Income tax measures – FB 2018

Oct 22, 2018

While the Minister noted his intention to introduce a BIK exemption for members of the Defence Forces on Budget day, Finance Bill 2018 brought in tax exemption measures for recipients of redress compensation schemes and for child care support payments due to come into operating in 2019.

Members of the Defence Forces are exempt from BIK for 2018 and subsequent years where they are provided with living accommodation and health care under section 120B, which is a new section to the Taxes Consolidated Act 1997

Section 191 TCA 1997 extends the exemption in place on compensation payments made by the Hepatitis C Tribunal in Ireland to payment made under similar schemes in other EEA countries to compensate individuals infected with Hepatitis C and HIV. 

Section 205A TCA 1997 is also extended to exempt redress payments to women resident in adjoining institutions in the Magdalen Restorative Justice Ex-Gratia Scheme. 

The Single Affordable Childcare Scheme is due to come into operation in 2019.  The scheme will contribute towards crèche fees for families meeting the means test criteria and will provide for a limited universal state contribution to families who do not qualify under the means tested assessment.  The Bill provides introduces a new section 194AA TCA 1997 which exempts income paid under this scheme from tax.