Revenue Note for Guidance

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Revenue Note for Guidance

472C Relief for trade union subscriptions

Summary

This section provides for an annual flat rate allowance of €350 at the standard rate of tax in respect of trade union subscriptions. The full allowance is available annually regardless of the actual amount of the subscription paid. Any person who is a member of a trade union at any time in a particular year will be entitled to the allowance though membership of more than one trade union in the same year will still only entitle the person to one allowance.

The relief is abolished for the tax year 2011 and each subsequent tax year.

Details

Definitions

(1) “appropriate percentage” which means the standard rate of income tax;

“specified amount” in relation to an individual for a tax year means €350;

“trade union” means the holder of a negotiating licence under the Trade Union Act, 1941, an excepted body within the meaning of the same Act and the various representative bodies of the Garda Síochána and the Defence Forces as set out.

Relief

(2) Relief is available in a particular year if the individual is a trade union member at any time in that year. Where relief is due under the section, the income tax to be charged on the individual or the individual’s spouse, other than under section 16(2), is to be reduced by the lesser of—

  • the appropriate percentage of the specified amount, or
  • the amount which reduces the income tax to nil.

(3) & (5) The relief for 2001 (the short tax year) is to be added to the relief for 2002. Where the 2001 relief cannot be fully used in 2002 the unused element may be set back against 2001 tax. The amount to be set back is the lesser of-

  • the amount set back, or
  • the amount which reduces the 2001 tax to nil.

Membership of more than one trade union

(6) A person is entitled to only one allowance per year even though they may during the year be members of more than one trade union.

Information

(7) To facilitate the giving of the relief to an individual, employers and trade unions may, when requested by Revenue and where such information is available to them, furnish to Revenue certain information regarding trade union membership i.e.-

  • the name and address of the individual,
  • the name of the trade union of which the individual is a member,
  • the Personal Public Service Number (PPSN) of the individual, and
  • the name and address of the employer.

(7A) For the purpose of a return by a trade union as above, an employer may furnish to the trade union, on request, the names and PPSNs of his or her employees who are members of the trade union concerned and who are having their trade union subscription deducted from pay.

(8) Information furnished by employers or unions under the section will be used only to facilitate giving the relief and not for any other purpose.

(9) The relief is abolished for the tax year 2011 and each subsequent tax year.

Relevant Date: Finance Act 2021