395C Limitation of relief for relevant losses and allowances

This section provides for a limitation of relief for relevant losses and allowances.

(1) Subsection (1) defines two key terms for the purpose of this section.

The term “relevant allowances” is to have the same meaning as it has in section 304(3A).

A “specified individual” is defined an individual to whom Chapter 2A of Part 15 applies, prior to making a claim under this Chapter or section 304(3A). Chapter 2A of Part 15 limits the amount of certain reliefs that may be used by certain high-income individuals and is referred to as the High-Income Earner Restriction.

(2) Subject subsections (3) and (4), the total amount of relevant losses and relevant allowances that may be claimed is €25,000

(3) The total amount of relevant losses and relevant allowances that may be claimed by a specified individual (i.e. an individual who is subject to the High-Income Earner Restriction) is restricted in accordance with subsection (4).

(4) The total amount of relevant losses and relevant allowances that may be claimed will be restricted to the extent that there can be no reduction in the amount of any other relief used, within the meaning of section 485C(2)(a), in respect of the year of assessment 2019 prior to such claims being made. The effect of this restriction is that the amount of relief that can be given to individuals who are subject to the High- Income Earner Restriction is calculated after any other relief which they are entitled to claim for the tax year 2019.

Relevant Date: Finance Act 2021