FINANCE ACT 2025

Type Act

Publication 2025-12-23

State In force

Text As published

Source Irish Statute Book

PDF Download

articles 107

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.

Act to provide for the imposition, repeal, remission, alteration and regulation of taxation, of stamp duties and of duties relating to excise and otherwise to make further provision in connection with finance; and to provide for related matters.

Reform history JSON API

“(7) Notwithstanding section 274(1), no balancing allowance or balancing charge shall be made in relation to a special qualifying premises by reason of any event referred to in that section which occurs more than—

(a) 7 years after the special qualifying premises was first used subsequent to the incurring of the eligible expenditure on the conversion or refurbishment of the special qualifying premises where that eligible expenditure was incurred before 1 January 2026, or

(b) 10 years after the special qualifying premises was first used subsequent to the incurring of the eligible expenditure on the conversion or refurbishment of the special qualifying premises where that eligible expenditure was incurred on or after 1 January 2026.”,

(v) by the deletion of subsections (10), (11) and (13), and

(vi) by the insertion of the following subsection after subsection (13):

“(14) A claim for relief in accordance with this section may only be made by a person insofar as the aggregate of that claim, when taken together with other de minimis aid received, does not exceed the permissible ceiling of aid to the single undertaking of which the person is a part.”,

(d) by the insertion of the following section after section 372AAD:

“Capital allowances in relation to conversion or refurbishment of certain qualifying premises

372AAE. (1) In this section—

‘conversion’, ‘house’ and ‘letter of certification’ have the same meaning, respectively, as they have in section 372AAB;

‘qualifying expenditure’ means, notwithstanding section 279, capital expenditure incurred by a person in the relevant qualifying period on the conversion or the refurbishment of a qualifying premises after deducting from that amount of expenditure any sum in respect of or by reference to—

(a) that expenditure,

(b) the qualifying premises, or

(c) the conversion work or, as the case may be, the refurbishment work in respect of which that expenditure was incurred,

which the person has received or is entitled to receive, directly or indirectly, from the State, any board established by statute or any public or local authority and for the purposes of giving relief under this section, any reference to expenditure being incurred shall include a reference to expenditure deemed under any provision of Part 9 to be incurred;

‘qualifying premises’ means a building or structure (or part of a building or structure)—

(a) the site of which is wholly within a special regeneration area,

(b) the entirety of which, before the qualifying expenditure was incurred, was a relevant property liable to rates,

(c) in respect of which a letter of certification has issued for its conversion or refurbishment, as the case may be, into one or more than one house, and

(d) which, following the incurring of qualifying expenditure on its conversion or refurbishment, as the case may be, into one or more houses—

(i) is, or the relevant portion thereof is, a relevant property not rateable, and

(ii) the house or houses concerned are let on bona fide commercial terms for such consideration as might be expected to be paid in a letting of the house concerned negotiated on an arm’s length basis;

‘rate’ has the meaning assigned to it by section 4 of the Local Government Rates and Other Matters Act 2019;

‘relevant property’ shall be construed in accordance with Schedule 3 to the Valuation Act 2001;

‘relevant property not rateable’ means a property specified in paragraph 6 of Schedule 4 to the Valuation Act 2001;

‘relevant qualifying period’ means the period commencing on 1 January 2026 and ending on 31 December 2030.

(2)

(a) Subject to paragraph (b) and subsections (3) to (8), the provisions of the Tax Acts relating to the making of allowances or charges in respect of capital expenditure incurred on the construction or refurbishment of an industrial building or structure shall, notwithstanding anything to the contrary in those provisions, apply in relation to qualifying expenditure on a qualifying premises as if the qualifying premises were, at all times at which it is a qualifying premises, an industrial building or structure in respect of which an allowance is to be made for the purposes of income tax or corporation tax, as the case may be, under Chapter 1 of Part 9 by reason of its use for the purpose specified in section 268(1)(a).

(b) An allowance shall be given by virtue of this subsection in relation to any qualifying expenditure on a qualifying premises only in so far as that expenditure is incurred in the relevant qualifying period.

(3) In relation to qualifying expenditure incurred in the relevant qualifying period on a qualifying premises, section 272 shall apply as if—

(a) in subsection (3)(a)(ii) of that section the reference to 4 per cent were a reference to 50 per cent, and

(b) in subsection (4)(a) of that section the following were substituted for subparagraph (ii):

‘(ii) where capital expenditure on the conversion or refurbishment of the building or structure is incurred, 10 years beginning with the time when the building or structure was first used subsequent to the incurring of that expenditure.’.

(4) Notwithstanding section 274(1), no balancing allowance or balancing charge shall be made in relation to a qualifying premises by reason of any event referred to in that section which occurs more than 10 years after the qualifying premises was first used subsequent to the incurring of the qualifying expenditure on the conversion or refurbishment of the qualifying premises.

(5) This section shall not apply where qualifying expenditure incurred does not exceed €5,000.

(6) Relief under this section shall not be given unless the following information is provided to the Revenue Commissioners as part of the first claim made by the person in accordance with subsection (2):

(a) the name, address and tax reference number of the person making the claim;

(b) the address of the qualifying premises in respect of which the qualifying expenditure was incurred;

(c) details of the aggregate of all qualifying expenditure incurred by the person in respect of the qualifying premises.

(7) Any information required to be provided to the Revenue Commissioners under this section shall be provided by electronic means and through such electronic systems as the Revenue Commissioners may make available for the time being for any such purpose.

(8) For the purposes only of determining, in relation to a claim for an allowance by virtue of subsection (2), whether and to what extent qualifying expenditure incurred on the conversion or refurbishment of a qualifying premises is incurred or not incurred in the relevant qualifying period, only such an amount of that expenditure as is properly attributable to work on the conversion or refurbishment of the qualifying premises actually carried out during the relevant qualifying period shall (notwithstanding any other provision of the Tax Acts as to the time when any capital expenditure is or is to be treated as incurred) be treated as having been incurred in that period.

(9) Where relief is given by virtue of this section in relation to capital expenditure incurred on the conversion or refurbishment of a building or structure, relief shall not be given in respect of that expenditure under any other provision of the Tax Acts.

(10) A claim for relief in accordance with this section may only be made by a person insofar as the aggregate of that claim, when taken together with other de minimis aid received, does not exceed the permissible ceiling of aid to the single undertaking of which the person is a part.”,

(e) in section 409F(2), in paragraph (a) of the definition of “area-based capital allowance”, by the substitution of “372AAC, 372AAD or 372AAE” for “372AAC or 372AAD”, and

(f) in Schedule 25B, by insertion of the following after the matter set out opposite Reference Number 38C:

“

38D Section 372AAE (capital allowances in relation to conversion or refurbishment of certain qualifying premises) An amount equal to—

(a) the aggregate amount of allowances (including balancing allowances) made to the individual under Chapter 1 of Part 9 as that Chapter is applied by section 372AAE, including any such allowance or part of any allowances made to the individual for a previous tax year and carried forward from that previous tax year in accordance with Part 9, or (b) where full effect has not been given in respect of that aggregate for that tax year, the part of that aggregate to which full effect has been given for that tax year in accordance with section 278 and section 304 or 305, as the case may be, or any of those sections as applied or modified by any other provision of the Tax Acts.

”.


38D	Section 372AAE (capital allowances in relation to conversion or refurbishment of certain qualifying premises)	An amount equal to—
		(a) the aggregate amount of allowances (including balancing allowances) made to the individual under Chapter 1 of Part 9 as that Chapter is applied by section 372AAE, including any such allowance or part of any allowances made to the individual for a previous tax year and carried forward from that previous tax year in accordance with Part 9, or (b) where full effect has not been given in respect of that aggregate for that tax year, the part of that aggregate to which full effect has been given for that tax year in accordance with section 278 and section 304 or 305, as the case may be, or any of those sections as applied or modified by any other provision of the Tax Acts.

31. Amendment of section 97B of Principal Act (deduction for retrofitting expenditure)

31. Section 97B of the Principal Act is amended—

(a) in subsection (1), in the definition of “relevant period”, by the substitution of “31 December 2028” for “31 December 2025”,

(b) by the substitution of the following subsection for subsection (4):

“(4) Subject to subsections (5) and (6)—

(a) where a person chargeable has incurred qualifying expenditure in the year of assessment 2023, 2024 or 2025, that person is entitled, in computing for the purposes of section 97(1) the amount of a surplus or deficiency in respect of the rent from the qualifying premises concerned for the year of assessment following that in which the qualifying expenditure is incurred, to a deduction equal to the relevant amount, and

(b) where a person chargeable has incurred qualifying expenditure in the year of assessment 2026 or any subsequent year of assessment, that person is entitled, in computing for the purposes of section 97(1) the amount of a surplus or deficiency in respect of the rent from the qualifying premises concerned for the year of assessment in which the qualifying expenditure is incurred, to a deduction equal to the relevant amount.”,

and

“(5) A person chargeable shall not be entitled to a deduction under subsection (4)—

(a) for qualifying expenditure incurred in the year of assessment 2023, 2024 or 2025, in respect of more than two qualifying premises, and

(b) for qualifying expenditure incurred in the year of assessment 2026 or any subsequent year of assessment, in respect of more than three qualifying premises.”.

32. Estimate of tax due

32. Part 41A of the Principal Act is amended, in Chapter 8, by the insertion of the following section after section 959AW:

“959AX. (1) Where a chargeable person fails to deliver a return in respect of a chargeable period in the prescribed form, on or before the specified return date for the chargeable period, in accordance with section 959I, for income tax or corporation tax, as appropriate, then, without prejudice to any other action which may be taken, a Revenue officer may, subject to subsection (2), at any time estimate the amount of tax payable by the chargeable person in respect of that chargeable period and serve notice in writing on the chargeable person specifying the amount estimated in respect of income tax or corporation tax, as the case may be, for that chargeable period (in this section referred to as ‘the estimated tax’).

(2) For the purposes of subsection (1), the estimated tax, in respect of the chargeable period concerned, shall be the greater of—

(a) an amount based on the average amount of tax due that was included on the 2 most recent returns delivered by the chargeable person for income tax or corporation tax, as the case may be, before the service of the notice under subsection (1), or

(b) €1,000.

(3) The estimated tax specified in the notice served under subsection (1) shall be recoverable in the same manner and by the like proceedings as if the chargeable person had delivered a return in respect of the chargeable period concerned in the prescribed form, on or before the specified return date for that chargeable period to which the notice relates, in accordance with section 959I, for income tax or corporation tax, as appropriate, showing the estimated tax as due by that person.

(4) If, within 30 days after the service of a notice under subsection (1), in respect of the chargeable period to which the notice relates, the person—

(a) delivers a return to the Revenue Commissioners in respect of that chargeable period and pays the tax due, if any, in accordance with the return, together with any interest, penalties and surcharge which may have been incurred in connection with the tax due, or

(b) notifies the Revenue Commissioners in writing that he or she is not a chargeable person in respect of that chargeable period,

then, for the purposes of this section, it shall be deemed that no notice was served under subsection (1) and the person may make a claim for repayment in accordance with section 865 of any excess of tax which may have been paid in respect of the chargeable period.”.

33. Exemption of certain profits or gains arising from cost rental properties

33. The Principal Act is amended by the insertion of the following section after section 222:

“222A. (1) In this section—

‘Act of 2021’ means the Affordable Housing Act 2021;

‘cost rental dwelling’ has the same meaning as it has in Part 3 of the Act of 2021;

‘cost rental revocation’ has the same meaning as it has in Part 3 of the Act of 2021;

‘Minister’ means the Minister for Housing, Local Government and Heritage;

‘qualifying cost rental dwelling’ means a cost rental dwelling that is first designated as such by the Minister on or after 8 October 2025;

‘qualifying provider’ means a person chargeable in respect of the relevant profits or gains from a qualifying cost rental dwelling;

‘relevant profits or gains’ means the profits or gains, computed as provided for in section 97(1), arising from any rent and receipts from a qualifying cost rental dwelling.

(2) Notwithstanding any other provision of this Act—

(a) relevant profits or gains arising to a qualifying provider from qualifying cost rental dwellings which, but for this section, would have been chargeable to tax under Case V of Schedule D,

(b) any deficiencies, computed in accordance with section 97(1), arising to a qualifying provider in respect of qualifying cost rental dwellings,

(c) any reliefs under Chapter 8 of Part 4 that could be claimed by a qualifying provider in respect of qualifying cost rental dwellings, and

(d) any allowance that could be made to a qualifying provider, in accordance with Part 9, in respect of qualifying cost rental dwellings,

shall be disregarded for all purposes of the Corporation Tax Acts.

(3) Notwithstanding subsection (2), as respects the making of a return of income and self assessment which a chargeable person, within the meaning of Part 41A, is required to deliver under Chapter 3 of that Part—

(a) the provisions of Part 41A shall apply as if a qualifying provider in receipt of relevant profits or gains in any accounting period were, if such person would not otherwise be, a chargeable person (within the meaning of that Part) for that accounting period,

(b) any notice issued to the qualifying provider under section 959N shall be treated as if it had not issued,

(c) section 886 shall apply as if the relevant profits or gains received by the qualifying provider were chargeable to corporation tax, and

(d) the qualifying provider shall state on the return for the chargeable period—

(i) the number of qualifying cost rental dwellings in respect of which the qualifying provider is in receipt of rent and receipts,

(ii) the total amount of rent and receipts from the dwellings referred to in subparagraph (i) in the chargeable period, and

(iii) the profits or gains that would have been subject to corporation tax if subsection (2) did not apply.

(4) For the purposes of subsection (3), the relevant profits or gains, deficiencies, reliefs and allowances in respect of qualifying cost rental dwellings shall be computed in accordance with the Corporation Tax Acts as if subsection (2) had not been enacted.

(5) Where the Minister issues a cost rental revocation—

(a) the Minister shall notify the Revenue Commissioners in writing of the following:

(i) that a cost rental revocation has been issued in respect of the qualifying cost rental dwelling concerned;

(ii) the address of the dwelling referred to in subparagraph (i);

(iii) the date on which the cost rental revocation was sealed by the Minister,

(b) subsection (2) shall not apply to the profits or gains, losses and reliefs arising in respect of the dwelling referred to in paragraph (a)(i) on or after the date referred to in paragraph (a)(iii), and

(c) where an allowance under Part 9 for any accounting period would have been due but for subsection (2)(d), the amount due shall be deemed to have been granted.”.

34. Amendment of Schedule 4 to Principal Act (Exemption of Specified Non-Commercial State Sponsored Bodies from Certain Tax Provisions)

34. Schedule 4 to the Principal Act is amended by the insertion of the following paragraph after paragraph 84A:

“84B. Property Services Regulatory Authority.”.

35. Amendment of Chapter 2 of Part 29 of Principal Act (scientific and certain other research)

35. (1) Chapter 2 of Part 29 of the Principal Act is amended—

(a) in section 766, by the insertion of the following subsection after subsection (1A):

“(1B) For the purposes of this section and section 766C—

(a) Where expenditure is incurred by a company on emoluments paid to an employee of the company who performs not less than 95 per cent of the duties of his or her employment in the carrying on by the company of research and development activities, 100 per cent of that expenditure shall be treated for the purposes of the definition, in subsection (1)(a), of ‘expenditure on research and development’, as expenditure incurred by the company wholly and exclusively in the carrying on by it of research and development activities, save where the expenditure is incurred by a company which is resident in the State and where that expenditure—

(i) may be taken into account as an expense in computing income of that company,

(ii) is expenditure in respect of which an allowance for capital expenditure may be made to that company, or

(iii) may otherwise be allowed or relieved in relation to that company,

for the purposes of tax in a territory other than the State.

(b) In this subsection, ‘emoluments’ and ‘employee’ have the meaning given to them, respectively, by section 983.”,

(b) in section 766A—

(i) in subsection (1)(a), in the definition of “relevant expenditure”, by the insertion of “or being expenditure of the type referred to in subsection (1A)” after “Part 9”, and

(ii) by the insertion of the following subsection after subsection (1):

“(1A) For the purposes of the definition, in subsection (1)(a), of ‘relevant expenditure’, expenditure incurred by a company on the construction of a qualifying building shall include expenditure incurred by the company on the construction of a laboratory for use in the carrying on of research and development activities but does not include expenditure—

(a) to which section 765(1)(a)(ii) applies, or

(b) which is incurred on the construction of any part of the laboratory for use as an office or for any purpose ancillary to the purpose of an office.”,

(i) in subsection (1), by the substitution of “35 per cent” for “30 per cent”,

(ii) in subsection (2)(a)(ii), by the substitution of “subsection (7)(a)(i)” for “subsection (7)(a)”,

(iii) in subsection (6)(a)(i), by the substitution of “€87,500” for “€75,000”,

(iv) by the substitution of the following subsection for subsection (7):

“(7)

(a) The company shall specify in respect of each instalment referred to in subsection (6) whether such amounts, or any portion of such amounts, are to be—

(i) treated as an overpayment of tax, for the purposes of section 960H, or

(ii) paid to the company by the Revenue Commissioners.

(b) Subject to paragraph (c), the company shall make the specification referred to in paragraph (a)—

(i) in respect of the first instalment, in the return referred to in subsection (9),

(ii) in respect of the second instalment, if any, in the return that the company is required to file under Part 41A in respect of the accounting period (in this paragraph referred to as ‘the first mentioned accounting period’) immediately succeeding the accounting period in respect of which the claim was made, and

(iii) in respect of the third instalment, if any, in the return that the company is required to file under Part 41A in respect of the accounting period immediately succeeding the first-mentioned accounting period.

(c) Where, in relation to an accounting period, a company makes a claim in respect of the credit in accordance with subsection (9) (in this paragraph referred to as ‘the first-mentioned claim’), and a second or third instalment is payable in accordance with subsection (11) in respect of a claim for the credit made in an earlier accounting period, the company may make the specification referred to in paragraph (a) in respect of the second or third instalment, or both, as the case may be, on the making of the first mentioned claim.”,

(v) in subsection (7A), by the substitution of “subsection (7)(a)(i) or paid to the company in accordance with subsection (7)(a)(ii)” for “subsection (7)(a) or paid to the company in accordance with subsection (7)(b)”,

(vi) in subsection (10)(a), by the substitution of “subsection (7)(a)(i) or paid to the company under subsection (7)(a)(ii)” for “subsection (7)(a) or paid to the company under subsection (7)(b)”,

(vii) in subsection (11)(c), by the substitution of the following subparagraph for subparagraph (i):

“(i) where the first-mentioned accounting period is for a period of 12 months and the accounting period (in this subparagraph referred to as ‘the second-mentioned accounting period’) immediately succeeding the first-mentioned accounting period is for a period of 12 months, on the filing of the return that the company is required to file under Part 41A for the second-mentioned accounting period, or”,

(viii) in subsection (13), by the substitution of “subsection (7)(a)(i)” for “subsection (7)(a)”, and

(ix) in subsection (15), by the substitution of “subsection (7)(a)(i) or to be paid under subsection (7)(a)(ii)” for “subsection (7)(a) or to be paid under subsection (7)(b)”,

and

(d) in section 766D—

(i) in subsection (1), by the substitution of “35 per cent” for “30 per cent”,

(ii) in subsection (2)(a)(ii), by the substitution of “subsection (6)(a)(i)” for “subsection (6)(a)”,

(iii) in subsection (3A)(c)(II), by the substitution of “subsection (6)(a)(i) or paid to the company in accordance with subsection (6)(a)(ii)” for “subsection (6)(a) or paid to the company in accordance with subsection (6)(b)”,

(iv) by the substitution of the following subsection for subsection (6):

“(6)

(a) The company shall specify in respect of each instalment referred to in subsection (5) whether such amounts, or any portion of such amounts, are to be—

(i) treated as an overpayment of tax, for the purposes of section 960H, or

(ii) paid to the company by the Revenue Commissioners.

(b) Subject to paragraph (c), the company shall make the specification referred to in paragraph (a)—

(i) in respect of the first instalment, in the return referred to in subsection (8),

(ii) in respect of the second instalment, if any, in the return that the company is required to file under Part 41A in respect of the accounting period (in this paragraph referred to as ‘the first mentioned accounting period’) immediately succeeding the accounting period in respect of which the claim was made, and

(iii) in respect of the third instalment, if any, in the return that the company is required to file under Part 41A in respect of the accounting period immediately succeeding the first-mentioned accounting period.

(c) Where, in relation to an accounting period, a company makes a claim in respect of the credit in accordance with subsection (8) (in this paragraph referred to as ‘the first-mentioned claim’), and a second or third instalment is payable in accordance with subsection (10) in respect of a claim for the credit made in an earlier accounting period, the company may make the specification referred to in paragraph (a) in respect of the second or third instalment, or both, as the case may be, on the making of the first mentioned claim.”,

(v) in subsection (9)(a), by the substitution of “subsection (6)(a)(i) or paid to the company under subsection (6)(a)(ii)” for “subsection (6)(a) or paid to the company under subsection (6)(b)”,

(vi) in subsection (10)(c), by the substitution of the following subparagraph for subparagraph (i):

“(i) where the first-mentioned accounting period is for a period of 12 months and the accounting period (in this subparagraph referred to as ‘the second-mentioned accounting period’) immediately succeeding the first-mentioned accounting period is for a period of 12 months, on the filing of the return that the company is required to file under Part 41A for the second mentioned accounting period, or”,

(vii) in subsection (12), by the substitution of “subsection (6)(a)(i)” for “subsection (6)(a)”, and

(viii) in subsection (14), by the substitution of “subsection (6)(a)(i) or to be paid under subsection (6)(a)(ii)” for “subsection (6)(a) or to be paid under subsection (6)(b)”.

(2)
(a) Paragraph (a), subparagraphs (i) and (iii) of paragraph (c) and subparagraph (i) of paragraph (d) of subsection (1) shall apply in respect of any accounting period the specified return date (within the meaning of Part 41A) of which is on or after 23 September 2027.

(b) Paragraph (b) of subsection (1) shall apply on and from the date of the passing of this Act.

(c) Subparagraphs (ii), (iv), (v), (vi), (viii) and (ix) of paragraph (c) and subparagraphs (ii), (iii), (iv), (v), (vii) and (viii) of paragraph (d) of subsection (1) shall apply in respect of accounting periods ending on or after 31 December 2025.

(d) Paragraph (c)(vii) of subsection (1) shall apply in respect of instalments payable in accordance with section 766C on and from the date of the passing of this Act.

(e) Paragraph (d)(vi) of subsection (1) shall apply in respect of instalments payable in accordance with section 766D on and from the date of the passing of this Act.

36. Taxation of certain foreign body corporates

36. Part 43 of the Principal Act is amended by the insertion of the following section after section 1009:

“1009A. Notwithstanding any provision of the Tax Acts or the Capital Gains Tax Acts, as the case may be, a body corporate and each of its members shall be chargeable to tax or capital gains tax, as the case may be, on their respective income, profits or gains on the basis that the body corporate is a partnership and each of its members are partners in a partnership where—

(a) the body corporate is incorporated, or formed, under the laws of a jurisdiction other than the State, and

(b) having regard to the characteristics of that body corporate and the rights and obligations of each of its members, the body corporate is substantially similar to a partnership formed under the law of the State.”.

37. Life assurance policies and investment funds

37. (1) The Principal Act is amended—

(a) in section 730F(1)(a)(ii), by the substitution of “38 per cent” for “41 per cent”,

(b) in section 730J(a)(i)(II), by the substitution of “38 per cent” for “41 per cent”,

(d) in section 739D(5A), in the formula in paragraph (b), by the substitution of “(G x 38)” for “(G x 41)”,

(e) in section 739E(1)—

(i) in paragraph (a)(ii), by the substitution of “38 per cent” for “41 per cent”, and

(ii) in paragraph (b)(ii), by the substitution of “38 per cent” for “41 per cent”,

(f) in section 747D(a)(i)(II), by the substitution of “38 per cent” for “41 per cent”, and

(g) in section 747E(1)(b)(ii), by the substitution of “38 per cent” for “41 per cent”.

(2)
(a) Subsection (1)(a) applies and has effect as respects the happening of a chargeable event in relation to a life policy (within the meaning of Chapter 5 of Part 26 of the Principal Act) on or after 1 January 2026.

(b) Subsection (1)(b) applies and has effect as respects the receipt by a person of a payment in respect of a foreign life policy (within the meaning of Chapter 6 of Part 26 of the Principal Act) on or after 1 January 2026.

(c) Subsection (1)(c) applies and has effect as respects the disposal in whole or in part of a foreign life policy (within the meaning of Chapter 6 of Part 26 of the Principal Act) on or after 1 January 2026.

(d) Subsection (1)(d) and (e) apply and have effect as respects the happening of a chargeable event in relation to an investment undertaking (within the meaning of section 739B(1) of the Principal Act) on or after 1 January 2026.

(e) Subsection (1)(f) applies and has effect as respects the receipt by a person of a payment in respect of a material interest in an offshore fund (within the meaning of Chapter 4 of Part 27 of the Principal Act) on or after 1 January 2026.

(f) Subsection (1)(g) applies and has effect as respects the disposal in whole or in part by a person of a material interest in an offshore fund (within the meaning of Chapter 4 of Part 27 of the Principal Act) on or after 1 January 2026.

38. Amendment of section 731 of Principal Act (chargeable gains accruing to unit trusts)

38. (1) Section 731 of the Principal Act is amended, in subsection (5)(a)(i), by the substitution of “(otherwise than by reason of residence, by virtue of section 739(3) or by virtue of section 739C(1))” for “(otherwise than by reason of residence or by virtue of section 739(3))”.

(2) Subsection (1) shall apply for the year of assessment 2026 and each subsequent year of assessment.

39. Exemption from dividend withholding tax for certain investment limited partnerships

39. (1) Part 6 of the Principal Act is amended—

(a) in section 172A(1)(a), by the insertion of the following definitions:

“ ‘equivalent partnership’ means a partnership which would be an investment limited partnership but for the fact that it is authorised by an EEA state other than the State and is subject to such supervisory and regulatory arrangements in the EEA state by which it is authorised at least equivalent to those applied to an investment limited partnership;

‘investment limited partnership’ means a partnership authorised in accordance with the Investment Limited Partnerships Act 1994;”,

and

(b) in section 172C—

(i) in subsection (2), by the insertion of the following paragraph after paragraph (db):

“(dc) subject to subsection (4), an investment limited partnership or equivalent partnership, as the case may be, where—

(i) the partners of the investment limited partnership or equivalent partnership are beneficially entitled to not less than 51 per cent of the ordinary share capital of the company making the relevant distribution,

(ii) the ordinary share capital of the company making the relevant distribution is an asset of that investment limited partnership or equivalent partnership, and

(iii) that investment limited partnership or equivalent partnership has made a declaration, to the company making the relevant distribution, in relation to the relevant distribution in accordance with paragraph 14 of Schedule 2A,”,

(ii) in subsection (3)—

(I) in paragraph (d), by the deletion of “and”,

(II) in paragraph (e), by the substitution of “PEPP assets, and” for “PEPP assets,”, and

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

“(f) an investment limited partnership or equivalent partnership, as the case may be, which receives a relevant distribution,”,

and

(iii) in subsection (4), by the substitution of “paragraph (bd) or (dc) of subsection (2)” for “subsection (2)(bd)”.

(2) Section 739J of the Principal Act is amended by the insertion of the following subsection after subsection (3A):

“(3B) A statement made under subsection (3) shall be treated as if it satisfies the requirements in respect of the making of a return under section 880, 959I or 959M, as the case may be.”.

(3) Schedule 2A of the Principal Act is amended by the insertion of the following paragraph after paragraph 13:

“Declaration to be made by investment limited partnership or equivalent partnership under section 172C(2)(dc)

The declaration referred to in section 172C(2)(dc) shall be a declaration in writing to the company making the relevant distribution in relation to the relevant distributions which—

(a) is made by the person (in this paragraph referred to as ‘the declarer’) beneficially entitled to the relevant distributions in respect of which the declaration is made,

(b) is signed by the declarer,

(c) is made in such form as may be prescribed or authorised by the Revenue Commissioners,

(d) declares that, at the time when the declaration is made, the person beneficially entitled to the relevant distributions is an investment limited partnership or equivalent partnership,

(e) contains the name and tax reference number of the investment limited partnership or equivalent partnership,

(f) contains an undertaking by the declarer that, if the person mentioned in subparagraph (d) ceases to be an excluded person, the declarer will, by notice in writing, advise the company resident in the State in relation to the relevant distributions accordingly, and

(g) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 8A of Part 6.”.

(4)
(a) Subsection (1) and (3) shall apply in respect of a relevant distribution (within the meaning of section 172A of the Principal Act) made on or after 1 January 2026.

(b) Subsection (2) shall apply for the year of assessment 2026 and each subsequent year.

40. Amendment to section 835AVB of Principal Act (collective investment scheme)

40. (1) Section 835AVB of the Principal Act is amended—

(a) in subsection (1)—

(i) by the insertion of the following definitions:

“ ‘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 which is a contracting party to the EEA Agreement;

‘foreign tax’, in relation to a relevant territory, means a tax which—

(a) corresponds to corporation tax in the State,

(b) generally applies to income, profits and gains arising to a company that is resident for the purposes of tax in that territory, and

(c) is imposed at a nominal rate greater than zero per cent;

‘investment limited partnership’ means a partnership authorised in accordance with the Investment Limited Partnerships Act 1994;

‘listed territory’ has the same meaning as it has in section 835YA;

‘relevant company’, in relation to an investment limited partnership, means a company—

(a) which is a direct or indirect asset of the investment limited partnership,

(b) in which the partners of the investment limited partnership are beneficially entitled, directly or indirectly, to not less than 95 per cent of its ordinary share capital,

(c) whose business consists of the holding, directly or indirectly, of a diversified portfolio of assets, and

(d) which is—

(i) resident in the State, or

(ii) by virtue of the law of a relevant territory, is—

(I) resident for the purposes of foreign tax in the relevant territory, and

(II) not generally exempt from foreign tax;

‘relevant territory’ means—

(a) an EEA state, other than the State,

(b) not being such an EEA state, a territory with the government of which arrangements having the force of law by virtue of section 826(1) have been made, or

(c) not being a territory referred to in paragraph (a) or (b), a territory with the government of which arrangements have been made which on completion of the procedures set out in section 826(1) will have the force of law,

but does not include a listed territory;”,

and

(ii) in paragraph (b) of the definition of “relevant investment undertaking”, by the deletion of “, within the meaning of section 739J”,

(b) in subsection (4)(a), by the substitution of “20 per cent” for “10 per cent”, and

“(4A) In the case of an investment limited partnership, for the purposes of subsection (4)(a)—

(a) a relevant company shall not be considered to be an issuer of securities to the investment limited partnership, and

(b) an investment limited partnership shall be deemed to hold directly any securities held by a relevant company.”.

(2) Subsection (1) shall apply for the year of assessment 2026 and each subsequent year.

41. Amendments relating to group payments

41. (1) The Principal Act is amended—

(a) in section 410—

(i) in subsection (1)(a)—

(I) by the substitution of the following definition for the definition of “tax”:

“ ‘tax’, in relation to a relevant territory other than the State, means any tax imposed in the relevant territory which corresponds to corporation tax in the State;”,

and

(II) by the insertion of the following definition:

“ ‘relevant territory’ means—

(i) a relevant Member State,

(ii) not being a territory referred to in subparagraph (i), a territory with the government of which arrangements having the force of law by virtue of section 826(1) have been made, or

(iii) not being a territory referred to in subparagraph (i) or (ii), a territory with the government of which arrangements have been made which on completion of the procedures set out in section 826(1) will have the force of law;”,

(ii) in subsection (1)(b)—

(I) in subparagraph (i), by the substitution of “relevant territory” for “relevant Member State”, and

(II) by the substitution of the following subparagraph for subparagraph (ii):

“(ii) references to—

(I) a company resident in a relevant Member State shall be construed as references to a company which, by virtue of the law of a relevant Member State, is resident for the purposes of tax in such a relevant Member State, and

(II) a company resident in a relevant territory shall be construed as references to a company which, by virtue of the law of a relevant territory, is resident for the purposes of tax in such a relevant territory.”,

(iii) in subsection (3)(a), by the substitution of “relevant territory” for “relevant Member State”, and

(iv) in subsection (4)(a)(i), by the substitution of “relevant territory” for “relevant Member State”,

and

(b) in section 243(5)(c), by the substitution of “section 242A, 267I or 410(4)” for “section 242A or 267I”.

(2) Subsection (1) shall apply to payments to which section 410 of the Principal Act applies made on or after the date of the passing of this Act.

Chapter 5 Corporation Tax

42. Enhanced deduction for eligible construction expenditure

42. The Principal Act is amended by the insertion of the following section after section 81D:

“81E. (1) In this section—

‘apartment’ means a separate and self-contained dwelling in a qualifying apartment block—

(a) that has sleeping facilities, bathroom facilities and cooking facilities within it for the exclusive use of the occupant of the dwelling concerned, and

(b) other than where the dwelling is situated on the ground floor of a multi-storey building, access to the dwelling is grouped or in common with other separate and self-contained dwellings;

‘certificate of compliance on completion’, ‘commencement notice’, ‘local authority’, ‘planning permission’ and ‘planning permission period’ have the same meaning, respectively, as they have in section 653A(1);

‘completed development’ means a qualifying apartment block, in respect of which—

(a) planning permission has been granted which includes permission for not fewer than 10 new apartments in the qualifying apartment block,

(b) a relevant commencement notice is lodged with the relevant local authority on or after 8 October 2025 but not later than 31 December 2030, and

(c) on or before the expiry of the planning permission period relating to it—

(i) all works required to ensure that all apartments in the qualifying apartment block are suitable for occupation as a dwelling have been completed, and

(ii) a relevant certificate of compliance on completion is lodged with the relevant local authority;

‘construction operations’ and ‘excepted trade’ have the same meaning, respectively, as they have in section 21A;

‘eligible expenditure’, in relation to a completed development, means, subject to subsection (8), expenditure incurred by a relevant person in connection with construction operations carried out in respect of the completed development, being expenditure which is incurred up to the relevant date, excluding—

(a) any capital expenditure so incurred, and

(b) ineligible expenditure;

‘enhanced deduction’ has the meaning given to it by subsection (4);

‘ineligible expenditure’, in relation to a completed development, means any expenditure incurred by a relevant person in respect of the completed development in respect of any or all of the following:

(a) financing costs;

(b) insurance costs;

(c) professional and legal fees;

(d) sales and marketing costs;

(e) taxes, duties, levies or charges under the care and management of the Revenue Commissioners;

(f) the acquisition of, or rights in or over, any land;

(g) levies, fees, charges or contributions imposed by, or under, any enactment in respect of the completed development concerned, however described in the relevant enactment, including any—

(i) development contributions,

(ii) utility connection charges,

(iii) environmental levies,

(iv) planning application fees,

(v) building control fees, or

(vi) building energy rating fees;

‘land’ includes any interest in land;

‘material change’ shall be construed in accordance with subsection (2);

‘property developer’ means a company carrying on a relevant property development trade;

‘qualifying apartment block’ means a building that—

(a) is a multi-storey building,

(b) is principally comprised of not fewer than 10 apartments, and

(c) is—

(i) a newly erected building, or

(ii) not being a building referred to in subparagraph (i), a building that meets the requirements of paragraphs (a) and (b) as a result of a material change,

and includes an area of land for occupation and enjoyment by its occupants with the building as its gardens or grounds;

‘qualifying refurbishment’ means any work of construction, reconstruction, restoration, repair or renewal, including the provision or improvement of water, sewerage or heating facilities, carried out on a building or structure, or part of a building or structure;

‘qualifying trade’, in relation to a relevant contractor, means a trade carried out by the relevant contractor, which—

(a) is not an excepted trade, and

(b) consists wholly or mainly of the construction or refurbishment of buildings or structures;

‘relevant accounting period’ means the accounting period in which the relevant certificate of compliance on completion in respect of a completed development is lodged with the relevant local authority;

‘relevant beneficial owner’ means a beneficial owner of a completed development that is not a relevant person in respect of that completed development;

‘relevant certificate of compliance on completion’ means a certificate of compliance on completion lodged with the relevant local authority or, where there is more than one such certificate of compliance on completion, the last such certificate of compliance on completion so lodged, in respect of a completed development;

‘relevant commencement notice’ means a commencement notice lodged with the relevant local authority or, where there is more than one such commencement notice, the first such commencement notice so lodged, in respect of a completed development;

‘relevant contractor’, in relation to a completed development, means a company that develops the completed development pursuant to a contract entered into with the beneficial owner, or where there is more than one beneficial owner, the beneficial owners, of that completed development;

‘relevant date’, in relation to a completed development, means the date on which the relevant certificate of compliance on completion is lodged with the relevant local authority in respect of that completed development;

‘relevant declaration’ means a declaration that is made under and in accordance with subsection (3);

‘relevant local authority’, in relation to a completed development, means the local authority in whose functional area the completed development is situated;

‘relevant person’ means—

(a) a property developer that—

(i) in the course of a relevant property development trade, develops a completed development, and

(ii) on the relevant date is a beneficial owner of the completed development,

or

(b) a relevant contractor—

(i) that, in the course of a qualifying trade, develops a completed development, and

(ii) to which a relevant declaration has been made by a relevant beneficial owner, or where there is more than one relevant beneficial owner, a relevant declaration has been made by each relevant beneficial owner, in respect of that completed development;

‘relevant property development trade’, in relation to a property developer, means a trade carried out by the property developer, which—

(a) is not an excepted trade, and

(b) consists wholly or mainly of the construction or refurbishment of buildings or structures with a view to their sale.

(2) For the purposes of this section, there is a material change where, following a qualifying refurbishment, a building or part of a building, or a structure or part of a structure—

(a) although not originally constructed for occupation as a dwelling, or

(b) although originally constructed for occupation as a dwelling, was not suitable for use as a dwelling or has been appropriated to other purposes,

becomes suitable for use as a dwelling.

(3)

(a) Where, on the relevant date, a completed development is beneficially owned by a relevant beneficial owner, then—

(i) the relevant beneficial owner, or

(ii) where there is more than one relevant beneficial owner, each relevant beneficial owner,

may make a declaration in accordance with paragraph (c) to a relevant contractor for the purposes of the relevant contractor making a claim for an enhanced deduction under this section.

(b) A relevant declaration shall not be made to more than one relevant contractor in respect of a completed development and, where a relevant declaration is made to more than one relevant contractor in respect of the same completed development, it shall be deemed that no relevant declaration has been made to any relevant contractor in respect of that completed development.

(c) A relevant declaration shall be a declaration in writing to a relevant contractor which—

(i) is made by a relevant beneficial owner of a completed development (in this paragraph referred to as ‘the declarer’) for the purposes of the relevant contractor making a claim for an enhanced deduction under this section,

(ii) is signed by the declarer,

(iii) is made in such form as may be prescribed or authorised by the Revenue Commissioners,

(iv) declares—

(I) that on the relevant date the declarer is a relevant beneficial owner of the completed development and the percentage of the completed development of which the declarer is a relevant beneficial owner on the relevant date,

(II) that the relevant contractor developed the completed development pursuant to a contract entered into by the declarer and the relevant contractor,

(III) that the declarer is not a relevant person,

and

(v) contains—

(I) the name, address and tax reference number of the declarer and relevant contractor,

(II) the address of the completed development and the number of apartments in the completed development, and

(III) such other information as the Revenue Commissioners may reasonably require for the purposes of this section.

(d) Where, in respect of a completed development—

(i) a relevant declaration is made by the relevant beneficial owner, or

(ii) where there is more than one relevant beneficial owner, a relevant declaration is made by each relevant beneficial owner,

to a relevant contractor, then, for the purposes of this section, the relevant contractor shall be deemed to be the beneficial owner, on the relevant date, of the percentage of the completed development beneficially owned on the relevant date by each relevant beneficial owner, who makes the relevant declaration.

(e) A relevant contractor to which a relevant declaration has been made shall keep and retain the relevant declaration for a period of 6 years from the end of the accounting period in which a return has been delivered making a claim under this section in respect of the completed development to which the relevant declaration relates.

(4) Where—

(a) a relevant person has incurred eligible expenditure in respect of a completed development, and

(b) the relevant person is, in the computation of the amount of the profits or gains of a relevant property development trade or a qualifying trade, as the case may be, to be charged to corporation tax under Case I of Schedule D for an accounting period, entitled to any deduction on account of eligible expenditure in respect of the completed development,

then, the relevant person shall, on the making of a claim, be entitled, in the computation of the amount of the profits or gains of that trade for the relevant accounting period, to a further deduction (in this section referred to as an ‘enhanced deduction’) equal to the amount determined under subsection (5).

(5) Subject to subsections (6) and (7), the amount of the enhanced deduction in respect of a completed development shall be equal to the amount determined by the formula—

A x 25%

where—

A is the amount of eligible expenditure incurred by the relevant person in respect of the completed development in respect of which the relevant person is entitled to a deduction in the computation of the amount of the profits or gains of a relevant property development trade or a qualifying trade, as the case may be, to be charged to corporation tax under Case I of Schedule D for an accounting period.

(6) The amount of the enhanced deduction in respect of a completed development shall not exceed the amount determined by the formula—

B x C x D

where—

B is the number of apartments in the completed development,

C is €50,000, and

D is the percentage of the completed development that is beneficially owned by the relevant person, or in the case of a relevant person who is a relevant contractor is deemed, by virtue of subsection (3)(d), to be beneficially owned by the relevant person, on the relevant date.

(7) Any amount of eligible expenditure incurred by a relevant person in respect of a completed development which—

(a) has been or is to be met, directly or indirectly, by grant assistance or any other assistance which is granted by or through the State, any board established by statute, any public or local authority or any other agency of the State,

(b) exceeds the amount which would be payable between independent persons acting at arm’s length in a transaction similar to that in respect of which the expenditure was incurred, or

(c) is incurred as part of a scheme or arrangement, where it is reasonable to consider that the main purpose, or one of the main purposes, is the avoidance of, or reduction in, liability to tax,

shall, in calculating the amount of the enhanced deduction in respect of a completed development, be excluded from the amount represented by ‘A’ in the formula in subsection (5).

(8) Where expenditure is incurred by a relevant person in connection with construction operations in respect of both a completed development and a development that is not a completed development, such expenditure shall be apportioned by the relevant person on a just and reasonable basis.

(9)

(a) A claim under this section shall be made by a relevant person within 12 months from the end of the relevant accounting period to which the claim relates and shall be made in the return filed under Part 41A, in respect of that accounting period.

(b) The relevant person shall, when making a claim in accordance with paragraph (a), provide details of—

(i) the eligible expenditure incurred in relation to the completed development and in respect of which the relevant person is claiming an enhanced deduction,

(ii) the number of apartments in the completed development, and

(iii) such other information as the Revenue Commissioners may reasonably require for the purposes of this section.

(10)

(a) Where, in computing for tax purposes the profits of a relevant property development trade or a qualifying trade, as the case may be, an enhanced deduction has been claimed by a relevant person and, in computing that deduction, a debt incurred by the relevant person was included in the amount of eligible expenditure, then, if the whole or any part of that debt is thereafter released, an amount equal to the portion of the enhanced deduction which was determined based on the amount released (in this subsection referred to as the ‘disallowed deduction’) shall be treated as a receipt of the relevant property development trade or a qualifying trade, as the case may be, arising in the period in which the release is effected.

(b) Where paragraph (a) applies, and the trade concerned has been permanently discontinued at or after the end of the period for which the enhanced deduction was claimed and before the release was effected, or is treated for tax purposes as if it had been so discontinued, section 91 shall apply as if the disallowed deduction were a sum received after the discontinuance.”.

43. Amendment of section 291A of Principal Act (intangible assets)

43. (1) Section 291A of the Principal Act is amended—

(a) in subsection (6)—

(i) in paragraph (a), by the substitution of the following subparagraph for subparagraph (i):

“(i) any allowances to be made to a company under section 284 as applied by this section, and any balancing allowances (within the meaning of section 288) to be made to a company in respect of a specified intangible asset or specified intangible assets, and”,

and

(ii) in paragraph (b)—

(I) in subparagraph (i), by the substitution of “in this subparagraph and subparagraph (ia)” for “in this subparagraph”, and

(II) by the insertion of the following subparagraph after subparagraph (i):

“(ia) Notwithstanding that the excess amount remains unallowed for an accounting period and shall be carried forward and treated as an allowance within the meaning of paragraph (a)(i) for the succeeding accounting period in accordance with subparagraph (i), for all other purposes of this Part the excess amount shall be treated as an allowance that has been made in the first accounting period for which it remains unallowed.”,

(b) in subsection (8)(a), by the deletion of “under section 284 as applied by this section”, and

(i) in paragraph (a), by the substitution of “Subject to paragraphs (b) and (c), this section shall not apply” for “This section shall not apply”,

(ii) by the substitution of the following paragraph for paragraph (b):

“(b) Where, in relation to an acquisition referred to in paragraph (a)—

(i) the transferor and transferee make a joint election under section 615(4) or 617(4), and

(ii) the acquisition does not occur on a transfer to which section 400(6) applies,

the transferee shall be entitled to claim an allowance under section 284 as applied by this section in respect of capital expenditure incurred by it on acquiring the specified intangible asset from the transferor.”,

and

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

“(c) Where an acquisition referred to in paragraph (a) occurs on a transfer to which section 400(6) applies, the transferee shall be entitled to claim allowances under section 284 as applied by this section in respect of the specified intangible asset in accordance with section 400(6).”.

(2)
(a) Paragraph (a)(i) of subsection (1) applies as respects any event referred to in section 288(1) of the Principal Act which occurs on or after 8 October 2025.

(b) Paragraphs (a)(ii), (b) and (c) of subsection (1) shall have effect for accounting periods commencing on or after 1 January 2026.

44. Amendment of section 400 of Principal Act (company reconstructions without change of ownership)

44. (1) Section 400 of the Principal Act is amended—

(a) in subsection (6), by the insertion of “in respect of assets which have transferred from the predecessor to the successor on the transfer of the trade,” after “sections 307 and 308; but,”, and

(b) by the insertion of the following subsection after subsection (7A):

“(7B)

(a) Where the trade consists of the carrying on of relevant activities (within the meaning of section 291A(5)(a))—

(i) the predecessor shall not be entitled to any relief under section 291A(6)(b)(i) in respect of an excess amount (within the meaning of section 291A(6)(b)(i)), or portion thereof, as the case may be, which relates to a specified intangible asset which transferred from the predecessor to the successor on the transfer of the trade (in this subsection referred to as ‘the transferable excess amount’), and the successor shall be entitled to relief under section 291A(6)(b)(i) in respect of the transferable excess amount, for which the predecessor would have been entitled to claim relief if the predecessor had continued to carry on the trade, and

(ii) the predecessor shall not be entitled to any relief under section 291A(6)(b)(ii) in respect of excess interest (within the meaning of section 291A(6)(b)(ii)), or portion thereof, as the case may be, which was incurred in connection with the provision of a specified intangible asset which transferred from the predecessor to the successor on the transfer of the trade (in this subsection referred to as ‘the transferable excess interest’), and the successor shall be entitled to relief under section 291A(6)(b)(ii) in respect of the transferable excess interest, for which the predecessor would have been entitled to claim relief if the predecessor had continued to carry on the trade.

(b) (i) For the purposes of subparagraph (i) of paragraph (a), where an excess amount referred to in that subparagraph relates to both—

(I) a specified intangible asset which transferred from the predecessor to the successor on the transfer of the trade, and

(II) a specified intangible asset which did not so transfer,

when determining the transferable excess amount, the excess amount shall be apportioned on a just and reasonable basis.

(ii) For the purposes of subparagraph (ii) of paragraph (a), where excess interest referred to in that subparagraph was incurred in connection with both—

(I) the provision of a specified intangible asset which transferred from the predecessor to the successor on the transfer of the trade, and

(II) the provision of a specified intangible asset which did not so transfer,

when determining the transferable excess interest, the excess interest shall be apportioned on a just and reasonable basis.”.

(2) Subsection (1) shall have effect for accounting periods commencing on or after 1 January 2026 in respect of a transfer of a trade to which section 400(5) of the Principal Act applies which occurs on or after 1 January 2026.

45. Amendment of section 481 of Principal Act (relief for investment in films)

45. (1) Section 481 of the Principal Act is amended—

(a) in subsection (1)—

(i) in the definition of “film corporation tax credit”, by the substitution of “subsections (1B), (1C) and (1D)” for “subsections (1B) and (1C)”, and

(ii) by the insertion of the following definitions:

“ ‘relevant visual effects work’, in relation to a visual effects project, means work consisting of such visual effects processes as may be specified in regulations made under subsection (2E);

‘visual effects’ means the use of computer technology to digitally create or manipulate content whether such content is for inclusion in a film or within filmed footage for inclusion in a film;

‘visual effects project’ means—

(a) a qualifying film—

(i) where production by the qualifying company consists wholly or mainly of relevant visual effects work, and

(ii) in respect of which the eligible expenditure on relevant visual effects work is not less than €1,000,000,

or

(b) a qualifying film in respect of which the qualifying company incurs eligible expenditure of not less than €1,000,000 on relevant visual effects work;”,

(b) by the insertion of the following subsection after subsection (1C):

“(1D)
(a) Where a producer company expects a film to be a visual effects project, the producer company, in making its application under subsection (1A), may apply for the certificate mentioned in that subsection to specify, in addition to that mentioned in that subsection, that an increased film corporation tax credit (in this section referred to as the ‘enhanced credit amount for visual effects’) may apply as provided for in paragraph (c).

(b) In considering whether, in the certification applied for, he or she should specify that the enhanced credit amount for visual effects may apply, the Minister, in accordance with regulations made under subsection (2E), shall have regard to whether the film is expected to satisfy the criteria set out in paragraph (a) or (b) of the definition, in subsection (1), of ‘visual effects project’.
(c) Where—

(i) the certificate issued under subsection (2) specifies that the enhanced credit amount for visual effects may apply,

(ii) on completion of production, the qualifying film satisfies the conditions and obligations required by this section, and

(iii) the qualifying film is a visual effects project,

then, subject to paragraph (d), the producer company shall—
- (I) in making the claim for the film corporation tax credit under subsection (2G)(b)(ii), calculate the value of the enhanced credit amount for visual effects as if, in the definition, in subsection (1), of ‘film corporation tax credit’, ‘40 per cent’ were substituted for ‘32 per cent’ for that purpose, or

- (II) where a claim has been made for the film corporation tax credit under subsection (2G)(b)(i), in making the claim for the film corporation tax credit under subsection (2G)(b)(ii), calculate the value of the enhanced credit amount for visual effects as if, in the definition, in subsection (1), of ‘film corporation tax credit’, ‘40 per cent’ were substituted for ‘32 per cent’ for that purpose, less any amount already claimed pursuant to subsection (2G)(b)(i).
(d) Where, in relation to calculating the value of the enhanced credit amount for visual effects under clause (I) or (II), as the case may be, of paragraph (c), in respect of a visual effects project, the lowest of the amounts referred to in paragraphs (a) to (c) of the definition, in subsection (1), of ‘film corporation tax credit’ (referred to in this paragraph as the ‘qualifying amount’) exceeds €10,000,000, then the total value of the film corporation tax credit for the visual effects project shall comprise—

(i) an enhanced credit amount for visual effects equal to 40 per cent of €10,000,000, and

(ii) an amount equal to 32 per cent of the amount by which the qualifying amount exceeds €10,000,000.”,

(i) in paragraph (a), by the substitution of the following subparagraph for subparagraph (ii):

“(ii) specifying—

(I) whether or not the regional film development uplift applies, if appropriate,

(II) whether or not the enhanced credit for lower budget film may apply, if appropriate, or

(III) whether or not the enhanced credit amount for visual effects may apply, if appropriate.”,

and

(ii) in paragraph (b)—

(I) in subparagraph (iv), by the deletion of “and”,

(II) in subparagraph (v), by the substitution of “if appropriate, and” for “if appropriate”, and

(III) by the insertion of the following subparagraph after subparagraph (v):

“(vi) the criteria referred to in subsection (1D)(b), if appropriate,”,

and

(d) in subsection (2E)—

(i) by the insertion of the following paragraph after paragraph (ba):

“(bb) specifying the visual effects processes that may be regarded as relevant visual effects work for the purposes of an application for, and certification in respect of, the enhanced credit amount for visual effects in accordance with this section,”,

(ii) by the insertion of the following paragraph after paragraph (i):

“(ia) in relation to the matters referred to in the definition, in subsection (1), of ‘visual effects project’, governing the eligible expenditure incurred by the qualifying company on relevant visual effects work for the purposes of the calculation of the enhanced credit amount for visual effects in accordance with this section,”,

and

(iii) by the insertion of the following paragraph after paragraph (lb):

“(lc) specifying the criteria to be considered by the Minister, in relation to the criteria referred to in subsection (1D)(b)—

(i) in deciding whether, in the certificate applied for under subsection (1A), he or she should specify that the enhanced credit amount for visual effects may apply, and

(ii) in specifying conditions in such a certificate, as provided for in subsection (2)(b),

and the information required for those purposes to be included in the application made to the Minister under subsection (1A) by a producer company,”.

(2) Subsection (1) shall apply to a qualifying film (within the meaning of section 481 of the Principal Act) in respect of which the Minister for Culture, Communications and Sport issues a certificate (within the said meaning) after the coming into operation of this section.

(3) This section shall come into operation on such day as the Minister for Finance may, by order, appoint.

46. Amendment of section 481A of Principal Act (relief for investment in digital games)

46. (1) Section 481A of the Principal Act is amended—

(a) in subsection (1)—

(i) by the substitution of the following definition for the definition of “date of completion”:

This document does not substitute the official text published in the Irish Statute Book. We accept no responsibility for any inaccuracies arising from the transcription of the original into this format.

This text is published under Irish Statute Book's own terms of reuse, not a Legalize or public-domain licence. Irish Statute Book
CC-BY 4.0 (Oireachtas Open Data PSI Licence)
Contains Irish Public Sector Information licensed under the Oireachtas (Houses of the Oireachtas) Open Data PSI Licence / Creative Commons Attribution 4.0 International, sourced from https://www.irishstatutebook.ie.