Taxes Consolidation Act, 1997 (Number 39 of 1997)
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480A Relief on retirement for certain income of certain sportspersons.
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(1) In this section “basis period”, in relation to a year of assessment, means the period on the profits or gains of which income tax for the year of assessment is to be finally computed under the Income Tax Acts.
(2) Notwithstanding any other provision of the Income Tax Acts other than [4]>section 1006A<[4][4]>section 960H<[4], this section applies where in the year of assessment 2002 or any subsequent year of assessment an individual (in this section referred to as the “relevant individual”) who is resident in the State for that year of assessment and engaged in an occupation (in this section referred to as the “specified occupation”), or carries on a profession (in this section referred to as the “specified profession”), specified in Schedule 23A proves to the satisfaction of the Revenue Commissioners that he or she has in that year of assessment ceased permanently to be engaged in the specified occupation or to carry on the specified profession, as the case may be.
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(3) Where this section applies, the relevant individual shall, on the making of a claim in that behalf, be entitled to have a deduction made from his or her total income for up to any 10 of the years of assessment mentioned in subsection (4).
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(3) Where this section applies, the relevant individual shall, on the making of a claim in that behalf, within 4 years from the end of the year of assessment in which he or she ceases permanently to be engaged in the specified occupation, or to carry on the specified profession, as the case may be, be entitled to have a deduction made from his or her total income for up to any 10 of the years of assessment mentioned in subsection (4).
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(3A)Subsection (3) shall apply notwithstanding any limitation in section 865(4) on the time within which a claim for a repayment of tax is required to be made. Section 865(6) shall not prevent the Revenue Commissioners from repaying an amount of tax as a consequence of a timely claim for relief under this section where a valid claim for a repayment of tax (within the meaning of section 865(1)(b)) has been made.
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(4) The years of assessment referred to in subsection (3) are the year of assessment in which the relevant individual ceases permanently to be engaged in the specified occupation or to carry on the specified profession, as the case may be, and any previous year of assessment not being earlier than the year of assessment 1990-91, for which the relevant individual was resident in the State.
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(1) In this section—
“basis period”, in relation to a year of assessment, means the period on the profits or gains of which income tax for the year of assessment is to be finally computed under the Income Tax Acts;
“EEA Agreement” means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by all subsequent amendments to that Agreement;
“EEA state” means a state, other than the State, which is a contracting party to the EEA Agreement;
“EFTA state” means a state, other than an EEA state, which is a member of the European Free Trade Association;
“relevant individual” means an individual who—
(a) engaged in a specified occupation or carried on a specified profession,
(b) complied with the Income Tax Acts, and
(c) is resident in the State, [9]>the United Kingdom,<[9] an EEA state or an EFTA state in the retirement year;
“relevant period” means the retirement year and the 14 years of assessment immediately preceding the retirement year;
“relevant years” means the years of assessment as specified by the relevant individual, not exceeding 10 years of assessment, in the relevant period;
“retirement year” means the year of assessment in respect of which the relevant individual proves to the satisfaction of the Revenue Commissioners that he or she has, in that year of assessment, ceased permanently to be engaged in a specified occupation or to carry on a specified profession;
“specified occupation” and ‘specified profession’ mean an occupation or profession, as the case may be, specified in Schedule 23A.
(2) Notwithstanding any other provision of the Income Tax Acts other than section 960H, this section applies to a relevant individual who ceased permanently to be engaged in a specified occupation or to carry on a specified profession.
(3) Where this section applies, the relevant individual shall, on the making of a claim in that behalf, within 4 years from the end of the retirement year, be entitled to have deductions made from his or her total income for the relevant years.
(4) (a) Subsection (3) shall apply notwithstanding any limitation in section 865(4) on the time within which a claim for a repayment of tax is required to be made.
(b) Section 865(6) shall not prevent the Revenue Commissioners from repaying an amount of tax as a consequence of a timely claim for relief under this section where a valid claim for a repayment of tax (within the meaning of section 865(1)(b)) has been made.
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(5) The amount of the deduction to be made under subsection (3) for any year of assessment shall be an amount equal to 40 per cent of the receipts, before deducting expenses, of the relevant individual for the basis period for that year of assessment which arose wholly and exclusively from the engagement of the relevant individual in the specified occupation or from the carrying on by the relevant individual of the specified profession, as the case may be.
(6) For the purposes of subsection (5), receipts shall be regarded as deriving wholly and exclusively from the engagement of the relevant individual in the specified occupation or from the carrying on by the relevant individual of the specified profession, as the case may be, only to the extent that such receipts derive directly from the actual participation by the relevant individual in the sport associated with the specified occupation or the specified profession, and accordingly—
(a) include—
(i) where the relevant individual is an employee, so much of all salaries, fees, wages, bonuses or perquisites paid to the relevant individual by his or her employer as a direct consequence of the participation by the relevant individual in the sport associated with the specified occupation, and
(ii) where the relevant individual carries on the specified profession, all match or performance fees, prize moneys and appearance moneys paid to the relevant individual by any other person as a direct consequence of the participation of the relevant individual in the sport associated with the specified profession,
but
(b) do not include—
(i) sponsorship moneys received by the relevant individual, or
(ii) receipts received by the relevant individual for participation in advertisements, promotions, videos or television or radio programmes, or for personal appearances or interviews, newspaper or magazine articles, or for the right to use the individual’s image or name to promote or endorse products or services or in any other manner.
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(7) A claim under this section shall be included in the return of income to be made by the relevant individual for the year of assessment in which the relevant individual ceases permanently to be engaged in the specified occupation, or to carry on the specified profession, as the case may be.
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(7) A claim under this section shall be made—
(a) where the relevant individual is required to submit a return of income [7]>in the retirement year<[7][7]>for the retirement year<[7], by including a claim in the return of income, or
(b) where the relevant individual is not required to submit a return of income [7]>in the retirement year<[7][7]>for the retirement year<[7], by submitting a claim to the Revenue Commissioners.
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(8) (a) Relief from income tax under this section shall in all cases be given by means of repayment.
(b) Any repayment of income tax due under this section shall not carry interest.
(c) Relief under this section for any year of assessment shall not create or augment a loss for that year of assessment for the purposes of Chapter 1 of Part 12.
(9) A deduction given under this section for any year of assessment shall not be taken into account in determining the net relevant earnings [8]>(within the meaning of section 787)<[8][8]>(within the meaning of section section 787 or section 787B)<[8] of the relevant individual for that year of assessment.
(10) Where any relief has been given to a relevant individual under this section and the relevant individual subsequently recommences to be engaged in the specified occupation or to carry on the specified profession, as the case may be, that relief shall be withdrawn by making an assessment to income tax under Case IV of Schedule D for the year of assessment for which that relief was given and, notwithstanding anything in the Income Tax Acts, such an assessment may be made at any time.
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Substituted by F(No.2)A13 s15(1)(a). Applies in respect of retirements on or after 1 January 2014 from occupations or professions, as the case may be, specified in Schedule 23A.
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Substituted by F(No.2)A13 s15(1)(b). Applies in respect of retirements on or after 1 January 2014 from occupations or professions, as the case may be, specified in Schedule 23A.
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Substituted by FA16 s7(1). Applies for the year of assessment 2017 and each subsequent year of assessment.
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Inserted by the Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Act 2020 s38. Comes into operation on 31 December 2020 as per S.I. No. 723 of 2020.