Section 848A of the Taxes Consolidation Act 1997 provides for tax relief on donations to eligible charities and other approved bodies. The provisions of the Donations Scheme were introduced by Section 45 of the Finance Act 2001 and became effective from 6th April 2001. The administration of this scheme is the responsibility of the Revenue Commissioners.
The precise arrangements for allowing tax relief on donations varies depending on whether the donor is a PAYE taxpayer only, is a chargeable person subject to self-assessment or a company. For a PAYE donor, the relief is given on a "grossed up" basis to the eligible charity or approved body, as the case may be, rather than by way of a separate claim to tax relief by the donor. The claim for refund is made by the eligible charity or approved body. In the case of a donation by a chargeable person subject to self-assessment, that individual claims the relief and there is no grossing up arrangement.
PAYE taxpayers with additional non-PAYE income can be deemed to be chargeable persons depending on the source and gross amount of their additional non-PAYE income. Such PAYE taxpayers who are deemed chargeable persons for self-assessment claim all the relief on charitable donations made by them in their Income Tax return. In such circumstances, a refund to the charity or approved body does not arise.