Revenue Note for Guidance

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Revenue Note for Guidance

483 Relief for certain gifts

Summary

This section provides relief from income tax or corporation tax in respect of gifts of money accepted by the Minister for Finance for use by the Minister for any purpose for or towards the cost of which public moneys are provided.

Details

Definition

(1)(a)public moneys” are moneys charged on or issued out of the Central Fund provided by the Oireachtas.

Application

(1)(b) This section applies to a gift of money made and accepted by the Minister for Finance for use by the Minister for any purpose for or towards the cost of which public moneys are provided.

Relief

(2), (3) Where for a year of assessment an individual makes a qualifying gift, he/she is entitled, on making a claim, to deduct the amount of the gift from his/her income chargeable to income tax for the year in which the gift is made. Where a married person or civil partner is jointly assessed, the assessable spouse or civil partner is entitled to deduct the amount of the gift from his/her chargeable income (the assessable spouse’s income includes the income of his/her spouse). The relief may be granted either by discharge or repayment of tax.

(2),(4),(5) Where a company makes a qualifying gift, the amount of the gift is deemed to be a loss incurred in a separate trade for the accounting period in which the gift is made. Such a loss is allowable under section 396(2) as a deduction from the company’s profits for the accounting period in which the gift is made and for a previous accounting period of the same length. The provision of sections 396A and 420A do not apply of such a loss.

Relevant Date: Finance Act 2020