Finance Act 2022

PART 1 Universal Social Charge, Income Tax, Corporation Tax and Capital Gains Tax

Chapter 1 Interpretation

1. Interpretation (Part 1)

1. In this Part, “Principal Act” means the Taxes Consolidation Act 1997.

Chapter 2 Universal Social Charge

2. Amendment of section 531AN of Principal Act (rate of charge)

2. (1) Section 531AN of the Principal Act is amended—

(a) in subsection (3), by the substitution of “€22,920” for “€21,295”,

(b) in subsection (4), by the substitution of “2024” for “2023”, and

(c) by the substitution of the following for Part 1 of the Table to that section:

“Part 1

Part of aggregate income	Rate of universal social charge
(1)	(2)
The first €12,012	0.5 per cent
The next €10,908	2 per cent
The next €47,124	4.5 per cent
The remainder	8 per cent

”.

(2) Subsection (1) applies for the year of assessment 2023 and each subsequent year of assessment.

Chapter 3 Income Tax

3. Exemption in respect of incorrect birth registration payment

3. Chapter 1 of Part 7 of the Principal Act is amended by the insertion of the following section after section 192K:

“192L. (1) In this section—

‘Minister’ means the Minister for Children, Equality, Disability, Integration and Youth;

‘qualifying individual’ means an individual who is the subject of an incorrect birth registration for the purposes of the Birth Information and Tracing Act 2022 which has been confirmed by the Child and Family Agency;

‘qualifying payment’ means a payment, generally referred to and commonly known as the Ex Gratia Payment in Respect of an Incorrect Birth Registration, which is made by or on behalf of the Minister to a qualifying individual, in furtherance of the decision of the Government of 8 March 2022.

(2) A qualifying payment made to a qualifying individual which is made on or after 1 January 2023 shall be exempt from income tax and shall not be reckoned in computing the total income of the qualifying individual for the purposes of the Income Tax Acts.

(3) A qualifying payment made to a qualifying individual which is made before 1 January 2023 shall be treated as if it was exempt from income tax in the year of assessment in which it was made and shall not be reckoned in computing total income of the qualifying individual for the purposes of the Income Tax Acts.

(4) The exemption provided for in subsections (2) and (3) shall apply to a maximum amount of €3,000 for each qualifying individual.”.

4. Exemption in respect of payments under Covid-19 Death in Service Ex-Gratia Scheme for Health Care Workers

4. Chapter 1 of Part 7 of the Principal Act is amended by the insertion of the following section after section 192L (inserted by section 3):

“Exemption in respect of payments under Covid-19 Death in Service Ex‑Gratia Scheme for Health Care Workers

192M. (1) In this section, ‘qualifying payment’ means a payment made by or on behalf of the Minister for Health under the Covid-19 Death in Service Ex-Gratia Scheme for Health Care Workers (that is to say the scheme administered under that title by the Minister for Health in furtherance of a decision of the Government of 8 March 2022).

(2) A qualifying payment made on or after 1 January 2023 shall be exempt from income tax and shall not be reckoned in computing total income for the purposes of the Income Tax Acts or in computing amounts chargeable to universal social charge in accordance with Part 18D.

(3) A qualifying payment made before 1 January 2023 shall be treated as if it was exempt from income tax in the year of assessment in which it was made and shall not be reckoned in computing total income for the purposes of the Income Tax Acts or in computing amounts chargeable to universal social charge in accordance with Part 18D.”.

5. Payments in respect of redundancy

5. (1) The Principal Act is amended by the substitution of the following section for section 203:

“203. (1) In this section, ‘lump sum’ has the same meaning as in the Redundancy Payments Act 1967.

(2) Any lump sum payment made under section 19 or 32 of the Redundancy Payments Act 1967 shall be exempt from income tax under Schedule E.

(3) Any payment made under section 32A of the Redundancy Payments Act 1967 shall be exempt from income tax under Schedule E.”.

(2) Subsection (1), in so far as it relates to subsection (3) of section 203 of the Principal Act, shall be deemed to have come into operation on 19 April 2022.

6. Amendment of section 477C of Principal Act (Help to Buy)

6. Section 477C of the Principal Act is amended—

(a) in subsection (1)—

(i) by the insertion of the following definition:

“‘Act of 2021’ means the Affordable Housing Act 2021;”,

(ii) in the definition of “qualifying period”, by the substitution of “2024” for “2022”, and

(iii) in the definition of “qualifying residence”—

(I) in paragraph (a), by the substitution of “dwelling,” for “dwelling, or”,

(II) in paragraph (b), by the insertion of “or” after “converted for as use as a dwelling,”, and

(III) by the insertion of the following paragraph after paragraph (b):

“(c) a building which was not at any time used as a dwelling and was purchased by a first-time purchaser in accordance with an affordable dwelling purchase arrangement (within the meaning of section 12 the Act of 2021) and a direct sales agreement (within the meaning of section 7 of the Act of 2021),”,

(b) in subsection (5A), by the substitution of “2024” for “2022”,

(c) in subsection (8)(b), by the substitution of “2024” for “2022”,

(d) in subsection (16)(a)—

(i) by the substitution in subparagraph (ii) of “2024” for “2022”, and

(ii) by the substitution in subparagraph (iii) of “2024” for “2022”,

and

(e) in subsection (25), by the substitution of “2024” for “2022”.

7. Amendment of section 112B of Principal Act (granting of vouchers)

7. (1) Section 112B of the Principal Act is amended, in subsection (1)—

(a) by the substitution of the following definition for the definition of “qualifying incentive”:

“‘qualifying incentive’ means a relevant incentive that is the first or the second relevant incentive given to an employee in a year of assessment where—

(a) in the case of a first relevant incentive, the value does not exceed €1,000, and

(b) in the case of a second relevant incentive, the cumulative value of the first and second relevant incentives does not exceed €1,000;”,

(b) by the insertion of the following definition:

“‘relevant incentive’ means either a voucher or a benefit that is given to an employee by his or her employer in a year of assessment where the following conditions are satisfied:

(a) the voucher or the benefit does not form part of a salary sacrifice arrangement;

(b) the voucher can only be used to purchase goods or services and cannot be redeemed, in full or in part, for cash;”,

and

(c) in the definition of “salary sacrifice arrangement”, by the substitution of “relevant incentive” for “qualifying incentive”.

(2) Subsection (1) applies for the year of assessment 2022 and each subsequent year of assessment.

8. Amendment of section 118 of Principal Act (benefits in kind: general charging provision)

8. Section 118 of the Principal Act is amended in subsection (5G)—

(a) in paragraph (b), by the insertion of the following definition:

“‘cargo bicycle’ means a bicycle with a special purpose frame which has been designed to carry large or heavy loads, or passengers other than the rider, by means of a bulk storage capacity container or platform integrated into, or affixed to, the frame of the bicycle, in front of or behind the rider;”,

and

(b) by the insertion of the following paragraph after paragraph (d):

“(e) Notwithstanding paragraphs (a) and (d), where the expense or part thereof, as the case may be, is in connection with the provision of a cargo bicycle, the amount referred to in paragraph (a) shall be €3,000.”.

9. Returns by employers in relation to reportable benefits

9. (1) Chapter 3 of Part 38 of the Principal Act is amended by the insertion of the following section after section 897B:

“897C. (1) In this section—

‘employee’, ‘employer’ and ‘income tax month’ have the same meaning, respectively, as they have in section 983;

‘remote working daily allowance’ means a payment of not more than €3.20 per day to an employee by his or her employer in relation to the days the employee performs the duties of his or her office or employment from a dwelling or part of a dwelling which is occupied by that employee as his or her residence, where no tax is deducted;

‘reportable benefit’ means—

(a) a small benefit,

(b) a remote working daily allowance, or

(c) a travel and subsistence payment;

‘small benefit’ means a benefit provided to an employee by his or her employer to which section 112B applies;

‘travel and subsistence payment’ means a payment to an employee by his or her employer in respect of expenses of travel or subsistence incurred by the employee, where no tax is deducted.

(2) Where in any income tax month an employer provides a reportable benefit to an employee, the employer shall deliver to the Revenue Commissioners, in an electronic format approved by them, particulars of the reportable benefit as specified in regulations made under section 986.”.

(2) Chapter 4 of Part 42 of the Principal Act is amended—

(a) in section 983, by the insertion of the following definition:

“‘reportable benefit’ has the same meaning as it has in section 897C;”,

(b) in section 984, by the insertion of the following subsection after subsection (1):

“(1A) Without prejudice to subsection (1), sections 984A, 985G(2)(d), 986 and 987 shall apply to reportable benefits, other than reportable benefits to an employee who is in receipt of emoluments in respect of which a notification has been given under subsection (1).”,

(c) in section 985G(2), by the substitution of “any emoluments or the provision of any reportable benefit” for “any emoluments”, and

(d) in section 986, by the insertion of the following subsection after subsection (1A):

“(1B) The Revenue Commissioners shall make regulations in respect of reportable benefits to which this Chapter and section 897C apply requiring any employer who provides a reportable benefit to an employee to provide, within a prescribed period, and on such form as the Revenue Commissioners may approve or prescribe, the particulars of such reportable benefit and such other documents, specified in the regulations, as the Revenue Commissioners deem appropriate.”.

(3) Subsections (1) and (2) shall come into operation on such day as the Minister for Finance may appoint by order.

10. Rate of charge and personal tax credits

10. As respects the year of assessment 2023 and subsequent years of assessment, the Principal Act is amended—

(a) in section 15—

(i) in subsection (3)(i), by the substitution of “€31,000” for “€27,800”, and

(ii) by the substitution of the following Table for the Table to that section:

“TABLE

PART 1
Part of taxable income	Rate of tax	Description of rate
(1)	(2)	(3)
The first €40,000	20 per cent	the standard rate
The remainder	40 per cent	the higher rate
PART 2
Part of taxable income	Rate of tax	Description of rate
(1)	(2)	(3)
The first €44,000	20 per cent	the standard rate
The remainder	40 per cent	the higher rate
PART 3
Part of taxable income	Rate of tax	Description of rate
(1)	(2)	(3)
The first €49,000	20 per cent	the standard rate
The remainder	40 per cent	the higher rate

”,

(b) in section 461—

(i) in paragraph (a), by the substitution of “€3,550” for “€3,400”,

(ii) in paragraph (b), by the substitution of “€3,550” for “€3,400”, and

(iii) in paragraph (c), by the substitution of “€1,775” for “€1,700”,

(c) in section 466A, in subsection (2), by the substitution of “€1,700” for “€1,600”,

(d) in section 472, in subsection (4), by the substitution of “€1,775” for “€1,700” in each place where it occurs, and

(e) in section 472AB—

(i) in subsection (2), by the substitution of “€1,775” for “€1,700” in each place where it occurs, and

(ii) in subsection (3), by the substitution of “€1,775” for “€1,700” in each place where it occurs.

11. Amendment of section 472BB of Principal Act (sea-going naval personnel credit)

11. Section 472BB of the Principal Act is amended, in subsection (3), by the substitution of “2021, 2022 or 2023” for “2021 or 2022”.

12. Amendment of section 480B of Principal Act (relief arising in special circumstances)

12. (1) Section 480B of the Principal Act is amended—

(a) in subsection (3), by the substitution of “472B, 472BA and 472BB” for “472B and 472BA”,

(b) by the insertion of the following subsection after subsection (10):

“(10A) Subject to subsection (11), where section 466A applies, the amount of the threshold specified in subsection (6)(a) of that section (in this subsection referred to as the ‘monetary threshold’) shall be increased by—

(a) one fifty-second of the monetary threshold, where the individual concerned is paid weekly and is so paid on the relevant date, or

(b) one twenty-sixth of the monetary threshold, where the individual concerned is paid fortnightly and is so paid on the relevant date,

but the amount of any such increase shall not exceed the amount of the emoluments paid to the individual on the relevant date.”,

and

(c) in subsection (11), by the substitution of “subsection (10) or (10A), in a case in which either of those subsections applies,” for “subsection (10)”.

(2) Subsection (1) applies for the year of assessment 2023 and each subsequent year of assessment.

13. Rent tax credit

13. The Principal Act is amended—

(a) in section 458, in Part 2 of the Table, by the insertion of “Section 473B” after “Section 473A”, and

(b) by the insertion of the following section after section 473A:

“Rent tax credit

473B. (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;

‘approved course’ has the same meaning as it has in section 473A;

‘child’ means a child of an individual, or a child of the individual’s spouse or civil partner, who has not attained the age of 23 years at the commencement of the year of assessment during which he or she first enters an approved course;

‘claimant’ has the meaning given to it in subsection (2);

‘landlord’, in relation to a residential property, means the person for the time being entitled to receive (otherwise than as agent for another person) any payment on account of rent paid under a tenancy in respect of the residential property;

‘payment on account of rent’ means a payment made in return for the special possession, use, occupation or enjoyment of a residential property, but does not include—

(a) any portion of such payment which has been, or is to be, reimbursed, or otherwise funded by way of a subsidy provided—

(i) to the claimant, or

(ii) where the claimant is assessed to tax in accordance with section 1017 or 1031C in the year of assessment, to his or her spouse or civil partner,

or

(b) any itemised payment relating to—

(i) the cost of maintenance of, or repairs to, the property,

(ii) the provision of goods or services relating to any right or benefit other than the bare right to special possession, use, occupation or enjoyment of the property, or

(iii) a security deposit paid on commencement of the tenancy;

‘PPS Number’, in relation to an individual, means the individual’s Personal Public Service Number within the meaning of section 262 of the Social Welfare Consolidation Act 2005;

‘principal private residence’ means a residential property occupied by an individual as his or her sole residence;

‘qualifying payment’ means a payment made on account of rent falling due in a year of assessment, where such payment has been made under a tenancy;

‘relative’ means a lineal ascendent, lineal descendent, brother, sister, uncle, aunt, niece or nephew;

‘rent tax credit’ has the meaning given to it in subsection (2);

‘residential property’ means—

(a) a building or part of a building located in the State which is used or suitable for use as a dwelling, and

(b) adjoining land which the occupier of a building or part of a building has for his or her own occupation and enjoyment with the building or part of a building as its gardens or grounds of an ornamental nature;

‘specified amount’, in relation to a year of assessment, means—

(a) €5,000, in the case of an individual who is assessed to tax in accordance with section 1017 or 1031C in the year of assessment, and

(b) €2,500 in all other cases;

‘specified landlord’ means—

(a) a Minister of the Government,

(b) the Commissioners of Public Works in Ireland,

(c) a housing authority within the meaning of the Housing (Miscellaneous Provisions) Act 1992, or

(d) an approved housing body within the meaning of the Housing (Regulation of Approved Housing Bodies) Act 2019;

‘supported tenant’ means, in relation to a tenancy, an individual who is—

(a) in receipt of—

(i) payment of a supplement towards the amount of rent payable by the individual in respect of his or her residence payable in accordance with regulations made under section 198 of the Social Welfare Consolidation Act 2005,

(ii) housing assistance, within the meaning of Part 4 of the Housing (Miscellaneous Provisions) Act 2014, or

(iii) social housing support, within the meaning of the Housing (Miscellaneous Provisions) Act 2009,

or

(b) residing in a residential property which has been designated as a cost rental dwelling within the meaning of Part 3 of the Affordable Housing Act 2021;

‘tax reference number’ means—