Tuesday, 12 November 2019

Questions (122)

Robert Troy


122. Deputy Robert Troy asked the Minister for Finance if the quarter of the percentage point reduction in USC as agreed in budget 2018 applies to a person (details supplied). [46246/19]

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Written answers (Question to Finance)

Section 531AN of the Taxes Consolidation Act (TCA) 1997 provides for a reduced Universal Social Charge (USC) rate of 2% on all income above €12,012, where a person’s total income in a year does not exceed €60,000 and where the person is aged 70 or over or holds a full medical card. A rate of 0.5% on the first €12,012 of income applies to all taxpayers.

I am advised by Revenue that in 2018, the person concerned was over 70 with total income of less than €60,000. Therefore, the USC rate that applied to the first €12,012 of income was 0.5%, and the 2% rate applied to the remainder. The one quarter percent reduction in the higher USC rate (from 5% to 4.75%) for the year 2018 was not relevant to the person because it was not applicable to any portion of his income.

Revenue has also confirmed that it has carried out a full review of the person’s USC payments for all years from 2015 to 2019 (to date) and is satisfied that the correct (reduced) USC rates were applied.