Tuesday, 9 July 2019

Ceisteanna (164)

Róisín Shortall


164. Deputy Róisín Shortall asked the Minister for Finance the tax reliefs available at the marginal rate of tax; and the estimated saving in 2020 and in a full year if these were standard rated. [29663/19]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I am informed by Revenue that the Taxes Consolidation Act 1997 (TCA) provides the following reliefs and deductions at a taxpayer’s marginal rate of tax: 

- Section 114 provides a deduction for expenses wholly, exclusively and necessarily incurred in the performance of the duties of employment.

- Sections 381 – 390 provide deductions in relation to losses incurred in a trade or profession and property letting.

- Section 384 provides relief for Case V losses (can only be set against Case V profits).

- Section 467 provides for a deduction of up to €75,000 for employing a carer for an incapacitated individual.

- Section 469 provides relief at the marginal rate for expenditure incurred in respect of nursing home expenses. All other health expenses are relieved at the standard rate.

- Section 471 provides a deduction in respect of Permanent Health Benefit premiums up to a maximum of 10% of salary.

- Section 472B provides an allowance of €6,350 to qualifying seafarers.

- Section 482 allows ‘loss relief’ to any person who has incurred qualifying expenditure in respect of an approved building that is either owned or occupied by him/her.

- Section 483 provides relief for certain gifts made to the Minister for Finance.

- Section 485F allows the carry-forward of excess reliefs of high earners affected by the high earners’ restriction.

- Section 664 provides for farmland leasing relief. This relief is given as a deduction (up to a specified limit) for profits from rent received under a ‘qualifying lease’.

- Section 666 provides for stock relief of 25% for all farmers, section 667B provides 100% relief for young farmers and section 667C provides 50% relief for partners in registered farm partnerships. These reliefs are given as a deduction, which is calculated by reference to increase in closing stock value over opening stock value.

- Section 667D provides for the succession tax credit. It is given in the form of a €5,000 tax credit split between the partners in a succession farm partnership on the basis of their profit-sharing ratio.

- Relief for contributions to retirement benefits schemes and personal pensions (subject to certain maxima) – granted under Part 30 of the TCA (section 774(7) for occupational schemes, section 776 for statutory schemes, section 784 for retirement annuity premiums, Ch 2A of Part 30 for PRSAs. 

- Section 790C provides relief for the Pension Related Deduction (PRD) up to 31 December 2018). Section 790CA provides relief for the Additional Superannuation Contribution (ASC) (from 1 January 2019).

- Section 792 provides relief in respect of deeds of covenant in favour of permanently incapacitated individuals.

- Section 823A provides for a deduction of up to €35,000 under the Foreign Earnings Deduction for qualifying travel to certain countries.

- Section 847A provides relief for donations to certain sports bodies by self-assessed taxpayers.

- Sections 1025 and 1031J provide relief for maintenance payments for separated spouses or civil partners, respectively. - Part 9 of the TCA provides that capital allowances in relation to industrial buildings and plant and machinery are available as deductions in taxing trading income and rental income.

- Part 16 of the TCA provides relief under the Start-Up Relief for Entrepreneurs scheme.

 Revenue has also advised me that, based on 2016 data, which is the latest actual year for which data currently exists, the tentative yield, if the above reliefs were standard rated is of the order of €700m on a full year basis. This estimate does not account for alterations in taxpayer behaviour, or interactions between the reliefs.