(i) a child—

(I) born in the year of assessment,

(II) who, at the commencement of the year of assessment, is under the age of 16 years, or

(III) who, if over the age of 16 years at the commencement of the year of assessment—

(A) is receiving full-time instruction at any university, college, school or other educational establishment, or

(B) is permanently incapacitated by reason of mental or physical infirmity from maintaining himself or herself and had become so permanently incapacitated before he or she had attained the age of 21 years or had become so permanently incapacitated after attaining the age of 21 years but while he or she had been in receipt of such full-time instruction,

and

(ii) a child who is a child of the claimant or, not being such a child, is in the custody of the claimant and is maintained by the claimant at the claimant's own expense for the whole or part of the year of assessment.

(b) This section shall apply to an individual who is not entitled to a deduction mentioned in paragraph (a) or paragraph (b)(ii) of section 461 .

(2) Subject to subsection (3), where the claimant, being an individual to whom this section applies, proves for a year of assessment that a qualifying child is resident with him or her for the whole or part of the year, the claimant shall be entitled—

(a) if he or she is an individual to whom section 461 (b)(i) applies, to a deduction of £2,400, or

(b) if he or she is an individual to whom section 461 (c) applies, to a deduction of £2,900;

but this section shall not apply for any year of assessment in the case of a husband or a wife where the wife is living with her husband, or in the case of a man and woman living together as man and wife.

(3) A claimant shall be entitled to only one deduction under subsection (2) for any year of assessment irrespective of the number of qualifying children resident with the claimant in that year.

(4) (a) The references in subsection (1)(a) to a child receiving fulltime instruction at an educational establishment shall include references to a child undergoing training by any person (in this subsection referred to as “the employer”) for any trade or profession in such circumstances that the child is required to devote the whole of his or her time to the training for a period of not less than 2 years.

(b) For the purpose of a claim in respect of a child undergoing training, the inspector may require the employer to furnish particulars with respect to the training of the child in such form as may be prescribed by the Revenue Commissioners.

(5) (a) No deduction shall be allowed under this section for any year of assessment in respect of any child who is entitled in his or her own right to an income exceeding £720 in that year except that, if the amount of the excess is less than the deduction which would be allowable apart from this subsection, a deduction reduced by that amount shall be allowed.

(b) In calculating the income of the child for the purposes of paragraph (a), no account shall be taken of any income to which the child is entitled as the holder of a scholarship, bursary or other similar educational endowment.

(6) Where any question arises as to whether any person is entitled to an allowance under this section in respect of a child over the age of 16 years as being a child who is receiving full-time instruction referred to in this section, the Revenue Commissioners may consult the Minister for Education and Science.

Special allowance for widowed parent following death of spouse.

[FA91 s4(1) and (2); FA96 s132(1) and Sch5 PtI par17]

463. —(1) (a) For the purposes of this section, “qualifying child”, in relation to a claimant and a year of assessment, has the same meaning as in section 462 , and the question of whether a child is a qualifying child shall be determined on the same basis as it would be for the purposes of section 462 , and subsections (3), (4) and (6) of that section shall apply accordingly.

(b) This section shall apply to an individual whose spouse dies in a year of assessment (in this section referred to as a “claimant”).

(2) Where a claimant proves, in relation to any of the 3 years of assessment immediately following the year of assessment in which the claimant's spouse dies, that—

(a) he or she has not remarried before the commencement of the year, and

(b) a qualifying child is resident with him or her for the whole or part of the year,

the claimant shall, in respect of each of the years in relation to which the claimant so proves, be entitled, in computing the amount of his or her taxable income, to have a deduction made from his or her total income as follows—

(i) for the first of those 3 years, £1,500,

(ii) for the second of those 3 years, £1,000, and

(iii) for the third of those 3 years, £500;

but this section shall not apply for any year of assessment in the case of a man and woman living together as man and wife.

Age allowance.

[FA74 s8(1); FA80 s19 and Sch1 PtIII par4; FA97 s3(1) and (3) and Sch1 par2]

464. —Where for any year of assessment an individual is entitled to a deduction under section 461 and proves that at any time during that year of assessment—

(a) the individual, or

(b) in the case of a married person whose spouse is living with him or her and who is assessed to tax in accordance with section 1017 , either the individual or the individual's spouse,

was of the age of 65 years or over, the individual shall, in addition to the allowance to which the individual is entitled under section 461 for that year of assessment, be entitled to a deduction of—

(i) in a case where the individual is a married person whose spouse is living with him or her and the individual is assessed to tax in accordance with section 1017 , £800, and

(ii) in any other case, £400.

Incapacitated children.

[ITA67 s141(1) to (6); FA86 s4; FA91 s126; FA96 s3 and Sch1 par1(c)]

465. —(1) Where a claimant proves that he or she has living at any time during a year of assessment any child who—

(a) is under the age of 16 years and is permanently incapacitated by reason of mental or physical infirmity, or

(b) if over the age of 16 years at the commencement of the year, is permanently incapacitated by reason of mental or physical infirmity from maintaining himself or herself and had become so permanently incapacitated before he or she had attained the age of 21 years or had become so permanently incapacitated after attaining the age of 21 years but while he or she had been in receipt of full-time instruction at any university, college, school or other educational establishment, the claimant shall, subject to this section, be entitled in respect of each such child to a deduction of £700.

(2) (a) A child under the age of 16 years shall be regarded as permanently incapacitated by reason of mental or physical infirmity only if the infirmity is such that there would be a reasonable expectation that if the child were over the age of 16 years the child would be incapacitated from maintaining himself or herself.

(b) In the case of a child to whom subsection (1)(b) applies, the deduction shall be £700 or the amount expended by the claimant in the year of assessment on the maintenance of the child, whichever is the lesser.

(c) Any deduction under this section shall be in substitution for and not in addition to any deduction to which the claimant might be entitled in respect of the same child under section 466 .

(3) Where the claimant proves for the year of assessment—

(a) that the claimant has the custody of and maintains at his or her own expense any child who, but for the fact that that child is not a child of the claimant, would be a child referred to in subsection (1), and

(b) that neither the claimant nor any other individual is entitled to a deduction in respect of the same child under subsection (1) or under any other provision of this Part, or, if any other individual is entitled to such a deduction, that such other individual has relinquished his or her claim to that deduction,

the claimant shall be entitled to the same deduction in respect of the child as if the child were a child of the claimant.

(4) (a) The reference in subsection (1) to a child receiving fulltime instruction at an education establishment shall include a reference to a child undergoing training by any person (in this subsection referred to as “the employer”) for any trade or profession in such circumstances that the child is required to devote the whole of his or her time to the training for a period of not less than 2 years.

(b) For the purpose of a claim in respect of a child undergoing training, the inspector may require the employer to furnish particulars with respect to the training of the child in such form as may be prescribed by the Revenue Commissioners.

(5) (a) No deduction shall be allowed under this section in respect of any child entitled in his or her own right to an income exceeding £2,100 a year except that, if the amount of the excess is less than the deduction which would be allowable apart from this subsection, a deduction reduced by that amount shall be allowed.

(b) In calculating the income of the child for the purposes of paragraph (a), no account shall be taken of any income to which the child is entitled as the holder of a scholarship, bursary, or other similar educational endowment.

(6) Where any question arises as to whether any person is entitled to an allowance under this section in respect of a child over the age of 21 years as being a child who had become permanently incapacitated by reason of mental or physical infirmity from maintaining himself or herself after attaining that age but while in receipt of full-time instruction referred to in this section, the Revenue Commissioners may consult the Minister for Education and Science.

(7) Where for any year of assessment 2 or more individuals are or would but for this subsection be entitled under this section to relief in respect of the same child, the following provisions shall apply:

(a) only one deduction under this section shall be allowed in respect of the child;

(b) where the child is maintained by one parent only, that parent only shall be entitled to claim such deduction;

(c) where the child is maintained jointly by both parents, each parent shall be entitled to claim such part of such deduction as is proportionate to the amount expended by him or her on the maintenance of the child;

(d) in ascertaining for the purposes of this subsection whether a parent maintains a child and, if so, to what extent, any payment made by the parent for or towards the maintenance of the child which the parent is entitled to deduct in computing his or her total income for the purposes of the Income Tax Acts shall be deemed not to be a payment for or towards the maintenance of the child.

Dependent relative.

[ITA67 s142; FA77 s1; FA79 s1; FA82 s2 and Sch1 par1; FA97 s146(1) and Sch9 par1(10)]

466. —(1) In this section, “specified amount” means the aggregate of the payments to which an individual is entitled in a year of assessment in respect of an old age (contributory) pension at the maximum rate under the Social Welfare (Consolidation) Act, 1993 , if throughout the year of assessment such individual is entitled to such a pension and—

(a) has no adult dependant or qualified children (within the meaning, in each case, of that Act),

(b) is over the age of 80 years (or such other age as may be specified in that Act for the time being in place of the age of 80 years), and

(c) is living alone.

(2) Where for any year of assessment a claimant proves that he or she maintains at his or her own expense any person, being—

(a) a relative of the claimant, or of the claimant's spouse, incapacitated by old age or infirmity from maintaining himself or herself,

(b) the widowed father or widowed mother of the claimant or of the claimant's spouse, whether incapacitated or not, or

(c) a son or daughter of the claimant who resides with the claimant and on whose services the claimant, by reason of old age or infirmity, is compelled to depend, and being an individual whose total income from all sources for that year of assessment does not exceed, or does not exceed by £110 or more, a sum equal to the specified amount, the claimant shall be entitled in respect of each individual whom the claimant so maintains to a deduction of £110 reduced, if the total income of the individual so maintained exceeds the specified amount, by the amount of the excess.

(3) Where 2 or more individuals jointly maintain any individual referred to in paragraphs (a) to (c) of subsection (2), the deduction to be made under this section shall be apportioned between them in proportion to the amount or value of their respective contributions towards the maintenance of that individual.

Employed person taking care of incapacitated individual.

[FA69 s3(1), (2) and (4); FA80 s19 and Sch1 PtIII par2; FA96 s3 and Sch1 par2]

467. —(1) Subject to this section, where an individual for a year of assessment proves—

(a) (i) that throughout the year of assessment he or she was totally incapacitated by physical or mental infirmity, or

(ii) that, being an individual who for the relevant year of assessment is assessed to tax in accordance with section 1017 , the individual's spouse was throughout that year totally incapacitated by physical or mental infirmity, and

(b) that for the year of assessment he or she has employed a person for the purpose of having the care of the individual (being the individual or the individual's spouse) who is so incapacitated,

the individual shall, in computing the amount of his or her taxable income, be entitled to have a deduction made from his or her total income of—

(I) £7,500, if the amount ultimately borne by him or her in the year of assessment in employing the employed person is not less than £7,500, or

(II) the amount so borne, if it is less than £7,500.

(2) Not more than one deduction shall be allowed under this section to any claimant for any year of assessment.

(3) Where for any year of assessment a deduction is allowed to an individual under this section in respect of an employed person, the individual shall not be entitled to a deduction in respect of that person under section 465 or 466 .

Relief for blind persons.

[FA71 s11(1) and (2); FA85 s3 and Sch1; FA96 s3 and Sch1 par3]

468.— (1) In this section, “blind person” means a person whose central visual acuity does not exceed 6/60 in the better eye with correcting lenses, or whose central visual acuity exceeds 6/60 in the better eye or in both eyes but is accompanied by a limitation in the fields of vision that is such that the widest diameter of the visual field subtends an angle no greater than 20 degrees.

(2) Where an individual for a year of assessment proves that—

(a) he or she was for the whole or any part of the year of assessment a blind person, or

(b) he or she is assessed to tax for the year in accordance with section 1017 and that his or her spouse was for the whole or any part of the year a blind person,

the individual shall, in computing the amount of his or her taxable income for the year of assessment, be entitled to have a deduction of £700 made from his or her total income; but, in a case where paragraph (b) applies and the claimant proves in addition that he or she was for the whole or any part of the year a blind person, the claimant shall be entitled to a deduction of £1,600 in place of the deduction of £700.

Relief for health expenses.

[ITA67 s195B(3) and (6); FA67 s12(1), (2)(a) and (c), (3), (4) and (5)(a) and (b); FA69 s7; FA72 s9; FA80 s19 and Sch1 PtIII par2; FA86 s5; FA93 s10(1); FA94 s8; FA97 s146(1) and Sch9 PtI par2]

469. —(1) In this section—

dependant”, in relation to an individual, means—

(a) where the individual is a married person who for the year of assessment is allowed a deduction mentioned in section 461 (a), the spouse of the individual,

(b) any person in respect of whom the individual is allowed for the year of assessment a deduction under section 465 or 466 , and

(c) a child who for the year of assessment—

(i) (I) is under the age of 16 years, or

(II) if over the age of 16 years at the commencement of the year of assessment, is receiving full-time instruction at any university, college, school or other educational establishment, and

(ii) is a child of the individual or, not being such a child, is in the custody of the individual and is maintained by the individual at the individual's own expense for the whole or part of the year of assessment;

health care” means prevention, diagnosis, alleviation or treatment of an ailment, injury, infirmity, defect or disability, and includes care received by a woman in respect of a pregnancy other than routine maternity care, but does not include routine ophthalmic treatment or routine dental treatment;

health expenses” means expenses in respect of the provision of health care, being expenses representing the cost of—

(a) the services of a practitioner,

(b) diagnostic procedures carried out on the advice of a practitioner,

(c) maintenance or treatment in a hospital,

(d) drugs or medicines supplied on the prescription of a practitioner,

(e) the supply, maintenance or repair of any medical, surgical, dental or nursing appliance used on the advice of a practitioner,

(f) physiotherapy or similar treatment prescribed by a practitioner,

(g) orthoptic or similar treatment prescribed by a practitioner, or

(h) transport by ambulance;

hospital” means—

(a) any institution which is provided and maintained by a health board for the provision of services pursuant to the Health Acts, 1947 to 1996,

(b) any institution in which services are provided on behalf of a health board pursuant to the Health Acts, 1947 to 1996,

(c) any hospital, nursing home, maternity home or other institution approved of for the purposes of this section by the Minister for Finance after consultation with the Minister for Health and Children;

practitioner” means any person who is—

(a) registered in the register established under section 26 of the Medical Practitioners Act, 1978 ,

(b) registered in the register established under section 26 of the Dentists Act, 1985 , or,

(c) in relation to health care provided outside the State, entitled under the laws of the country in which the care is provided to practise medicine or dentistry there;

qualified person”, in relation to an individual, means the individual personally or any dependant of the individual;

routine dental treatment” means the extraction, scaling and filling of teeth and the provision and repairing of artificial teeth or dentures;

routine maternity care” means—

(a) care received by a woman in respect of a pregnancy otherwise than as a patient maintained in a hospital, or

(b) care received by a woman in respect of a pregnancy as a patient maintained in hospital where the total length of the period or periods during which she is so maintained is not more than 14 days or during the first 14 days of such maintenance where the total length of such period or periods is more than 14 days;

routine ophthalmic treatment” means sight testing and advice as to the use of spectacles or contact lenses and the provision and repairing of spectacles or contact lenses.

(2) (a) Subject to this section, where an individual for a year of assessment proves that in the year of assessment he or she defrayed health expenses incurred for the provision of health care for any one qualified person and the amount of which in the aggregate exceeds £100, the individual shall be entitled, for the purpose of ascertaining the amount of the income on which he or she is to be charged to income tax, to have a deduction of the amount of the excess made from his or her total income.

(b) Where an individual proves that in the year of assessment he or she defrayed health expenses incurred for the provision of health care for qualified persons and which amount in the aggregate to more than £200, the individual shall be entitled, for the purpose of ascertaining the amount of the income on which he or she is to be charged to income tax, to have a deduction of the amount by which the aggregate of the health expenses so computed exceeds £200 made from his or her total income, and such deduction shall be in substitution for and not in addition to a deduction under paragraph (a).

(3) For the purposes of this section—

(a) (i) any expenses defrayed by a married man in a year of assessment shall be deemed to have been defrayed by his wife if for the year of assessment she is to be treated under the Income Tax Acts as living with him and she is assessed to tax in accordance with section 1017 , or

(ii) any expenses defrayed by a married woman in a year of assessment shall be deemed to have been defrayed by her husband if for the year of assessment she is to be treated under the Income Tax Acts as living with him and he is assessed to tax in accordance with section 1017 ,

(b) any expenses defrayed out of the estate of a deceased person by his or her executor or administrator shall be deemed to have been defrayed by the deceased person immediately before his or her death, and

(c) expenses shall be regarded as not having been defrayed in so far as any sum in respect of, or by reference to, the health care to which they relate has been, or is to be, received, directly or indirectly, by the individual or the individual's estate, or by any dependant of the individual or such dependant's estate, from any public or local authority or under any contract of insurance or by means of compensation or otherwise.

(4) Subsections (4) to (6) of section 465 shall, with any necessary modifications, apply for the purposes of determining whether relief is to be granted under this section as they apply in determining whether a deduction is to be allowed under that section; but, where the child's income exceeds the amount specified in subsection (5) of that section, relief under this section shall not be allowed.

(5) In making a claim for a deduction under this section, an individual who, after the end of the year of assessment for which the claim is made, has defrayed or is deemed to have defrayed any expenses relating to health care provided in that year may elect that all deductions to be allowed to him or her under this section for that year and for subsequent years of assessment shall be determined as if those expenses had been defrayed at the time when the health care to which they relate was provided.

(6) Notwithstanding sections 458 (2) and 459 (2)

(a) any claim for a deduction under this section—

(i) shall be made in such form as the Revenue Commissioners may from time to time prescribe, and

(ii) shall be accompanied by such statements in writing as regards any class of expenses by reference to which the deduction is claimed, including statements by persons to whom payments were made, as may be indicated by the prescribed form as being required as regard expenses of that class, and

(b) in all cases relief from tax consequent on the allowance of a deduction under this section shall be given by means of repayment.

Relief for insurance against expenses of illness.

[ITA67 s145(1), (2), (3) and (4); FA80 s19 and Sch1 PtIII par1; FA96 s7 and s132(1) and Sch5 PtI par1(4)]

470. —(1) In this section—

appropriate percentage”, in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year;

authorised insurer” means any undertaking entered in The Register of Health Benefits Undertakings, lawfully carrying on such business of insurance referred to in the definition of “relevant contract” but, in relation to an individual, also means any undertaking authorised pursuant to Council Directive No. 73/239/EEC of 24 July 19731 , Council Directive No. 88/357/EEC of 22 June 19882 , and Council Directive No. 92/49/EEC of 18 June 19923 , where a relevant contract was effected with the individual when the individual was not resident in the State but was resident in another Member State of the European Communities;

relevant contract”, in relation to an individual, means a contract of insurance which provides specifically, whether in conjunction with other benefits or not, for the reimbursement or discharge, in whole or in part, of actual medical, surgical or nursing expenses (including the cost of maintenance at a hospital, nursing home or sanatorium) resulting from sickness of or accident to—

(a) the individual,

(b) the spouse of the individual, or

(c) the children or other dependants of the individual or of the spouse of the individual.

(2) Where an individual for a year of assessment proves that in the year preceding the year of assessment—

(a) the individual, or

(b) if the individual is a married person assessed to tax in accordance with section 1017 , the individual's spouse,

has made a payment to an authorised insurer under a relevant contract, then, the income tax to be charged on the individual if the individual made the payment, or on the individual's spouse if the individual's spouse made the payment, for the year of assessment, other than in accordance with section 16 (2), shall be reduced by an amount which is the lesser of—

(i) (I) where the payment covers no benefits other than such reimbursement or discharge as is referred to in the definition of “relevant contract”, an amount equal to the appropriate percentage of the full amount of the payment, or

(II) where the payment covers benefits other than such reimbursement or discharge as is referred to in the definition of “relevant contract”, an amount equal to the appropriate percentage of so much of the payment as is referable to such reimbursement or discharge,

and

(ii) the amount which reduces that income tax to nil.

(3) Where the income tax reduction of one of the spouses is ascertained in accordance with subsection (2), then—

(a) if there is no income tax to be charged on the spouse for the year of assessment, other than in accordance with section 16 (2), in relation to which relief under subsection (2) may be given, the relief may be given in relation to income tax to be charged on the other spouse for that year, other than in accordance with section 16 (2), and

(b) if the amount so ascertained exceeds the income tax to be charged on the spouse for the year of assessment, other than in accordance with section 16 (2), the excess may be used to reduce the income tax to be charged on the other spouse for that year, other than in accordance with section 16 (2).

(4) Where relief is given under this section, no relief or deduction under any other provision of the Income Tax Acts shall be given or allowed in respect of the payment or part of a payment, as the case may be.

Relief for contributions to permanent health benefit schemes.

[FA79 s8(1), (2)(a) and (3)]

471. —(1) In this section—

benefit” and “permanent health benefit scheme” have the same meanings respectively as in section 125 ;

contribution”, in relation to a permanent health benefit scheme, means any premium paid or other periodic payment made to the scheme in consideration of the right to benefit under it, being a premium or payment which bears a reasonable relationship to the benefits secured by it.

(2) Where an individual for a year of assessment proves that in that year of assessment he or she made a contribution or contributions to a bona fide permanent health benefit scheme or schemes, the individual shall be entitled, for the purpose of ascertaining the amount of the income on which he or she is to be charged to income tax, to have a deduction of so much of the contributions as does not exceed 10 per cent of his or her total income for that year of assessment made from his or her total income.

(3) In a case where the amount of a contribution made by an employer to a permanent health benefit scheme is charged to income tax under Chapter 3 of Part 5 as a perquisite of the office or employment of a director or employee, that amount shall be deemed for the purposes of subsection (2) to be a contribution made by the director or employee to the scheme in the year in respect of which it is so charged to income tax.

Employee allowance.

[ITA67 s138B, s195B(3) and (6); FA72 Sch1 PtIII par4; FA74 s64(2); FA80 s3; FA88 s3 and Sch1; FA91 s7; FA93 s10(1); FA94 s4; FA97 s146(1) and Sch9 PtI par1(9) and par5(3)]

472.— (1) (a) In this section—

emoluments” means emoluments to which Chapter 4 of Part 42 applies or is applied, but does not include—

(i) emoluments paid directly or indirectly by a body corporate (or by any person who would be regarded as connected with the body corporate) to a proprietary director of the body corporate or to the spouse or child of such a proprietary director, and

(ii) emoluments paid directly or indirectly by an individual (or by a partnership in which the individual is a partner) to the spouse or child of the individual;

director” means—

(i) in relation to a body corporate the affairs of which are managed by a board of directors or similar body, a member of that board or body,

(ii) in relation to a body corporate the affairs of which are managed by a single director or similar person, that director or person, and

(iii) in relation to a body corporate the affairs of which are managed by the members themselves, a member of the body corporate,

and includes any person who is or has been a director;

proprietary director” means a director of a company who is either the beneficial owner of, or able, either directly or through the medium of other companies or by any other indirect means, to control, more than 15 per cent of the ordinary share capital of the company;

specified employed contributor” means a person who is an employed contributor for the purposes of the Social Welfare (Consolidation) Act, 1993 , but does not include a person—

(i) who is an employed contributor for those purposes by reason only of section 9(1)(b) of that Act, or

(ii) to whom Article 81, 82 or 83 of the Social Welfare (Consolidated Contributions and Insurability) Regulations, 1996 (S.I. No. 312 of 1996), applies.

(b) For the purposes of the definition of “proprietary director”, ordinary share capital which is owned or controlled as referred to in that definition by a person, being a spouse or a minor child of a director, or by a trustee of a trust for the benefit of a person or persons, being or including any such person or such director, shall be deemed to be owned or controlled by such director and not by any other person.

(2) The exclusion from the definition of “emoluments” of the emoluments referred to in subparagraphs (i) and (ii) of that definition shall not apply for any year of assessment to any such emoluments paid to an individual, being a child (other than a child who is a proprietary director) to whom subparagraph (i) or (ii) of that definition relates, if for that year—

(a) (i) the individual is a specified employed contributor, or

(ii) the Income Tax (Employments) Regulations, 1960 (S.I. No. 28 of 1960), in so far as they apply, have, in relation to any such emoluments paid to the individual in the year of assessment, been complied with by the person by whom the emoluments are paid,

(b) the conditions of the office or employment, in respect of which any such emoluments are paid, are such that the individual is required to devote, throughout the year of assessment, substantially the whole of the individual's time to the duties of the office or employment and the individual does in fact do so, and

(c) the amount of any such emoluments paid to the individual in the year of assessment are not less than £3,600.

(3) Where an individual is in receipt of profits or gains from an office or employment held or exercised outside the State, such profits or gains shall be deemed to be emoluments within the meaning of subsection (1) if such profits or gains—

(a) are chargeable to tax in the country in which they arise,

(b) on payment by the person making such payment, are subject to a system of tax deduction similar in form to that provided for in Chapter 4 of Part 42 ,

(c) are chargeable to tax in the State on the full amount of such profits or gains under Schedule D, and

(d) if the office or employment was held or exercised in the State and the person was resident in the State, would be emoluments within the meaning of that subsection.

(4) Where for any year of assessment a claimant proves that his or her total income for the year consists of or includes emoluments (including, in a case where the claimant is a married person assessed to tax in accordance with section 1017 , any emoluments of the claimant's spouse deemed to be income of the claimant by that section for the purposes referred to in that section)—

(a) a deduction of £800 shall be made from so much, if any, of the emoluments (but not including, in the case where the claimant is a married person so assessed, the emoluments, if any, of the claimant's spouse) as arise to the claimant, and

(b) in the case where the claimant is a married person so assessed, a deduction of £800 shall be made from so much, if any, of the emoluments as arise to the claimant's spouse.

(5) Where a deduction under this section is to be made from emoluments for any year of assessment by virtue of the operation of subsection (2), such deduction shall be given by means of repayment of tax.

Allowance for rent paid by certain tenants.

[ITA67 s142A and 195B(3) and (6); FA82 s5(1); FA85 s7(a); FA91 s8; FA93 s10(1); FA95 s5]

473. —(1) In this section—

residential premises” means property held under a tenancy, being—

(a) a building or part of a building used or suitable for use as a dwelling, and

(b) land which the occupier of a building or part of a building used as a dwelling has for his or her own occupation and enjoyment with the building or part of a building as its garden or grounds of an ornamental nature;

rent” includes any periodical payment in the nature of rent made in return for a special possession of residential premises or for the use, occupation or enjoyment of residential premises, but does not include so much of any rent or payment as—

(a) is paid or made to defray the cost of maintenance of or repairs to residential premises for which in the absence of agreement to the contrary the tenant would be liable,

(b) relates to the provision of goods or services,

(c) relates to any right or benefit other than the bare right to use, occupy and enjoy residential premises, or

(d) is the subject of a right of reimbursement or a subsidy from any source enjoyed by the person making the payment, unless such reimbursement or subsidy cannot be obtained;

tenancy” includes any contract, agreement or licence under or in respect of which rent is paid, but does not include—

(a) a tenancy which apart from any statutory extension is a tenancy for a freehold estate or interest or for a definite period of 50 years or more,

(b) a tenancy in relation to which the person beneficially entitled to the rent is a Minister of the Government, the Commissioners of Public Works in Ireland or a housing authority for the purposes of the Housing Act, 1966, or

(c) a tenancy in relation to which an agreement or provision exists under which the rent paid or part of it is or may be treated as consideration or part consideration, in whatever form, for the creation of a further or greater estate, tenancy or interest in the residential premises concerned or in any other property.

(2) (a) In this subsection, “the relevant limit” means—

(i) in the case of a claimant entitled to a deduction under section 461 (a), £2,000,

(ii) in the case of a widowed person, £1,500, and

(iii) in any other case, £1,000.

(b) Where in relation to income tax for a year of assessment an individual (in this section referred to as “the claimant”) proves that—

(i) at any time during the year of assessment he or she was of the age of 55 years or over, and

(ii) in the year of assessment, he or she has made a payment on account of rent in respect of residential premises which, during the period in respect of which the payment was made, was his or her only or main residence,

the claimant shall be entitled to a deduction of an amount equal to the lesser of—

(I) the aggregate of such payments proved to be so made, and

(II) the relevant limit.

(c) For the purposes of this subsection, where the claimant is a married person assessed to tax for the year of assessment in accordance with section 1017 , any payments made by the claimant's spouse, in respect of which that spouse would have been entitled to relief under this section if he or she were assessed to tax for the year of assessment in accordance with section 1016 (apart from subsection (2) of that section), shall be deemed to have been made by the claimant.

(3) (a) In this subsection—

appropriate percentage”, in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year;

the specified limit” means—

(1) in the case of a claimant entitled to a deduction under section 461 (a), £1,000,

(ii) in the case of a widowed person, £750, and

(iii) in any other case, £500.

(b) Where in relation to income tax for a year of assessment a claimant would but for paragraph (b)(i) of subsection (2) be entitled to relief in accordance with that subsection, the income tax to be charged on the claimant for that year of assessment, other than in accordance with section 16 (2), shall be reduced by an amount which is the least of—

(i) the amount equal to the appropriate percentage of the aggregate of the payments referred to in subsection (2)(b)(ii) proved to be so made,

(ii) the appropriate percentage of the specified limit, and

(iii) the amount which reduces that income tax to nil.

(4) (a) Where a payment is made partly on account of rent and partly on account of anything which is not rent, such apportionment of the payment shall be made as is necessary in order to determine for the purposes of this section the amount paid on account of rent.

(b) Any apportionment required by this subsection shall be made by the inspector according to the best of his or her knowledge and judgment.

(5) Where a payment on account of rent is made in respect of any period, that payment shall be deemed for the purposes of this section to be made in the year in which the period falls; but, if the period falls partly in one year and partly in another year, the amount of the payment made in respect of that period shall be apportioned to each year in the proportion which the part of the period falling in that year bears to the whole of the period, and the amount so apportioned to a year shall be deemed for the purposes of this section to be paid in that year.

(6) (a) Any claim for relief under this section in respect of rent paid in a year of assessment shall be accompanied by—

(i) a certificate and statement, in a form prescribed by the Revenue Commissioners, signed by the claimant setting out—

(I) the name, address and income tax reference number of the claimant,

(II) the name, address and, as may be appropriate, the income tax or corporation tax reference number of the person or body of persons beneficially entitled to the rent under the tenancy under which the rent was paid,

(III) the postal address of the premises in respect of which the rent was paid, and

(IV) full particulars of the tenancy under which the rent was paid,

and

(ii) a receipt or acknowledgement in respect of such rent given in accordance with subsection (8).

(b) Failure to furnish any of the particulars mentioned in paragraph (a)(i) or failure to furnish a receipt or acknowledgement mentioned in paragraph (a)(ii) shall be grounds for refusal of the claim; but—

(i) the inspector may waive the requirement at paragraph (a)(i)(II) on receipt of satisfactory proof that the claimant's inability to comply with that requirement is bona fide, and

(ii) the inspector may waive the requirements at paragraph (a)(ii) on receipt of satisfactory proof of the total rent paid in the relevant period and on being furnished with the name and address of the person or body of persons to whom it was paid.

(7) (a) Any person aggrieved by a decision of the inspector on any question arising under subsection (4) or (6) may, by notice in writing to that effect given to the inspector within 30 days from the date on which notice of the decision is given to that person, make an application to have his or her claim for relief heard and determined by the Appeal Commissioners.

(b) Where an application is made under paragraph (a), the Appeal Commissioners shall hear and determine the claim in the like manner as an appeal made to them against an assessment to income tax, and the provisions of the Income Tax Acts relating to such an appeal (including the provisions relating to the rehearing of an appeal and to the statement of a case for the opinion of the High Court on a point of law) shall apply accordingly with any necessary modifications.

(8) (a) Where a person (in this subsection referred to as “the tenant”) who is entitled to relief under this section for a year of assessment, or who has reason to believe that he or she may be so entitled, requests a receipt or acknowledgement of the rent paid by him or her in that year, the person or body of persons beneficially entitled to the rent shall, within 7 days from the date of the request, give to the tenant a receipt or acknowledgement of the rent paid by the tenant in that year of assessment.

(b) Any receipt or acknowledgement given in accordance with this subsection shall be in writing and shall contain—

(i) the name and address of the tenant,

(ii) the name, address and, as may be appropriate, the income tax or corporation tax reference number of the person or body of persons giving the receipt or acknowledgement, and

(iii) the amount of the rent paid in the year of assessment and the period within that year in respect of which it is paid.

(9) (a) The Revenue Commissioners may make regulations, for the purpose of giving effect to this section, with respect to the allowance granted by this section, or to any matter ancillary or incidental thereto, or, in particular and without prejudice to the generality of the foregoing, to provide for—

(i) the proof by a claimant of a payment on account of rent,

(ii) the disclosure of information by a person in receipt of a payment on account of rent,

(iii) the maintenance of records and the production to and inspection by persons authorised by the Revenue Commissioners of such records and the taking by such persons of copies of or of extracts from such records, and

(iv) appeals with respect to matters arising under the regulations which would not otherwise be the subject of an appeal.

(b) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

(10) Any deduction made under this section shall be in substitution for and not in addition to any deduction to which the individual might be entitled in respect of the same payment under any other provision of the Income Tax Acts.

Relief for fees paid to private colleges for full-time third level education.

[FA95 s6(1) to (5)]

474. —(1) In this section—

academic year”, in relation to an approved course, means a year of study commencing on a date not earlier than the 1st day of August in a year of assessment;

appropriate percentage”, in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year;

approved college” means a college in the State—

(a) which operates in accordance with a code of standards which from time to time may, with the consent of the Minister for Finance, be laid down by the Minister, and

(b) which the Minister approves of for the purposes of this section;

approved course” means a full-time undergraduate course of study in an approved college which—

(a) is of at least 2 academic years' duration, and

(b) the Minister, having regard to a code of standards which from time to time may, with the consent of the Minister for Finance, be laid down by the Minister in relation to the quality of education to be offered on approved courses, approves of for the purposes of this section;

dependant”, in relation to an individual, means a spouse or child of the individual or a person in respect of whom the individual is or was the legal guardian;

the Minister” means the Minister for Education and Science;

qualifying fees”, in relation to an approved course and an academic year, means the amount of fees chargeable in respect of tuition to be provided in relation to that course in that year which, with the consent of the Minister for Finance, the Minister approves of for the purposes of this section.

(2) Subject to this section, where an individual for a year of assessment proves that he or she has, on his or her own behalf or on behalf of his or her dependant, made a payment in respect of qualifying fees in respect of an approved course for the academic year in relation to that course commencing in that year of assessment, the income tax to be charged on the individual for that year of assessment, other than in accordance with section 16 (2), shall be reduced by an amount which is the lesser of—

(a) the amount equal to the appropriate percentage of the aggregate of all such payments proved to be so made, and

(b) the amount which reduces that income tax to nil.

(3) For the purposes of this section, a payment in respect of qualifying fees shall be regarded as not having been made in so far as any sum in respect of or by reference to such fees has been or is to be received, directly or indirectly, by the individual, or, as the case may be, his or her dependant, from any source whatever by means of grant, scholarship or otherwise.

(4) (a) Where the Minister is satisfied that an approved college, or an approved course in that college, no longer meets the appropriate code of standards laid down, the Minister may by notice in writing given to the approved college withdraw, with effect from the year of assessment following the year of assessment in which the notice is given, the approval of that college or course, as the case may be, for the purposes of this section.

(b) Where the Minister withdraws the approval of any college or course for the purposes of this section, notice of its withdrawal shall be published as soon as may be in Iris Oifigiúil.

(5) On or before the 1st day of July in each year of assessment, the Minister shall furnish the Revenue Commissioners with full details of—

(a) all colleges and courses in respect of which approval has been granted and not withdrawn for the purposes of this section, and

(b) the amount of the qualifying fees in respect of each such course for the academic year commencing in that year of assessment.

Relief for fees paid for part-time third level education.

[FA96 s15(1) to (5) and (8); FA97 s7]

475. —(1) In this section—

academic year”, in relation to an approved course, means a year of study commencing on a date not earlier than the 1st day of August in a year of assessment;

appropriate percentage”, in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year;

approved college”, in relation to a year of assessment, means a college or institution in the State, or a college or institution in another Member State of the European Communities providing distance education in the State, which—

(a) provides courses to which a scheme approved by the Minister under the Local Authority (Higher Education) Grants Acts, 1968 to 1992, applies, or

(b) operates in accordance with a code of standards which from time to time may, with the consent of the Minister for Finance, be laid down by the Minister,

and which the Minister approves of for the purposes of this section;

approved course” means a part-time undergraduate course of study in an approved college which—

(a) is of at least 2 academic years' duration, and

(b) in the case of a course provided by a college to which paragraph (b) of the definition of “approved college” relates, the Minister, having regard to a code of standards which from time to time may, with the consent of the Minister for Finance, be laid down by the Minister in relation to the quality of education to be offered on such approved course, approves of for the purposes of this section;

the Minister” means the Minister for Education and Science;

qualifying fees”, in relation to an approved course and an academic year, means the amount of fees chargeable in respect of tuition to be provided in relation to that course in that year and which, in relation to a course to which paragraph (b) of the definition of “approved course” relates, the Minister, with the consent of the Minister for Finance, approves of for the purposes of this section;

qualifying individual” means—

(a) an individual other than an individual who has been conferred with a certificate, diploma or degree in respect of the completion by him or her of an undergraduate course of study of not less than 2 academic years' duration, or

(b) an individual who has been conferred with a certificate or diploma as referred to in paragraph (a) and who is pursuing an approved course in respect of which the approved college certifies that the certificate or diploma, as the case may be, with which he or she has been conferred, has qualified him or her for exemption for one or more years of study from the normal duration of the approved course but is not otherwise an individual who is not a qualifying individual for the purposes of paragraph (a).

(2) Subject to this section, where for a year of assessment a qualifying individual proves that he or she has on his or her own behalf made a payment in respect of qualifying fees in respect of an approved course for the academic year in relation to that course commencing in that year of assessment, the income tax to be charged on the qualifying individual for that year of assessment, other than in accordance with section 16 (2), shall be reduced by an amount which is the lesser of—

(a) the amount equal to the appropriate percentage of the aggregate of all such payments proved to be so made, and

(b) the amount which reduces that income tax to nil.

(3) Notwithstanding subsection (2), where for any year of assessment—

(a) the spouse of a qualifying individual is assessed to tax in accordance with section 1017 , and

(b) qualifying fees are paid by the qualifying individual, or paid by that spouse on behalf of the qualifying individual, in respect of an approved course for the academic year in relation to that course commencing in that year of assessment,

then, relief under this section shall, except where section 1023 applies, be granted to the spouse of the qualifying individual in respect of the qualifying fees so paid as if he or she were a qualifying individual and the qualifying fees had been paid by him or her on his or her own behalf.

(4) For the purposes of this section, a payment in respect of qualifying fees shall be regarded as not having been made in so far as any sum in respect of or by reference to such fees has been or is to be received directly or indirectly by the qualifying individual from any source whatever by means of grant, scholarship or otherwise.

(5) (a) Where the Minister is satisfied that a college, within the meaning of paragraph (b) of the definition of “approved college”, or an approved course in that college, no longer meets the appropriate code of standards laid down, the Minister may by notice in writing given to the approved college withdraw, with effect from the year of assessment following the year of assessment in which the notice is given, the approval of that college or course, as the case may be, for the purposes of this section.

(b) Where the Minister withdraws the approval of any college or course for the purposes of this section, notice of its withdrawal shall be published as soon as may be in Iris Oifigiúil.

(6) On or before the 1st day of July in each year of assessment, the Minister shall furnish the Revenue Commissioners with full details of all—

(a) courses,

(b) colleges, and

(c) the amount of qualifying fees for the academic year commencing in that year of assessment in respect of courses referred to in paragraph (a),

which the Minister has approved of for the purposes of this section.

(7) Where for the purposes of this section any question arises as to whether—

(a) a college is an approved college, or

(b) a course of study is an approved course,

the Revenue Commissioners may consult with the Minister.

Relief for fees paid for training courses.

[FA97 s8(1) to (7) and (10) and (11)]

476. —(1) In this section—

An Foras” means An Foras Áiseanna Saothair;

approved course provider” means a person providing approved courses who—

(a) operates in accordance with a code of standards which from time to time may, with the consent of the Minister for Finance, be agreed between An Foras and the Minister, and

(b) is approved of by An Foras for the purposes of this section;

approved course” means a course of study or training, other than a postgraduate course, provided by an approved course provider which—

(a) is confined to—

(i) such aspects of information technology, or

(ii) such foreign languages,

as are approved of by the Minister, with the consent of the Minister for Finance, for the purposes of this section,

(b) is of less than 2 years' duration,

(c) results in the awarding of a certificate of competence, and

(d) having regard to a code of standards which from time to time may, with the consent of the Minister for Finance, be agreed between An Foras and the Minister in relation to—

(i) the quality and standard of training to be provided on the approved course, and

(ii) the methods and facilities to be used by the course provider in delivering the course and in assessing competence,

is approved of by An Foras for the purposes of this section;

certificate of competence”, in relation to an approved course, means a certificate awarded in accordance with the standards set out in the code of standards referred to in paragraph (d) of the definition of “approved course” and certifying that a minimum level of competence has been achieved by the individual to whom the certificate is awarded;

foreign language” means a language other than an official language of the State;

the Minister” means the Minister for Enterprise, Trade and Employment;

qualifying fees”, in relation to an approved course, means the amount of fees chargeable in respect of tuition to be provided in relation to such course where the net amount of such fees are not less than £250 and to the extent that they do not exceed £1,000.

(2) (a) In this subsection, “appropriate percentage”, in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year.

(b) Subject to this section, where an individual proves that—

(i) he or she has on his or her own behalf made a payment in respect of qualifying fees in respect of an approved course, and

(ii) has been awarded a certificate of competence in respect of that course,

the income tax to be charged on the individual, other than in accordance with section 16 (2), for the year of assessment in which that certificate of competence is awarded shall be reduced by an amount which is the lesser of—

(I) the amount equal to the appropriate percentage of the aggregate of all such payments proved to be so made, and

(II) the amount which reduces that income tax to nil.

(3) Where for a year of assessment in which an individual is awarded a certificate of competence—

(a) the spouse of the individual is assessed to tax in accordance with section 1017 , and

(b) qualifying fees are paid by the individual, or paid by that spouse on behalf of the individual, in respect of the approved course,

then, relief under this section shall, except where section 1023 applies, be granted to the spouse of the individual in respect of the qualifying fees so paid as if the qualifying fees had been paid by him or her on his or her own behalf.

(4) Relief under this section shall not be given in respect of an individual for a year of assessment in respect of more than one approved course.

(5) For the purposes of this section, a payment in respect of qualifying fees shall be regarded as not having been made in so far as any sum, in respect of or by reference to such fees, has been or is to be received either directly or indirectly by an individual from any source whatever by means of grant, scholarship or otherwise.

(6) An Foras, where it is satisfied that an approved course provider, or an approved course provided by an approved course provider, no longer meets the appropriate code of standards laid down, may by notice in writing given to the approved course provider withdraw the approval of that course provider or approved course, as the case may be, from such date as it considers appropriate, and this section shall cease to apply to that course provider or that course, as the case may be, with effect from that date.

(7) (a) As soon as may be practicable after An Foras has—

(i) approved a course provider or a course for the purposes of this section, or

(ii) withdrawn such approval,

An Foras shall notify the Revenue Commissioners in writing of such approval or withdrawal of approval.

(b) Where any question arises as to whether for the purposes of this section—

(i) a course provider is an approved course provider, or

(ii) a training course is an approved course,

the Revenue Commissioners may consult with An Foras.

(8) Any relief under this section shall be in substitution for and not in addition to any relief to which the individual might be entitled to in respect of the same payment under any other provision of the Income Tax Acts.

(9) This section shall come into operation on such date as may be fixed by order of the Minister for Finance.

Relief for service charges.

[FA95 s7(1) to (8)]

477. —(1) (a) In this section—

appropriate percentage”, in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year;

claimant” has the meaning assigned to it by subsection (2)

financial year” means the period of 12 months ending on the 31st day of December in that year;

group water supply scheme” means a scheme referred to in the Housing (Improvement Grants) Regulations, 1983 (S.I. No. 330 of 1983);

service” means the provision by or on behalf of a local authority of—

(i) a supply of water for domestic purposes,

(ii) domestic refuse collection or disposal, or

(iii) domestic sewage disposal facilities;

service charge” means a charge imposed under—

(i) the Local Government (Financial Provisions) (No. 2) Act, 1983, or

(ii) section 65A (inserted by the Local Government (Sanitary Services) Act, 1962, and amended by the Local Government (Financial Provisions) (No. 2) Act, 1983) of the Public Health (Ireland) Act, 1878,

in respect of the provision by a local authority of any service or services, and “service charges” shall be construed accordingly;

specified limit” means £150.

(b) References in this section to an amount paid on time shall mean payment of that amount by such date or dates as a local authority shall decide.

(2) Where in relation to income tax for a year of assessment an individual (in this section referred to as a “claimant”) proves that in the financial year immediately before the year of assessment the amount which he or she was liable to pay in respect of service charges for that financial year has been paid in full and on time, the income tax to be charged on the claimant for that year of assessment, other than in accordance with section 16 (2), shall, subject to subsections (3) and (5), be reduced by an amount which is the least of—

(a) the amount equal to the appropriate percentage of the amount proved to be so paid,

(b) the appropriate percentage of the specified limit, and

(c) the amount which reduces that income tax to nil.

(3) (a) In the case of a claimant assessed to tax for the year of assessment in accordance with section 1017 , any payments made by the spouse of the claimant, in respect of which that spouse would have been entitled to relief under this section if the spouse were assessed to tax for the year of assessment in accordance with section 1016 (apart from subsection (2) of that section), shall be deemed to have been made by the claimant.

(b) In the case of an individual who resides on a full-time basis in the premises to which the service charges relate and pays such service charges in accordance with the requirements of this section on behalf of the claimant, that claimant may disclaim the relief provided by this section in favour of the individual, and such disclaimer shall be in such form as the Revenue Commissioners may require.

(4) A claimant who wishes to claim relief under this section shall furnish to the local authority to which a payment in respect of the service charges referred to in subsection (2) is made the claimant's identifying number, known as the Revenue and Social Insurance (RSI) Number.

(5) (a) Any claim for relief under this section shall, unless the details referred to in subsection (6) in respect of a claimant are provided on the basis set out in paragraph (c) of that subsection, be accompanied by a certificate given in accordance with subsection (6) or, in a case to which paragraph (a)(i) of subsection (7) applies, a receipt or acknowledgement referred to in clause (III) of that paragraph.

(b) Failure to furnish a certificate or receipt or acknowledgment mentioned in paragraph (a), or to be included in the return referred to in subsection (6)(c), shall be grounds for refusal of the claim.

(6) (a) Where in a financial year—

(i) a claimant has furnished his or her identifying number in accordance with subsection (4),

(ii) the total amount which he or she was liable to pay in respect of service charges for that year has been paid on time, and

(iii) arrears, if any, of service charges have been paid in accordance with guidelines in relation to the payment of arrears of service charges entitled Finance Act, 1995— Payment of Service Charges Arrears issued to local authorities by the Department of the Environment,

the local authority to which payment was made shall, subject to paragraph (c), give to the claimant a certificate in respect of such payment.

(b) A certificate given in accordance with this subsection shall contain—

(i) the name, address and the identifying number, known as the Revenue and Social Insurance (RSI) Number, of the claimant,

(ii) the name and address of the local authority giving the certificate,

(iii) the amount paid and the financial year in respect of which it was paid, and

(iv) confirmation that the payment referred to in subparagraph (iii) was paid on time and represents the full amount of the service charges which the claimant was liable to pay for the financial year for which the certificate was given.

(c) Each local authority shall, within one calendar month after the end of every financial year, provide the Revenue Commissioners with a return in such computerised format as the Revenue Commissioners may require for the purposes of giving effect to the relief provided for in this section and containing, in respect of every claimant who has furnished an identifying number mentioned in subsection (4), the details specified in subparagraphs (i), (iii) and (iv) of paragraph (b); but where exceptionally the return provided by a local authority is not a complete return, a supplementary return in similar format shall be provided to the Revenue Commissioners not later than 2 months after the end of that financial year.

(d) Where a local authority makes a return in accordance with paragraph (c), the certificate mentioned in paragraph (a) need not be given to any claimant referred to in such return.

(7) (a) Where the service consisting of the provision of domestic refuse collection or disposal—

(i) is provided and charged for by a person or body of persons other than a local authority and where such person or body of persons has—

(I) notified its provision to the local authority in whose functional area such service is provided,

(II) furnished to that local authority such information as the local authority may from time to time request concerning that person or body of persons or the service provided by that person or body of persons, and

(III) given a receipt or acknowledgement to a claimant containing—

(A) the name, address and, as may be appropriate, the income tax or corporation tax reference number of the person or body of persons,

(B) the claimant's name and address,

(C) the amount paid, and

(D) the financial year in respect of which the payment for the service was paid,

or

(ii) if provided by a local authority or by a person or body of persons referred to in subparagraph (i)(I), is charged for other than by means of a specified annual charge in respect of that service,

a claimant shall for the purposes of this section be deemed to have made a payment of £50 in respect of that service and shall be entitled to relief in respect of such an amount subject to this section other than—

(I) in a case where subparagraph (i) applies, subsection (6), or

(II) in a case where subparagraph (ii) applies, subsections (5) and (6).

(b) Where a service charge is imposed in respect of the provision of a service other than the service referred to in paragraph (a), this subsection shall apply only where the claimant also qualifies for relief under this section in respect of such service charge.

(8) The provision of a supply of water for domestic purposes effected by a group water supply scheme shall be treated for the purposes of this section as if it were provided by a local authority, and a payment by an individual member of such a scheme in respect of such provision shall be deemed to be a payment in respect of service charges.

(9) Any deduction made under this section shall be in substitution for and not in addition to any deduction to which the individual might be entitled in respect of the same payment under any other provision of the Income Tax Acts.

Relief for payments made by certain persons in respect of alarm systems.

[FA96 s5]

478. —(1) In this section—

appropriate percentage”, in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year;

installation” means the placing in position, including any necessary wiring, drilling, plastering or similar work, of a relevant alarm system;

qualifying expenditure”, in relation to a qualifying individual, means expenditure incurred in the qualifying period in connection with either or both the provision and installation of a relevant alarm system in a premises which is the qualifying individual's sole or main residence, but does not include any expenditure in so far as it is in respect of the repair, maintenance or monitoring of such an alarm system;

qualifying individual”, in relation to qualifying expenditure, means an individual who at the time the expenditure is incurred has attained the age of 65 years and who for the greater part of the year of assessment in which the expenditure is incurred lives alone;

qualifying period” means the period beginning on the 23rd day of January, 1996, and ending on the 5th day of April, 1998;

relative”, in relation to a qualifying individual, includes a relation by marriage and a person in respect of whom the individual is or was the legal guardian;

relevant alarm system” means an electrical apparatus which when activated is designed to give notice to the effect that there is an intruder present or attempting to enter the premises in which it is installed.

(2) Where a claimant, being a qualifying individual or a relative of that individual, having made a claim in that behalf, proves that he or she has incurred qualifying expenditure in relation to the qualifying individual, the income tax to be charged on the claimant, other than in accordance with section 16 (2), for the year of assessment in which the expenditure is incurred shall be reduced by an amount which is the least of—

(a) the appropriate percentage of the qualifying expenditure,

(b) the appropriate percentage of £800, and

(c) the amount which reduces that income tax to nil.

(3) Any claim for relief under this section shall be in such form as may be prescribed by the Revenue Commissioners for the purpose and shall be accompanied by a receipt or receipts, as may be appropriate, for the amount of qualifying expenditure incurred; but, where the qualifying expenditure includes expenditure in respect of installation, the receipt in respect of such expenditure shall contain the installer's name and address and the installer's value-added tax registration number or income tax reference number.

(4) Any deduction made under this section shall be in substitution for and not in addition to any deduction to which the individual might be entitled in respect of the same payment under any other provision of the Income Tax Acts.

Relief for new shares purchased on issue by employees.

[FA86 s12(1) to (8); FA96 s12 and s132(1) and Sch5 PtI par15]

479. —(1) (a) In this section—

director” has the same meaning as in Chapter 3 of Part 5 ;

eligible employee”, in relation to a qualifying company, means—

(i) where the company is a trading company, a director or an employee of the company, or

(ii) where the company is a holding company, a director or an employee of the company or of a company which is its 75 per cent subsidiary;

eligible shares”, in relation to a qualifying company, means new shares forming part of the ordinary share capital of the company which—

(i) are fully paid up,

(ii) throughout the period of 5 years beginning with the date on which they are issued, carry no present or future preferential right to dividends or to the company's assets on its winding up and no present or future preferential right to be redeemed,

(iii) are not subject to any restrictions other than restrictions which attach to all shares of the same class, and

(iv) are issued to and acquired by an eligible employee in relation to the company at not less than their market value at the time of issue;

holding company” means a company whose business consists wholly or mainly of the holding of shares or securities of trading companies which are its 75 per cent subsidiaries;

market value” shall be construed in accordance with section 548 ;

qualifying company” means a company which at the time the eligible shares are issued is—

(i) incorporated in the State,

(ii) resident in the State and not resident elsewhere, and

(iii) (I) a trading company, or

(II) a holding company;

trading company” means a company whose business consists wholly or mainly of the carrying on wholly or mainly in the State of a trade or trades; “75 per cent subsidiary”, in relation to a company, has the meaning assigned to it for the purposes of the Corporation Tax Acts by section 9 , as applied for the purposes of section 411 by paragraphs (b) and (c) of subsection (1) of that section.

(b) References in this section to a disposal of shares include references to a disposal of an interest or right in or over the shares, and an individual shall be treated for the purposes of this section as disposing of any shares which he or she is treated by virtue of section 587 as exchanging for other shares.

(c) Shares in a company shall not be treated for the purposes of this section as being of the same class unless they would be so treated if dealt in on a stock exchange in the State.

(2) Subject to this section, where an eligible employee in relation to a qualifying company subscribes for eligible shares in the qualifying company, the eligible employee shall be entitled to have a deduction made from his or her total income for the year of assessment in which the shares are issued of an amount equal to the amount of the subscription; but a deduction shall not be given to the extent to which the amount subscribed by an eligible employee for eligible shares issued to him or her in all years of assessment exceeds £5,000.

(3) Subsection (2) shall not apply as respects any amount subscribed for eligible shares if within the period of 5 years from the date of their acquisition—

(a) those shares are disposed of, or

(b) the eligible employee who made the subscription receives in respect of those shares any money or money's worth which does not constitute income in his or her hands for the purpose of income tax,

and there shall be made all such assessments, additional assessments or adjustments of assessments as are necessary to withdraw any relief from income tax already given under subsection (2) in respect of the amount subscribed; but, where an event mentioned in paragraph (a) or (b) occurs after the fourth anniversary of the date on which the shares were issued to the eligible employee, relief shall be withdrawn only to the extent of 75 per cent of the amount which would otherwise be withdrawn.

(4) Except where the shares are in a company whose ordinary share capital, at the time of acquisition of the shares by the eligible employee, consists of shares of one class only, the majority of the issued shares of the same class as the eligible shares shall be shares other than—

(a) eligible shares, and

(b) shares held by persons who acquired their shares in pursuance of a right conferred on them or an opportunity afforded to them as a director or employee of the qualifying company or any of its 75 per cent subsidiaries.

(5) In relation to shares in respect of which relief has been given under subsection (2) and not withdrawn, any question—

(a) as to which (if any) such shares issued to an eligible employee at different times a disposal relates, or

(b) whether a disposal relates to such shares or to other shares,

shall for the purposes of this section be determined as for the purposes of section 498 .

(6) Where there occurs in relation to any of the eligible shares of an eligible employee (in this subsection referred to as “the original holding”) a transaction which results in a new holding (within the meaning of section 584 ) being equated with the original holding for the purposes of capital gains tax, then, for the purposes of subsection (3)

(a) the new holding shall be treated as shares in respect of which relief under this section has been given,

(b) the transaction shall not be treated as involving a disposal of the original holding,

(c) the consideration for the disposal of the original holding to the extent that it consists of the new holding shall not be treated as money or money's worth, and

(d) a disposal of the whole or a part of the new holding shall be treated as a disposal of the whole or a corresponding part of the shares in respect of which relief has been given under this section.

(7) Any amount in respect of which relief is allowed under subsection (2) and not withdrawn shall be treated as a sum which by virtue of section 554 is to be excluded from the sums allowable under section 552 .

(8) An eligible employee shall not be entitled to relief under subsection (2) in respect of any shares unless the shares are subscribed for and issued for bona fide commercial reasons and not as part of a scheme or arrangement the main purpose or one of the main purposes of which is the avoidance of tax.

Relief for certain sums chargeable under Schedule E.

[FA68 s3; FA72 Sch PtIII par4; FA74 s11 and s64(2) and SchI PtII; FA97 s146(1) and Sch9 PtI par5(3)]

480.— (1) (a) In this section—

director” and “proprietary director” have the same meanings respectively as in section 472 ;

employee”, in relation to a body corporate, includes any person taking part in the management of the affairs of the body corporate who is not a director, and includes a person who is to be or has been an employee;

part-time director”, in relation to a body corporate, means a director who is not required to devote substantially the whole of his or her time to the service of the body corporate;

proprietary employee”, in relation to a company, means an employee who is the beneficial owner of, or able, either directly or through the medium of other companies or by any other indirect means, to control, more than 15 per cent of the ordinary share capital of the company.

(b) For the purposes of the definitions of “proprietary director” and “proprietary employee”, ordinary share capital which is owned or controlled as referred to in those definitions by a person, being a spouse or a minor child of a director or employee, or by a trustee of a trust for the benefit of a person or persons, being or including any such person or such director or employee, shall be deemed to be owned or controlled by such director or employee and not by any other person.

(2) (a) Subject to paragraph (b), this section shall apply to any payment which is chargeable to tax under Schedule E and made to the holder of an office or employment to compensate for—

(i) a reduction or a possible reduction of future remuneration arising from a reorganisation of the business of the employer under whom the office or employment is held or a change in the working procedures, working methods, duties or rates of remuneration of such office or employment, or

(ii) a change in the place where the duties of the office or employment are performed.

(b) This section shall not apply to—

(i) a payment to which section 123 applies, or

(ii) a payment to—

(I) a proprietary director,

(II) a part-time director,

(III) a proprietary employee, or

(IV) a person who is a part-time employee by reason of not being required to devote substantially the whole of his or her time to the service of his or her employer.

(3) Where an individual has received a payment to which this section applies, the individual shall be entitled, on making a claim in that behalf and on proof of the relevant facts to the satisfaction of the inspector, to have the total amount of income tax payable by the individual for the year of assessment for which the payment is chargeable reduced to the total of the following amounts—

(a) the amount of income tax which would have been payable by him or her for that year if he or she had not received the payment, and

(b) income tax on the whole of the payment at the rate ascertained in the manner specified in subsection (4).

(4) There shall be ascertained the additional income tax, over and above the amount referred to in subsection (3)(a), which would have been payable by the holder of the office or employment if his or her total income for the year of assessment referred to in subsection (3) had included one-third only of the payment, and the rate of income tax for the purposes of subsection (3)(b) shall then be ascertained by dividing the additional income tax computed in accordance with this subsection by an amount equal to one-third of the payment.

(5) (a) Relief from tax under this section shall in all cases be given by means of repayment.

(b) A claimant shall not be entitled to relief under this section in respect of any income the tax on which he or she is entitled to charge against any other person, or to deduct, retain or satisfy out of any payment which he or she is liable to make to any other person.

1O.J. No. L228 of 16.8.1973, p.3.

2O.J. No. L172 of 4.7.1988, p.1.

3O.J. No. L228 of 11.8.1992, p.1.s