Allowances and Other Reliefs Allowances/ Reliefs In Computation Allowances/Reliefs are deducted before tax is calculated Has the effect of reducing the amount of taxable income Allowances/ Reliefs are more favourable to taxpayers paying tax at the higher rate

Allowances and Other Reliefs Allowances/ Reliefs Employed Person looking after an Incapacitated Individual Permanent Health Insurance Pension Contributions Film Relief Employment and Investment Incentive Seed Capital Relief

Allowances and Other Reliefs Employed Person looking after an Incapacitated Individual Permanently Incapacitated person being the taxpayer, taxpayer’s spouse or a relative of the taxpayer or spouse. Maximum relief is €75,000 Relief can be apportioned If claimed, the Dependent Relative Credit and Incapacitated Child Credit cannot be claimed

Allowances and Other Reliefs Permanent Health Insurance Income Protection Relief available on premiums paid for PHI Relief only available to a maximum of 10% of total income Income from PHI policy is taxable income

Allowances and Other Reliefs Pension Contributions Occupational Pension Schemes Personal Pension Plans and Retirement Annuity Contracts Personal Retirement Savings Accounts (PRSA)

Allowances and Other Reliefs Maximum Tax Relievable Pension Contributions Maximum calculated as an age related percentage of Net Relevant Earnings Investment Income not considered Earned Income (Schedule E, Case I/II) only

Allowances and Other Reliefs Maximum Tax Relievable Pension Contributions Net Relevant Earnings for Self-Employed: Income from Trade/Profession Less Capital Allowances, Losses and Charges

Allowances and Other Reliefs Maximum Tax Relievable Pension Contributions Net Relevant Earnings for Employed: Non-Pensionable Employment Income Less Charges

Allowances and Other Reliefs Maximum Tax Relievable Pension Contributions Maximum Net Relevant Earnings: €115,000 NRE calculated separately for husband and wife

Allowances and Other Reliefs Maximum Tax Relievable Pension Contributions Age Related Percentages: Age up to 29 15% of NRE Age 30 to 39 20% of NRE Age 40 to 49 25% of NRE Age 50 to 54 30% of NRE Age 55 to 59 35% of NRE Age 60+ 40% of NRE

Allowances and Other Reliefs Film Relief Tax relief for investment in a qualifying film Minimum investment €250 Maximum relief €50,000 Example: Income €60,000 Film investment €40,000

Allowances and Other Reliefs Employment and Investment Incentive Available to qualifying individuals who subscribe for qualifying shares in a qualifying company Extensive conditions apply in order to be deemed ‘Qualifying individuals’ who subscribe for ‘Qualifying shares’ in ‘Qualifying companies’

Allowances and Other Reliefs Employment and Investment Incentive Relief available at 30% in year of investment Further 10% relief after 3 years where employment levels have increased in the company, or where the capital was used for R&D

Allowances and Other Reliefs Employment and Investment Incentive Maximum relief in any one year is €150,000 Amounts above this can be carried forward

Allowances and Other Reliefs Seed Capital Scheme Aimed at individuals setting up their own business. Relief is deducted from total income. Can be claimed for six years prior to tax year in which investment takes place Maximum relief is €600,000. Maximum relief in one year is €100,000.

Allowances and Other Reliefs Seed Capital Scheme Conditions: Individual must be a full-time director/employee of the company Individual must derive at least 75% of income from Schedule E sources Must acquire at least 15% of ordinary share capital of the seed capital company

Allowances and Other Reliefs Relief for Charges on Income – Deed of Covenant A deed of covenant is a legal document binding a person to make periodic payments to another person Deeds of Covenant to certain persons qualify for relief

Allowances and Other Reliefs Relief for Charges on Income – Deed of Covenant Covenant to Minor Children Relief available when Covenant in favour of permanently incapacitated child, and Covenant to a child other than covenanters own child

Allowances and Other Reliefs Relief for Charges on Income – Deed of Covenant Covenant to Adults Relief available when Covenant in favour of permanently incapacitated adult, or Covenant in favour of adult over 65

Allowances and Other Reliefs Relief for Charges on Income – Deed of Covenant Covenant to Adults Maximum amount allowable for relief on covenant to an over 65 is 5% of covenanter’s income

Allowances and Other Reliefs Relief for Charges on Income – Deed of Covenant Covenant must be for at least 6 years to qualify for relief

Allowances and Other Reliefs Relief for Charges on Income – Deed of Covenant Amount paid subject to deduction of 20% Gross amount deducted as a charge in covenanter’s computation Tax deducted paid over to Revenue Covenantee is taxable on gross amount received and gets refundable credit for tax deducted

Allowances and Other Reliefs Exempted Individuals Over 65s whose income does not exceed relevant limits Relevant limits: Single €18,000 Married €36,000 Additional €575 for first two dependents, €830 for all other dependents

Allowances and Other Reliefs Exempted Individuals Marginal relief applies where income marginally exceeds relevant limits Has effect that maximum tax payable is 40% of excess above relevant limits

Allowances and Other Reliefs Start your own business exemption After 12 months continuous unemployment Relief on first €40,000 per annum taxable profits For first 24 months of trading Available from 25 October 2013 to 31 December 2016