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Finance (No.2) Act 2023

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Finance (No.2) Act 2023 Skip to content Disclaimer Feedback Helpdesk Gaeilge Léim go dtí an t-ábhar Séanadh Aiseolas Deasc chabhrach English Gaeilge English Produced by the Office of the Attorney General Táirgthe ag Oifig an Ard-Aighne Home Legislation Acts of the Oireachtas Statutory Instruments Pre-1922 Legislation Constitution External Resources Bills (Houses of the Oireachtas) Iris Oifigiúil / Official Gazette Revised Acts (LRC) Classified List of Legislation (LRC) Translations (acts.

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  3. s)or rangeBliain nó blianta nó raon TypeCineál All Legislation Acts Statutory Instruments Advanced SearchCuardach Casta HomeBaile ActsAchtanna 2023 Finance (No.2) Act 2023 Finance (No.2) Act 2023 Permanent Page URL View by SectionAmharc de réir Ailt View Full ActAmharc ar an Acht Iomlán Bill History Stair Bille Commencement, Amendments, SIs made under the Act Tosach Feidhme, Leasuithe, IRí arna ndéanamh faoin Acht Open PDFOscail PDF Print Full ActPriontáil an tAcht Iomlán Number 39 of 2023 FINANCE (NO. 2) ACT 2023 CONTENTS PART 1 Universal Social Charge, Income Tax, Corporation Tax and Capital Gains Tax Chapter 1 Interpretation Section 1. Interpretation (Part 1) CHAPTER 2 Universal Social Charge 2. Amendment of section 531AN of Principal Act (rate of charge) CHAPTER 3 Income Tax 3. Exemption in respect of Clinical Placement Allowance 4. Exemption in respect of allowance for maternity-related administrative support 5. Time limits for certain assessments and repayments 6. Amendment of section 477C of Principal Act (Help to Buy) 7. Amendment of section 121 of Principal Act (Benefit of use of car) 8. Amendment of section 121A of Principal Act (Benefit of use of van) 9. Rate of charge and personal tax credits 10. Amendment of section 472BB of Principal Act (sea-going naval personnel credit) 11. Amendment of section 473B of Principal Act (Rent tax credit) 12. Taxation of rights to acquire shares or other assets 13. Mortgage interest tax relief 14. Amendment of section 208 of Principal Act (lands owned and occupied, and trades carried on by, charities) 15. Amendment of section 208B of Principal Act (charities - miscellaneous) 16. Amendment of section 235 of Principal Act (bodies established for promotion of athletic or amateur games or sports) 17. Amendment of section 784 of Principal Act (retirement annuities: relief for premiums) 18. Amendment of section 784A of Principal Act (approved retirement fund) 19. Amendment of section 787K of Principal Act (Revenue approval of PRSA products) 20. Exemption from income tax of rental income subject to registration with Residential Tenancies Board 21. Amendment of Part 15 of Principal Act (personal allowances and reliefs, etc.) 22. Amendment of Part 1 of Schedule 26A to Principal Act (donations to approved bodies) 23. Amendment of Schedule 13 to Principal Act (accountable persons for purposes of Chapter 1 of Part 18) CHAPTER 4 Income Tax, Corporation Tax and Capital Gains Tax 24. Amendment of section 97B of Principal Act (deduction for retrofitting expenditure) 25. Amendment of section 1041 of Principal Act (rents payable to non-residents) 26. Amendment of section 238 of Principal Act (annual payments not payable out of taxed income) 27. Amendment of section 669O of Principal Act (exemption in respect of the catch sum) 28. Amendment of section 216D of Principal Act (certain profits of micro-generation of electricity) 29. Amendment of section 285A of Principal Act (acceleration of wear and tear allowances for certain energy-efficient equipment) 30. Amendment of section 285D of Principal Act (acceleration of wear and tear allowances for farm safety equipment) 31. Amendment of Part 16 of Principal Act (relief for investment in corporate trades) 32. Amendment of Part 23 of Principal Act (farming and market gardening) 33. Amendment of section 664 of Principal Act (relief for certain income from leasing of farm land) 34. Amendment of Chapter 2 of Part 29 of Principal Act (scientific and certain other research) 35. Amendment of certain tax exemption provisions 36. Outbound payments defensive measures 37. Amendment of Part 6 of Principal Act (company distributions, tax credits, etc.) 38. Medical practitioners operating in partnership CHAPTER 5 Corporation Tax 39. Taxation of leases 40. Taxation of certain qualifying financing companies 41. Amendment of section 481 of Principal Act (relief for investment in films) 42. Amendment of section 82 of Principal Act (pre-trading expenditure) 43. Amendment of Chapter 5 of Part 12 of Principal Act (group relief) 44. Amendment of section 835YA of Principal Act (non-cooperative jurisdictions: modified application of sections 835T, 835U and 835V) 45. Amendment of Part 35C of Principal Act (Implementation of Council Directive (EU) 2016/1164 of 12 July 2016 as regards hybrid mismatches) CHAPTER 6 Capital Gains Tax 46. Relief for investment in innovative enterprises 47. Amendment of section 536 of Principal Act (capital sums: receipt of compensation and insurance moneys not treated as a disposal in certain cases) 48. Amendment of section 597AA of Principal Act (revised entrepreneur relief) 49. Amendment of section 598 of Principal Act (disposals of business or farm on "retirement") 50. Amendment of section 599 of Principal Act (disposals within family of business or farm) 51. Amendment of section 604A of Principal Act (relief for certain disposals of land or buildings) PART 2 Excise 52. Amendment of Schedule 2 to Finance Act 1999 (rates of mineral oil tax) 53. Amendment of Schedule 2 to Finance Act 2005 (rates of tobacco products tax) 54. Amendment of Chapter 1 of Part 2 of, and Schedule 2 to, Finance Act 2003 (Alcohol Products Tax) 55. Amendment of section 135C of Finance Act 1992 (remission or repayment in respect of vehicle registration tax, etc.) 56. Amendment of Part 2 of Finance Act 2001 PART 3 Value-Added Tax 57. Interpretation (Part 3) 58. Amendment of section 2 of Principal Act 59. Amendment of section 46 of Value-Added Tax Consolidation Act 2010 60. Repeal of section 51 of Principal Act (determination on rates and exemptions) 61. Deposit Return Scheme 62. Amendment of section 86 of Principal Act (special provisions for tax invoiced by flat- rate farmers) 63. Amendment of paragraph 6

(1)of Schedule 1 to Principal Act (financial services)
  1. Amendment of paragraph 11 of Schedule 1 to Principal Act (letting of immovable goods)
  2. Amendment of Schedules 2 and 3 to Principal Act (zero-rated goods and services)
  3. Amendment of Schedule 2 to Principal Act (zero-rated goods and services) PART 4 Stamp Duties
  4. Interpretation (Part 4)
  5. Exemption for short-term residential leases
  6. Amendment of section 81AA of Principal Act (transfers to young trained farmers)
  7. Consanguinity relief
  8. Amendment of section 101A of Principal Act (single farm payment entitlement)
  9. Amendment of section 81C of Principal Act (further farm consolidation relief)
  10. Further levy on certain financial institutions
  11. Amendment of Chapter 2 of Part 6 of Principal Act (special provisions relating to dematerialised securities)
  12. Amendment of section 75 of Principal Act (relief for intermediaries)
  13. Provisions in relation to repayment of stamp duty PART 5 Capital Acquisitions Tax
  14. Interpretation (Part 5)
  15. Amendment of Schedule 2 to Principal Act (computation of tax)
  16. Amendment of Principal Act in relation to section 4B of Succession Act 1965
  17. Amendment of section 46 of Principal Act (delivery of returns)
  18. Amendment of Part 10 of Principal Act (agricultural relief and business relief) PART 6 Miscellaneous
  19. Interpretation (Part 6)
  20. Amendment of section 895 of Principal Act (returns in relation to foreign accounts)
  21. Amendment of section 3 of Principal Act (Interpretation of Income Tax Acts)
  22. Amendment of section 92 of Finance Act 1989
  23. Amendment of Part 38 of Principal Act (returns of income and gains, other obligations, etc.)
  24. Administrative cooperation
  25. Implementation of Council Directive (EU) 2021/514 of 22 March 2021 amending Directive 2011/16/EU on administrative cooperation in the field of taxation in relation to joint audits
  26. Amendment of references to credit institutions in certain provisions of Principal Act
  27. Amendment of Part 22B of Principal Act (vacant homes tax)
  28. Amendment of section 1003 of Principal Act (payment of tax by means of donation of heritage items)
  29. Residential zoned land tax
  30. Amendment of Part 18E of Principal Act (defective concrete products levy)
  31. Implementation of Council Directive (EU) 2022/2523 of 15 December 2022 on ensuring a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the Union
  32. Application of certain provisions of Principal Act to Parts 4A and 22A of Principal Act
  33. Amendments to other enactments
  34. Amendment of Schedule 24 to Principal Act (relief from income tax and corporation tax by means of credit in respect of foreign tax)
  35. Amendment of Part 35B of Principal Act (implementation of Articles 7 and 8 of Council Directive (EU) 2016/1164 of 12 July 2016 (Controlled Foreign Companies))
  36. Amendment of section 481A of Principal Act (relief for investment in digital games)
  37. Miscellaneous technical amendments in relation to tax
  38. Care and management of taxes and duties
  39. Short title, construction and commencement SCHEDULE Miscellaneous Technical Amendments in relation to Tax Acts Referred to Assisted Decision-Making (Capacity) Act 2015 (No. 64) Capital Acquisitions Tax Consolidation Act 2003 (No. 1) Central Bank Act 1971 (No. 24) Companies Act 2014 (No. 38) Credit Reporting Act 2013 (No. 45) Education Act 1998 (No. 51) Energy (Windfall Gains in the Energy Sector) (Temporary Solidarity Contribution) Act 2023 (No. 23) Finance (Local Property Tax) Act 2012 (No. 52) Finance (Tax Appeals) Act 2015 (No. 59) Finance Act 1989 (No. 10) Finance Act 1992 (No. 9) Finance Act 1999 (No. 2) Finance Act 2001 (No. 7) Finance Act 2003 (No. 3) Finance Act 2005 (No. 5) Finance Act 2022 (No. 44) Finance Act 2023 (No. 11) Health (Amendment) Act 1996 (No. 15) Health Act 1947 (No. 28) Health Act 1970 (No. 1) Higher Education Authority Act 2022 (No. 31) Housing (Private Rented Dwellings) Act 1982 (No. 6) Local Government Act 2001 (No. 37) Medical Practitioners Act 2007 (No. 25) Mental Health Act 2001 (No. 25) Ministers and Secretaries (Amendment) Act 2011 (No. 10) Misuse of Drugs Acts 1977 to 2017 Mother and Baby Institutions Payment Scheme Act 2023 (No. 20) Nurses and Midwives Act 2011 (No. 41) Planning and Development Acts 2000 to 2022 Provisional Collection of Taxes Act, 1927 (No. 7) Redress for Women Resident in Certain Institutions Act 2015 (No. 8) Residential Tenancies Act 2004 (No. 27) Social Welfare Consolidation Act 2005 (No. 26) Stamp Duties Consolidation Act 1999 (No. 31) Succession Act 1965 (No. 27) Taxes Consolidation Act 1997 (No. 39) The Institution of Civil Engineers of Ireland (Charter Amendment) Act, 1969 (No. 1) (Private) Value-Added Tax Consolidation Act 2010 (No. 31) Number 39 of 2023 FINANCE (NO. 2) ACT 2023 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; and to provide for related matters. [18th December, 2023] Be it enacted by the Oireachtas as follows: PART 1 Universal Social Charge, Income Tax, Corporation Tax and Capital Gains Tax CHAPTER 1 Interpretation Interpretation (Part 1)
  40. In this Part, “Principal Act” means the Taxes Consolidation Act 1997 . CHAPTER 2 Universal Social Charge 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 “€25,760” for “€22,920”, (b) in subsection
(4), by the substitution of “2026” for “2024”, and (c) by the substitution of the following for Part 1 of the Table to that section: “Part 1 Part of aggregate income
(1)Rate of universal social charge
(2)The first €12,012 0.5 per cent The next €13,748 2 per cent The next €44,284 4 per cent The remainder 8 per cent ”.
(2)Subsection
(1)applies for the year of assessment 2024 and each subsequent year of assessment. CHAPTER 3 Income Tax Exemption in respect of Clinical Placement Allowance 3. Chapter 1 of Part 7 of the Principal Act is amended by the insertion of the following section after section 192N: “192O.
(1)In this section— ‘Act of 2011’ means the Nurses and Midwives Act 2011 ; ‘qualifying course’ means an undergraduate programme in nursing or midwifery approved by the Nursing and Midwifery Board of Ireland under section 85
(2)of the Act of 2011; ‘qualifying payment’ means a payment, generally referred to and commonly known as a Clinical Placement Allowance, which is made periodically by or on behalf of the Minister for Health; ‘qualifying student’ means an undergraduate student who is registered in the candidate register maintained by the Nursing and Midwifery Board of Ireland under section 46 of the Act of 2011 and who is undertaking what is generally referred to and commonly known as a Supernumerary Clinical Placement as part of a qualifying course.
(2)A qualifying payment made to a qualifying student on or after 1 January 2024 shall be exempt from income tax and shall not be reckoned in computing the total income of the qualifying student for the purposes of the Income Tax Acts.
(3)A qualifying payment which is made to a qualifying student before 1 January 2024 shall be treated as if it were exempt from income tax in the year of assessment to which it relates and shall not be reckoned in computing the total income of the qualifying student for that year of assessment for the purposes of the Income Tax Acts.
(4)A qualifying payment shall be deemed not to be a payment to which Chapter 4 of Part 42 applies.”. Exemption in respect of allowance for maternity-related administrative support 4. Chapter 1 of Part 7 of the Principal Act is amended by the insertion of the following section after section 192O: “192P.
(1)In this section— ‘qualifying individual’ means a member of a local authority (within the meaning of the Local Government Act 2001 ) who is entitled to the benefit of a qualifying payment; ‘qualifying payment’ means an allowance paid, by or on behalf of the Minister for Housing, Local Government and Heritage, to a qualifying individual of maternity-related administrative support (within the meaning of the Regulations of 2023) subject to and in accordance with the Regulations of 2023; ‘Regulations of 2023’ means the Local Government Act 2001 (Section 142) (Allowance for Maternity-Related Administrative Support) Regulations 2023 ( S.I. No. 404 of 2023 ).
(2)A qualifying payment which is made to a qualifying individual 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 shall be deemed not to be a payment to which Chapter 4 of Part 42 applies.”. Time limits for certain assessments and repayments 5.
(1)Section 531AOA of the Principal Act is amended by the insertion of the following subsections after subsection
(5): “
(6)(a) Where an employer makes a return under subsection
(2)after the expiry of a period of 4 years commencing at the end of the year of assessment in which the income tax month falls, that employer shall not be entitled in the case of a repayment referred to in Regulation 4 of the Universal Social Charge Regulations 2018 (S.I. No. 510 of 2018) to be paid it, or given credit for it, by the Revenue Commissioners. (b) Notwithstanding paragraph (a), where, in a return made by an employer under subsection
(2), the amount the employer is liable to pay pursuant to Regulation 4 of the Universal Social Charge Regulations 2018 ( S.I. No. 510 of 2018 ) exceeds the amount of a repayment pursuant to the said Regulation 4 then credit may be given by the Revenue Commissioners against the amount the employer is liable to pay in that return.
(7)Where, in relation to a return made under subsection
(2)which includes a repayment, the Revenue Commissioners are of the opinion that the requirements of this section have not been met, they shall decide to refuse the repayment and shall notify the employer in writing of the decision and the reasons for it.
(8)A person aggrieved by a decision of the Revenue Commissioners in relation to subsection
(7)may appeal the decision to the Appeal Commissioners, in accordance with section 949I, within the period of 30 days after the date of the notice of that decision.”.
(2)Section 984B of the Principal Act is amended by the insertion of “subject to subsections (6A) and (6B) of section 985G,” after “and shall,”.
(3)Section 985G of the Principal Act is amended by the insertion of the following subsections after subsection
(6): “(6A) (a) Where an employer makes a return under subsection
(3)(
  1. a)after the expiry of a period of 4 years commencing at the end of the year of assessment in which the income tax month falls, that employer shall not be entitled in the case of a repayment referred to in section 984B to be paid it, or be given credit for it, by the Revenue Commissioners. (
  2. b)Notwithstanding paragraph (a), where, in a return made by an employer under subsection
(3)(a), the amount the employer is liable to pay pursuant to section 984B exceeds the amount of a repayment pursuant to section 984B then credit may be given by the Revenue Commissioners against the amount the employer is liable to pay in that return. (6B) Where, in relation to a return made under subsection
(3)(a) which includes a repayment, the Revenue Commissioners are of the opinion that the requirements of this section have not been met, they shall decide to refuse the repayment and shall notify the employer in writing of the decision and the reasons for it. (6C) A person aggrieved by a decision of the Revenue Commissioners in relation to subsection (6B) may appeal the decision to the Appeal Commissioners, in accordance with section 949I, within the period of 30 days after the date of the notice of that decision.”.
(4)Section 990 of the Principal Act is amended by the insertion of the following subsections after subsection
(4): “
(5)Subject to subsections
(6),
(7)and
(8), an inspector or other officer shall not, in respect of a return made by an employer for an income tax month, make— (a) an assessment under subsection
(1), or (b) an amendment of an assessment under subsection
(2), after the expiry of a period of 4 years commencing at the end of the year following the year of assessment in which the income tax month falls.
(6)Nothing in subsection
(5)shall prevent an inspector or other officer from, at any time, making or amending an assessment for an income tax month in order to— (
  1. a)give effect to— (
  2. i)a determination of an appeal against an assessment, (
  3. ii)a determination of an appeal, other than one made under subparagraph (i), that affects the amount of tax charged by an assessment, or (iii) an agreement within the meaning of section 949V, (
  4. b)take account of any fact or matter arising by reason of an event occurring after the return is made, (
  5. c)correct an error in calculation in the assessment, or (
  6. d)correct a mistake of fact whereby any matter in the assessment does not properly reflect the facts disclosed by the employer, and tax shall be paid or repaid (notwithstanding any limitation in subsection (6A) of section 985G or subsection
(6)of section 531AOA) where appropriate in accordance with any such amendment.
(7)Notwithstanding subsection
(5)and any limitation in the Tax Acts on the period within which a claim for relief from tax is required to be made, an inspector or other officer may, at any time, make or amend an assessment for an income tax month to give effect to a mutual agreement reached, under an arrangement having the force of law by virtue of section 826
(1), between the competent authority of the State and a competent authority of another jurisdiction and tax shall be paid or repaid (notwithstanding any limitation in subsection (6A) of section 985G or subsection
(6)of section 531AOA) where appropriate in accordance with any such assessment or amended assessment.
(8)(a) Notwithstanding subsection
(5), an inspector or other officer may, at any time, make or amend an assessment for an income tax month where he or she has reasonable grounds for believing that any form of fraud or neglect has been committed by or on behalf of an employer in connection with or in relation to tax due under this Chapter. (b) In this subsection, ‘neglect’ has the same meaning as it has in section 959AD and subsection
(2)of that section shall apply accordingly.”.
(5)Section 997 of the Principal Act is amended, in subsection (1A), by the substitution of “959AB, 959AC and 959AD” for “959AB and 959AD”.
(6)Subsections
(1),
(2)and
(3)shall apply in respect of returns made for income tax months commencing on or after 1 January 2019. Amendment of section 477C of Principal Act (Help to Buy) 6.
(1)Section 477C of the Principal Act is amended— (a) in subsection
(1), by— (i) the insertion of the following definition: “ ‘affordable dwelling contribution’ shall be construed in accordance with section 12
(2)of the Act of 2021;”, (
  1. ii)the substitution of the following definition for the definition of “loan-to-value ratio”: “ ‘loan-to-value ratio’ means— (
  2. a)in the case of a contract referred to in subsection
(3)(
  1. a)that was entered into before 11 October 2023, the amount of the qualifying loan as a proportion of the purchase value of the qualifying residence, and (
  2. b)in all other cases, the amount that is the aggregate of— (
  3. i)the amount of the qualifying loan, and (
  4. ii)in the case of a qualifying residence, the amount of the affordable dwelling contribution, if any, in respect of the qualifying residence, as a proportion of the purchase value of the qualifying residence or the self-build qualifying residence, as the case may be;”, and (iii) in the definition of “qualifying period”, the substitution of “2025” for “2024”, (
  5. b)in subsection (5A), by the substitution of “2025” for “2024”, (
  6. c)in subsection
(8)(b), by the substitution of “2025” for “2024”, (d) in subsection
(12)(a), by the insertion of the following subparagraphs after subparagraph (viii): “(viiia) the amount of the affordable dwelling contribution, if any, in respect of the qualifying residence, (viiib) evidence of the affordable dwelling purchase arrangement (within the meaning of section 12 of the Act of 2021), if any, entered into, in respect of the qualifying residence,”, (e) in subsection
(16)(a), in subparagraphs (
  1. ii)and (iii), by the substitution of “2025” for “2024” in each place where it occurs, and (
  2. f)in subsection
(25), by the substitution of “2025” for “2024”.
(2)Paragraphs (
  1. a)(
  2. i)and (
  3. ii)and (
  4. d)of subsection
(1)shall have effect on and from 11 October 2023. Amendment of section 121 of Principal Act (Benefit of use of car) 7. Section 121 of the Principal Act is amended, in subsection (4A)— (
  1. a)in paragraph (aa)— (
  2. i)in subparagraph (ii), by the substitution of “subject to paragraph (ab), €35,000” for “€20,000”, (
  3. ii)in subparagraph (iii)— (I) by the substitution of “€35,000” for “€10,000”, and (II) by the substitution of “December 2025;” for “December 2025.”, and (iii) by the insertion of the following subparagraphs after subparagraph (iii): “(
  4. iv)€20,000 in respect of a car made available in the period 1 January 2026 to 31 December 2026; (
  5. v)€10,000 in respect of a car made available in the period 1 January 2027 to 31 December 2027.”, (
  6. b)in paragraph (ab)— (
  7. i)by the substitution of “years of assessment 2023 and 2024” for “year of assessment 2023”, and (
  8. ii)in subparagraph (i)— (I) by the substitution of “subparagraph (
  9. i)or (ii), as the case may be, of paragraph (aa)” for “paragraph (aa)(i)”, and (II) in clause (I), by the substitution of “subparagraph (
  10. i)or (ii), as the case may be, of paragraph (aa)” for “paragraph (aa)(i)”, and (
  11. c)in paragraph (ba), by the substitution of “years of assessment 2023 and 2024” for “year of assessment 2023”. Amendment of section 121A of Principal Act (Benefit of use of van) 8. Section 121A of the Principal Act is amended, in paragraph (
  12. b)of subsection
(2)— (
  1. a)in subparagraph (vii)— (
  2. i)in clause (II), by the substitution of “subject to subparagraph (viii), €35,000” for “€20,000”, (
  3. ii)in clause (III)— (I) by the substitution of “€35,000” for “€10,000”, and (II) by the substitution of “December 2025;” for “December 2025, and”, and (iii) by the insertion of the following clauses after clause (III): “(IV) €20,000 in respect of a van made available in the period 1 January 2026 to 31 December 2026; (V) €10,000 in respect of a van made available in the period 1 January 2027 to 31 December 2027, and”, and (
  4. b)in subparagraph (viii)— (
  5. i)by the substitution of “years of assessment 2023 and 2024” for “year of assessment 2023”, and (
  6. ii)in clause (I)— (I) by the substitution of “clause (I) or (II), as the case may be, of subparagraph (vii) applies” for “subparagraph (vii)(I) applies”, and (II) in subclause (A), by the substitution of “clause (I) or (II), as the case may be, of subparagraph (vii)” for “subparagraph (vii)(I)”. Rate of charge and personal tax credits 9. As respects the year of assessment 2024 and subsequent years of assessment, the Principal Act is amended— (
  7. a)in section 15— (
  8. i)in paragraph (
  9. i)of subsection
(3), by the substitution of “€33,000” for “€31,000”, and (ii) by the substitution of the following Table for the Table to that section: “TABLE PART 1 Part of taxable income
(1)Rate of tax
(2)Description of rate
(3)The first €42,000 20 per cent the standard rate The remainder 40 per cent the higher rate PART 2 Part of taxable income
(1)Rate of tax
(2)Description of rate
(3)The first €46,000 20 per cent the standard rate The remainder 40 per cent the higher rate PART 3 Part of taxable income
(1)Rate of tax
(2)Description of rate
(3)The first €51,000 20 per cent the standard rate The remainder 40 per cent the higher rate ”, (
  1. b)in section 461— (
  2. i)in paragraph (a), by the substitution of “€3,750” for “€3,550”, (
  3. ii)in paragraph (b), by the substitution of “€3,750” for “€3,550”, and (iii) in paragraph (c), by the substitution of “€1,875” for “€1,775”, (
  4. c)in section 462B, in subsection
(3), by the substitution of “€1,750” for “€1,650”, (d) in section 465, in subsection
(1), by the substitution of “€3,500” for “€3,300”, (e) in section 466A, in subsection
(2), by the substitution of “€1,800” for “€1,700”, (f) in section 472, in subsection
(4), by the substitution of “€1,875” for “€1,775” in each place where it occurs, and (g) in section 472AB— (i) in subsection
(2), by the substitution of “€1,875” for “€1,775” in each place where it occurs, and (ii) in subsection
(3), by the substitution of “€1,875” for “€1,775” in each place where it occurs. Amendment of section 472BB of Principal Act (sea-going naval personnel credit) 10. Section 472BB of the Principal Act is amended, in subsection
(3), by the substitution of “, 2023 or 2024” for “or 2023”. Amendment of section 473B of Principal Act (Rent tax credit) 11.
(1)Section 473B of the Principal Act is amended— (a) by the insertion of the following subsection after subsection
(6): “(6A) Notwithstanding anything in this section, where, in respect of a year of assessment— (a) an individual is entitled, in respect of a residential property, to an allowance to which subsection
(1), (1A) or (1B) of section 836 applies, or (b) an individual is allowed, in accordance with section 836
(2), a deduction under section 114 in respect of expenses in maintaining a residential property, this section shall not apply to a qualifying payment made in that year in respect of that residential property.”, (b) by the substitution of the following subsection for subsection
(8): “
(8)Where— (
  1. a)a claimant, or (
  2. b)in a case where subsection
(4)applies, a claimant’s spouse or civil partner, proves that he or she made a qualifying payment in respect of a residential property used by his or her child as his or her principal private residence the claimant shall, upon making a claim in that regard, be entitled to the same rent tax credit as if the qualifying payment was made in respect of a residential property which was used by the claimant as his or her own principal private residence where— (
  1. i)neither the individual nor the child is a relative of the landlord, (
  2. ii)the child was undertaking an approved course and using the property to facilitate his or her participation in that course during the period to which the qualifying payment relates, and (iii) in the case of a tenancy which is required to be registered under Part 7 of the Residential Tenancies Act 2004 , the tenancy complies with that requirement.”, and (
  3. c)in subsection
(13)— (
  1. i)by the substitution of “€750” for “€500”, and (
  2. ii)by the substitution of “€1,500” for “€1,000”.
(2)Paragraph (b) of subsection
(1)shall be deemed to have come into operation on 1 January 2022. Taxation of rights to acquire shares or other assets 12. The Principal Act is amended— (
  1. a)in section 128— (
  2. i)in subsection (2A), by the substitution of “Notwithstanding any other provision of the Tax Acts and subject to subsection (2B), where a person” for “Notwithstanding any other provision of the Tax Acts, where a person”, and (
  3. ii)by the insertion of the following subsection after subsection (2A): “(2B) Where a gain is realised by the exercise of, or by the assignment or release of, a right on or after 1 January 2024 and a charge to tax arises under this section, Chapter 4 of Part 42 shall apply in respect of the gain.”, (
  4. b)in section 128B
(1), by the substitution of “on or after 30 June 2003 and before 1 January 2024,” for “on or after 30 June 2003,”, (
  1. c)in section 531AO(1A)— (
  2. i)in paragraph (a), by the deletion of “or”, (
  3. ii)in paragraph (b), by the substitution of “Schedule 12A, or” for “Schedule 12A”, and (iii) by the insertion of the following paragraph after paragraph (b): “(
  4. c)an employee realises a gain by the exercise of, or by the assignment or release of, a right on or after 1 January 2024 which is chargeable to tax by virtue of section 128,”, (
  5. d)in section 959AB, by the substitution of the following subsection for subsection
(3): “
(3)The emoluments to which this subsection applies are— (a) emoluments within the meaning of section 112
(2), including any payments chargeable to tax by virtue of section 123 and any sums which by virtue of Chapter 3 of Part 5 are to be treated as perquisites of a person’s office or employment, being emoluments, payments or sums other than those taken into account in an assessment to income tax for the year of assessment in which they are received and, for the purposes of subsection
(2)— (i) any such payment shall, notwithstanding anything in section 123
(4), be treated as having been received at the time it was actually received, and (
  1. ii)any such sums which are not actually paid to that person shall be treated as having been received at the time when the relevant expenses were incurred or are treated for the purposes of Chapter 3 of Part 5 as having been incurred, and (
  2. b)a gain realised by the exercise of, or by the assignment or release of, a right on or after 1 January 2024 which is chargeable to tax by virtue of section 128.”, and (
  3. e)in section 985A— (
  4. i)in subsection
(1)— (I) in paragraph (b), by the deletion of “and”, (II) in paragraph (c), by the substitution of “section 121A, and” for “section 121A.”, and (III) by the insertion of the following paragraph after paragraph (c): “(
  1. d)a gain realised by the exercise of, or by the assignment or release of, a right on or after 1 January 2024 which is chargeable to tax by virtue of section 128.”, and (
  2. ii)by the substitution of the following subsection for subsection
(3): “
(3)The amount referred to in this subsection is— (
  1. a)in respect of the emoluments referred to in paragraphs (a), (
  2. b)and (
  3. c)of subsection
(1), the amount which, on the basis of the best estimate that can reasonably be made, is the amount of income likely to be chargeable to tax under Schedule E in respect of the emolument concerned, and (b) in respect of the emolument referred to in paragraph (d) of subsection
(1), the gain chargeable to tax under Schedule E as calculated by reference to section 128
(4).”. Mortgage interest tax relief 13. The Principal Act is amended— (
  1. a)in section 458, in Part 2 of the Table, by the insertion of “Section 473C” after “Section 473B”, and (
  2. b)by the insertion of the following section after section 473B: “Mortgage interest tax relief 473C.
(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; ‘claimant’ has the meaning given to it by subsection
(2); ‘credit information provider’ has the meaning given to it by section 2 of the Credit Reporting Act 2013 ; ‘dependent relative’, in relation to an individual, means any of the persons mentioned in paragraph (a) or (b) of subsection
(2), or in paragraph (
  1. a)or (
  2. b)of subsection (2A), of section 466 in respect of whom the individual is entitled to a tax credit under that section; ‘loan’ means any loan or advance or any other arrangement whatever by virtue of which interest is paid or payable; ‘local property tax number’ means the unique identification number assigned to a residential property by the Revenue Commissioners under section 27 of the Finance (Local Property Tax) Act 2012 ; ‘mortgage interest tax credit’ has the meaning given to it by subsection
(2); ‘personal representative’ has the same meaning as in section 799; ‘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 ; ‘qualifying interest’ in relation to an individual, means the total amount of interest falling due in a year of assessment, and paid in that year of assessment, where such interest has been paid in respect of a qualifying loan; ‘qualifying lender’ means a credit information provider; ‘qualifying loan’, in relation to an individual and a qualifying property, means a loan or loans from a qualifying lender which, without being used for any other purpose, is or are used by the individual solely for the purpose of defraying money employed in the purchase, repair, development or improvement of the qualifying property or in paying off another loan or loans used for such purpose, and is or are secured by the mortgage of freehold or leasehold estate or interest in that qualifying property, and the amount of the aggregate of the balance remaining unpaid on the loan or loans in respect of that qualifying property on 31 December 2022 is— (a) not less than €80,000, and (b) not more than €500,000; ‘qualifying period’ means the period commencing on 1 January 2023 and ending on 31 December 2023; ‘qualifying property’, in relation to an individual, means a residential property which is used as the sole or main residence of— (a) the individual, (b) a former or separated spouse of the individual, or a former civil partner or a civil partner from whom the individual is living separately in circumstances where reconciliation is unlikely, or (c) a person who, in relation to the individual, is a dependent relative, and which is, where the residential property is provided by the individual, provided rent-free and without any other consideration; ‘relievable interest’ has the meaning given to it by subsection
(4); ‘residential property’ means— (
  1. a)a building or part of a building located in the State which is used or suitable for use as a dwelling, and (
  2. b)adjoining land which the occupier of the building or part of the building, referred to in paragraph (a), has for his or her own occupation and enjoyment with that building or part of that building as its gardens or grounds of an ornamental nature; ‘separated’ means separated under an order of a court of competent jurisdiction or by deed of separation or in such circumstances that the separation is likely to be permanent; ‘specified amount’, in relation to a year of assessment, means the lesser of— (
  3. a)an amount equal to the relievable interest, and (
  4. b)(
  5. i)the upper limit, or (
  6. ii)where subsection
(9)applies, the amount determined in accordance with paragraph (b) of that subsection; ‘upper limit’ means €6,250 or, where subsection
(5)applies, the amount determined in accordance with paragraph (a)(i), (a)(ii) or (b), as the case may be, of that subsection.
(2)An individual (referred to in this section as the ‘claimant’) who proves that during the qualifying period he or she paid qualifying interest and makes a claim in that regard shall be entitled to a tax credit (to be known as the ‘mortgage interest tax credit’) equal to the lesser of— (a) an amount equal to the appropriate percentage of the specified amount, and (b) the amount which reduces the claimant’s income tax to nil.
(3)Where a claimant is assessed to tax in accordance with section 1017 or 1031C in a year of assessment, any qualifying interest paid by the claimant’s spouse or civil partner in that year of assessment shall, for the purposes of this section, be deemed to have been paid by the claimant.
(4)(
  1. a)For the purposes of this section, relievable interest, in relation to an individual, shall be an amount determined by the formula— A-B where— A is the amount of qualifying interest for the year of assessment 2023, and B is the amount of qualifying interest for the year of assessment 2022. (
  2. b)Where qualifying interest paid for a year of assessment referred to in paragraph (
  3. a)is for a period where the number of days in the years of assessment to which ‘A’ and ‘B’ in the formula in paragraph (
  4. a)relate are not the same, the amount of qualifying interest represented by ‘A’ or ‘B’, as the case may be, in the formula in paragraph (
  5. a)shall— (
  6. i)where the number of days in the year of assessment to which ‘A’ relates is greater than the number of days in the year of assessment to which ‘B’ relates, be determined by the following formula— A x D/E and (
  7. ii)where the number of days in the year of assessment to which ‘B’ relates is greater than the number of days in the year of assessment to which ‘A’ relates, be determined by the following formula— B x D/E where— D is the number of days in the year of assessment with the lesser number of days, and E is the number of days in the year of assessment with the greatest number of days.
(5)Where, for a year of assessment, qualifying interest referred to in subsection
(4)is for a period of less than 365 days, then— (
  1. a)where— (
  2. i)the number of days in the year of assessment to which ‘A’ in the formula in subsection
(4)relates is less than 365 and the number of days in the year of assessment to which ‘B’ in the formula in subsection
(4)relates is equal to 365, or (ii) the number of days in the year of assessment to which ‘B’ in the formula in subsection
(4)relates is less than 365 and the number of days in the year of assessment to which ‘A’ in the formula in subsection
(4)relates is equal to 365, the upper limit shall be determined by the formula— F x G/H or (b) where the number of days in the year of assessment to which ‘A’ in the formula in subsection
(4)relates is less than 365 and the number of days in the year of assessment to which ‘B’ in the formula in subsection
(4)relates is less than 365, then, the upper limit shall be determined by the formula— F x I/J where— F is €6,250, G is the number of days in the year of assessment with the lesser number of days, H is the number of days in the year of assessment with the greater number of days, I is the number of days in the year of assessment with the lesser number of days, and J is 365 days.
(6)Where qualifying interest is paid in respect of a period which falls partly in one year of assessment and partly in another year of assessment, the amount of qualifying interest paid in respect of that period shall be apportioned to each year of assessment based on the proportion each part of the period bears to the period as a whole.
(7)Where, in the case of an individual within the meaning of paragraph (a) of the definition of ‘qualifying property’ in subsection
(1)— (
  1. a)the individual dies during the qualifying period, and the residential property is used as the sole or main residence of the deceased individual’s widow or widower or surviving civil partner, or of any dependent relative of the deceased, the property shall be treated as a qualifying property for the purposes of this section and interest paid on a qualifying loan by a personal representative of that individual shall, upon making a claim in that regard, be treated as qualifying interest, or (
  2. b)the individual, or where subsection
(3)applies, the individual or his or her spouse or civil partner, resides in another residential property to facilitate his or her attendance at or participation in his or her trade, profession, employment or office holding, that other residential property may be treated as a qualifying property for the purposes of this section.
(8)A residential property shall not be regarded as a qualifying property for the purpose of this section where— (
  1. a)a charge to Local Property Tax under section 16 of the Finance (Local Property Tax) Act 2012 applies to the residential property concerned for the calendar year 2023 and the requirements of Part 7 of that Act are not complied with, (
  2. b)the provisions of any permission required under the Planning and Development Acts 2000 to 2022 and granted on or before 31 December 2022 in respect of the residential property are not complied with or such permission has ceased to exist, or (
  3. c)any interest in a residential property was acquired from an individual who is connected, within the meaning of section 10, with the individual acquiring such interest and it appears that the purchase price of the residential property substantially exceeds the value of what is acquired.
(9)Notwithstanding subsection
(2), where two or more individuals are or would but for this subsection be entitled under this section to relief in respect of the same qualifying property, the following provisions shall apply: (
  1. a)only one mortgage interest tax credit under this section shall be allowed in respect of the qualifying property; (
  2. b)the upper limit shall be apportioned in respect of each of the individuals concerned in accordance with the formula— K x L/M where— K is the upper limit, L is the relievable interest in respect of the individual, and M is the relievable interest as determined by the formula in subsection
(4)in respect of all of the individuals concerned in respect of the same qualifying property.
(10)Notwithstanding the provisions of this section, where, in respect of a qualifying property and a year of assessment— (a) an individual is entitled, in respect of a residential property, to an allowance to which subsection
(1), (1A) or (1B) of section 836 applies, or (b) an individual is allowed, in accordance with section 836
(2), a deduction under section 114 in respect of expenses in maintaining a residential property, this section shall not apply to qualifying interest paid in that year in respect of that residential property.
(11)In making a claim under this section, a claimant shall provide to the Revenue Commissioners, through such electronic means as the Revenue Commissioners make available, the following information— (
  1. a)the claimant’s name, address (including the Eircode) and PPS Number, (
  2. b)the address (including the Eircode and local property tax number) of the qualifying property in respect of which a claim under this section is made, (
  3. c)in the case of a qualifying property referred to in paragraph (
  4. b)or (c), as the case may be, of the definition of ‘qualifying property’ in subsection
(1), the name, address (including the Eircode) and PPS Number of the person referred to in the said paragraph (
  1. b)or (
  2. c)who is using the property as his or her sole or main residence, (
  3. d)where subsection
(3)applies— (
  1. i)the name, address (including the Eircode) and PPS Number of the claimant’s spouse or civil partner, (
  2. ii)the address (including the Eircode and local property tax number) of the qualifying property in respect of which a claim under this section is made, (
  3. e)full particulars of the qualifying loan or loans under which qualifying interest was paid, including but not limited to— (
  4. i)the qualifying interest paid by the claimant for the years of assessment 2022 and 2023, (
  5. ii)where subsection subsection
(9)(b) applies, the total qualifying interest paid by all of the individuals concerned for the years of assessment 2022 and 2023, and (iii) the amount of the aggregate of the balance remaining unpaid on the loan or loans as provided for in the definition of ‘qualifying loan’ in subsection
(1), and (f) any other information that may reasonably be required by the Revenue Commissioners to determine whether the requirements of this section are met.
(12)A qualifying lender shall, on being so required by an officer of the Revenue Commissioners, furnish or make available to the officer, within the period of 30 days of being requested to do so by the Revenue Commissioners, particulars referred to in subsection
(11)(f).
(13)Failure to furnish any of the particulars referred to in subsection
(11)shall be grounds for refusal of a claim and, where relief has already been given to a claimant under this section, such relief may be withdrawn by the Revenue Commissioners.”. Amendment of section 208 of Principal Act (lands owned and occupied, and trades carried on by, charities) 14. Section 208 of the Principal Act is amended, in paragraph (b) of subsection
(2), by the insertion of “or profession” after “trade” in each place where it occurs. Amendment of section 208B of Principal Act (charities - miscellaneous) 15. Section 208B of the Principal Act is amended— (a) in subsection
(1), by the insertion of the following definition: “ ‘CHY number’, in relation to a charity, means a unique identifying number issued by the Revenue Commissioners to a charity that is exempt from income tax under section 207, 208 or 208A, as the case may be;”, and (b) by the insertion of the following subsections after subsection
(6): “
(7)Where the Revenue Commissioners are satisfied that a charity has ceased to be eligible for an exemption from income tax provided for in section 207, 208 or 208A, as the case may be, they shall, by notice in writing served by registered post on the charity, withdraw the exemption granted under section 207 or 208, or the determination under section 208A, as the case may be, from the charity and the withdrawal shall apply and have effect from such date as is specified in the notice, which date shall not be earlier than the date on which the charity has ceased to be eligible for an exemption from income tax.
(8)Notwithstanding any obligation imposed on the Revenue Commissioners under section 851A or any other enactment in relation to the confidentiality of taxpayer information (within the meaning of that section), the Revenue Commissioners shall, by notice in writing, inform the Charities Regulatory Authority of any withdrawal of an exemption granted under section 207 or 208, or a determination under section 208A, as the case may be, which notice shall set out the name, CHY number and address of the charity, confirm that the exemption or determination, as the case may be, has been withdrawn and set out the date from which that withdrawal takes effect.
(9)Notwithstanding any obligation imposed on the Revenue Commissioners under section 851A or any other enactment in relation to the confidentiality of taxpayer information (within the meaning of that section), the Revenue Commissioners may publish the name, address and CHY number of a charity.”. Amendment of section 235 of Principal Act (bodies established for promotion of athletic or amateur games or sports) 16. Section 235 of the Principal Act is amended— (a) in subsection
(1)— (
  1. i)by the substitution for “In this section, “approved body of persons” means—” of the following: “In this section— ‘approved body of persons’ means—”, (
  2. ii)in the definition of “approved body of persons”, in paragraph (b)— (I) in subparagraph (i), by the substitution of “1984,” for “1984, or”, (II) in subparagraph (ii), by the substitution of “1976, or” for “1976;”, and (III) by the insertion of the following subparagraph after subparagraph (ii): “(iii) any body of persons that, as respects the year 2022 or any earlier year of assessment, was granted exemption from income tax or corporation tax under this section before the coming into operation of section 16 of the Finance (No. 2) Act 2023;”, and (IV) in clause (II), by the substitution of “a tax advantage;” for “a tax advantage.”, and (iii) by the insertion of the following definitions: “ ‘competitive sport’ means all forms of physical activity which, through organised participation, aim at— (
  3. a)expressing or improving physical fitness, and (
  4. b)obtaining improved results in competition at all levels; ‘games and sports exemption number’ means a number issued to a body of persons approved by the Revenue Commissioners for the purposes of this section; ‘recreational sport’ means all forms of physical activity which, through casual or regular participation, aim at— (
  5. a)expressing or improving physical fitness and mental well-being, and (
  6. b)forming social relationships; ‘sport’ includes competitive sport and recreational sport.”, and (
  7. b)by the insertion of the following subsection after subsection
(5): “
(6)Notwithstanding any obligations as to secrecy or other restriction upon disclosure of information imposed by or under any statute or otherwise, the Revenue Commissioners may publish the name, county and games and sports exemption number of an approved body of persons.”. Amendment of section 784 of Principal Act (retirement annuities: relief for premiums) 17. Section 784 of the Principal Act is amended by the insertion of the following subsection after subsection
(8): “
(9)Notwithstanding any other provision of this Chapter, on and from 1 January 2024 the Revenue Commissioners shall not approve any contract under this section, save in the case of any such contract in respect of which an application has been made to the Revenue Commissioners for approval under this section before that date.”. Amendment of section 784A of Principal Act (approved retirement fund) 18. Section 784A of the Principal Act is amended, in subsection (1B), by the substitution of the following paragraph for paragraph (a): “(
  1. a)in the case of a loan made— (
  2. i)to the individual beneficially entitled to the assets in an approved retirement fund or to any person connected with that individual, or (
  3. ii)to a close company, where the individual beneficially entitled to the assets in an approved retirement fund, or any person connected with that individual, is a participator in that close company, the amount to be regarded as a distribution for the purposes of this section is an amount equal to the value of the assets of the approved retirement fund used to make such a loan or used as security for such a loan,”. Amendment of section 787K of Principal Act (Revenue approval of PRSA products) 19. Section 787K of the Principal Act is amended, in subsection
(1)(c)(ii), by the deletion of “or after he or she attains the age of 75 years”. Exemption from income tax of rental income subject to registration with Residential Tenancies Board 20. Part 30 of the Principal Act is amended in Chapter 4 by the insertion of the following section after section 790E: “790F.
(1)In this section— ‘Act of 2004’ means the Residential Tenancies Act 2004 ; ‘approved retirement fund’ has the same meaning as in section 784A; ‘Board’ means the Residential Tenancies Board; ‘exempt approved scheme’ shall be construed in accordance with section 774; ‘lease’ means any lease or tenancy agreement in respect of— (a) a residential premises required to be registered under Part 7 of the Act of 2004 by the person chargeable, or (b) a dwelling referred to in section 3
(2)of the Act of 2004; ‘PEPP’ and ‘PEPP provider’ have the same meaning, respectively, as in Chapter 2D of this Part; ‘person chargeable’, in respect of the rental income or the profits or gains arising from any rent in respect of a residential property, means— (
  1. a)in the case of an exempt approved scheme, the trustees of the scheme, (
  2. b)in the case of a RAC, the persons by and to whom premiums are payable under any contract for the time being approved under section 784, (
  3. c)in the case of a RAC established under trust, the trustees or other persons having the management of any trust scheme so approved, (
  4. d)in the case of an approved retirement fund, the qualifying fund manager acting on behalf of the person beneficially entitled to the assets of the approved retirement fund, (
  5. e)in the case of a PRSA, the PRSA administrator, or (
  6. f)in the case of a PEPP, a PEPP provider; ‘PRSA’ and ‘PRSA administrator’ has the same meaning, respectively, as in Chapter 2A of this Part; ‘qualifying fund manager’ has the same meaning as in section 784A; ‘qualifying lease’ means a lease granted by the person chargeable to a tenant residing in a residential property; ‘RAC’ means an annuity contract or a trust scheme or part of a trust scheme for the time being approved by the Revenue Commissioners under section 784; ‘register’ means the residential tenancies register established and maintained by the Board under section 127 of the Act of 2004; ‘residential property’, in relation to a qualifying lease, means a residential property in respect of which rent or similar payments are payable to the person chargeable.
(2)With effect from 1 January 2024, where a person chargeable is allowed an exemption from income tax under section 774
(3), 784
(4), 784A
(2), 787I
(1)or 787AC
(1), or an exemption from capital gains tax under section 784A
(2), as the case may be, in relation to rents receivable from a qualifying lease, the exemption concerned shall not be allowed unless the tenancy is registered under Part 7 of the Act of 2004 in respect of the qualifying lease.
(3)For the purposes of subsection
(2)— (
  1. a)the Revenue Commissioners may by notice in writing require the person chargeable to provide, within 30 days of the date of such notice, evidence that the qualifying lease has been registered under Part 7 of the Act of 2004, and (
  2. b)provision by the person chargeable of a copy of the entry in respect of the residential property concerned in the published register provided under section 132 of the Act of 2004 shall be accepted as evidence that the registration requirement referred to in subsection
(2)has been complied with.”. Amendment of Part 15 of Principal Act (personal allowances and reliefs, etc.) 21. Part 15 of the Principal Act is amended— (
  1. a)in section 458, in Part 2 of the Table to that section, by the insertion of “Section 480C” after “Section 478A”, and (
  2. b)in Chapter 1, by the insertion of the following section after section 480B: “Residential premises rental income relief 480C.
(1)In this section— ‘Act of 1982’ means the Housing (Private Rented Dwellings) Act 1982 ; ‘Act of 2004’ means the Residential Tenancies Act 2004 ; ‘appropriate percentage’, in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year; ‘first year of assessment’, in relation to a person chargeable, means the year of assessment in which the person chargeable first claims a tax credit under this section; ‘ownership’, in relation to the ownership of a premises by a person, includes ownership of the premises by the person jointly with another person; ‘person chargeable’ means an individual who is a person chargeable within the meaning of section 96; ‘qualifying premises’ means a rented residential premises situated in the State— (
  1. a)that on the specified date is owned by a person chargeable, and (
  2. b)to which, on that date, one of the following subparagraphs applies: (
  3. i)the premises is occupied by a tenant under a tenancy registered under Part 7 of the Act of 2004 by the person chargeable; (
  4. ii)the premises is a premises to which Part II of the Act of 1982 applies and is occupied by a tenant; (iii) the premises is let to a public authority (within the meaning of the Act of 2004) and is occupied by a tenant; (
  5. iv)the premises is being actively marketed for rent with a view to the person chargeable entering into a residential tenancy agreement with a willing tenant; ‘relevant amount’, in relation to a person chargeable in a year of assessment, means the amount of profits or gains arising from all qualifying premises owned by the person chargeable and on which the person chargeable is assessed to tax under Case V of Schedule D after any allowance is made in charging the income under Case V of Schedule D in accordance with section 305
(1)(a) or relief for losses under section 384; ‘relevant year of assessment’ in relation to a person chargeable, means any of the 4 consecutive years of assessment beginning with the first year of assessment in relation to the person; ‘rent’ has the same meaning as it has in section 96; ‘rented residential premises’ has the same meaning as it has in section 96; ‘specified date’ means 31 December in a year of assessment.
(2)In relation to a year of assessment, a person chargeable shall be entitled to a tax credit of the lesser of— (
  1. a)in respect of the year of assessment 2024— (
  2. i)€600, or (
  3. ii)an amount equal to the appropriate percentage of the relevant amount, (
  4. b)in respect of the year of assessment 2025— (
  5. i)€800, or (
  6. ii)an amount equal to the appropriate percentage of the relevant amount, (
  7. c)in respect of the year of assessment 2026— (
  8. i)€1,000, or (
  9. ii)an amount equal to the appropriate percentage of the relevant amount, and (
  10. d)in respect of the year of assessment 2027— (
  11. i)€1,000, or (
  12. ii)an amount equal to the appropriate percentage of the relevant amount.
(3)This section shall not apply in respect of a person chargeable where any qualifying premises owned by the person is occupied by a tenant who is— (
  1. a)a person connected to the person chargeable by virtue of section 10, or (
  2. b)an uncle, aunt, niece or nephew of the person chargeable or of a spouse or civil partner of the person chargeable.
(4)This subsection applies in respect of a relevant year of assessment where— (
  1. a)the person chargeable concerned ceases, during the relevant year, to be a person chargeable in respect of any qualifying premises that was owned by that person during the first year of assessment, or (
  2. b)any qualifying premises that was owned by the person chargeable during the first year of assessment is let, during the relevant year, to a tenant to whom paragraph (
  3. a)or (
  4. b)of subsection
(3)applies.
(5)Where subsection
(4)applies in respect of a relevant year of assessment— (a) an amount, the income tax on which, at the standard rate for the year of assessment, is equal to the amount of the tax credit claimed under this section by the person chargeable in that year or any previous year of assessment, shall be deemed to be profits or gains of the person chargeable computed under section 97
(1)in the year of assessment, and (b) assessments shall, as necessary, be made or amended to give effect to this subsection.
(6)A person chargeable shall not be entitled to a tax credit under this section for a year of assessment, unless, on the specified date in that year— (
  1. a)the requirements of the Finance (Local Property Tax) Act 2012 , in relation to the making of returns and the payment of local property tax, have been complied with in respect of all qualifying premises owned by the person chargeable, and (
  2. b)the person chargeable has been issued with a tax clearance certificate in accordance with section 1095 and such tax clearance certificate has not been rescinded under subsection (3A) of that section.
(7)Subject to subsections
(8)and
(9), where, for any year of assessment, a qualifying premises is owned by more than one person chargeable, the amount of the tax credit under this section to which each such person shall be entitled shall be the amount of the tax credit, calculated in accordance with subsection
(2), that is equal to the portion of the Case V profits or gains arising from the qualifying premises to which the person chargeable concerned is entitled.
(8)Subsection
(7)shall not operate to affect the entitlement of a person chargeable to a tax credit under this section in respect of a qualifying premises (‘the first-mentioned qualifying premises’), other than the qualifying premises referred to in that subsection, where the first-mentioned qualifying premises is owned solely by the person chargeable.
(9)Where subsection
(7)applies to a person chargeable in respect of more than one qualifying premises, the amount of the tax credit under this section to which that person chargeable shall be entitled shall be the higher or highest proportion of the tax credit to which that person chargeable is entitled in respect of any of those qualifying premises.
(10)This section shall apply in respect of the years of assessment 2024, 2025, 2026 and 2027.”. Amendment of Part 1 of Schedule 26A to Principal Act (donations to approved bodies) 22.
(1)Part 1 of Schedule 26A to the Principal Act is amended— (
  1. a)by the substitution of the following paragraph for paragraph 3: “3. A designated institution of higher education within the meaning of the Higher Education Authority Act 2022 that falls under paragraph (
  2. a)of section 53
(1)of that Act or any body established for the sole purpose of raising funds for such an institution.”, and (b) by the insertion of the following paragraph after paragraph 7: “7A. Royal Irish Academy.”.
(2)Subsection
(1)shall have effect on and from 10 November 2022.
(3)Section 93 of the Finance Act 2022 is repealed. Amendment of Schedule 13 to Principal Act (accountable persons for purposes of Chapter 1 of Part 18) 23.
(1)Schedule 13 to the Principal Act is amended— (
  1. a)by the deletion of paragraphs 9, 10 and 11, (
  2. b)by the substitution of the following paragraph for paragraph 26: “26. A designated institution of higher education within the meaning of the Higher Education Authority Act 2022 that falls under paragraph (
  3. a)of section 53
(1)of that Act and that is also a funded body within the meaning of that Act.”, (
  1. c)by the insertion of the following paragraph after paragraph 210: “211. Royal Irish Academy.”, and (
  2. d)by the insertion of the following paragraphs after paragraph 211 (inserted by paragraph (c)): “212. Irish Air Navigation Service. 213. Tailte Éireann. 214. Coimisiún na Meán.”.
(2)Section 23 of the Finance Act 2022 is amended by the repeal of— (a) paragraphs (a) and (d) of subsection
(1), and (b) subsections
(2)and
(3).
(3)Paragraphs (
  1. b)and (
  2. c)of subsection
(1)shall have effect as on and from 10 November
  1. CHAPTER 4 Income Tax, Corporation Tax and Capital Gains Tax Amendment of section 97B of Principal Act (deduction for retrofitting expenditure)
  2. Section 97B of the Principal Act is amended— (a) in subsection
(1)— (
  1. i)by the insertion of the following definition: “ ‘Act of 1982’ means the Housing (Private Rented Dwellings) Act 1982 ;”, and (
  2. ii)in the definition of “qualifying premises”, by the substitution of the following paragraph for paragraph (b): “(
  3. b)occupied by a tenant under a tenancy registered under Part 7 of the Act of 2004 by the person chargeable, or occupied by a tenant and which is a dwelling to which Part II of the Act of 1982 applies, and”, (
  4. b)in subsection
(7)(b), by the substitution of the following subparagraph for subparagraph (i): “(
  1. i)in respect of the qualifying premises concerned, the person chargeable is in breach of their obligations under Part 3 of the Act of 2004 or, as the case may be, of the terms of the tenancy in the case of a dwelling to which Part II of the Act of 1982 applies;”, and (
  2. c)in subsection
(11)(a), by the substitution of the following subparagraph for subparagraph (i): “(
  1. i)in respect of the qualifying premises concerned, that person is in breach of their obligations under Part 3 of the Act of 2004 or, as the case may be, of the terms of the tenancy in the case of a dwelling to which Part II of the Act of 1982 applies,”. Amendment of section 1041 of Principal Act (rents payable to non-residents) 25. Section 1041 of the Principal Act is amended— (
  2. a)in subsection
(1), by the substitution of “Subject to subsection (1B)(b), section 1034 shall not apply” for “Section 1034 shall not apply”, (
  1. b)in subsection (1A)(f), by the substitution of “remitted to the Revenue Commissioners” for “remitted to Revenue”, (
  2. c)by the substitution of the following subsection for subsection (1B): “(1B) (
  3. a)Section 1034 shall not apply to— (
  4. i)tax on profits or gains chargeable to tax under Case V of Schedule D, or (
  5. ii)tax on any of the profits or gains chargeable under Case IV of Schedule D which arise under the terms of the lease, but to a person other than the lessor, or which otherwise arise out of any disposition or contract such that if they arose to the person making it they would be chargeable under Case V of Schedule D, where the trustee, guardian, committee, attorney, factor, agent, receiver, branch or manager of the non-resident person— (I) deducts tax in accordance with section 238, and (II) provides the Revenue Commissioners with the information specified in subsection (1C). (
  6. b)Where paragraph (
  7. a)applies— (
  8. i)subsection
(1)shall not apply, and (
  1. ii)section 238 shall apply to the trustee, guardian, committee, attorney, factor, agent, receiver, branch or manager of the non-resident person in relation to a payment due to a non-resident person which is made to the trustee, guardian, committee, attorney, factor, agent, receiver, branch or manager of that non-resident person as it applies to other payments, being annual payments charged with tax under Schedule D and not payable out of profits or gains brought into charge to tax.”, and (
  2. d)in subsection (1C)(f), by the substitution of “remitted to the Revenue Commissioners” for “remitted to Revenue”. Amendment of section 238 of Principal Act (annual payments not payable out of taxed income) 26. Section 238 of the Principal Act is amended by the substitution of the following subsection for subsection
(7): “
(7)Except where provided by subsections
(1)and (1B) of section 1041, this section shall not apply to any rents or other sums in respect of which the person entitled to them is chargeable to tax under Case V of Schedule D or would be so chargeable but for any exemption from tax.”. Amendment of section 669O of Principal Act (exemption in respect of the catch sum) 27. Section 669O of the Principal Act is amended— (a) in subsection
(2), by the substitution of “relevant chargeable period” for “preceding chargeable period”, and (b) by the insertion of the following subsections after subsection
(3): “
(4)Notwithstanding any limitation— (a) in section 865
(4)on the period within which a claim for a repayment of tax is required to be made, or (b) in section 959V
(6)on the period within which a chargeable person may amend a return and self assessment, section 865
(6)shall not prevent the Revenue Commissioners from repaying an amount of tax as a consequence of an election made under subsection
(2), where a licence holder gives notice of such an election and amends the return and self assessment solely in respect of such election, in accordance with section 959V, for the relevant chargeable period within a period of 4 years after the end of the chargeable period in which the Brexit compensation sum is received and has made a valid claim in relation to a repayment of tax within the meaning of section 865.
(5)In this section— ‘relevant chargeable period’ means the chargeable period in which the temporary tie up payment referred to in subsection
(2)was taken into account in determining profits or gains chargeable to tax under Schedule D; ‘return’ has the same meaning as in section 959A.”. Amendment of section 216D of Principal Act (certain profits of micro-generation of electricity) 28. Section 216D of the Principal Act is amended— (a) in subsection
(1), in the definition of “relevant period”, by the substitution of “31 December 2025” for “31 December 2024”, and (b) in subsection
(3), by the substitution of “€400” for “€200”. Amendment of section 285A of Principal Act (acceleration of wear and tear allowances for certain energy-efficient equipment) 29. Section 285A of the Principal Act is amended, in subsection
(1), in the definition of “relevant period”, by the substitution of “31 December 2025” for “31 December 2023”. Amendment of section 285D of Principal Act (acceleration of wear and tear allowances for farm safety equipment) 30. Section 285D of the Principal Act is amended, in subsection
(14)(a), by the substitution of “31 December 2026” for “31 December 2023”. Amendment of Part 16 of Principal Act (relief for investment in corporate trades) 31.
(1)Part 16 of the Principal Act is amended— (a) in section 488
(1), in the definition of “General Block Exemption Regulation”, by the insertion of “, as amended by Commission Regulation (EU) No. 2023/1315 of 23 June 20231 ” after “17 June 2014”, (
  1. b)in section 493, in the definition of “expansion risk finance investment”, by the substitution of “to fund a new economic activity” for “to fund entering a new product on the market or entering a new geographic market”, (
  2. c)in section 494, by the substitution of the following subsection for subsection
(3): “
(3)The shares, other than where relief under section 507 is claimed, may be redeemable.”, (d) in section 495, by the insertion of the following subsection after subsection
(6): “
(7)This section applies to shares in a company that carry preferential rights to a dividend or to repayment of capital on a winding up, except in circumstances where the shares are issued to the managers of a qualifying investment fund.”, (e) in section 496— (i) by the substitution of the following subsection for subsection
(5): “
(5)(
  1. a)An initial risk finance investment shall only be a qualifying investment where each company in the RICT group, at the time the eligible shares are issued— (
  2. i)has not been operating in any market, or (
  3. ii)has been operating in any market for— (I) less than 10 years following its date of incorporation, or (II) less than 7 years after its first commercial sale. (
  4. b)Where a business (in this paragraph referred to as ‘the acquiring business’) in the RICT group has acquired another business (in this paragraph referred to as ‘the acquired business’), or was formed through a merger (in this paragraph referred to as ‘the merged businesses’), the periods referred to in subparagraph (
  5. ii)of paragraph (
  6. a)shall, in the case of the application of clause (I) or (II), as the case may be, of the said subparagraph (ii), encompass the operations of the acquired business or the merged businesses, respectively, except for such acquired business or merged businesses whose turnover accounts for less than 10 per cent of the turnover of the acquiring business in the financial year preceding the acquisition or, in the case of merged businesses, less than 10 per cent of the combined turnover that each of the businesses comprising the merged businesses had in the financial year preceding the merger. (
  7. c)For the purposes of paragraph (b), references to financial year shall be construed in accordance with Chapter 3 of Part 6 of the Companies Act 2014 .”, (
  8. ii)by the substitution of the following subsection for subsection
(6): “
(6)An expansion risk finance investment shall only be a qualifying investment where, based on a business plan prepared in view of a new economic activity, the amount to be raised through the issue of those shares is— (
  1. a)greater than 50 per cent of the RICT group’s average annual turnover in the preceding 5 years, or (
  2. b)greater than 30 per cent of the RICT group’s average annual turnover in the preceding 5 years where the investment— (
  3. i)significantly improves the environmental performance of the activity in accordance with Article 36
(2)of the General Block Exemption Regulation, (ii) constitutes an environmentally sustainable investment as defined in Article 2
(1)of Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 20202 , or (iii) is aimed at increasing capacity for the extraction, separation, refining, processing or recycling of a critical raw material listed in Annex IV of the General Block Exemption Regulation.”, and (iii) in subsection
(7)(b), by the substitution of “provided for” for “foreseen”, (f) in section 497— (i) in subsection
(2)— (I) in paragraph (a), by the substitution of “€5,500,000” for “€5,000,000”, and (II) in paragraph (b), by the substitution of “€16,500,000” for “€15,000,000”, (ii) in subsection
(3), by the substitution of “€5,500,000” for “€5,000,000”, (iii) in subsection
(4), by the substitution of “€16,500,000” for “€15,000,000”, and (iv) by the insertion of the following subsections after subsection
(5): “
(6)(
  1. a)Where a qualifying company has issued shares in respect of which— (
  2. i)relief under this Part applies, and (
  3. ii)an entitlement to claim relief under section 600M may apply on the disposal of those shares— then, this section shall apply subject to the following modifications: (I) subsection
(1)shall apply with the modifications set out in subsection
(7), (II) subsection
(2)shall apply with the modification set out in subsection
(8), (III) subsection
(4)shall apply with the modifications set out in subsection
(9), and (IV) subsection
(5)shall apply with the modifications set out in subsection
(10). (b) For the purposes of subsections
(7),
(8)and
(9), ‘relief group’ shall have the meaning assigned to it by section 600B.
(7)The modifications to subsection
(1)referred to in subsection
(6)(a)(I) are— (
  1. a)the reference to ‘an individual who qualifies for relief’ shall be read as a reference to an individual who qualifies for relief under this Part in respect of those shares and an individual who may be entitled to claim relief under section 600M on the disposal of those shares, (
  2. b)the reference to shares ‘in respect of which relief was available under this Part’ shall be read as a reference to shares in respect of which relief was available under this Part and shares in respect of which an entitlement to claim relief under section 600M may apply on the disposal of those shares, and (
  3. c)references to ‘RICT group’ shall be read as references to either or both RICT group and relief group, as the case may be.
(8)The modification to subsection
(2)referred to in subsection
(6)(a)(II) is that the reference to a ‘RICT group’ as it pertains to subsection
(2)(b) shall be read as a reference to the relief group and RICT group of which a qualifying company within the meaning of this Part and within the meaning of Chapter 6A of Part 19 is a member.
(9)The modifications to subsection
(4)referred to in subsection
(6)(a)(III) are— (
  1. a)references to the ‘RICT group’ shall be read as references to the relief group and the RICT group of which a qualifying company within the meaning of this Part and within the meaning of Chapter 6A of Part 19 is a member, and (
  2. b)the reference to a ‘qualifying investment’ shall be read as a reference to qualifying investment within the meaning of this Part and within the meaning of Chapter 6A of Part 19.
(10)The modifications to subsection
(5)referred to in subsection
(6)(a)(IV) are— (
  1. a)the reference to ‘the giving of relief’ shall be read as a reference to the giving of relief under this Part or the entitlement to claim relief under section 600M, (
  2. b)the reference to ‘the available relief’ shall be read as a reference to the available relief under this Part and the entitlement to claim relief under section 600M, (
  3. c)the reference to ‘to which their claims relate’ shall be read as a reference to claims under this Part and claims in respect of which an entitlement may arise under section 600M, and (
  4. d)the reference to ‘would be eligible for relief’ shall be read as a reference to being eligible for relief under this Part or being entitled to claim relief under section 600M.”, and (
  5. g)in section 502, by— (
  6. i)the substitution of the following subsection for subsection (2A): “(2A) (
  7. a)In respect of shares issued after 8 October 2019 and on or before 31 December 2023, a qualifying investor who makes a qualifying investment in a qualifying company shall be entitled, subject to this section, to relief for the full amount subscribed, which shall be given, subject to section 508J
(4), as a deduction from his or her total income for the year of assessment in which the shares are issued. (
  1. b)In respect of shares issued on or after 1 January 2024, a qualifying investor who makes a qualifying investment in a qualifying company shall be entitled, subject to this section, to relief for— (
  2. i)125 per cent of the amount subscribed where the qualifying investment is made pursuant to section 496
(5)(a)(i), (ii) 87.5 per cent of the amount subscribed where the qualifying investment is made pursuant to section 496
(5)(a)(ii), (iii) 50 per cent of the amount subscribed where the qualifying investment is made pursuant to section 496
(6), (iv) 50 per cent of the amount subscribed where the qualifying investment is made pursuant to section 496
(7), or (v) 75 per cent of the amount subscribed where the qualifying investment is made through a qualifying investment fund in accordance with section 508J, which shall be given, subject to section 508J
(4), as a deduction from his or her total income for the year of assessment in which the shares are issued.”, and (ii) in subsection
(3)(a)— (I) in subparagraph (ii)— (A) by the substitution of “the years of assessment 2020, 2021, 2022 and 2023” for “the year of assessment 2020 and each subsequent year of assessment”, and (B) in clause (II), by the substitution of “investments, and” for “investments.”, and (II) by the insertion of the following subparagraph after subparagraph (ii): “(iii) €500,000 in respect of the year of assessment 2024 and each subsequent year of assessment.”.
(2)Subsection
(1)shall have effect as respects shares issued on or after 1 January
  1. Amendment of Part 23 of Principal Act (farming and market gardening)
  2. The Principal Act is amended— (a) in section 664— (i) in subsection
(1)(a), by— (I) the deletion of the definition of “EU Basic Payment Scheme”, and (II) the insertion of the following definition: “ ‘EU Basic Income Support for Sustainability’ means the scheme administered by the Minister for Agriculture, Food and the Marine under Regulation (EU) 2021/2115 of the European Parliament and of the Council of 2 December 20213 ;”, and (ii) in subsection
(7), by the substitution of “EU Basic Income Support for Sustainability” for “EU Basic Payment Scheme”, (
  1. b)in section 667B— (
  2. i)in subsection (5A)(b)(i), by the substitution of “€100,000” for “€70,000”, and (
  3. ii)in subsection (5B), by the substitution of “€100,000” for “€70,000”, (
  4. c)in section 667C— (
  5. i)in subsection
(1), by the insertion of the following definition: “ ‘Commission Regulation (EU) No. 1408/2013’ means Commission Regulation (EU) No. 1408/2013 of 18 December 20134 as amended by Commission Regulation (EU) 2019/316 of 21 February 20195 and Commission Regulation (EU) 2022/2046 of 25 October 20226 ;”, and (
  1. ii)in subsection (3A)— (I) in paragraph (b), by the substitution of “Subject to paragraphs (
  2. c)and (d),” for “Subject to paragraph (c),”, and (II) by the insertion of the following paragraphs after paragraph (c): “(
  3. d)In the case of a qualifying period commencing on or after 1 January 2024, a specified person shall be entitled to relief in respect of relevant deductions of an amount not exceeding €20,000 in the aggregate in that qualifying period. (
  4. e)Where a specified person constitutes a single undertaking within the meaning of Commission Regulation (EU) No. 1408/2013, relief under this subsection shall be available only insofar as it does not exceed the ceiling of aid laid down in that Commission Regulation.”, and (
  5. d)in section 667D
(8)(b), by the substitution of “€100,000” for “€70,000”. Amendment of section 664 of Principal Act (relief for certain income from leasing of farm land) 33. Section 664 of the Principal Act is amended— (a) in subsection
(1)— (
  1. i)in paragraph (a), by— (I) the insertion of the following definitions: “ ‘own’, in relation to farm land, includes holding a leasehold interest in farm land; ‘relevant lease’ means a lease of farm land which is for a definite term of 50 years or more;”, and (II) in the definition of “qualifying lessor”— (A) in paragraph (ii), the substitution of “arm’s length, and” for “arm’s length;”, and (B) the insertion of the following paragraph after paragraph (ii): “(iii) subject to paragraph (aa), has owned the farm land referred to in that paragraph for a continuous period of not less than 7 years beginning on the date of the contract to purchase the farm land concerned.”, and (
  2. ii)by the insertion of the following paragraph after paragraph (a): “(
  3. aa)(
  4. i)Subject to subsections (1A) to (1D), paragraph (iii) of the definition of ‘qualifying lessor’ shall apply to an individual who purchased farm land pursuant to a contract entered into on or after 1 January 2024 for a consideration equal to the market value of the farm land at the date of the purchase of that farm land. (
  5. ii)The reference in subparagraph (
  6. i)to the purchase by an individual of farm land shall be read as including a reference to the acquisition by an individual of a leasehold interest in farm land under a relevant lease and the reference in that subparagraph to the date of the purchase shall be read as including a reference to the date on which a relevant lease in respect of farm land is granted.”, and (
  7. b)by the insertion of the following subsections after subsection
(1): “(1A) (a) Where an individual referred to in subsection
(1)(aa)(i)— (i) within a period of 7 years from the date of the purchase referred to in subsection
(1)(aa), transfers the farm land, in whole or in part (in this subsection referred to as the ‘transferred farm land’), other than by way of purchase for a consideration equal to the market value of the transferred farm land at the date of the transfer, to a person (in this subsection referred to as the ‘transferee’) who is connected with the individual, and (ii) it is reasonable to consider that the main purpose, or one of the main purposes, of the transfer referred to in subparagraph (i) is to avoid the application to the individual of paragraph (iii) of the definition in subsection
(1)of ‘qualifying lessor’ in respect of the transferred farm land, then— (I) the transferred farm land shall be treated as having been purchased by the transferee for a consideration equal to its market value at the date of the transfer, (II) for the purposes of subparagraph (i) of paragraph (aa) of subsection
(1), a reference in that subparagraph to the date of the purchase shall be read as a reference to the date of the transfer, and (III) paragraph (iii) of the definition in subsection
(1)of ‘qualifying lessor’ shall apply to the transferee in respect of the transferred farm land and the reference in that paragraph to the date of the contract to purchase the farm land shall be read as a reference to the date of the transfer of the farm land to the transferee. (b) Where, within the period of 7 years from the date of the purchase referred to in subsection
(1)(aa)— (
  1. i)the transferee transfers the transferred farm land, in whole or in part, other than by way of purchase for a consideration equal to its market value, to a person connected with the individual (in this subsection referred to as a ‘subsequent transferee’), and (
  2. ii)it is reasonable to consider that the main purpose, or one of the main purposes, of the transfer referred to in subparagraph (
  3. i)is to avoid the application to the transferee of paragraph (iii) of the definition in subsection
(1)of ‘qualifying lessor’ in respect of the transferred farm land, then— (I) the transferred farm land shall be treated as having been purchased by the subsequent transferee for a consideration equal to its market value at the date of the transfer to the subsequent transferee, (II) for the purposes of subparagraph (i) of paragraph (aa) of subsection
(1), a reference in that subparagraph to the date of the purchase shall be read as a reference to the date of the transfer to the subsequent transferee, and (III) paragraph (iii) of the definition in subsection
(1)of ‘qualifying lessor’ shall apply to the subsequent transferee in respect of the transferred farm land and the reference in that paragraph to the date of the contract to purchase the farm land shall be read as a reference to the date of the transfer of the farm land to the subsequent transferee. (
  1. c)Paragraph (
  2. b)shall, with any necessary modifications, apply in respect of any transfer by a subsequent transferee to another person as it does to a transfer by a transferee to a subsequent transferee under that paragraph. (
  3. d)In this subsection, references to the transfer of farm land, in whole or in part, shall be read as including references to the grant of a leasehold interest in the farm land, in whole or in part, and, where the context requires, references to— (
  4. i)the transferee shall be read as a reference to the person to whom the lease has been granted, (
  5. ii)the person transferring the farm land shall be read as a reference to the person granting the leasehold interest in the farm land, and (iii) the date of the transfer shall be read as a reference to the date on which the leasehold interest in the farm land is granted. (1B) (
  6. a)Where, as part of, or in connection with, a scheme or arrangement— (
  7. i)farm land is acquired (in this subsection referred to as the ‘acquired farm land’) by an individual on or after 1 January 2024 from a person (not being an individual) with whom the individual is connected, (
  8. ii)the farm land is acquired by the individual other than by way of purchase for a consideration equal to its market value at the date of the acquisition, and (iii) it is reasonable to consider that the main purpose, or one of the main purposes, of the scheme or arrangement is to avoid the application to the individual of paragraph (iii) of the definition in subsection
(1)of ‘qualifying lessor’ in respect of the acquired farm land, then— (I) the acquired farm land shall be treated as having been purchased by the individual for a consideration equal to its market value at the date of the acquisition, (II) for the purposes of subparagraph (i) of paragraph (aa) of subsection
(1), a reference in that subparagraph to the date of the purchase shall be read as a reference to the date of the acquisition, and (III) paragraph (iii) of the definition in subsection
(1)of ‘qualifying lessor’ shall apply to the individual in respect of the farm land and the reference in that paragraph to the date of the contract to purchase the farm land shall be read as a reference to the date of the acquisition of the farm land by the individual. (
  1. b)In this subsection, ‘acquire’, in relation to farm land, includes the acquisition of a leasehold interest in farm land and a reference in this subsection to the date of the acquisition shall, in relation to farm land, be read as including a reference to the date on which a leasehold interest in farm land was granted. (1C) (
  2. a)Where, on or after 1 January 2024, an individual purchases farm land pursuant to a contract entered into on or after that date, from a person who is not connected with the individual for a consideration that is greater or less than the market value of the farm land on the date of the purchase, then— (
  3. i)the farm land shall be treated as having been purchased by the individual for a consideration equal to its market value at the date of the purchase, and (
  4. ii)paragraph (iii) of the definition in subsection
(1)of ‘qualifying lessor’ and, where applicable, paragraph (a)(
  1. i)of subsection (1A), shall apply to the individual. (
  2. b)Where, as part of a scheme or arrangement entered into between an individual and another person in respect of farm land purchased by the individual pursuant to a contract entered into on or after 1 January 2024 (in this paragraph referred to as the ‘first-mentioned farm land’)— (
  3. i)the individual acquires farm land from such other person (in this paragraph referred to as the ‘second-mentioned farm land’) in exchange for the first-mentioned farm land, and (
  4. ii)it is reasonable to consider that the main purpose, or one of the main purposes, of the scheme or arrangement is to avoid the application to the individual of paragraph (iii) of the definition in subsection
(1)of ‘qualifying lessor’ in respect of the first-mentioned farm land, then— (I) the second-mentioned farm land shall be treated as having been purchased by the individual for a consideration equal to its market value at the date of the acquisition of that farm land by the individual, and (II) paragraph (iii) of the definition in subsection
(1)of ‘qualifying lessor’ and, where applicable, subsection (1A)(a)(i), shall apply to the individual in respect of the second-mentioned farm land. (c) In this subsection, ‘acquire’, in relation to farm land, includes the acquisition of a leasehold interest in farm land and a reference in this subsection to the date of the acquisition shall, in relation to farm land, be read as including a reference to the date on which a leasehold interest in farm land was granted. (1D) Paragraph (iii) of the definition in subsection
(1)of ‘qualifying lessor’ shall not apply in respect of an individual who enters into a qualifying lease by reason of the death of the individual’s spouse or civil partner and the spouse or civil partner jointly owned the farm land with the individual immediately before the death of the spouse or civil partner.”. Amendment of Chapter 2 of Part 29 of Principal Act (scientific and certain other research) 34.
(1)Chapter 2 of Part 29 of the Principal Act is amended— (
  1. a)in section 766, by the substitution of the following subsection for subsection (1A): “(1A) For the purposes of this section and section 766C— (
  2. a)where expenditure is incurred by a company on machinery or plant which qualifies for any allowance under Part 9 and the machinery or plant will not be used by the company wholly and exclusively for the purposes of research and development, the amount of the expenditure attributable to research and development shall be such portion of that expenditure as is just and reasonable, and such portion of the expenditure shall be treated for the purposes of subsection
(1)(
  1. a)as incurred by the company wholly and exclusively in carrying on research and development activities, and (
  2. b)where, at any time, the apportionment made under paragraph (a), or a further apportionment made under this paragraph, ceases to be just and reasonable, then— (
  3. i)such further apportionment shall be made at that time as is just and reasonable, (
  4. ii)any such further apportionment shall supersede any earlier apportionment, and (iii) any such adjustments, assessments or repayments of tax shall be made as are necessary to give effect to any apportionment under this subsection.”, (
  5. b)in section 766A, by the substitution of the following subsection for subsection
(9): “
(9)(
  1. a)A claim shall not be made under this section in respect of relevant expenditure incurred in an accounting period that commences on or after 1 January 2023. (
  2. b)A company may, in respect of relevant expenditure incurred in an accounting period, make a claim under this section or section 766D.”, (
  3. c)in section 766C— (
  4. i)in subsection
(1), by the substitution of “30 per cent” for “25 per cent”, (ii) in subsection
(6)(a)(i), by the substitution of “€50,000” for “€25,000”, (iii) by the insertion of the following subsection after subsection
(7): “(7A) Where a company (in this section and section 766D referred to as the ‘predecessor’) which has made a claim in accordance with this section ceases to carry on a trade which includes the carrying on by it of research and development activities and another company (in this section and section 766D referred to as the ‘successor’) commences to carry on the trade and those research and development activities (the cessation and commencement referred to in this section and section 766D as the ‘event’) and— (a) both the predecessor and successor were, at the time of the event, members of the same group of companies within the meaning of section 411
(1), and (b) on or at any time within 2 years after the event the trade and the research and development activities are not carried on otherwise than by the successor, then the successor may, to the extent that the predecessor has not, in respect of each instalment referred to in subsection
(6), specified that the amount of the instalment, or any portion of that amount, is to be treated as an overpayment of tax in accordance with subsection
(7)(a) or paid to the company in accordance with subsection
(7)(b), be entitled to such amount that the predecessor would have been entitled to under subsections
(1)and
(6).”, (iv) in subsection
(8), by the substitution of “for the purposes of corporation tax” for “for any tax purpose”, (v) in subsection
(9)(b)— (I) in subparagraph (i), by the deletion of “and” where it occurs after “development activities”, (II) in subparagraph (ii), by the substitution of “period concerned, and” for “period concerned.”, and (III) by the insertion of the following subparagraph after subparagraph (ii): “(iii) amounts claimed under section 766
(2), which are carried forward by the company in accordance with section 766
(4)(referred to in section 766
(4)as ‘the excess’), excluding amounts claimed in accordance with section 766(4B), and which may be treated as an amount by which corporation tax of the succeeding accounting periods may be reduced.”, (vi) by the insertion of the following subsections after subsection
(15): “
(16)Nothing in this section shall prevent the Revenue Commissioners from examining a claim subsequent to any payment or offset having been made and making or amending an assessment, as the case may be, under Chapter 5 of Part 41A.
(17)(
  1. a)The company shall notify the Revenue Commissioners in writing, on or before the relevant date, in a form prescribed by the Revenue Commissioners, of the intention of the company to make a claim under this section and the prescribed form shall contain such particulars in relation to the claim as may be specified in the prescribed form including— (
  2. i)the name, address and corporation tax number of the company, (
  3. ii)a description of the research and development activities carried out by the company, (iii) the number of employees carrying on research and development activities, and (
  4. iv)details of expenditure incurred by the company on research and development activities which has been or is to be met directly or indirectly by grant assistance or any other assistance referred to in section 766
(1)(b)(v). (
  1. b)The Revenue Commissioners may require the company to provide such additional information, explanations, and particulars and to give all assistance which may reasonably be required for the purpose of inspecting the information required to be delivered under this subsection. (
  2. c)Paragraph (
  3. a)shall not apply where the company has made a claim under this section or section 766 in respect of any of the 3 immediately preceding accounting periods. (
  4. d)In paragraph (a), ‘relevant date’ means the date which is 90 days before the claim under subsection
(1)shall be made.”, (
  1. d)in section 766D— (
  2. i)in subsection
(1), by the substitution of “30 per cent” for “25 per cent”, (ii) by the insertion of the following subsection after subsection
(3): “(3A) Where an event referred to in section 766C(7A) occurs and— (
  1. a)in connection with the event the predecessor transfers to the successor a building or structure in respect of which— (
  2. i)the predecessor had made a claim under this section, (
  3. ii)the transfer is a transfer to which section 617 applies, and (iii) at the time of the transfer either or both the specified relevant period and the specified time had not expired, (
  4. b)on, or at any time within 2 years after, the event, the trade and research and development activities are not carried on otherwise than by the successor, and (
  5. c)the building or structure in respect of which relevant expenditure was incurred by the predecessor— (
  6. i)in a case where the specified relevant period had not expired, would continue to be a qualifying building if a reference, in the definition of ‘qualifying building’ in section 766A
(1)(a), to activities carried on by the company were construed as a reference to activities carried on by the company and the successor, and (ii) continues to be used by the successor throughout the remainder of the specified time for the purposes of research and development activities, then— (I) the charge to tax as provided for in subsection
(3)shall not apply in relation to the transfer by the predecessor, (II) the successor may, to the extent that the predecessor has not, in respect of each instalment referred to in subsection
(5), specified that the amount of the instalment, or any portion of that amount, is to be treated as an overpayment of tax in accordance with subsection
(6)(a) or paid to the company in accordance with subsection
(6)(b), be entitled to such amount that the predecessor would have been entitled to under subsections
(1)and
(5), and (III) subsection
(3)shall have effect as if references to the company in that subsection were references to the successor.”, (iii) in subsection
(7), by the substitution of “for the purposes of corporation tax” for “for any tax purpose”, (iv) by the insertion of the following subsection after subsection
(8): “(8A) The company shall, when making a claim in accordance with subsection
(8), provide details of amounts which are carried forward by the company in accordance with section 766A
(4), being amounts which have not been used to reduce the corporation tax of an accounting period in accordance with section 766A
(2)(referred to in section 766A
(4)as ‘the excess’), excluding amounts claimed in accordance with section 766A(4B), and which may be treated as an amount by which corporation tax of the succeeding accounting period may be reduced.”, (v) by the insertion of the following subsections after subsection
(14): “
(15)Nothing in this section shall prevent the Revenue Commissioners from examining a claim subsequent to any payment or offset having been made and making or amending an assessment, as the case may be, under Chapter 5 of Part 41A.
(16)(
  1. a)The company shall notify the Revenue Commissioners in writing, on or before the relevant date, in a form prescribed by the Revenue Commissioners, of the intention of the company to make a claim under this section and the prescribed form shall contain such particulars in relation to the claim as may be specified in the prescribed form including— (
  2. i)the name, address and corporation tax number of the company, (
  3. ii)confirmation that the building or structure is a qualifying building, (iii) the proportion of the qualifying building which is to be used for the purpose of the carrying on by the company of research and development activities within the meaning of section 766
(1)(
  1. a)for the specified relevant period, and (
  2. iv)details of expenditure incurred by the company which has been or is to be met directly or indirectly by grant assistance or any other assistance referred to in section 766A
(1)(b)(i). (
  1. b)The Revenue Commissioners may require the company to provide such additional information, explanations, and particulars and to give all assistance which may reasonably be required for the purpose of inspecting the information required to be delivered under this subsection. (
  2. c)Paragraph (
  3. a)shall not apply where the company has made a claim under this section or section 766A in respect of any of the 3 immediately preceding accounting periods. (
  4. d)In paragraph (a), ‘relevant date’ means the date which is 90 days before the claim under subsection
(1)shall be made.”.
(2)(
  1. a)Subject to paragraphs (b), (
  2. c)and (d), subsection
(1)shall apply in respect of accounting periods commencing on or after 1 January 2024. (b) Subsection
(1)(
  1. b)shall be deemed to have applied on and from 15 December 2022. (
  2. c)Paragraphs (
  3. c)(
  4. v)and (
  5. d)(
  6. iv)of subsection
(1)shall apply in respect of accounting periods ending on or after 31 December 2023. (
  1. d)Paragraph (
  2. c)(
  3. vi)(in so far as it inserts subsection
(16)in section 766C of the Principal Act) and paragraph (
  1. d)(
  2. v)(in so far as it inserts subsection
(15)in section 766D of the Principal Act) of subsection
(1)shall apply on and from the date of the passing of this Act. Amendment of certain tax exemption provisions 35.
(1)The Principal Act is amended— (
  1. a)in section 220— (
  2. i)by the insertion of the following paragraph after paragraph 9: “10. Ennis 2040 (Strategic Development) Designated Activity Company, registered on 8 December 2020 (registered number 684352).”, and (
  3. ii)by the insertion of the following paragraph after paragraph 10 (inserted by subparagraph (i)): “11. Nature Partners Company Limited by Guarantee, registered on 1 November 2021 (registered number 707015).”, (
  4. b)in Schedule 4— (
  5. i)by the insertion of the following paragraph after paragraph 45: “45A. Grangegorman Development Agency.”, and (
  6. ii)by the insertion of the following paragraph after paragraph 74AA: “74AAA. The National Paediatric Hospital Development Board.”, and (
  7. c)in Part 1 of Schedule 15— (
  8. i)by the insertion of the following paragraph after paragraph 48: “49. Ennis 2040 (Strategic Development) Designated Activity Company, registered on 8 December 2020 (registered number 684352).”, and (
  9. ii)by the insertion of the following paragraph after paragraph 49 (inserted by subparagraph (i)): “50. The National Paediatric Hospital Development Board.”.
(2)(
  1. a)Paragraphs (
  2. a)(
  3. i)and (
  4. c)(
  5. i)of subsection
(1)shall be deemed to have effect from 8 December 2020. (b) Paragraph (a) (ii) of subsection
(1)shall be deemed to have effect from 1 November 2021. (c) Paragraph (b) (i) of subsection
(1)shall be deemed to have effect from 10 May 2006. (
  1. d)Paragraphs (
  2. b)(
  3. ii)and (
  4. c)(
  5. ii)of subsection
(1)shall be deemed to have effect from 23 May 2007. Outbound payments defensive measures 36.
(1)Part 33 of the Principal Act is amended by the insertion of the following Chapter after section 817T: CHAPTER 5 Outbound payments defensive measures Interpretation 817U.
(1)In this Chapter— ‘arrangement’ has the same meaning as it has in Part 35A; ‘associated entities’ shall be construed in accordance with subsection
(3); ‘controlled foreign company charge’ has the same meaning as it has in Part 35B; ‘domestic tax’ means income tax, corporation tax or capital gains tax; ‘EEA Agreement’ means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by the Protocol signed at Brussels on 17 March 1993; ‘EEA State’ means a state which is a contracting party to the EEA Agreement; ‘entity’ has the same meaning as it has in Part 35C; ‘excluded payment’ means a payment, or a portion thereof, made by a company to the extent that it is reasonable to consider that— (
  1. a)an amount of income, profits or gains arising from the payment is within the charge to— (
  2. i)supplemental tax, (
  3. ii)foreign tax at a nominal rate greater than zero per cent, or (iii) domestic tax, other than as applied by this Chapter, or (
  4. b)the payment is made out of an amount of income, profits or gains where— (
  5. i)that income, profits or gains are within the charge to foreign tax at a nominal rate greater than zero per cent, and (
  6. ii)in calculating the amount of foreign tax to which that income, profits or gains are subject, no account is taken of that payment or any amount in respect of that payment, and includes a payment which would be a payment to which paragraph (
  7. a)or (
  8. b)applies but for the fact that the entity which would be within the charge to tax— (I) in respect of that payment, or (II) in respect of the income, profits or gains out of which the payment is made, is a pension fund, government body or other entity, resident in a territory other than a specified territory, that, under the laws of that territory, is exempted from tax which generally applies to profits, income or gains in that territory; ‘foreign company charge’ has the same meaning as it has in Part 35B; ‘foreign tax’ has the same meaning as it has in Part 35C; ‘permanent establishment’, in respect of a company, means a fixed place of business situated in a territory other than where that company is resident, through which the business of a company is wholly or partly carried on; ‘qualified IIR’, ‘qualified UTPR’, and ‘qualified domestic top-up tax’ have the same meaning, respectively, as they have in Part 4A; ‘relevant distribution’ has the same meaning as it has in Chapter 8A of Part 6; ‘relevant Member State’ means— (
  9. a)a Member State of the European Union, or (
  10. b)not being such a Member State, an EEA State; ‘relevant payment’ means a payment made by a company of an amount of interest or royalties which has been, or may be, in any accounting period, deducted, allowed or relieved in computing its or another company’s profits or losses for the purposes of corporation tax; ‘royalty’ means a payment of any kind for— (
  11. a)the use of, or the right to use— (
  12. i)any copyright of literary, artistic or scientific work, including cinematograph films, (
  13. ii)any patent, trademark, design or model, plan, secret formula or process, or (
  14. b)information concerning industrial, commercial or scientific experience; ‘specified territory’ means a territory, other than a relevant Member State, which is a listed territory or a zero-tax territory; ‘supplemental tax’ means— (
  15. a)a foreign company charge, (
  16. b)a qualified IIR, (
  17. c)a qualified UTPR, (
  18. d)a qualified domestic top-up tax, or (
  19. e)any other tax which is similar to any of the taxes referred to in paragraphs (
  20. a)to (d); ‘tax period’ has the same meaning as it has in section 835Z; ‘zero-tax territory’ means a territory that, other than in respect of an entity whose income, profits or gains are treated by that territory, or would be so treated but for an insufficiency of income, profits or gains, as arising or accruing to another entity— (
  21. a)generally subjects entities to tax at a rate of zero per cent on income, profits and gains, or (
  22. b)does not generally subject entities, whether on a remittance basis or otherwise, to a tax on income, profits and gains.
(2)In this Chapter, ‘listed territory’ has the same meaning as in section 835YA subject to the modification that references to ‘an accounting period beginning’ shall be read as references to ‘the making of a payment or distribution’.
(3)In this Chapter, two entities shall be ‘associated entities’ in respect of each other where— (
  1. a)one entity, directly or indirectly, possesses or is beneficially entitled to— (
  2. i)where the other entity is an entity having share capital, more than 50 per cent of the issued share capital of the other entity, or (
  3. ii)where the other entity is an entity not having share capital, an interest of more than 50 per cent of the ownership rights in the other entity, (
  4. b)one entity, directly or indirectly, is entitled to exercise more than 50 per cent of the voting power in the other entity, (
  5. c)one entity (in this paragraph referred to as ‘the first-mentioned entity’), directly or indirectly, holds such rights as would— (
  6. i)where the other entity is a company, if the whole of the profits of that other entity were distributed, entitle the first-mentioned entity, directly or indirectly, to receive more than 50 per cent of the profits so distributed, or (
  7. ii)where the other entity is an entity other than a company, if the share of the profits of that other entity to which the first-mentioned entity is entitled, directly or indirectly, is more than 50 per cent, (
  8. d)one entity has definite influence in the management of the other entity, or (
  9. e)there is another entity in respect of which the two entities are, in accordance with paragraph (a), (b), (
  10. c)or (d), associated entities.
(4)For the purposes of subsection
(3)(d), one entity (in this subsection referred to as ‘the first-mentioned entity’) shall be considered to have definite influence in the management of another entity (in this subsection referred to as ‘the second-mentioned entity’) where the first-mentioned entity has the ability to participate, on the board of directors or equivalent governing body of the second-mentioned entity, in the financial and operating policy decisions of the second-mentioned entity, where that ability causes, or could cause, the affairs of the second-mentioned entity to be conducted in accordance with the wishes of the first-mentioned entity.
(5)For the purposes of this Chapter, an entity shall be regarded as being a resident of a territory if— (a) in a case where the territory is a territory with the government of which arrangements having the force of law by virtue of section 826
(1)have been made, the entity is regarded as being a resident of that territory under those arrangements, and (
  1. b)in any other case, the entity is by virtue of the law of a territory resident for the purposes of tax in that territory, but where an entity is not resident in any territory in accordance with paragraph (
  2. a)or (
  3. b)it shall be regarded as being resident in the territory under whose laws it was created.
(6)For the purposes of this Chapter, where a relevant payment or a relevant distribution is made to an entity or a permanent establishment (in this subsection referred to as ‘the first-mentioned entity or permanent establishment’) and some or all of that payment or distribution is treated as arising or accruing to another entity or permanent establishment (in this section referred to as ‘the second- mentioned entity or permanent establishment’) or an individual, that is resident or situated in a different territory, under the tax law of the territory where— (
  1. a)the first-mentioned entity or permanent establishment is resident or situated, as the case may be, and (
  2. b)the second-mentioned entity or permanent establishment or such individual is resident or situated, as the case may be, then, for the purposes of this Chapter, the payment or distribution, or the relevant portion thereof, shall be treated as if it had been made to the second-mentioned entity or permanent establishment or that individual. Payment of interest 817V.
(1)This section applies to a relevant payment of interest paid by a company to— (
  1. a)an associated entity that is resident in a specified territory and is not resident in another territory that is not a specified territory, or (
  2. b)a permanent establishment of an associated entity which is situated in a specified territory, to the extent that the relevant payment of interest is not an excluded payment.
(2)Sections 64
(2), 198
(1)(c), 246
(3), 246A
(3)(a)(A) and 246A
(3)(b)(A) shall not apply to a relevant payment of interest to which this section applies.
(3)Subsection
(2)of section 246 shall apply to a relevant payment of interest to which this section applies as if a reference to a payment of yearly interest in that subsection were a reference to a relevant payment of interest to which this section applies.
(4)Where this section applies to a relevant payment of interest on a security referred to in section 37
(2), section 36
(2)shall apply as if ‘shall be paid without the deduction of tax, but all such interest’ were omitted.
(5)Where an arrangement is entered into by any person and it is reasonable to consider that the main purpose or one of the main purposes of the arrangement, or any part of the arrangement, is the avoidance of the application of any of the provisions of this section to a relevant payment of interest, directly or indirectly, to an associated entity in a specified territory, then this section shall apply as if the arrangement, or that part of the arrangement, had not been entered into.
(6)Subject to subsection
(5), this section shall not apply to a relevant payment of interest by a company where that relevant payment of interest is a payment— (a) to which section 64
(2)(b)(i) or 246A
(3)(a)(A) would apply, but for subsection
(2), or (b) to which section 246A
(3)(b)(A) would apply, but for subsection
(2), solely by virtue of section 246A
(3)(b)(ii)(I), where it is reasonable to consider that the company is not, and should not be, aware that any portion of the relevant payment of interest is made to an associated entity.
(7)This section shall not apply to the portion of the relevant payment of interest made by a company to an entity to the extent that— (
  1. a)a corresponding amount has been paid by that entity to another person in a tax period which commences within 12 months of the end of the tax period in which the payment is made by the company, (
  2. b)the corresponding amount referred to in paragraph (
  3. a)would have been an excluded payment had that corresponding amount been paid directly by the company to that other person referred to in that paragraph, and (
  4. c)all payments were made for bona fide commercial purposes.
(8)Nothing in this section shall result in the application of section 246
(2)to an entity other than a company which makes a relevant payment of interest. Payment of royalties 817W.
(1)This section applies to a relevant payment of a royalty by a company to— (
  1. a)an associated entity that is resident in a specified territory and is not resident in another territory that is not a specified territory, or (
  2. b)a permanent establishment of an associated entity which is situated in a specified territory, to the extent that the relevant payment of a royalty is not an excluded payment.
(2)(a) The receipt of a relevant payment of a royalty to which this section applies shall be deemed to be annual profits arising to the associated entity, or permanent establishment of the associated entity, referred to in subsection
(1), as the case may be, from property in the State for the purposes of section 18
(1). (b) A relevant payment of a royalty to which this section applies shall be an annual payment charged with tax under Schedule D for the purposes of section 238
(2). (c) Subsections
(3)and
(4)of section 242A shall not apply to a relevant payment of a royalty to which this section applies.
(3)Section 757
(2)shall not apply to a relevant payment of a royalty to which this section applies.
(4)Where an arrangement is entered into by any person and it is reasonable to consider that the main purpose or one of the main purposes of the arrangement, or any part of the arrangement, is the avoidance of the application of any of the provisions of this section to a relevant payment of a royalty, directly or indirectly, to an associated entity in a specified territory, then this section shall apply as if the arrangement, or that part of the arrangement, had not been entered into. Making of distribution 817X.
(1)This section applies to a relevant distribution where— (
  1. a)a company resident in the State makes a relevant distribution to— (
  2. i)an associated entity that is resident in a specified territory and is not resident in another territory that is not a specified territory, or (
  3. ii)a permanent establishment of an associated entity which is situated in a specified territory, (
  4. b)to the extent that the relevant distribution is not an excluded payment, and (
  5. c)to the extent that the relevant distribution is made out of income, profits or gains which have not been chargeable, directly or indirectly, to— (
  6. i)domestic tax, (
  7. ii)foreign tax at a nominal rate greater than zero per cent, (iii) a controlled foreign company charge, (
  8. iv)a supplemental tax, or (
  9. v)any other tax which is similar to any of the taxes referred to in subparagraphs (
  10. i)to (iv).
(2)Sections 140
(3)(a), 142
(2), 153
(4), 172B
(7), 172D
(2)and 172E
(1)shall not apply to a relevant distribution to which this section applies.
(3)Where an arrangement is entered into by any person and it is reasonable to consider that the main purpose or one of the main purposes of the arrangement, or any part of the arrangement, is the avoidance of the application of any of the provisions of this section to the making of a relevant distribution, directly or indirectly, to an associated entity in a specified territory, then this section shall apply as if the arrangement, or that part of the arrangement, had not been entered into. Reporting 817Y.
(1)In this section— ‘chargeable period’ has the meaning assigned to it by section 959A; ‘specified return date for the chargeable period’ has the meaning assigned to it by section 959A.
(2)Every company who makes a payment of interest or a royalty, or makes a relevant distribution to— (
  1. a)an associated entity that is resident in a specified territory and is not resident in another territory that is not a specified territory, or (
  2. b)a permanent establishment of an associated entity which is situated in a specified territory, in a chargeable period shall, in the return required to be delivered under Chapter 3 of Part 41A, provide the following details in respect of each payment or distribution— (
  3. i)the amount of the payment or distribution, (
  4. ii)the amount of tax withheld on the payment or distribution, and (iii) the territory where the entity or permanent establishment is resident, or situated, as the case may be. Scope of application 817Z.
(1)Subject to subsection
(2), this Chapter shall apply to a payment of interest or royalties, or the making of a distribution, on or after 1 April 2024.
(2)Where arrangements are in place on or before 19 October 2023, in respect of which there is a payment of interest or royalties, or the making of a distribution, then this Chapter shall apply to such payment or distribution made, as the case may be, on or after 1 January 2025.”.
(2)The Principal Act is amended— (a) in section 36
(2), by the substitution of “Subject to section 817V, the interest on all” for “The interest on all”, (b) in section 64
(2), by the substitution of “Subject to section 817V, section 246
(2)” for “Section 246
(2)”, (c) in section 140
(3), in paragraph (a), by the substitution of “Subject to section 817X, so much of” for “So much of”, (d) in section 142
(2), by the substitution of “Subject to section 817X, where a distribution” for “Where a distribu

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