Revenue Note for Guidance

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Revenue Note for Guidance

SCHEDULE 25B
[Section 485C]
List Of Specified Reliefs And Method Of Determining Amount Of Specified Relief Used In A Tax Year

Overview

Schedule 25B lists, in column (2), the reliefs to be restricted and the method of determining the amount to be included in the aggregate of amounts of restricted reliefs in column (3) of the Schedule. The following table gives a description of the relief to be restricted and the method of quantifying the amount of each relief to be restricted in respect of each item listed in the Schedule.

TABLE

Item Number

Description of reliefs affected and quantification of the amount of relief to be restricted

1.

The total amount of dividends and other distributions received by the individual in the tax year which are made by a company out of income from stallion fees, stud greyhounds and woodlands which income is exempt from tax (section 140).

2.

The total amount of dividends and other distributions received by the individual in the tax year which are made by a company out of income from exempt patent royalty income (section 141).

3.

The total amount of dividends and other distributions received by the individual in the tax year which are made by a company out of exempt income from certain mining operations (section 142).

4.

The total amount of dividends and other distributions received by the individual in the tax year which are made by a company out of tax relieved income from certain mining operations (section 143).

5.

The full amount of any exempt income, profits or gains of artists, writers and composers (section 195) arising for the tax year computed in accordance with the Tax Acts as if the income, profits or gains were not exempt from income tax.

6.

The full amount of profits or gains exempt under section 231 (Profits or gains from stallion fees) arising to the individual for the tax year computed in accordance with the Tax Acts as if the profits or gains concerned were not exempt from tax.

7.

Deleted by section 14 Finance Act 2015.

8.

The full amount of the profits or gains exemption under section 233 (Stud greyhound service fees) arising to the individual for the tax year computed in accordance with the Tax Acts as if the profits or gains concerned were not exempt from tax.

9.

The full amount of exempt patent royalty income (section 234) arising to the individual for the tax year computed in accordance with the Tax Acts as if the income concerned were not exempt from tax.

10.

Interest relief for loans used to invest in, or loan to, a company in which the investor already has an interest (section 248). The amount of interest qualifying for relief which is actually deducted from or set off against the income of the individual for the tax year.

11.

Interest relief for loans used to invest in, or loan to, a company in which the investor already has an interest or is a full-time or part time employee or director (section 250). The amount of interest qualifying for relief which is actually deducted from or set off against the income of the individual for the tax year.

12.

Interest relief for loans used to acquire an interest in a partnership (section 253). The amount of interest qualifying for relief which is actually deducted from or set off against the income of the individual for the tax year.

13.

Annual writing down capital allowances under section 272 for:

● Hotels written-off at 15% rate (section 268(1)(d)) (hotels attracting annual allowances at 4% rate not affected).

● Nursing homes (section 268(1)(g)).

● Convalescent homes (section 268(1)(i)).

● Qualifying private hospitals (section 268(1)(j))

● Sports injury clinics (section 268(1)(k)).

● Qualifying mental health centres (section 268(1)(l)).

● Qualifying specialist palliative care units (section 268(1)(m)).

● Aviation services facilities (section 268(1)(n)) specified capital expenditure written off at 15% rate over 6 years and 10% rate in year 7 (expenditure written of at 4% rate is not affected).

● Holiday camps written-off at 15% rate (section 268(3)) (holiday camps attracting annual allowances at 4% rate not affected) and Registered holiday cottages (section 268(3)).

● Residential units attached to nursing homes (section 268(3B)).

The aggregate amounts of writing-down allowances for the above buildings and structures which are actually deducted from the profits or gains of the individual’s trade for the tax year or which are actually deducted from or set off against income of the individual for that year.

14.

Accelerated writing-down allowances under section 273 (known as “free depreciation”) that is, an annual allowance of up to 100% of capital expenditure on certain industrial buildings and structures to be taken whenever and in whatever way the person chooses.

The aggregate amounts of accelerated writing-down allowances for such buildings and structures which are actually deducted from the profits or gains of the individual’s trade for the tax year or which are actually deducted from or set off against income of the individual for that year.

15.

Balancing allowances under section 274 made in respect of the following:

● Hotels written-off at 15% rate (section 268(1)(d)) (hotels attracting annual allowances at 4% rate not affected).

●Nursing homes (section 268(1)(g)).

●Convalescent homes (section 268(1)(i)).

●Qualifying private hospitals (section 268(1)(j)).

●Sports injury clinics (section 268(1)(k)).

●Qualifying mental health centres (section 268(1)(l)).

●Qualifying specialist palliative care units (section 268(1)(m)).

●Aviation services facilities (section 268(1)(n)) specified capital expenditure written off at 15% rate over 6 years and 10% rate in year 7 (expenditure written of at 4% rate is not affected).

●Holiday camps written-off at 15% rate (section 268(3)) (holiday camps attracting annual allowances at 4% rate not affected) and registered holiday cottages (section 268(3)).

●Residential units attached to nursing homes (section 268(3B)).

The aggregate amounts of balancing allowances for the above buildings and structures which are actually deducted from the profits or gains of the individual’s trade for the tax year or which are actually deducted from or set off against income of the individual for that year.

15A.

For the year 2007: The amount determined under paragraph 1 of Schedule 25C as the amount of capital allowances carried forward from 2006 to 2007 under section 304(4) that are referable to specified reliefs less any part of that amount so determined to which effect cannot be given for 2007.

For each subsequent year: That part of the amount determined under Schedule 25C as the amount of capital allowances carried forward from 2006 to 2007 under section 304(4) for which relief cannot be given for 2007, to the extent that relief is given for that amount or part of that amount in the subsequent year.

15B.

For the year 2007: The amount determined under paragraph 3 of Schedule 25C as the amount of capital allowances carried forward from 2006 to 2007 under section 305(1) that are referable to specified reliefs less any part of that amount so determined to which effect cannot be given for 2007.

For each subsequent year: That part of the amount determined under Schedule 25C as the amount of capital allowances carried forward from 2006 to 2007 under section 305(1) for which relief cannot be given for 2007, to the extent that relief is given for that amount or part of that amount in the subsequent year.

15C.

The total amount of wear and tear allowances (section 284) on plant and machinery leased to a manufacturing trade by a passive trader, whether the allowances were granted in the year or carried forward from prior years (section 485C(1B) refers).

15D.

The total amount of balancing allowances (section 288) on plant and machinery leased to a manufacturing trade by a passive trader, whether the allowances were granted in the year or carried forward from prior years(section 485C(1B) refers).

16

Capital Allowances for commercial buildings in Customs House Docks Area (section 323). Allowances are 100% free depreciation, 50% initial allowance and 4% annual writing down allowance.

The aggregate amounts of such allowances which are actually deducted from the profits or gains of the individual’s trade for the tax year or which are actually deducted from or set off against income of the individual for that year.

17

That part of the amount of the double rent deduction for industrial and commercial premises in the Customs House Docks Area (section 234) which is actually deducted from the income of the individual’s trade or profession for the year.

18.

Temple Bar Area. Accelerated allowances (section 331) for industrial buildings and structures (including hotels). Initial allowance 25% where construction involved and 50% where refurbishment expenditure involved. Owner-occupiers got free depreciation of 50% for construction and 100% for refurbishment expenditure.

The aggregate amounts of such allowances which are actually deducted from the profits or gains of the individual’s trade for the tax year or which are actually deducted from or set off against income of the individual for that year.

19.

Temple Bar Area. Capital allowances for commercial premises including shops, pubs, offices, restaurants, multi-storey car parks (section 332). For refurbishment and construction of multi-storey car parks, 100% free depreciation, 50% initial allowance and 4% annual allowance were available. For other construction, 50% free depreciation, 25% initial allowance and 2% annual allowance applied.

The aggregate amounts of such allowances which are actually deducted from the profits or gains of the individual’s trade for the tax year or which are actually deducted from or set off against income of the individual for that year.

20.

That part of the amount of the double rent deduction for industrial and commercial premises in Temple Bar Area (section 333) which is actually deducted from the income of the individual’s trade or profession for the year.

21.

Urban Renewal Scheme and Designated Streets (section 341): 50% free depreciation or 25% initial allowance for construction or refurbishment of industrial buildings and structures. In case of designated streets, allowances only applied to refurbishment expenditure.

The aggregate amounts of such allowances which are actually deducted from the profits or gains of the individual’s trade for the tax year or which are actually deducted from or set off against income of the individual for that year.

22.

Urban Renewal Scheme and Designated Streets (section 342): 50% free depreciation, 25% initial allowance and 2% annual allowance for commercial premises. In case of designated streets, allowances only applied to refurbishment expenditure.

The aggregate amounts of such allowances which are actually deducted from the profits or gains of the individual’s trade for the tax year or which are actually deducted from or set off against income of the individual for that year.

23.

Enterprise Areas (section 343): 50% free depreciation, 25% initial allowance and 4% annual allowance for certain trading activities, namely, manufacturing, internationally traded services, freight forwarding and allied services in enterprise areas adjacent to regional airports carried on in commercial type premises.

The aggregate amounts of such allowances which are actually deducted from the profits or gains of the individual’s trade for the tax year or which are actually deducted from or set off against income of the individual for that year.

24.

Multi-storey car parks (section 344): Annual allowance of 2%. Initial allowance of 25%. Free depreciation of up to 50% for owner-occupiers. As respects expenditure after 31 July 1998, allowances available are 4% annual; 50% initial and up to 100% free depreciation.

The aggregate amounts of such allowances which are actually deducted from the profits or gains of the individual’s trade for the tax year or which are actually deducted from or set off against income of the individual for that year.

25.

Urban renewal Scheme, Enterprise Areas, multi-storey car parks (section 345): That part of the amount of the double rent deduction for industrial and commercial premises under these schemes which is actually deducted from the income of the individual’s trade or profession for the year.

26.

Qualifying Resort Areas (section 352): 75% free depreciation, 50% initial allowance and 5% annual allowance for hotels, holiday camps and registered holiday cottages.

The aggregate amounts of such allowances which are actually deducted from the profits or gains of the individual’s trade for the tax year or which are actually deducted from or set off against income of the individual for that year.

27.

Qualifying Resort Areas (section 353): 75% free depreciation, 50% initial allowance and 5% annual allowance for building or structures used for qualifying tourism facilities.

The aggregate amounts of such allowances which are actually deducted from the profits or gains of the individual’s trade for the tax year or which are actually deducted from or set off against income of the individual for that year.

28.

Qualifying Resort Areas (section 354): double rent deduction for industrial building or structure within meaning of section 268(1)(d) (e.g. an hotel) and commercial premises in use for the operation of qualifying tourism facilities.

That part of the amount of the double rent deduction in respect of such buildings which is actually deducted from the income of the individual’s trade or profession for the year.

29.

Qualifying Areas (section 372C): Industrial buildings and structures. Initial allowance of 50%. Alternatively, free depreciation up to 50% of construction or refurbishment expenditure for owner-occupiers.

The aggregate amounts of such allowances which are actually deducted from the profits or gains of the individual’s trade for the tax year or which are actually deducted from or set off against income of the individual for that year.

30.

Qualifying Areas and Living-over-the-shop-scheme (section 372D): Certain commercial premises. Initial allowances of 50% with annual allowances of 4% for the balance. Alternatively, free depreciation of up to 50%.

The aggregate amounts of such allowances which are actually deducted from the profits or gains of the individual’s trade for the tax year or which are actually deducted from or set off against income of the individual for that year.

31.

Qualifying Rural Areas (section 372M): Industrial buildings and structures. Initial allowances of 50%. Alternatively, free depreciation of up to 50% by owner-occupiers.

The aggregate amounts of such allowances which are actually deducted from the profits or gains of the individual’s trade for the tax year or which are actually deducted from or set off against income of the individual for that year.

32.

Qualifying Rural Areas (section 372N): Capital allowances for commercial premises such as shops, offices, etc. Annual writing-down allowance of 4%. Initial allowance of 50%. Alternatively, free depreciation of up to 50% available to owner-occupiers.

The aggregate amounts of such allowances which are actually deducted from the profits or gains of the individual’s trade for the tax year or which are actually deducted from or set off against income of the individual for that year.

33.

Capital allowances for construction or refurbishment of Park and Ride facilities (section 372V). Annual allowances of 4%. Initial allowance of 50%. Alternatively, free depreciation of up to 100% available to owner-occupiers.

The aggregate amounts of such allowances which are actually deducted from the profits or gains of the individual’s trade for the tax year or which are actually deducted from or set off against income of the individual for that year.

34.

Capital allowances for construction or refurbishment of commercial premises (such as shops, offices, etc.) within the site of a Park and Ride facility (section 372W). Annual allowances of 4%. Initial allowance of 50%. Alternatively, free depreciation of up to 100% available to owner-occupiers.

The aggregate amounts of such allowances which are actually deducted from the profits or gains of the individual’s trade for the tax year or which are actually deducted from or set off against income of the individual for that year.

35

Town Renewal Areas (section 372AC): Capital allowances for construction or refurbishment of industrial buildings and structures. Initial allowance of 50%. Free depreciation of up to 50% for owner-occupiers.

The aggregate amounts of such allowances which are actually deducted from the profits or gains of the individual’s trade for the tax year or which are actually deducted from or set off against income of the individual for that year.

36.

Town Renewal Areas (section 372AD): Capital allowances for construction or refurbishment of commercial premises (such as shops, offices, etc.) within qualifying area. Annual allowances of 4%. Initial allowance of 50%. Alternatively, free depreciation of up to 50% available to owner-occupiers.

The aggregate amounts of such allowances which are actually deducted from the profits or gains of the individual’s trade for the tax year or which are actually deducted from or set off against income of the individual for that year.

36A.

Mid-Shannon Tourism Infrastructure Investment Scheme (section 372AX): Capital allowances of 15% over 6 years and 10% in year 7 in relation to expenditure on the construction or refurbishment of certain registered holiday camps.

The aggregate amounts of allowances for the above buildings and structures which are actually deducted from the profits or gains of the individual’s trade for the tax year or which are actually deducted from or set off against income of the individual for that year.

36B.

Mid-Shannon Tourism Infrastructure Investment Scheme (section 372AY): Capital allowances of 15% over 6 years and 10% in year 7 in relation to expenditure on the construction or refurbishment of certain tourism infrastructure facilities.

The aggregate amounts of allowances for the above buildings and structures which are actually deducted from the profits or gains of the individual’s trade for the tax year or which are actually deducted from or set off against income of the individual for that year.

37.

Relief for lessors under section 372AP for expenditure incurred on the provision of residential accommodation under the Urban Renewal Scheme; the Living Over the Shop Scheme; the Rural Renewal Scheme; the Park and Ride Scheme; the Student Accommodation Scheme; the Town Renewal Scheme; and the general countrywide scheme for the refurbishment of rented residential accommodation.

The lesser of the aggregate of relief under section 372AP and the net Case V profits before taking into account the relief under section 372AP.

38.

Relief for lessors under section 372AU(1) for expenditure incurred on the provision of residential accommodation under the Customs House Docks Area; the Temple Bar Area; the 1994 scheme for Designated Areas and Designated Streets; the Qualifying Resort Areas Scheme; and the Designated Islands Scheme. While these schemes are all ceased, they are included as the 10-year period within which a dwelling may be sold and the relief passed on to the purchaser has not expired in all cases.

The lesser of the aggregate amount of relief available under section 372AU and the gross rents received less expenses and less the amount of the section 372AP relief used for the year.

38A.

Living City Initiative (section 372AAC). Capital allowances of 15% over 6 years and 10% in year 7 in relation to expenditure on the conversion or refurbishment of certain commercial premises.

The aggregate amounts of such allowances which are actually deducted from the profits or gains of the individual’s trade for the tax year or which are actually deducted from or set off against income of the individual for that year.

38B.

Living City Initiative (section 372AAB). A deduction of 10% over 10 years in relation to expenditure incurred on the conversion or refurbishment of owner occupied residential accommodation.

The amount actually deducted from the individual’s total income for the tax year.

38C.

Living City Initiative (section 372AAD). Capital allowances of 15% over 6 years and 10% in year 7 in relation to expenditure on the conversion or refurbishment of rented residential premises.

The aggregate amounts of such allowances which are actually deducted from the profits or gains of the individual’s trade for the tax year or which are actually deducted from or set off against income of the individual for that year.

39.

The amount of current year loss relief that is deducted for the tax year under section 381 for Case I or II losses to the extent that the losses arise from double rent deductions.

40.

The amount of current year loss relief that is deducted for the tax year under section 381 to the extent that the loss is attributable to the creation or augmentation of a loss under section 392 by the use of capital allowances that are themselves specified reliefs.

41.

The amount of the relief that is deducted for the tax year under section 382 for losses forward which are attributable to a loss arising from the use of a specified relief.

(Please refer to paragraph 2 of Schedule 25C regarding loss carried forward to the tax year 2007.)

42.

The amount of relief that is deducted for the tax year under section 383 for Case IV losses that arise from the use of a specified relief.

43.

The amount of relief that is deducted for the tax year under section 384 for Case V losses that arise from the use of a specified relief.

(Please refer to paragraph 2 of Schedule 25C regarding loss carried forward to the tax year 2007.)

44.

The amount of relief that is deducted for the tax year under section 385 for terminal losses which are referable to the use of specified reliefs

45.

The amount of film relief which is actually deducted from an individual’s total income for the year (section 481).

46.

The amount of loss relief which is referable to expenditure on a significant building or garden (section 482) that is deducted for the tax year.

47.

The amount of excess relief (within the meaning of Chapter 2A of Part 15) arising because of the operation of section 485E, carried forward for relief under section 485F and actually deducted from the individual’s income for the tax year.

47A.

Deleted by section 20 Finance Act 2016.

48.

The amount of BES relief (section 489(3)) actually deducted from an individual’s total income for the tax year. It is to be noted that Seed Capital relief under section 489(5) is not restricted.

48A.

An amount equal to the total amount deducted from the individual’s total income for the tax year under section 823A.

49.

Capital allowances under section 843 for buildings used for third level educational purposes. Write-off rate is 15% for first 6 years and 10% for year 7.

The aggregate amounts of such allowances which are actually deducted from or set off against income of the individual for that year.

50.

Capital allowances under section 843A for buildings used for child care purposes. Write-off rate is 15% for first 6 years and 10% for year 7.

The aggregate amounts of such allowances which are actually deducted from the profits or gains of the individual’s trade for the tax year or which are actually deducted from or set off against income of the individual for that year.

50A.

Capital allowances under section 843B for buildings used by employers for the provision of child care services or a fitness centre to employees. Write-off rate is 15% for first 6 years and 10% for year 7.

The aggregate amounts of such allowances which are actually deducted from the profits or gains of the individual’s trade for the tax year or which are actually deducted from or set off against income of the individual for that year.

51.

The amount of relevant donations to sports bodies (section 847A) which are actually deducted in computing the individual’s total income for the year.

52.

Deleted by section 19(2) Finance Act 2013.

53.

Capital allowance for commercial buildings in old urban renewal schemes (Schedule 32, paragraph 11).

The aggregate amounts of such allowances which are actually deducted from the profits or gains of the individual’s trade for the tax year or which are actually deducted from or set off against income of the individual for that year.

54.

That part of the amount of the double rent deduction for industrial and commercial premises in the areas covered by the old urban renewal schemes (Schedule 32, paragraph 13) which is actually deducted from the income of the individual’s trade or profession for the year.

Relevant Date: Finance Act 2018