1. 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

2. 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

3. 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

4. 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

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

6. 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

7. 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

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

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

10. Allowances and Other Reliefs
Maximum Tax Relievable Pension Contributions
Age Related Percentages:
Age up to % of NRE
Age 30 to % of NRE
Age 40 to % of NRE
Age 50 to % of NRE
Age 55 to % of NRE
Age % of NRE

11. 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

12. 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’

13. 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

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

15. 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.

16. 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

17. 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

18. 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

19. 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

20. 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

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

22. 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

23. 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

24. 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

25. 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