669O Exemption for the catch sum

Summary

Section 669O provides that where a licence holder is chargeable to tax under Schedule D in respect of the catch sum payment, then the amount of the profits will be reduced by 50 per cent of the total catch sum. Where a temporary tie up payment forms part of the catch sum, a deduction of 50 per cent of the tie up payment or a portion of the tie up payment may be taken into account in computing the profits charged to tax under Schedule D. The amount of the reduction relating to the catch sum and the deduction relating to the tie up payment together cannot exceed 50 per cent of the catch sum in total.

Details

(1)Subject to subsection 2, where a licence holder is chargeable to tax under Schedule D in respect of the portion of the Brexit compensation sum which relates to the catch sum, then the profits will be reduced by an amount equal to 50 per cent of the catch sum. Where this occurs, the profits are treated as reduced for the purposes of computing total income for the Tax Acts and the reduction applies for the purposes of PRSI and USC.

(2)Where a temporary tie up payment is included in the catch sum a licence holder may elect by notice in writing to a Revenue officer to have a deduction equal to 50 per cent of the amount of the temporary tie up payment or a portion of that payment taken into account in determining the profits or gains charged to tax under Schedule D in the relevant chargeable period. The deduction is to be taken into account in computing total income for the Tax Acts and it applies for the purposes of PRSI and USC.

(3)The total amount of the reduction in respect of the catch sum and the deduction in respect of the tie up payment cannot together exceed an amount equal to 50 per cent of the catch sum.

(4)This subsection allows the licence holder to make the election under subsection (2) and to amend the return and self-assessment for the relevant chargeable period (solely in respect of the election), within 4 years of the end of the chargeable period in which the Brexit compensation sum is received.

(5)“relevant chargeable period” means the chargeable period in which the temporary tie up payment referred to in subsection (2) was taken into account in determining profits or gains chargeable to tax under Schedule D;

“return” has the same meaning as in section 959A.

Relevant Date: Finance Act 2024