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TAXES CONSOLIDATION ACT, 1997

Type Act

Publication 1997-11-30

Last updated 2026-07-15

State Partially repealed superseded text

Text As published

Source Irish Statute Book

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articles 1104

This is the act as published. Later amendments are not folded into the text below: each one is a separate act in this repository and an entry in this law's history.

375 amending acts · 2026-07-15, NATIONAL TREASURY MANAGEMENT AGENCY (MISCELLANEOUS PROVISIONS) ACT 2026

Act to consolidate enactments relating to income tax, corporation tax and capital gains tax, including certain enactments relating also to other taxes and duties

Reform history JSON API

(5) The inspector may by notice in writing require a company making a claim for relief under this Part to furnish him or her with such information or particulars as may be necessary for the purposes of this section, and subsection (2) of section 448 shall apply as if the matters of which proof is required by that subsection included the information or particulars specified in a notice under this section.

454 Restriction of certain charges on income. [CTA76 s10A(1)(a) and (b)(ii), (2) and (3); FA92 s46(1)(a); FA93 s50]

454.—(1) (a) In this section—

“trade” means a trade carried on by a company which consists of or includes the manufacture of goods (including activities carried on in an accounting period which, if the company had sufficient profits in that period and made a claim for relief in respect of the trade under this Part for that period, would be regarded for the purposes of this Part as the manufacture of goods);

“income from the sale of goods” in an accounting period in the course of a trade carried on by a company

shall, subject to section 422 as applied for the purposes of relief under section 456, be such income as would be “the income from the sale of those goods” in that period in the course of the trade for the purposes of a claim under section 448(2), if—

(i) no group relief under section 456 or loss relief under section 455(3) were allowed against income from the trade in that period,

(ii) the company had sufficient profits, and

(iii) the company made a claim for relief under this Part;

“charges on income paid for the purpose of the sale of goods” in the course of a trade in an accounting period shall be such amount as would be the amount of the income from the sale of goods in that period if, notwithstanding section 448(4), “the company's income for the relevant accounting period from the sale in the course of the trade mentioned in that subsection of goods and merchandise” for the purposes of section 448(3) were the amount of so much of the charges on income paid wholly and exclusively for the purposes of the trade in that period as appears to the inspector or on appeal to the Appeal Commissioners to be referable to charges on income paid for the purpose of the sale of goods and merchandise;

“the sale of goods and merchandise” in the course of a trade carried on by a company means the sale of such goods and merchandise as would respectively be treated as goods and merchandise for the purposes of a claim under this Part, if the company had a sufficiency of profits and had made such a claim.

(b) For the purposes of this section, where an accounting period begins before the 1st day of January, 2011, and ends on or after that date, it shall be divided into one part beginning on the day on which the accounting period begins and ending on the 31st day of December, 2010, and another part beginning on the 1st day of January, 2011, and ending on the day the accounting period ends, and both parts shall be treated as if they were separate accounting periods.

(2) Notwithstanding section 243, so much of the total amount of charges on income paid for the purpose of the sale of goods by a company in an accounting period ending on or before the 31st day of December, 2010, in the course of a trade or trades, as the case may be, shall not be allowed as a deduction against the total profits of the company for the period as exceeds the total amount, reduced by any loss relief under section 455(3), of the company's income from the sale of goods in the course of the trade or trades, as the case may be, in the period.

(3)
(a) Notwithstanding section 448(3), the income of a company, referred to in the expression “the income from the sale of those goods”, for any accounting period for the purposes of section 448(2) shall be the sum determined by section 448(3) for that period reduced by any charges on income paid for the purpose of the sale of goods which are allowed as a deduction against the total profits of the company for that period.

(b) Notwithstanding section 4(4)(b), the income of a company, referred to in the expression “total income brought into charge to corporation tax”, for any accounting period for the purposes of section 448(2) shall be the sum determined by section 4(4)(b) for that period reduced by any charges on income paid for the purposes of the sale of goods which are allowed as a deduction against the total profits of the company for that period.

(i) the corporation tax referable to the income of the company from the sale of goods is to be reduced under section 448, and

(ii) charges on income paid for the purpose of the sale of goods have been allowed as a deduction against total profits,

then, notwithstanding section 148, the charges on income paid for the purpose of the sale of goods shall be deducted from the amount of the relevant deduction in relation to the period for charges on income in section 148(1).

455 Restriction of certain losses. [CTA76 s16A; FA92 s46(1)(c)]

455.—(1) (a) In this section—

“trade”, “income from the sale of goods” and “the sale of goods and merchandise” have the same meanings respectively as in section 454;

“a loss from the sale of goods” in the course of a trade in an accounting period shall be such amount as would be the amount of the income from the sale of goods in that period if, notwithstanding section 448(4), “the company's income for the relevant accounting period from the sale in the course of the trade mentioned in that subsection of goods and merchandise” for the purposes of section 448(3) were the amount of so much of the loss, computed as for the purposes of section 396(2), from the trade in the period as appears to the inspector or on appeal to the Appeal Commissioners to be referable to a loss incurred in the sale of goods and merchandise, but a loss such as is mentioned in section 407(4)(b) shall not be a loss from the sale of goods.

(b) Section 454(1)(b) shall apply for the purposes of this section as it applies for the purposes of section 454.

(2) Notwithstanding section 396(2) but subject to subsections (6) and (7), for the purposes of that section the amount of a loss in a trade incurred by a company in an accounting period shall be deemed to be reduced by the amount of a loss from the sale of goods, if any, incurred in the trade by the company in the accounting period.

(3) Subject to subsections (6) and (7), where in an accounting period a company carrying on a trade incurs a loss from the sale of goods, the company may make a claim requiring that the loss be set off for the purposes of corporation tax against its income from the sale of goods—

(a) of that accounting period, and

(b) if it was then carrying on the trade and if the claim so requires, of preceding accounting periods ending within the time specified in subsection (4),

and, subject to any relief for an earlier loss, to the extent that the trading income of any of those accounting periods consists of or includes income from the sale of goods, that trading income shall then be reduced by so much of the loss as cannot be relieved against trading income of a later accounting period.

(4) For the purposes of subsection (3), the time referred to in paragraph (b) of that subsection shall be the time immediately preceding the accounting period first-mentioned in subsection (3) equal in length to that accounting period; but the amount of the reduction which may be made under subsection (3) in the trading income of an accounting period falling partly before that time shall not exceed such part of the income from the sale of goods included in that trading income as bears to the income from the sale of goods the same proportion as the part of the accounting period falling within that time bears to the whole of that accounting period.

(5)
(a) In section 448(3) and for the purposes of determining “the amount” in the expression “the amount of the company's income for the relevant accounting period from the sale in the course of the trade mentioned in that subsection of goods and merchandise”, it shall be determined in accordance with section 448(4) as if no relief for a loss in a trade had been claimed under this section.

(b) Notwithstanding section 448(3), for the purposes of determining “the income” in the expression “the income from the sale of those goods” in an accounting period for the purposes of section 448(2), it shall be the sum determined by section 448(3) for that period reduced by any relief for a loss in a trade allowed under this section against income of the trade mentioned in section 448(2) in that period.

(6) This section shall not apply to so much of a company's loss from the sale of goods in the course of a trade in an accounting period as does not exceed the amount of the capital allowances under Part 9 or Chapter 1 of Part 29 which are to be made for the accounting period in taxing the trade, and for the purposes of this subsection no account shall be taken of capital allowances other than capital allowances in respect of machinery or plant or an industrial building or structure—

(a) provided for the purposes of a project approved within the period of 2 years ending on the 31st day of December, 1988, by the Industrial Development Authority,

(b) the expenditure on the provision of which was incurred on or before the 31st day of March, 1995, and

(c) more than 50 per cent of the expenditure on the provision of which was incurred, or was the subject of a binding contract entered into, before the 1st day of April, 1992.

(7) This section shall not apply to so much of a company's loss from the sale of goods in the course of a trade in an accounting period as does not exceed the amount of the capital allowances under section 323(2) deducted by the company in computing the loss which the company has incurred in that period in carrying on trading operations specified in a certificate given to it, and not subsequently revoked, by the Minister for Finance under section 446.

456 Restriction of group relief. [CTA76 s116A(1)(a) and (b)(ii), (2) and (3), (4)(b) and (5); FA88 s34; FA92 s46(2)]

456.—(1) (a) In this section—

“trade”, “income from the sale of goods”, “charges on income paid for the purposes of the sale of goods” and “the sale of goods and merchandise” have the same meanings respectively as in section 454;

“a loss from the sale of goods” has the same meaning as in section 455;

“an excess of charges on income paid for the purpose of the sale of goods” in the course of the trade in an accounting period shall be so much of an amount, being the amount by which the charges on income paid by a company for the purpose of the sale of goods in the course of the trade in that period exceed the income from the sale of goods in the course of the trade in that period, as does not exceed the excess referred to in section 420(6) as computed for the company for that period.

(b) Section 454(1)(b) shall apply for the purposes of this section as it applies for the purposes of section 454.

(2)
(a) Notwithstanding subsections (1) and (6) of section 420 and section 421 but subject to subsection (4), where in any accounting period ending on or before the 31st day of December, 2010, the surrendering company incurs a loss from the sale of goods or an excess of charges on income paid for the purpose of the sale of goods, that loss or excess may be set off for the purposes of corporation tax against income from a trade of the claimant company for its corresponding accounting period to the extent of that income or, if it is less, to the extent of the income from the sale of goods in the course of the trade reduced by—

(i) charges on income paid for the purposes of the sale of goods (within the meaning of section 454), and

(ii) any loss relief under section 455(3);

but no other relief shall be given in respect of that loss or excess to a company other than the surrendering company.

(b) Group relief allowed under paragraph (a) shall reduce the income from a trade of the claimant company for an accounting period—

(i) before relief granted under section 397 in respect of a loss incurred in a succeeding accounting period or periods, and

(ii) after the relief granted under section 396 in respect of a loss incurred in a preceding accounting period or periods.

(3)
(a) For the purposes of section 448(3), “the amount of the company's income for the relevant accounting period from the sale in the course of the trade mentioned in that subsection of goods and merchandise” shall be determined in accordance with section 448(4) as if no group relief had been allowed under this section.

(b) Notwithstanding section 448(3), “the income from the sale of those goods” in an accounting period for the purposes of section 448(2) shall be the sum determined by section 448(3) for that period reduced by any group relief allowed under this section against income of the trade mentioned in section 448(2) in that period.

(4) This section shall not apply to so much of a loss from the sale of goods in the course of a trade in an accounting period as does not exceed the amount of the capital allowances under section 323(2) deducted by the surrendering company in computing the loss which the company has incurred in that period in carrying on trading operations specified in a certificate given to it, and not subsequently revoked, by the Minister for Finance under section 446.

(5) For the purposes of this section—

(a) in the case of a claim made by a company as a member of a consortium, only a fraction of a loss from the sale of goods or an excess of charges on income paid for the purpose of the sale of goods may be set off, and that fraction shall be equal to that member's share in the consortium, subject to any further reduction under section 422(2), and

(b) section 422 shall apply as if—

(i) for “total profits” in subsection (2)(a) of that section there were substituted “income from a trade”, and

(ii) for “those profits” in subsection (2)(b) of that section there were substituted “the income from the sale of goods in the course of a trade of the claimant company”.

457 Application of section 448 where profits are charged to corporation tax at the reduced rate. [CTA76 s28A(10); FA96 s44; FA97 s60(1)(b)]

457.—Where any part of the profits of an accounting period of a company is charged to corporation tax in accordance with section 22, then—

(a) for the purposes of section 448, the relevant corporation tax in relation to the accounting period shall be reduced by an amount determined by the formula—


R ____ 100	× S

where—

R is the rate per cent specified in section 22(1) in relation to the accounting period, and

S is an amount equal to so much of the profits of the company for the accounting period as are charged to tax in accordance with section 22(1),

and

(b) notwithstanding section 4(4)(b), the income of a company, referred to in the expression “total income brought into charge to corporation tax”, for the accounting period for the purposes of section 448(2) shall be the sum determined by section 4(4)(b) for that period reduced—

(i) in accordance with sections 454 and 455, and

(ii) by an amount equal to so much of the profits of the company for the accounting period as are charged to tax in accordance with section 22(1).

PART 15 Personal Allowances and Reliefs and Certain Other Income Tax and Corporation Tax Reliefs

CHAPTER 1 Personal allowances and reliefs

458 Deductions allowed in ascertaining taxable income and provisions relating to reductions in tax. [ITA67 s137; FA96 s132(1) and Sch5 par1(3); FA97 s8(8), s57(4) and s146(1) and Sch9 PtI par1(8)]

458.—(1) An individual who, in the manner prescribed by the Income Tax Acts, makes a claim in that behalf and makes a return in the prescribed form of the individual's total income shall be entitled—

(a) for the purpose of ascertaining the amount of the income on which he or she is to be charged to income tax (in the Income Tax Acts referred to as “the taxable income”) to have such deductions as are specified in the provisions referred to in Part 1 of the Table to this section, but subject to those provisions, made from the individual's total income, and

(b) to have such reductions as are specified in the provisions referred to in Part 2 of that Table, but subject to those provisions, made in the income tax to be charged on the individual.

(2) Subsections (3) and (4) of section 459 and paragraph 8 of Schedule 28 shall apply for the purposes of claims for—

(a) any such deductions from total income as are specified in the provisions referred to in Part 1 of the Table to this section, and

(b) any such reductions in tax as are specified in the provisions referred to in Part 2 of the Table to this section.

TABLE

Part 1

Paragraphs 12 and 20 of Schedule 32

Part 2

459 General provisions relating to allowances, deductions and reliefs. [ITA67 s146, s149 and Sch4 par1(1) and par2(1) and (3) to (5); F(MP)A68 s3(4) and (5) and Sch PtIII and PtIV; FA96 s132(1) and Sch5 PtI par1(5) and (6)]

459.—(1) A claimant shall not be entitled to an allowance, deduction or relief under the provisions specified in the Table to section 458 in respect of any income the tax on which the claimant is entitled to charge against any other person, or to deduct, retain or satisfy out of any payment which the claimant is liable to make to any other person.

(2) Except where otherwise provided, any allowance, deduction or relief under the provisions specified in the Table to section 458 shall be given either by discharge or reduction of the assessment, or by repayment of the excess which has been paid, or by all of those means, as the case may require.

(3) Any claim shall be accompanied by a declaration and statement in the prescribed form signed by the claimant setting out—

(a) all the particular sources from which the claimant's income arises and the particular amount arising from each source,

(b) all particulars of any yearly interest or other annual payments reserved or charged on the claimant's income, whereby the claimant's income is or may be diminished, and

(c) all particulars of sums which the claimant has charged or may be entitled to charge on account of tax against any other person, or which the claimant has deducted, or may be entitled to deduct, out of any payment to which the claimant is or may be liable.

(4)
(a) The claim shall be made and proved in accordance with the powers and provisions under which tax under Schedule D is ascertained and charged.

(b) Where a claimant is not in the State, an affidavit stating the particulars required by the Income Tax Acts, and taken before any person who has authority to administer in the place where the claimant resides an oath with regard to any matter relating to the public revenue of the State, may be received by the Revenue Commissioners.

(c) Where satisfactory proof is given that a claimant is unable to attend in person, a claim on the claimant's behalf may be made by any guardian, trustee, attorney, agent or factor acting for the claimant.

(d) Where a person is assessable on behalf of any other person, such person may make a claim on behalf of that other person.

460 Rate of tax at which repayments are to be made. [ITA67 s497; FA76 s7; FA96 s132(2) and Sch5 par1(23)]

460.—(1) Subject to subsections (2) and (3), any repayment of income tax for any year of assessment to which any person may be entitled in respect of any allowance, deduction, relief or reduction under the provisions specified in the Table to section 458 shall, except where otherwise provided by the Income Tax Acts, be made at the standard rate of tax or at the higher rate, as the case may be.

(2) In the case of any person who proves as regards any year that, by reason of the allowances, deductions or reliefs to which that person is entitled, he or she has no taxable income for that year, any repayment to be made shall be a repayment of the whole amount of the tax paid by him or her, whether by deduction or otherwise, in respect of his or her income for that year.

(3) In relation to repayments of tax, the amount of tax to be repaid under this section to any person for any year shall not exceed a sum equal to the difference between the amount of tax paid by that person, whether by deduction or otherwise, in respect of his or her income for that year and the amount of tax which would be payable by him or her for that year if his or her total income had been charged to tax in accordance with the Income Tax Acts.

461 Married and single personal allowances. [ITA67 s138; FA80 s3; FA82 s2(3) and Sch1 par1(a)(i); FA88 s3(3) and Sch1 par(a); FA97 s3(1) and (3) and Sch1 par1(a)]

461.—The deductions specified in this section for the purpose of ascertaining the taxable income of an individual for a year of assessment shall be—

(a) in a case in which the claimant is a married person who—

(i) is assessed to tax for the year of assessment in accordance with section 1017, or

(ii) proves that his or her spouse is not living with him or her but is wholly or mainly maintained by him or her for the year of assessment and that the claimant is not entitled, in computing his or her income for tax purposes for that year, to make any deduction in respect of the sums paid by him or her for the maintenance of his or her spouse,

a deduction of £5,800,

(b) in a case in which the claimant in the year of assessment is—

(i) a widowed person, a deduction of £3,400, or

(ii) a widowed person, other than a person to whom paragraph (a) applies, whose spouse has died in that year of assessment, a deduction of £5,800, and

462 Additional amount for widowed parents and other single parents. [ITA67 s138A(1) to (6); FA85 s4; FA97 s3(1) and (3) and Sch1 par1(b)]

462.—(1) (a) In this section, “qualifying child”, in relation to any claimant and year of assessment, means—

(i) a child—

(I) born in the year of assessment,

(II) who, at the commencement of the year of assessment, is under the age of 16 years, or

(III) who, if over the age of 16 years at the commencement of the year of assessment—

(A) is receiving full-time instruction at any university, college, school or other educational establishment, or

(B) is permanently incapacitated by reason of mental or physical infirmity from maintaining himself or herself and had become so permanently incapacitated before he or she had attained the age of 21 years or had become so permanently incapacitated after attaining the age of 21 years but while he or she had been in receipt of such full-time instruction,

and

(ii) a child who is a child of the claimant or, not being such a child, is in the custody of the claimant and is maintained by the claimant at the claimant's own expense for the whole or part of the year of assessment.

(b) This section shall apply to an individual who is not entitled to a deduction mentioned in paragraph (a) or paragraph (b)(ii) of section 461.

(2) Subject to subsection (3), where the claimant, being an individual to whom this section applies, proves for a year of assessment that a qualifying child is resident with him or her for the whole or part of the year, the claimant shall be entitled—

(a) if he or she is an individual to whom section 461(b)(i) applies, to a deduction of £2,400, or

(b) if he or she is an individual to whom section 461 (c) applies, to a deduction of £2,900;

but this section shall not apply for any year of assessment in the case of a husband or a wife where the wife is living with her husband, or in the case of a man and woman living together as man and wife.

(3) A claimant shall be entitled to only one deduction under subsection (2) for any year of assessment irrespective of the number of qualifying children resident with the claimant in that year.

(4)
(a) The references in subsection (1)(a) to a child receiving fulltime instruction at an educational establishment shall include references to a child undergoing training by any person (in this subsection referred to as “the employer”) for any trade or profession in such circumstances that the child is required to devote the whole of his or her time to the training for a period of not less than 2 years.

(b) For the purpose of a claim in respect of a child undergoing training, the inspector may require the employer to furnish particulars with respect to the training of the child in such form as may be prescribed by the Revenue Commissioners.

(5)
(a) No deduction shall be allowed under this section for any year of assessment in respect of any child who is entitled in his or her own right to an income exceeding £720 in that year except that, if the amount of the excess is less than the deduction which would be allowable apart from this subsection, a deduction reduced by that amount shall be allowed.

(b) In calculating the income of the child for the purposes of paragraph (a), no account shall be taken of any income to which the child is entitled as the holder of a scholarship, bursary or other similar educational endowment.

(6) Where any question arises as to whether any person is entitled to an allowance under this section in respect of a child over the age of 16 years as being a child who is receiving full-time instruction referred to in this section, the Revenue Commissioners may consult the Minister for Education and Science.

463 Special allowance for widowed parent following death of spouse. [FA91 s4(1) and (2); FA96 s132(1) and Sch5 PtI par17]

463.—(1) (a) For the purposes of this section, “qualifying child”, in relation to a claimant and a year of assessment, has the same meaning as in section 462, and the question of whether a child is a qualifying child shall be determined on the same basis as it would be for the purposes of section 462, and subsections (3), (4) and (6) of that section shall apply accordingly.

(b) This section shall apply to an individual whose spouse dies in a year of assessment (in this section referred to as a “claimant”).

(2) Where a claimant proves, in relation to any of the 3 years of assessment immediately following the year of assessment in which the claimant's spouse dies, that—

(a) he or she has not remarried before the commencement of the year, and

(b) a qualifying child is resident with him or her for the whole or part of the year,

the claimant shall, in respect of each of the years in relation to which the claimant so proves, be entitled, in computing the amount of his or her taxable income, to have a deduction made from his or her total income as follows—

(i) for the first of those 3 years, £1,500,

(ii) for the second of those 3 years, £1,000, and

(iii) for the third of those 3 years, £500;

but this section shall not apply for any year of assessment in the case of a man and woman living together as man and wife.

464 Age allowance. [FA74 s8(1); FA80 s19 and Sch1 PtIII par4; FA97 s3(1) and (3) and Sch1 par2]

464.—Where for any year of assessment an individual is entitled to a deduction under section 461 and proves that at any time during that year of assessment—

(a) the individual, or

(b) in the case of a married person whose spouse is living with him or her and who is assessed to tax in accordance with section 1017, either the individual or the individual's spouse,

was of the age of 65 years or over, the individual shall, in addition to the allowance to which the individual is entitled under section 461 for that year of assessment, be entitled to a deduction of—

(i) in a case where the individual is a married person whose spouse is living with him or her and the individual is assessed to tax in accordance with section 1017, £800, and

(ii) in any other case, £400.

465 Incapacitated children. [ITA67 s141(1) to (6); FA86 s4; FA91 s126; FA96 s3 and Sch1 par1(c)]

465.—(1) Where a claimant proves that he or she has living at any time during a year of assessment any child who—

(a) is under the age of 16 years and is permanently incapacitated by reason of mental or physical infirmity, or

(b) if over the age of 16 years at the commencement of the year, is permanently incapacitated by reason of mental or physical infirmity from maintaining himself or herself and had become so permanently incapacitated before he or she had attained the age of 21 years or had become so permanently incapacitated after attaining the age of 21 years but while he or she had been in receipt of full-time instruction at any university, college, school or other educational establishment, the claimant shall, subject to this section, be entitled in respect of each such child to a deduction of £700.

(2)
(a) A child under the age of 16 years shall be regarded as permanently incapacitated by reason of mental or physical infirmity only if the infirmity is such that there would be a reasonable expectation that if the child were over the age of 16 years the child would be incapacitated from maintaining himself or herself.

(b) In the case of a child to whom subsection (1)(b) applies, the deduction shall be £700 or the amount expended by the claimant in the year of assessment on the maintenance of the child, whichever is the lesser.

(c) Any deduction under this section shall be in substitution for and not in addition to any deduction to which the claimant might be entitled in respect of the same child under section 466.

(3) Where the claimant proves for the year of assessment—

(a) that the claimant has the custody of and maintains at his or her own expense any child who, but for the fact that that child is not a child of the claimant, would be a child referred to in subsection (1), and

(b) that neither the claimant nor any other individual is entitled to a deduction in respect of the same child under subsection (1) or under any other provision of this Part, or, if any other individual is entitled to such a deduction, that such other individual has relinquished his or her claim to that deduction,

the claimant shall be entitled to the same deduction in respect of the child as if the child were a child of the claimant.

(4)
(a) The reference in subsection (1) to a child receiving fulltime instruction at an education establishment shall include a reference to a child undergoing training by any person (in this subsection referred to as “the employer”) for any trade or profession in such circumstances that the child is required to devote the whole of his or her time to the training for a period of not less than 2 years.

(b) For the purpose of a claim in respect of a child undergoing training, the inspector may require the employer to furnish particulars with respect to the training of the child in such form as may be prescribed by the Revenue Commissioners.

(5)
(a) No deduction shall be allowed under this section in respect of any child entitled in his or her own right to an income exceeding £2,100 a year except that, if the amount of the excess is less than the deduction which would be allowable apart from this subsection, a deduction reduced by that amount shall be allowed.

(b) In calculating the income of the child for the purposes of paragraph (a), no account shall be taken of any income to which the child is entitled as the holder of a scholarship, bursary, or other similar educational endowment.

(6) Where any question arises as to whether any person is entitled to an allowance under this section in respect of a child over the age of 21 years as being a child who had become permanently incapacitated by reason of mental or physical infirmity from maintaining himself or herself after attaining that age but while in receipt of full-time instruction referred to in this section, the Revenue Commissioners may consult the Minister for Education and Science.

(7) Where for any year of assessment 2 or more individuals are or would but for this subsection be entitled under this section to relief in respect of the same child, the following provisions shall apply:

(a) only one deduction under this section shall be allowed in respect of the child;

(b) where the child is maintained by one parent only, that parent only shall be entitled to claim such deduction;

(c) where the child is maintained jointly by both parents, each parent shall be entitled to claim such part of such deduction as is proportionate to the amount expended by him or her on the maintenance of the child;

(d) in ascertaining for the purposes of this subsection whether a parent maintains a child and, if so, to what extent, any payment made by the parent for or towards the maintenance of the child which the parent is entitled to deduct in computing his or her total income for the purposes of the Income Tax Acts shall be deemed not to be a payment for or towards the maintenance of the child.

466 Dependent relative. [ITA67 s142; FA77 s1; FA79 s1; FA82 s2 and Sch1 par1; FA97 s146(1) and Sch9 par1(10)]

466.—(1) In this section, “specified amount” means the aggregate of the payments to which an individual is entitled in a year of assessment in respect of an old age (contributory) pension at the maximum rate under the Social Welfare (Consolidation) Act, 1993, if throughout the year of assessment such individual is entitled to such a pension and—

(a) has no adult dependant or qualified children (within the meaning, in each case, of that Act),

(b) is over the age of 80 years (or such other age as may be specified in that Act for the time being in place of the age of 80 years), and

(2) Where for any year of assessment a claimant proves that he or she maintains at his or her own expense any person, being—

(a) a relative of the claimant, or of the claimant's spouse, incapacitated by old age or infirmity from maintaining himself or herself,

(b) the widowed father or widowed mother of the claimant or of the claimant's spouse, whether incapacitated or not, or

(c) a son or daughter of the claimant who resides with the claimant and on whose services the claimant, by reason of old age or infirmity, is compelled to depend, and being an individual whose total income from all sources for that year of assessment does not exceed, or does not exceed by £110 or more, a sum equal to the specified amount, the claimant shall be entitled in respect of each individual whom the claimant so maintains to a deduction of £110 reduced, if the total income of the individual so maintained exceeds the specified amount, by the amount of the excess.

(3) Where 2 or more individuals jointly maintain any individual referred to in paragraphs (a) to (c) of subsection (2), the deduction to be made under this section shall be apportioned between them in proportion to the amount or value of their respective contributions towards the maintenance of that individual.

467 Employed person taking care of incapacitated individual. [FA69 s3(1), (2) and (4); FA80 s19 and Sch1 PtIII par2; FA96 s3 and Sch1 par2]

467.—(1) Subject to this section, where an individual for a year of assessment proves—

(a) (i) that throughout the year of assessment he or she was totally incapacitated by physical or mental infirmity, or

(ii) that, being an individual who for the relevant year of assessment is assessed to tax in accordance with section 1017, the individual's spouse was throughout that year totally incapacitated by physical or mental infirmity, and

(b) that for the year of assessment he or she has employed a person for the purpose of having the care of the individual (being the individual or the individual's spouse) who is so incapacitated,

the individual shall, in computing the amount of his or her taxable income, be entitled to have a deduction made from his or her total income of—

(I) £7,500, if the amount ultimately borne by him or her in the year of assessment in employing the employed person is not less than £7,500, or

(II) the amount so borne, if it is less than £7,500.

(2) Not more than one deduction shall be allowed under this section to any claimant for any year of assessment.

(3) Where for any year of assessment a deduction is allowed to an individual under this section in respect of an employed person, the individual shall not be entitled to a deduction in respect of that person under section 465 or 466.

468.—(1) In this section, “blind person” means a person whose central visual acuity does not exceed 6/60 in the better eye with correcting lenses, or whose central visual acuity exceeds 6/60 in the better eye or in both eyes but is accompanied by a limitation in the fields of vision that is such that the widest diameter of the visual field subtends an angle no greater than 20 degrees.

(2) Where an individual for a year of assessment proves that—

(a) he or she was for the whole or any part of the year of assessment a blind person, or

(b) he or she is assessed to tax for the year in accordance with section 1017 and that his or her spouse was for the whole or any part of the year a blind person,

the individual shall, in computing the amount of his or her taxable income for the year of assessment, be entitled to have a deduction of £700 made from his or her total income; but, in a case where paragraph (b) applies and the claimant proves in addition that he or she was for the whole or any part of the year a blind person, the claimant shall be entitled to a deduction of £1,600 in place of the deduction of £700.

469 Relief for health expenses. [ITA67 s195B(3) and (6); FA67 s12(1), (2)(a) and (c), (3), (4) and (5)(a) and (b); FA69 s7; FA72 s9; FA80 s19 and Sch1 PtIII par2; FA86 s5; FA93 s10(1); FA94 s8; FA97 s146(1) and Sch9 PtI par2]

469.—(1) In this section—

“dependant”, in relation to an individual, means—

(a) where the individual is a married person who for the year of assessment is allowed a deduction mentioned in section 461 (a), the spouse of the individual,

(b) any person in respect of whom the individual is allowed for the year of assessment a deduction under section 465 or 466, and

(i) (I) is under the age of 16 years, or

(II) if over the age of 16 years at the commencement of the year of assessment, is receiving full-time instruction at any university, college, school or other educational establishment, and

(ii) is a child of the individual or, not being such a child, is in the custody of the individual and is maintained by the individual at the individual's own expense for the whole or part of the year of assessment;

“health care” means prevention, diagnosis, alleviation or treatment of an ailment, injury, infirmity, defect or disability, and includes care received by a woman in respect of a pregnancy other than routine maternity care, but does not include routine ophthalmic treatment or routine dental treatment;

“health expenses” means expenses in respect of the provision of health care, being expenses representing the cost of—

(a) the services of a practitioner,

(b) diagnostic procedures carried out on the advice of a practitioner,

(d) drugs or medicines supplied on the prescription of a practitioner,

(e) the supply, maintenance or repair of any medical, surgical, dental or nursing appliance used on the advice of a practitioner,

(f) physiotherapy or similar treatment prescribed by a practitioner,

(g) orthoptic or similar treatment prescribed by a practitioner, or

(h) transport by ambulance;

“hospital” means—

(a) any institution which is provided and maintained by a health board for the provision of services pursuant to the Health Acts, 1947 to 1996,

(b) any institution in which services are provided on behalf of a health board pursuant to the Health Acts, 1947 to 1996,

(c) any hospital, nursing home, maternity home or other institution approved of for the purposes of this section by the Minister for Finance after consultation with the Minister for Health and Children;

“practitioner” means any person who is—

(a) registered in the register established under section 26 of the Medical Practitioners Act, 1978,

(b) registered in the register established under section 26 of the Dentists Act, 1985, or,

(c) in relation to health care provided outside the State, entitled under the laws of the country in which the care is provided to practise medicine or dentistry there;

“qualified person”, in relation to an individual, means the individual personally or any dependant of the individual;

“routine dental treatment” means the extraction, scaling and filling of teeth and the provision and repairing of artificial teeth or dentures;

“routine maternity care” means—

(a) care received by a woman in respect of a pregnancy otherwise than as a patient maintained in a hospital, or

(b) care received by a woman in respect of a pregnancy as a patient maintained in hospital where the total length of the period or periods during which she is so maintained is not more than 14 days or during the first 14 days of such maintenance where the total length of such period or periods is more than 14 days;

“routine ophthalmic treatment” means sight testing and advice as to the use of spectacles or contact lenses and the provision and repairing of spectacles or contact lenses.

(2)
(a) Subject to this section, where an individual for a year of assessment proves that in the year of assessment he or she defrayed health expenses incurred for the provision of health care for any one qualified person and the amount of which in the aggregate exceeds £100, the individual shall be entitled, for the purpose of ascertaining the amount of the income on which he or she is to be charged to income tax, to have a deduction of the amount of the excess made from his or her total income.

(b) Where an individual proves that in the year of assessment he or she defrayed health expenses incurred for the provision of health care for qualified persons and which amount in the aggregate to more than £200, the individual shall be entitled, for the purpose of ascertaining the amount of the income on which he or she is to be charged to income tax, to have a deduction of the amount by which the aggregate of the health expenses so computed exceeds £200 made from his or her total income, and such deduction shall be in substitution for and not in addition to a deduction under paragraph (a).

(3) For the purposes of this section—

(a) (i) any expenses defrayed by a married man in a year of assessment shall be deemed to have been defrayed by his wife if for the year of assessment she is to be treated under the Income Tax Acts as living with him and she is assessed to tax in accordance with section 1017, or

(ii) any expenses defrayed by a married woman in a year of assessment shall be deemed to have been defrayed by her husband if for the year of assessment she is to be treated under the Income Tax Acts as living with him and he is assessed to tax in accordance with section 1017,

(b) any expenses defrayed out of the estate of a deceased person by his or her executor or administrator shall be deemed to have been defrayed by the deceased person immediately before his or her death, and

(c) expenses shall be regarded as not having been defrayed in so far as any sum in respect of, or by reference to, the health care to which they relate has been, or is to be, received, directly or indirectly, by the individual or the individual's estate, or by any dependant of the individual or such dependant's estate, from any public or local authority or under any contract of insurance or by means of compensation or otherwise.

(4) Subsections (4) to (6) of section 465 shall, with any necessary modifications, apply for the purposes of determining whether relief is to be granted under this section as they apply in determining whether a deduction is to be allowed under that section; but, where the child's income exceeds the amount specified in subsection (5) of that section, relief under this section shall not be allowed.

(5) In making a claim for a deduction under this section, an individual who, after the end of the year of assessment for which the claim is made, has defrayed or is deemed to have defrayed any expenses relating to health care provided in that year may elect that all deductions to be allowed to him or her under this section for that year and for subsequent years of assessment shall be determined as if those expenses had been defrayed at the time when the health care to which they relate was provided.

(6) Notwithstanding sections 458(2) and 459(2)—

(a) any claim for a deduction under this section—

(i) shall be made in such form as the Revenue Commissioners may from time to time prescribe, and

(ii) shall be accompanied by such statements in writing as regards any class of expenses by reference to which the deduction is claimed, including statements by persons to whom payments were made, as may be indicated by the prescribed form as being required as regard expenses of that class, and

(b) in all cases relief from tax consequent on the allowance of a deduction under this section shall be given by means of repayment.

470 Relief for insurance against expenses of illness. [ITA67 s145(1), (2), (3) and (4); FA80 s19 and Sch1 PtIII par1; FA96 s7 and s132(1) and Sch5 PtI par1(4)]

470.—(1) In this section—

“appropriate percentage”, in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year;

“authorised insurer” means any undertaking entered in The Register of Health Benefits Undertakings, lawfully carrying on such business of insurance referred to in the definition of “relevant contract” but, in relation to an individual, also means any undertaking authorised pursuant to Council Directive No. 73/239/EEC of 24 July 1973¹, Council Directive No. 88/357/EEC of 22 June 1988², and Council Directive No. 92/49/EEC of 18 June 1992³, where a relevant contract was effected with the individual when the individual was not resident in the State but was resident in another Member State of the European Communities;

“relevant contract”, in relation to an individual, means a contract of insurance which provides specifically, whether in conjunction with other benefits or not, for the reimbursement or discharge, in whole or in part, of actual medical, surgical or nursing expenses (including the cost of maintenance at a hospital, nursing home or sanatorium) resulting from sickness of or accident to—

(a) the individual,

(b) the spouse of the individual, or

(2) Where an individual for a year of assessment proves that in the year preceding the year of assessment—

(a) the individual, or

(b) if the individual is a married person assessed to tax in accordance with section 1017, the individual's spouse,

has made a payment to an authorised insurer under a relevant contract, then, the income tax to be charged on the individual if the individual made the payment, or on the individual's spouse if the individual's spouse made the payment, for the year of assessment, other than in accordance with section 16(2), shall be reduced by an amount which is the lesser of—

(i) (I) where the payment covers no benefits other than such reimbursement or discharge as is referred to in the definition of “relevant contract”, an amount equal to the appropriate percentage of the full amount of the payment, or

(II) where the payment covers benefits other than such reimbursement or discharge as is referred to in the definition of “relevant contract”, an amount equal to the appropriate percentage of so much of the payment as is referable to such reimbursement or discharge,

and

(ii) the amount which reduces that income tax to nil.

(3) Where the income tax reduction of one of the spouses is ascertained in accordance with subsection (2), then—

(a) if there is no income tax to be charged on the spouse for the year of assessment, other than in accordance with section 16(2), in relation to which relief under subsection (2) may be given, the relief may be given in relation to income tax to be charged on the other spouse for that year, other than in accordance with section 16(2), and

(b) if the amount so ascertained exceeds the income tax to be charged on the spouse for the year of assessment, other than in accordance with section 16(2), the excess may be used to reduce the income tax to be charged on the other spouse for that year, other than in accordance with section 16(2).

(4) Where relief is given under this section, no relief or deduction under any other provision of the Income Tax Acts shall be given or allowed in respect of the payment or part of a payment, as the case may be.

471 Relief for contributions to permanent health benefit schemes. [FA79 s8(1), (2)(a) and (3)]

471.—(1) In this section—

“benefit” and “permanent health benefit scheme” have the same meanings respectively as in section 125;

“contribution”, in relation to a permanent health benefit scheme, means any premium paid or other periodic payment made to the scheme in consideration of the right to benefit under it, being a premium or payment which bears a reasonable relationship to the benefits secured by it.

(2) Where an individual for a year of assessment proves that in that year of assessment he or she made a contribution or contributions to a bona fide permanent health benefit scheme or schemes, the individual shall be entitled, for the purpose of ascertaining the amount of the income on which he or she is to be charged to income tax, to have a deduction of so much of the contributions as does not exceed 10 per cent of his or her total income for that year of assessment made from his or her total income.

(3) In a case where the amount of a contribution made by an employer to a permanent health benefit scheme is charged to income tax under Chapter 3 of Part 5 as a perquisite of the office or employment of a director or employee, that amount shall be deemed for the purposes of subsection (2) to be a contribution made by the director or employee to the scheme in the year in respect of which it is so charged to income tax.

472 Employee allowance. [ITA67 s138B, s195B(3) and (6); FA72 Sch1 PtIII par4; FA74 s64(2); FA80 s3; FA88 s3 and Sch1; FA91 s7; FA93 s10(1); FA94 s4; FA97 s146(1) and Sch9 PtI par1(9) and par5(3)]

472.—(1) (a) In this section—

“emoluments” means emoluments to which Chapter 4 of Part 42 applies or is applied, but does not include—

(i) emoluments paid directly or indirectly by a body corporate (or by any person who would be regarded as connected with the body corporate) to a proprietary director of the body corporate or to the spouse or child of such a proprietary director, and

(ii) emoluments paid directly or indirectly by an individual (or by a partnership in which the individual is a partner) to the spouse or child of the individual;

“director” means—

(i) in relation to a body corporate the affairs of which are managed by a board of directors or similar body, a member of that board or body,

(ii) in relation to a body corporate the affairs of which are managed by a single director or similar person, that director or person, and

(iii) in relation to a body corporate the affairs of which are managed by the members themselves, a member of the body corporate,

and includes any person who is or has been a director;

“proprietary director” means a director of a company who is either the beneficial owner of, or able, either directly or through the medium of other companies or by any other indirect means, to control, more than 15 per cent of the ordinary share capital of the company;

“specified employed contributor” means a person who is an employed contributor for the purposes of the Social Welfare (Consolidation) Act, 1993, but does not include a person—

(i) who is an employed contributor for those purposes by reason only of section 9(1)(b) of that Act, or

(ii) to whom Article 81, 82 or 83 of the Social Welfare (Consolidated Contributions and Insurability) Regulations, 1996 (S.I. No. 312 of 1996), applies.

(b) For the purposes of the definition of “proprietary director”, ordinary share capital which is owned or controlled as referred to in that definition by a person, being a spouse or a minor child of a director, or by a trustee of a trust for the benefit of a person or persons, being or including any such person or such director, shall be deemed to be owned or controlled by such director and not by any other person.

(2) The exclusion from the definition of “emoluments” of the emoluments referred to in subparagraphs (i) and (ii) of that definition shall not apply for any year of assessment to any such emoluments paid to an individual, being a child (other than a child who is a proprietary director) to whom subparagraph (i) or (ii) of that definition relates, if for that year—

(a) (i) the individual is a specified employed contributor, or

(ii) the Income Tax (Employments) Regulations, 1960 (S.I. No. 28 of 1960), in so far as they apply, have, in relation to any such emoluments paid to the individual in the year of assessment, been complied with by the person by whom the emoluments are paid,

(b) the conditions of the office or employment, in respect of which any such emoluments are paid, are such that the individual is required to devote, throughout the year of assessment, substantially the whole of the individual's time to the duties of the office or employment and the individual does in fact do so, and

(3) Where an individual is in receipt of profits or gains from an office or employment held or exercised outside the State, such profits or gains shall be deemed to be emoluments within the meaning of subsection (1) if such profits or gains—

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