Do you use HMRC online services? Don’t be caught out by the planned downtime to some services. HMRC are warning about the non-availability of specific services on the HMRC website, a range of services are impacted. Check the relevant page for information on planned downtime.  

Revenue has updated the Capital Acquisitions Tax (CAT) Manual which provides an overview of the various exemptions from CAT. The updated guidance includes: Clarification that the small gift exemption may apply where a gift becomes an inheritance by reason of the death of the disponer within 2 years of the date of the gift. Amendment regarding the exemption for certain policies of insurance to follow the structure of the legislation. Further details on the qualifying conditions for the exemption of certain securities Further information is available in eBrief No.047/24.

Director-General Gerassimos Thomas has published an opinion piece on the Carbon Border Adjustment Mechanism (CBAM) and how carbon pricing supports the long-term investment needed for the green transition. In the article, he notes that since the introduction of the EU Emissions Trading System in 2005, there has been a 37 percent reduction in power and industrial emissions up to 2021, with EU GDP growing more than 50 percent in the same period. The CBAM is the next phase in the EU’s commitment to a greener, brighter future for Europe and its global trade partners.

Revenue has updated the Tax and Duty Manual regarding the Charitable Tax Exemption following the changes announced in Finance (No.2) Act 2023. The updated guidance confirms that: The tax exemption available under section 208 TCA 1997 is extended to include professional services income of a charity; and Revenue will withdraw the charitable tax exemption from the date in which the charity is no longer eligible, where withdrawn, Revenue will notify the Charities Regulator. The updated guidance also addresses applications for the tax exemption under section 208A TCA 1997 by overseas charities and under section 209 TCA 1997 for certain bodies established for the promotion of human rights.

The Bahamas, Belize, Seychelles, and Turks and Caicos Islands have all been removed from the EU list of non-cooperative jurisdictions, following agreement by Member States. While the Bahamas and Turks and Caicos Islands have been fully delisted, Belize and Seychelles have been moved from Annex I to Annex II (pending the results of a supplementary review). This is another important milestone in the Union’s ongoing efforts to promote tax transparency.

Revenue has updated the Tax and Duty Manual to reflect the increase in the employee (PAYE) tax credit to €1,875 for 2024 (from €1,775 in 2023) as provided for in Finance Act 2023, together with a new table to show the credit amount for prior years. 

Revenue has updated the Tax and Duty Manual regarding payments to property owners under the Repair and Leasing Scheme, which was introduced to bring vacant properties into social housing use.  The updated guidance clarifies that the scheme includes both a direct lease agreement and a rental availability agreement and, while both a local authority and an approved housing body (AHB) can enter into a direct lease agreement, only a local authority can enter into a rental availability agreement.  Further clarifications are also provided in relation to the amounts that may be reimbursed under the repair and leasing scheme.  References to the Home Renovation Incentive have been removed. Under the scheme, if a vacant property is suitable for social housing, the cost of necessary repairs is paid by the local authority or an approved housing body (AHB). The owner then leases the property to the local authority or AHB, who will make it available for social housing. The property owner receives an agreed lease payment from the local authority or AHB and the value of the repairs is gradually offset against this lease payment over the period specified in the lease.

Revenue has updated the Stamp Duty Manual which provides guidance on the stamp duty relief, under section 81AA SDCA 1999, in respect of certain transfers of agricultural land to young trained farmers. The manual has been updated to clarify the circumstances in which the relief can apply where the land is conveyed or transferred into joint ownership.  The updated guidance also addresses the application of limit on the relief in certain circumstances including where the land has been acquired by a young trained farmer and their spouse/civil partner who is not a young trained farmer.

Check out the latest items on the Agent Forum. Remember, in order to view each item, you must be signed up and logged in. We also take this opportunity to remind you that HMRC is currently conducting an exercise in which it is asking members of the forum to confirm they wish to continue to as a registered user.   All agents, who are a member of a professional body, are invited to join HMRC’s Agent Forum. This dedicated Agent Forum is hosted in a private area within the HMRC’s Online Taxpayer Forum. You can interact with other agents and HMRC experts to discuss topical issues and processes. 

Revenue has updated the Tax and Duty Manual for Remote Working Relief. The manual now reflects that payments to employees of the remote working daily allowance of up to €3.20 must be reported by employers under the Enhanced Reporting Requirements (ERR) which came into effect on 1 January 2024.  In addition, the updated guidance confirms that the remote working daily allowance applies to directors, including proprietary directors, where the director has incurred and defrayed relevant expenses ‘out of’ the relevant emoluments, that are subject to tax under the PAYE system, and all other conditions must be satisfied. 

At a Special General Meeting held on Wednesday 21 February, members of Chartered Accountants Ireland voted to approve a resolution to amalgamate with CPA Ireland. Over 10,000 Institute members voted. The resolution was passed by a majority in accordance with the Institute's Bye-Laws, with 53.5% of votes cast in favour. Members of CPA Ireland also approved the amalgamation proposal at an Extraordinary General Meeting also held on Wednesday 21 February. Both Institutes will now begin to work collaboratively on the next steps required to create a single Irish based accountancy body, named Chartered Accountants Ireland, which will be the largest professional body on the island of Ireland. The Institute will keep members informed of progress throughout this process.

The Digital Services Act 2024 (“DS Irish Act”) was passed into law on 11 February 2024 and came into force from 17 February 2024.Please click here for a DETE press release giving more details of the DS Irish Act. The EU Regulation (“Regulation”) commonly referred to as the Digital Services Act applies in full in all Member States from 17 February 2024.The Regulation establishes a pioneering regulatory framework to protect EU users of digital services and their fundamental rights online.  While the Regulation has direct legal effect in EU Member States, it was necessary to have national legislation to implement those provisions of the Regulation that provide for the supervision and enforcement of those obligations. The DS Irish Act 2024 fulfils Ireland’s obligations in this regard. The DS Irish Act formally designates and empowers Coimisiún na Meán as the Irish Digital Services Coordinator and the Competition and Consumer Protection Commission as a competent authority for online marketplaces under the Regulation. When the DS Irish Act was published as a bill late last year it was clarified at the time in a press release from DETE that it was a technical bill, drafted to address specific obligations on Member States of the EU to give effect to the supervision and enforcement provisions of the Regulation. The bill did not add to or amend the obligations on online platforms under the Regulation. Those obligations have direct legal effect in all Member States of the EU and do not require any implementing measures in national law. This information is provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of these pages, we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages.