Revenue Note for Guidance

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Revenue Note for Guidance

669J Credit for tax paid

This section is concerned with allowing credit for certain income tax paid as a result of Chapter 2A of Part 15 to be carried forward and used to reduce future years income tax. The section only applies up until 31 July 2008 since stallion stud fee income, will be fully chargeable after that time.

(1) Provision is made for any individual who, in any year of assessment, has made a payment of tax by virtue of Chapter 2A of Part 15, which is deemed to include a relevant amount (see definition in section 669G). That person will be treated as having made a payment on account of income tax equal to that relevant amount.

(2) The payment on account of income tax (referred to in subsection (1)) will, in so far as is possible, be credited against income tax due in respect of the year of assessment immediately after the year in respect of which the tax payment (under Chapter 2A of Part 15) was made.

(3) Any excess payment on account of income tax remaining after the application of subsection (2) may be carried forward to be used in future years, against earlier, in priority to later, years of assessments.

(4) If any repayment of tax were to arise, such a repayment cannot include a repayment of income tax deemed to have been paid on account by virtue of this section.

Where credit for income tax is given by virtue of this section, then a deduction against future years income, which would otherwise arise by virtue of section 485F will be denied but only to the extent of the amount of the relevant excess relief.

Relevant Date: Finance Act 2021