Finance Act 2019

Cited as:IR No. 45/2019
Jurisdiction:Ireland


Finance Act 2019

2019 45

An 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 including the regulation of customs.

[22 December 2019]

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

PART 1

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

CHAPTER 1

Interpretation

S-1 Interpretation (Part 1)

1 Interpretation (Part 1)

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

CHAPTER 2

Universal Social Charge

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

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

2. Section 531AN of the Principal Act is amended in subsection (4) by substituting “2021” for “2020”.

CHAPTER 3

Income Tax

S-3 Amendment of section 466A of Principal Act (home carer tax credit)

3 Amendment of section 466A of Principal Act (home carer tax credit)

(1) Section 466A of the Principal Act is amended in subsection (2) by substituting “€1,600” for “€1,500”.

(2) Subsection (1) shall apply for the year of assessment 2020 and each subsequent year of assessment.

S-4 Amendment of section 472AB of Principal Act (earned income tax credit)

4 Amendment of section 472AB of Principal Act (earned income tax credit)

(1) Section 472AB of the Principal Act is amended in subsection (2) by substituting “€1,500” for “€1,350” in each place where it occurs.

(2) Subsection (1) shall apply for the year of assessment 2020 and each subsequent year of assessment.

S-5 Sea-going naval personnel credit

5 Sea-going naval personnel credit

5. ((1) The Principal Act is amended—

(a) in section 458, by inserting, in Part 2 of the Table to that section, “Section 472BB” after “Section 472BA”, and

(b) by inserting the following after section 472BA:

“Sea-going naval personnel credit

472BB. (1) In this section—

‘day at sea’ means a cumulative period of 8 hours within any 24-hour period on patrol at sea on board a naval vessel;

‘naval vessel’ means a naval patrol vessel owned by the Minister for Defence;

‘qualifying individual’ means a permanent member of the Irish Naval Service who has spent at least 80 days at sea in a relevant period performing the duties of his or her employment;

‘relevant period’, in relation to a year of assessment, means the immediately preceding year of assessment.

(2) Where for the year of assessment 2020 an individual is a qualifying individual—

(a) he or she shall be entitled to a tax credit (to be known as the ‘sea-going naval personnel credit’) of €1,270, and

(b) relief shall not be given under section 472B or 472BA in respect of that year.”.

(2) This section shall apply for the year of assessment 2020.

S-6 Benefit-in-kind: emissions-based calculations

6 Benefit-in-kind: emissions-based calculations

6. ((1) Section 121 of the Principal Act is amended—

(a) in subsection (2)(b)(iv) by substituting “2022” for “2021”,

(b) in subsection (2)(b)(vi) by substituting “2022” for “2021”,

(c) in subsection (3) by inserting the following after paragraph (b):

“(c) This subsection is subject to subsection (4A) for the year of assessment 2023 and subsequent years.”,

(d) in subsection (4), by inserting the following after paragraph (c):

“(d) This subsection is subject to subsection (4A) for the year of assessment 2023 and subsequent years.”,

and

(e) by inserting the following after subsection (4):

“(4A) (a) For the year of assessment 2023 and subsequent years, the cash equivalent of the benefit of a car shall be an amount determined by the formula—

Original market value x A

where—

A is a percentage, based on vehicle categories as set out in Table B to this subsection, determined in accordance with column (3), (4), (5), (6) or (7), as the case may be, of Table A to this subsection.

(b) In Table A to this subsection, any percentage shown in column (3), (4), (5), (6) or (7), as the case may be, shall be the percentage applicable to any business mileage for a year of assessment which—

(i) exceeds the lower limit (if any) shown in column (1), and

(ii) does not exceed the upper limit (if any) shown in column (2),

opposite the mention of that percentage in column (3), (4), (5), (6) or (7), as the case may be.

(c) Where a car in respect of which this section applies in relation to a person for a year of assessment is made available to the person for part only of that year, the cash equivalent of the benefit of that car as respects that person for that year shall be an amount which bears to the full amount of the cash equivalent of the car for that year (ascertained under paragraph (a)) the same proportion as that part of the year bears to that year.

(d) For the purposes of this section, the vehicle categories set out in column (1) of Table B to this subsection refer to a car whose CO2 emissions, determined by virtue of section 130 of Finance Act 1992, are set out in the corresponding entry in column (2) of Table B to this subsection.

TABLE A

TABLE B

(2) Section 121A of the Principal Act is amended—

(a)

in subsection (2)(b)(iv) by substituting “2022” for “2021”,

(b)

in subsection (2)(b)(vi) by substituting “2022” for “2021”,

(c)

by substituting the following for subsection (3):

“(3) The cash equivalent of the benefit of a van—

(a) for a year of assessment, other than a year of assessment referred to in paragraph (b), shall be 5 per cent of the original market value of the van, and

(b) for the year of assessment 2023 and subsequent years of assessment, shall be 8 per cent of the original market value of the van.”,

(d)

in subsection (4) by deleting “paragraph (b) of subsection (3),”, and

(e)

by inserting the following after subsection (4):

“(5) Where a van in respect of which this section applies in relation to a person for a year of assessment is made available to the person for part only of that year, the cash equivalent of the benefit of that van as respects that person for that year shall be an amount which bears to the full amount of the cash equivalent of the van for that year (ascertained under subsection (3)) the same proportion as that part of the year bears to that year.”.

(3) The Finance (No. 2) Act 2008 is amended in section 6(1) by deleting paragraphs (b)(ii), (c)(iii) and (e).

S-7 Amendment of section 204B of Principal Act (exemption in respect of compensation for certain living donors)

7 Amendment of section 204B of Principal Act (exemption in respect of compensation for certain living donors)

(1) Section 204B of the Principal Act is amended by inserting “or lobe of liver” after “kidney”.

(2) Subsection (1) shall be deemed to have come into operation on 12 March 2019.

S-8 Amendment of section 205A of Principal Act (Magdalen Laundry payments)

8 Amendment of section 205A of Principal Act (Magdalen Laundry payments)

(1) Section 205A of the Principal Act is amended in subsection (1) by substituting the following for the definition of “relevant individual”:

“‘relevant individual’ means an individual who has received a payment referred to in paragraph (a) of the definition of ‘relevant payment’ in this subsection;”.

(2) Subsection (1) shall be deemed to have come into operation on 1 August 2013.

S-9 Amendment of section 825C of Principal Act (special assignee relief programme)

9 Amendment of section 825C of Principal Act (special assignee relief programme)

(1) Section 825C of the Principal Act is amended—

(a)

in subsection (2A), by substituting “2022” for “2020”,

(b)

in subsection (2B)(b)(i) —

(i) in subclause (B), by substituting “the tax year 2019 and subsequent tax years” for “the tax years 2019 and 2020”, and

(ii) in subclause (C), by substituting “2020 and subsequent tax years” for “2020”,

and

(c)

in subsection (4)(b), by substituting “2022” for “2020”.

(2) Subsection (1) shall apply for the year of assessment 2020 and each subsequent year of assessment.

S-10 Amendment of section 823A of Principal Act (deduction for income earned in certain foreign states)

10 Amendment of section 823A of Principal Act (deduction for income earned in certain foreign states)

10. Section 823A of the Principal Act is amended—

(a) in subsection (1), in the definition of “relevant state”, by substituting “2022” for “2020” in each place where it occurs, and

(b) in subsection (6) by substituting “2022” for “2020”.

S-11 Amendment of section 128F of Principal Act (key employee engagement programme)

11 Amendment of section 128F of Principal Act (key employee engagement programme)

(1) Section 128F of the Principal Act is amended—

(a)

in subsection (1) —

(i) by inserting the following definitions after the definition of “qualifying company”:

“ ‘qualifying group’ means, subject to subsection (2A), a group of companies that consists of the following (and no other companies):

(a) a qualifying holding company,

(b) its qualifying subsidiary or subsidiaries, and

(c) as the case may be, its relevant subsidiary or subsidiaries;

‘qualifying holding company’ means a company—

(a) which is not controlled either directly or indirectly by another company,

(b) which does not carry on a trade or trades, and

(c) whose business consists wholly or mainly of the holding of shares only in the following (and no other companies), namely, its qualifying subsidiary or subsidiaries and where it has a relevant subsidiary or subsidiaries, in that subsidiary or in each of them;”,

(ii) by substituting the following for the definition of “qualifying individual”:

“ ‘qualifying individual’, in relation to a qualifying share option, means an individual who throughout the entirety of the relevant period is—

(a) in the case of a qualifying group, an employee or director of a qualifying company within the group, and who is required to work at least 20 hours per week for such a qualifying company or to devote not less than 75 per cent of...

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