IE-2013-act-8 — Act No. 8 of 2013

PART 1 Income Levy, Universal Social Charge, Income Tax, Corporation Tax and Capital Gains Tax – Chapter 1 Interpretation Interpretation ( Part 1 ). 1 .— In this Part “Principal Act” means the Taxes Consolidation Act 1997 . PART 1 Income Levy, Universal Social Charge, Income Tax, Corporation Tax and Capital Gains Tax – Chapter 2 Universal Social Charge Amendment of section 531AM (charge to universal social charge) of Principal Act. 2 .— Section 531AM of the Principal Act is amended in the Table to subsection (1)— ( a ) in paragraph ( a ) by deleting “and” in subparagraph (III) and by substituting “Schedule 3, and” for “Schedule 3.” in subparagraph (IV), ( b ) in paragraph ( a ) by inserting the following after subparagraph (IV): “(V) any amount transferred by an administrator under section 782A(3).”, ( c ) in paragraph ( b )(ii) by substituting “subparagraphs (I) to (V)” for “clauses (I) to (IV)”, ( d ) in paragraph ( b ) by substituting “enacted,” for “enacted, and” in subparagraph (I) and by substituting “(within the meaning of that section), and” for “(within the meaning of that section).” in clause (E) of subparagraph (II), and ( e ) in paragraph ( b ) by inserting the following after subparagraph (II): “(III) including a balancing charge in respect of any amount that would have been deducted by virtue of subparagraph (vii).”. Amendment of section 531AN (rate of charge) of Principal Act. 3 .— Section 531AN of the Principal Act is amended for the year of assessment 2013 and each subsequent year of assessment— ( a ) by substituting the following for subsection (1): “(1) For each tax year an individual shall be charged to universal social charge on his or her aggregate income for the tax year— ( a ) at the rate specified in column (2) of the Table to this section corresponding to the part of aggregate income specified in column (1) of that Table where the individual is— (i) aged under 70 years, or (ii) aged 70 years or over at any time during the tax year and has aggregate income that exceeds €60,000, or ( b ) at the rate specified in column (3) of the Table to this section corresponding to the part of aggregate income specified in column (1) of that Table where the individual is aged 70 years or over at any time during the tax year and has aggregate income that does not exceed €60,000.”, ( b ) by substituting the following for subsection (2): “(2) Notwithstanding subsection (1) and the Table to this section, where an individual has relevant income that exceeds €100,000, the individual shall, instead of being charged to universal social charge on the amount of the excess at the rate provided for in column (2) of that Table, be charged on the amount of that excess at the rate of 10 per cent.”, ( c ) in subsection (3) by substituting “Notwithstanding subsection (1) and the Table to this section, where an individual is in receipt of aggregate income which does not exceed €60,000, is aged under 70 years” for “Notwithstanding subsection (1) and the Table to this section, for the tax year 2011 and for each subsequent tax year where an individual is aged under 70 years”, and ( d ) by substituting the following for the Table to that section: “TABLE Part of aggregate income Rate of universal social charge Rate of universal social charge (1) (2) (3) The first €10,036 2% 2% The next €5,980 4% 4% The remainder 7% 4% ”. Amendment of section 531AAA (application of provisions relating to income tax) of Principal Act. 4 .— Section 531AAA of the Principal Act is amended— ( a ) in paragraph ( a ) by substituting “Chapter 3 of that Part, in relation to the obligation to keep records, and Chapter 4” for “and Chapter 4”, ( b ) in paragraph ( b ) by substituting “income tax and the right of a Revenue officer to make enquiries” for “income tax”, and ( c ) in paragraph ( d ) by substituting “Chapters 1 and 4” for “Chapter 1”. PART 1 Income Levy, Universal Social Charge, Income Tax, Corporation Tax and Capital Gains Tax – Chapter 3 Income Tax Amendment of section 472D (relief for key employees engaged in research and development activities) of Principal Act. 5 .— Section 472D of the Principal Act is amended— ( a ) in subsection (1), in the definition of “key employee”, by substituting “50 per cent” for “75 per cent” in each place, and ( b ) in subsection (8) by substituting “subsection (7)” for “subsection (6)”. Amendment of section 71 (foreign securities and possessions) of Principal Act. 6 .— Section 71 of the Principal Act is amended by inserting the following after subsection (3A): “(3B) ( a ) This subsection shall apply where a person referred to in subsection (2) applies, outside the State, any income arising from securities or possessions in any place outside the State, in the making of a loan, or the transfer of money to that person’s spouse or civil partner, or in the acquisition of any property which is subsequently transferred to that person’s spouse or civil partner. ( b ) Where this subsection applies, any sums received in the State on or after 13 February 2013 from— (i) remittances payable in the State, (ii) property imported, (iii) money or value arising from property not imported, or (iv) money or value so received on credit or on account in respect of such remittances, property, money or value, which derive from the loan, or transfer of money or property referred to in paragraph ( a ), shall be treated, for the purpose of subsection (3), as if the sums received in the State had been brought into the State by the person referred to in subsection (2).”. Amendment of sections 88A (double deduction in respect of certain emoluments) and 472A (relief for the long-term unemployed) of Principal Act. 7 .— (1) Section 88A of the Principal Act is amended by inserting the following after subsection (2): “(3) This section shall cease to have effect in respect of all claims relating to— ( a ) emoluments payable in respect of an employment commencing on or after such day as the Minister for Finance may by order appoint, and ( b ) the employer’s contribution to the Social Insurance Fund payable, in respect of those emoluments, under the Social Welfare Acts.”. (2) Section 472A of the Principal Act is amended— ( a ) in subsection (1)( a ), in the definition of “qualifying employment”, by substituting the following for subparagraph (i): “(i) commences on or after 6 April 1998 and before such day as the Minister for Finance may by order appoint,”, and ( b ) by inserting the following after subsection (6): “(7) This section shall cease to have effect in respect of all claims relating to emoluments from an employment commencing on or after such day as the Minister for Finance may by order appoint.”. Amendment of section 126 (tax treatment of certain benefits payable under Social Welfare Acts) of Principal Act. 8 .— Section 126 of the Principal Act is amended— ( a ) by inserting the following after subsection (2): “(2A) ( a ) This subsection shall apply to the following benefits payable on or after 1 July 2013 under the Acts— (i) maternity benefit, (ii) adoptive benefit, and (iii) health and safety benefit. ( b ) Amounts to be paid on foot of the benefits to which this subsection applies shall be deemed— (i) to be profits or gains arising or accruing from an employment (and accordingly tax under Schedule E shall be charged on every person to whom any such benefit is payable in respect of amounts to be paid on foot of such benefits, and tax so chargeable shall be computed under section 112(1)), and (ii) to be emoluments to which Chapter 4 of Part 42 applies.”, and ( b ) in subsection (7) by substituting “to which subsections (2A) and (3) apply” for “to which subsection (3) applies” in each place. Amendment of section 244 (relief for interest paid on certain home loans) of Principal Act. 9 .— Section 244 of the Principal Act is amended by inserting the following after subsection (6): “(7) This subsection shall apply to a loan taken out and used by an individual— ( a ) on or after 1 January 2012 and on or before 31 December 2012 solely for the purpose of defraying money employed in the purchase of an estate or interest in the land referred to in paragraph ( b ) and in respect of which the permission in subsection (10) applies but only where a residential premises, which is a qualifying residence in relation to that individual, is constructed on that land, or ( b ) on or after 1 January 2012 and on or before 31 December 2013 solely for the purpose of defraying money employed in the construction of a residential premises which is a qualifying residence in relation to that individual on land— (i) in respect of which he or she has, on or after 1 January 2012 and on or before 31 December 2012, acquired an estate or interest, and (ii) the acquisition of which was financed by way of the loan referred to in paragraph ( a ). (8) This subsection shall apply to a loan in respect of which there was in place, on or after 1 January 2012 and on or before 31 December 2012, an agreement evidenced in writing to provide that loan to an individual and— ( a ) part of that loan is used in the period 1 January 2012 to 31 December 2012, and ( b ) the balance of that loan is used in the period 1 January 2013 to 31 December 2013, by that individual solely for the purpose of defraying money employed in the repair, development or improvement of a residential premises which is a qualifying residence in relation to that individual. (9) Any loan to which subsection (7) or (8)( b ) applies shall, for the purposes of this section, be deemed to be a qualifying loan taken out on or after 1 January 2012 and on or before 31 December 2012. (10) Relief shall not be granted in respect of interest paid on any loan to which subsection (7) or (8) applies unless any permission required under the Planning and Development Act 2000 was granted on or before 31 December 2012 in respect of such construction, repair, development or improvement, as appropriate, and such permission has not ceased to exist.”. Amendment of section 823A (deduction for income earned in certain foreign states) of Principal Act. 10 .— Section 823A of the Principal Act is amended in subsection (1) by substituting the following for the definition of “relevant state”: “ ‘relevant state’ means the Federative Republic of Brazil, the Russian Federation, the Republic of India, the People’s Republic of China or the Republic of South Africa, and, as regards the years of assessment 2013 and 2014, shall include the Arab Republic of Egypt, the People’s Democratic Republic of Algeria, the Republic of Senegal, the United Republic of Tanzania, the Republic of Kenya, the Federal Republic of Nigeria, the Republic of Ghana or the Democratic Republic of the Congo;”. Amendment of section 473A (relief for fees paid for third level education, etc.) of Principal Act. 11 .— Section 473A of the Principal Act is amended by substituting the following for subsection (4A): “(4A) In any claim or claims for relief under this section made by an individual in respect of qualifying fees— ( a ) where the qualifying fees, or part of the qualifying fees, the subject of the claim or claims concerned relate to a full-time course or full-time courses— (i) for the year of assessment 2013 there shall be disregarded the first €2,500 or the full amount of those fees, whichever is the lesser, (ii) for the year of assessment 2014 there shall be disregarded the first €2,750 or the full amount of those fees, whichever is the lesser, and (iii) for the year of assessment 2015 and each subsequent year of assessment there shall be disregarded the first €3,000 or the full amount of those fees, whichever is the lesser, ( b ) where all the qualifying fees the subject of the claim or claims concerned relate only to a part-time course or part-time courses— (i) for the year of assessment 2013 there shall be disregarded the first €1,250 or the full amount of those fees, whichever is the lesser, (ii) for the year of assessment 2014 there shall be disregarded the first €1,375 or the full amount of those fees, whichever is the lesser, and (iii) for the year of assessment 2015 and each subsequent year of assessment there shall be disregarded the first €1,500 or the full amount of those fees, whichever is the lesser.”. Tax treatment of loans from employee benefit schemes. 12 .— The Principal Act is amended in Chapter 2 of Part 33 by inserting the following after section 811A: “811B.— (1) In this section— ‘benefit scheme’, subject to subsection (2)( c ), means a trust, scheme or other arrangement and includes any settlement, disposition, covenant, agreement, transfer of money or transfer of other property or of any right to money or of any right to other property; ‘employee’ includes an office holder and any person who is an employee within the definition of ‘employee’ in section 983; ‘employer’ includes any person connected with an employer and any person who is an employer within the definition of ‘employer’ in section 983 or connected with such employer; ‘loan’ means any loan, advance or any form of credit; ‘specified rate’ means the rate specified in paragraph (iii) of the definition of ‘the specified rate’ in section 122. (2) For the purposes of this section— ( a ) any question whether a person is connected with another person shall be determined in accordance with section 10 (as it applies for the purposes of the Tax Acts), ( b ) the loan of, or the provision of the use of, an asset shall be deemed to be a loan of an amount equal to the value of that asset at the time such loan is made or at the time such asset is provided, and ( c ) an arrangement or agreement under which a loan, the provision of a benefit or the loan of, or the provision of the use of, an asset is made to an employee by his or her employer shall not be an arrangement or agreement within the meaning of a benefit scheme where the provisions of section 118, 118A, 121, 121A or 122 apply to such loan, the provision of such benefit or to the loan, or provision, of such asset. (3) Where, in the year of assessment 2013 or any subsequent year of assessment, an employee or former employee who holds or has held an office or employment the profits or gains from which are or were chargeable to tax under Schedule E or under Case III of Schedule D or any person connected with that employee or former employee receives, directly or indirectly, from a benefit scheme— ( a ) a payment (including a loan), ( b ) a benefit, or ( c ) an asset (including the loan of, or the provision of the use of, an asset), and that scheme was, directly or indirectly, provided, funded, subscribed to or otherwise made available by that employee’s employer or former employer, then— (i) the amount of that payment, (ii) the cost of providing that benefit or the value of that benefit at the date of provision (whichever is the greater), or (iii) the value of that asset, shall, to the extent that it is not otherwise chargeable to income tax, be deemed to be income of that employee for that year of assessment chargeable to income tax under Case IV of Schedule D. (4) Where, in the year of assessment 2013 or any subsequent year of assessment, an individual or any person connected with that individual receives, directly or indirectly, from a benefit scheme— ( a ) a payment (including a loan), ( b ) a benefit, or ( c ) an asset (including the loan of, or the provision of the use of, an asset), and that scheme was, directly or indirectly, provided, funded or otherwise made available by a person who subsequently becomes that individual’s employer, then for the year of assessment in which the individual first holds with that employer an office or employment the profits or gains from which are chargeable to tax under Schedule E or under Case III of Schedule D— (i) the amount of that payment, (ii) the cost of providing that benefit or the value of that benefit at the date of provision (whichever is the greater), or (iii) the value of that asset, shall, to the extent that it is not otherwise chargeable to income tax or is not liable in a territory with the government of which arrangements are for the time being in force by virtue of section 826(1) (or in a territory with the government of which arrangements have been made which on completion of the procedures set out in section 826(1) will have the force of law) to a tax that corresponds to income tax, be deemed to be income of that individual chargeable to income tax under Case IV of Schedule D. (5) For the purpose of subsections (3) and (4), this section applies to the receipt, directly or indirectly, on or after 13 February 2013 of a payment (including a loan), a benefit or an asset (including the loan of, or the provision of the use of, an asset) from a benefit scheme. (6) ( a ) Where an individual has paid all of the tax due by virtue of subsection (3) or (4) and that individual— (i) repays all or part of a loan, (ii) ceases, for a period of at least 12 months, to have use of an asset, or (iii) ceases, for a period of at least 12 months, to have use of a benefit, in respect of which those subsections applied, then, on foot of a claim in writing from that individual, relief shall be given by way of offset or repayment of an amount equal to the difference between— (I) where a loan has been repaid in full or where the use of the asset or benefit has ceased— (A) the tax paid by virtue of subsection (3) or (4), and (B) the tax that would have been payable by the individual as if section 118, 118A, 121, 121A or 122, as appropriate, had applied to such loan or to the provision of such asset or benefit up to the date that that loan is repaid or to the date that such asset or benefit ceases to be available to that individual, as the case may be, or (II) where a loan has not been repaid in full— (A) the amount of that tax paid by virtue of subsection (3) or (4) as is attributable to the amount of that loan repaid, and (B) the tax that would have been payable as if section 122 had applied in respect of the amount of the loan repaid up to the date that that amount is repaid. ( b ) The relief referred to in paragraph ( a ) shall not apply where the loan, or part of the loan, referred to in that paragraph is, directly or indirectly— (i) repaid by the individual referred to in that paragraph out of a payment (including a loan) or transfer of an asset to that individual, or to a person connected with that individual, from a benefit scheme that was, directly or indirectly, provided, funded, subscribed to or otherwise made available by the individual’s employer or former employer, or (ii) replaced by another loan that is directly or indirectly, provided, funded, subscribed to or otherwise made available by the individual’s employer or former employer. ( c ) Notwithstanding any limitation in section 865(4) on the time within which a claim for repayment of tax is required to be made or the provisions relating to the offset of tax in section 865B, a claim for the offset or repayment referred to in paragraph ( a ) shall be made within 4 years from the end of the year of assessment in which the loan, or part of the loan, is repaid or the use of the benefit or asset, as the case may be, ceases. (7) ( a ) This subsection applies for the year of assessment 2013 and each subsequent year of assessment where— (i) before 13 February 2013, an employee or former employee who holds or has held an office or employment the profits or gains of which are or were chargeable to tax under Schedule E or under Case III of Schedule D or any person connected with that employee or former employee received, directly or indirectly, from a benefit scheme— (I) a loan, or (II) the loan of, or the provision of the use of, an asset, and that scheme was, directly or indirectly, provided, funded, subscribed to or otherwise made available by that employee’s employer or former employer, and (ii) at any time in the year of assessment— (I) the loan referred to in subparagraph (i)(I), or any part thereof, remains outstanding, or (II) the employee or former employee continues to have the loan of or the use of the asset referred to in subparagraph (i)(II). ( b ) Where for any year of assessment that this subsection applies, then, in relation to a loan referred to in paragraph ( a )(i)(I), an amount equal to— (i) if no interest is paid, the amount of interest that would have been payable in that year of assessment if interest had been payable at a rate equal to the specified rate, or (ii) if interest is paid at a rate less than the specified rate, the difference between the aggregate amount of interest paid in that year of assessment and the amount of interest which would have been payable in that year if interest had been payable at a rate equal to the specified rate, shall, if not otherwise chargeable to income tax, be deemed to be income of that employee or former employee for that year of assessment chargeable to income tax under Case IV of Schedule D and any reference to interest paid in subparagraph (i) or (ii) does not include an increase in the outstanding balance on the loan or loans or interest paid out of a further loan or advance made, directly or indirectly, by a benefit scheme or employer referred to in paragraph ( a )(i). ( c ) Where for any year of assessment that this subsection applies, then, in relation to the provision of the loan of, or the provision of the use of, an asset referred to in paragraph ( a )(i)(II), there shall, if not otherwise chargeable to income tax, be deemed to be income of that employee or former employee for that year of assessment chargeable to income tax under Case IV of Schedule D an amount equal to an amount that would, if section 118, 118A, 119, 121, 121A or 122 had applied in respect of the loan of, or the provision of the use of, that asset be deemed to be an expense, emolument or perquisite chargeable to tax under Schedule E by virtue of those sections. (8) This section shall not apply to a scheme approved for the purposes of Part 17 or 30.”. Benefit in kind: miscellaneous amendments. 13 .— The Principal Act is amended, as respects the year of assessment 2013 and subsequent years of assessment— ( a ) in section 116(1) by inserting the following definition— “ ‘employee’ includes the holder of an office;”, ( b ) in section 118(5A)( a ) by inserting the following after “approved transport providers”: “and which must be for a service for which the approved transport provider is contracted or licensed”, ( c ) in section 118(5A) by substituting the following for paragraph ( b ): “( b ) In this subsection ‘approved transport provider’ means— (i) a public transport operator within the meaning of section 2 of the Dublin Transport Authority Act 2008 , (ii) the holder of a licence in respect of a public bus passenger service under Part 2 of the Public Transport Regulation Act 2009 , or (iii) a person who provides a ferry service within the State, operating a vessel which holds a current valid— (I) passenger ship safety certificate, (II) passenger boat licence, or (III) high-speed craft safety certificate, issued by the Minister for Transport, Tourism and Sport.”, ( d ) in section 118B(2)( b ) by substituting “the payment of emoluments by an employer” for “an emolument of the individual”, ( e ) in section 118B(3) by substituting “the payment of emoluments by an employer” for “an emolument of the individual”, ( f ) in section 118B(4) by substituting “the payment of emoluments by an employer” for “an emolument of the individual”, ( g ) in section 118B(5) by substituting “the payment of emoluments by an employer” for “an emolument of the individual”, ( h ) in section 120(1) by inserting “, public bodies” after “unincorporated societies”, ( i ) in section 120 by inserting the following after subsection (3): “(4) ( a ) This subsection applies where an expense, which if it had been incurred by a body corporate would be an expense of the kind mentioned in subsection 118(1)( a ), is incurred by a public body in relation to a person who holds an office or exercises an employment in that or in another public body. ( b ) Where this subsection applies the expense shall be treated for the purposes of this Chapter as if it had been incurred by the public body in which the office is held or the employment is exercised and as if that public body was a body corporate. (5) For the purposes of this section ‘public body’ means— ( a ) the Civil Service of the Government and the Civil Service of the State, ( b ) the Garda Síochána, or ( c ) the Permanent Defence Force.”, and ( j ) in section 122(1)( a ), in the definition of “the specified rate”, by substituting— (i) “4 per cent” for “5 per cent” in each place, and (ii) “13.5 per cent” for “12.5 per cent”. Ex gratia payments: miscellaneous amendments. 14 .— (1) The Principal Act is amended— ( a ) in section 201 by substituting the following for subsection (2): “(2) ( a ) Income tax shall not be charged by virtue of section 123 in respect of the following payments: (i) an amount not exceeding €200,000 of any payment made— (I) in connection with the termination of the holding of an office or employment by the death of the holder, or (II) on account of injury to or disability of the holder of an office or employment; (ii) any sum chargeable to tax under section 127; (iii) a benefit provided pursuant to any retirement benefits scheme where, under section 777, the employee (within the meaning of that section) was chargeable to tax in respect of sums paid, or treated as paid, with a view to the provision of the benefit; (iv) a benefit paid in pursuance of any scheme or fund described in section 778(1). ( b ) Where paragraph ( a )(i) applies to any payment, or any part of a payment— (i) the exemptions from income tax provided by virtue of any other provision of this section (other than subsection (1A)) and Schedule 3, or (ii) any deduction in computing the charge to income tax under paragraph 6 of Schedule 3, shall not apply to the excess of any such payment. ( c ) (i) Notwithstanding subparagraph (i) of paragraph ( a ) the amount of €200,000 referred to in that subparagraph shall be reduced by an amount equal to the aggregate amount of all payments, exempted from income tax by virtue of that subparagraph, which were paid before or at the same time as the making of the payment to which that subparagraph refers. (ii) Where two or more payments to which subparagraph (i) of paragraph ( a ) applies are made to or in respect of the same person in respect of the same office or employment, or in respect of different offices or employments, for the purposes of that subparagraph this subparagraph shall apply as if those payments were a single payment of the aggregate amount of all such payments, and the provisions of subparagraph (i) of paragraph ( a ) shall apply to that single payment accordingly.”, ( b ) in section 201(2A) by inserting “, or any part of a payment,” after “Where a payment”, ( c ) in section 201(2A)( d ) by inserting “, or part of the payment,” after “the payment”, ( d ) in section 201 by inserting the following after subsection (4): “(4A) Subsection (4) ceases to have effect for payments made on or after the date of the passing of this Act.”, ( e ) in Schedule 3 by inserting the following in Part 2 after paragraph 9: “9A. Paragraph 9 ceases to have effect for payments made on or after the date of the passing of this Act.”, and ( f ) in Schedule 3 by inserting the following in Part 3 after paragraph 12: “13. ( a ) Notwithstanding section 201, paragraph 10 shall cease to apply to any payment of €200,000 or more which is made on or after 1 January 2013 and which is chargeable to income tax under section 123. ( b ) Paragraphs 11 and 12 shall apply for the purposes of this paragraph.”. (2) Paragraphs (a) , (b) and (c) of subsection (1) shall apply as respects payments made on or after the date of the passing of this Act. Amendment of section 470 (relief for insurance against expenses of illness) of Principal Act. 15 .— As respects the year of assessment 2013 and subsequent years of assessment section 470 of the Principal Act is amended in subsection (1), in the definition of “relievable amount”, by inserting “and credit due (if any) under a risk equalisation scheme (within the meaning of the Health Insurance Act 1994 )” after “section 470B(4)” in each place. Amendment of section 70 (Case III: basis of assessment) of Principal Act. 16 .— Section 70 of the Principal Act is amended by inserting the following after subsection (1): “(1A) ( a ) In this subsection ‘excluded amount’ means the amount of the deficiency where— (i) the computation of income arising in respect of a possession outside the State gives rise to a deficiency, and (ii) income arising in respect of that possession would be chargeable under Case V of Schedule D if the possession was in the State. ( b ) Nothing in subsection (1) shall be construed as meaning that an excluded amount can be taken into account in computing the income or profits chargeable under Case III of Schedule D.”. Retirement benefits. 17 .— (1) Chapter 1 of Part 30 of the Principal Act is amended— ( a ) in section 770(3) by substituting “Schedules 23 and 23C” for “Schedule 23”, ( b ) in section 772 by inserting the following after subsection (3H): “(3I) A retirement benefits scheme shall not cease to be an approved scheme where the trustees of the scheme, notwithstanding anything contained in the rules of the scheme as approved, allow a member or, as the case may be, where the scheme is subject to a pension adjustment order, the spouse or former spouse or civil partner or former civil partner of the member, to avail of an option in accordance with section 782A.”, and ( c ) by inserting the following section after section 782: “Pre-retirement access to AVCs. 782A.— (1) ( a ) In this section— ‘accumulated value’, in relation to relevant AVC contributions, means— (i) where the contributions are contributions of a kind referred to in paragraph (i) of the definition of ‘relevant AVC contributions’, the amount which the administrator determines to be equal to the realisable value of the portion of the resources of the scheme that, in accordance with the rules of the scheme, represents those contributions, less the amount of so much of the expenses of the scheme as, under the rules of the scheme, are to be discharged out of that portion, and (ii) where the contributions are contributions of a kind referred to in paragraph (ii) of the definition of ‘relevant AVC contributions’, the amount which the PRSA administrator determines to be equal to the realisable value of the resources of the PRSA contract that, in accordance with the terms of the contract, represents those contributions, less the amount of the expenses of the contract as, under the terms of the contract, are to be discharged out of the realisable value; ‘administrator’, in relation to an AVC fund, means the person or persons having the management of the scheme to which the relevant AVC contributions comprising the AVC fund have been made or, as the case may be, the PRSA administrator; ‘AVC fund’ means the accumulated value of relevant AVC contributions made by a member, other than the accumulated value of relevant AVC contributions of a kind referred to in paragraph (ii) of the definition of that term where benefits have become payable to the member under the main scheme; ‘designated benefit’ and ‘pension adjustment order’ have the meanings assigned to them in section 787O(5)( a ); ‘member’, in relation to a scheme, means any person who, having been admitted to membership under the rules of the scheme, remains entitled to any benefit under the scheme; ‘PRSA administrator’ has the meaning assigned to it in section 787A(1); ‘relevant AVC contributions’ means— (i) additional voluntary contributions within the meaning of section 770(1), and (ii) additional voluntary PRSA contributions within the meaning of section 787A(1), made for the purpose of providing relevant benefits on retirement and include such additional voluntary contributions representing a transfer of additional voluntary contributions from a retirement benefits scheme or a PRSA, as the case may be, but shall not include such additional voluntary contributions made under a purchase of notional service scheme; ‘relevant individual’ means a member of a scheme who has an AVC fund and, as the case may be, where the AVC fund is subject to a pension adjustment order includes the spouse or former spouse or civil partner or former civil partner of the member; ‘scheme’ means an approved scheme or a statutory scheme; ‘specified period’ means the period of 3 years from the date of passing of the Finance Act 2013 . ( b ) For the purposes of this section, where an AVC fund is subject to a pension adjustment order, each relevant individual shall be deemed to have a separate AVC fund the value of which shall be determined as if the designated benefit pursuant to the order was payable at the time of the transfer provided for in subsection (3). ( c ) For the purposes of this section, relevant AVC contributions shall not include— (i) any sum paid by means of contribution, howsoever described, at any time by an employer (within the meaning of section 787A) to a scheme or to a PRSA, (ii) contributions (which are not voluntary contributions) made at any time by a member to a scheme at the rate or rates specified for member’s contributions in the rules of the scheme or otherwise, or (iii) contributions (which are not additional voluntary contributions of a kind referred to in subparagraph (ii) of the definition of ‘relevant AVC contributions’) made at any time by a member to a PRSA. (2) Notwithstanding section 32 of the Pensions Act 1990 or the provisions of a pension adjustment order made in relation to a relevant individual, a relevant individual may during the specified period irrevocably instruct in writing the administrator of his or her AVC fund to exercise, on one occasion only, the option (in this section referred to as the ‘pre-retirement access option’) provided for in subsection (3). (3) The pre-retirement access option is the transfer by the administrator to the relevant individual, before retirement, of an amount not exceeding 30 per cent of the value, at the time of the transfer, of the relevant individual’s AVC fund. (4) ( a ) The amount transferred by an administrator to a relevant individual in accordance with subsection (3) shall, notwithstanding section 780, be treated as a payment to the individual of emoluments to which Schedule E applies and accordingly the provisions of Chapter 4 of Part 42 shall apply to any such payment, and ( b ) the administrator shall deduct tax from the amount transferred at the higher rate for the year of assessment in which the payment is made unless the administrator has received from the Revenue Commissioners a certificate of tax credits and standard rate cut-off point or a tax deduction card for that year in respect of the individual. (5) Where an administrator receives an irrevocable instruction referred to in subsection (2) the administrator shall keep and retain for a period of 6 years each such instruction and on being so required by notice given to the administrator in writing by an officer of the Revenue Commissioners make available within the time specified in the notice such instructions as may be required by the notice. (6) Where a pre-retirement access option is exercised in respect of a relevant individual in accordance with subsection (3) the amount transferred shall not be a benefit crystallisation event (within the meaning of section 787O(1)) for the purposes of Chapter 2C and Schedule 23B.”. (2) Chapter 2 of Part 30 of the Principal Act is amended— ( a ) in subsection (2) of section 784C by substituting the following for all of the words from and including “shall be the lesser of” to the end of that subsection: “shall be the lesser of— (i) the amount referred to as A in that formula, and (ii) €63,500.”, ( b ) in section 784C(3) by substituting the following for paragraph ( b ): “( b ) €63,500.”, and ( c ) in section 784C(4) by substituting the following for paragraph ( a ): “( a ) Where, at the date of exercise of an option under section 784(2A), the individual by whom the option is exercised is in receipt of specified income amounting to €12,700 per annum, the amount referred to as B in the formula in that section shall be nil.”. (3) Chapter 2A of Part 30 of the Principal Act is amended in section 787K by inserting the following after subsection (2B): “(2C) A PRSA product (within the meaning of Part X of the Pensions Act 1990 ) approved under section 94 of that Act, shall not cease to be an approved product where, notwithstanding anything contained in the terms of the product as approved, the PRSA administrator makes an amount available from the PRSA assets to the PRSA contributor or, as the case may be, where the PRSA is subject to a pension adjustment order, to the spouse or former spouse or civil partner or former civil partner of the PRSA contributor (in this subsection referred to as the ‘relevant individual’) on foot of the relevant individual availing of an option in accordance with section 782A.”. (4) ( a ) Schedule 23 to the Principal Act is amended in Part 1 by inserting the following after paragraph 2B: “Information to be provided in respect of pre-retirement access to additional voluntary contributions 2C. (1) An administrator (within the meaning of section 782A(1)( a )) shall, within 15 working days of the end of each quarter commencing with the quarter ending on 30 June 2013, deliver to the Revenue Commissioners, by such electronic means as are required or approved by the Commissioners, the following information in respect of amounts transferred under section 782A during the quarter— ( a ) the number of transfers made, ( b ) the aggregate value of the transfers made, and ( c ) the tax deducted from the aggregate value of the transfers made. (2) In this paragraph ‘quarter’ means a period of 3 consecutive months ending on 31 March, 30 June, 30 September or 31 December.”. ( b ) The Principal Act is amended by inserting the following Schedule after Schedule 23B: “ Part 30, Chapter 1 SCHEDULE 23C Pre-retirement access to PRSA AVCs Information to be provided in respect of pre-retirement access to additional voluntary PRSA contributions 1. An administrator (within the meaning of section 782A(1)( a )), who is a PRSA administrator (within the meaning of that provision), shall, within 15 working days of the end of each quarter commencing with the quarter ending on 30 June 2013, deliver to the Revenue Commissioners, by such electronic means as are required or approved by the Commissioners, the following information in respect of amounts transferred under section 782A during the quarter— ( a ) the number of transfers made, ( b ) the aggregate value of the transfers made, and ( c ) the tax deducted from the aggregate value of the transfers made. 2. In this Schedule ‘quarter’ means a period of 3 consecutive months ending on 31 March, 30 June, 30 September or 31 December.”. (5) Paragraph ( f ) of subsection (2) of section 19 of the Finance Act 2011 shall be deemed to have had effect on and from 6 February 2011 as if paragraph ( c ) of section 19(7) of that Act had never applied to the said paragraph ( f ). (6) ( a ) In this subsection— “approved minimum retirement fund” has the meaning assigned to it by section 784C(1) of the Principal Act; “non ring-fenced amount”, in relation to a vested PRSA, means the amount or value of assets in the vested PRSA that the PRSA administrator can make available to, or pay to, the PRSA contributor or to any other person; “Personal Retirement Savings Account”, “contributor” and “PRSA administrator” have the meanings assigned to them by section 787A(1) of the Principal Act; “relevant option” means an option exercised in accordance with section 772(3A)( a ), 784(2A) or 787H(1) of the Principal Act; “ring-fenced amount”, in relation to a vested PRSA, means an amount retained within the vested PRSA by the PRSA administrator equivalent to the amount which the PRSA administrator would, if an option had been exercised in accordance with section 787H(1) of the Principal Act, have had to transfer to an approved minimum retirement fund in accordance with section 784C and by virtue of section 787H(3) of that Act; “specified income” has the meaning assigned to it by section 784C(4)( b ) of the Principal Act; “vested PRSA” means a Personal Retirement Savings Account in respect of which assets have first been made available to, or paid to, the contributor by the PRSA administrator on or after 6 February 2011, and the term “vesting of a PRSA” shall be construed accordingly. ( b ) Where on or after 6 February 2011 and before the date of passing of this Act one or more than one relevant option is exercised by an individual, or an individual has one or more than one vested PRSA, and in the exercise of the relevant option or options or in the vesting of the PRSA or PRSAs, an amount or value of assets is transferred to an approved minimum retirement fund (by way of one or more than one transfer) or, as the case may be, is a ring-fenced amount (in this paragraph referred to as the “relevant amount”, and where this term is used in the context of a ring-fenced amount it shall, where there is more than one ring-fenced amount, be construed as meaning the aggregate of the ring-fenced amounts), then where the individual— (i) has specified income of not less than €12,700 on or after the date of passing of this Act— (I) the approved minimum retirement fund shall thereupon become an approved retirement fund (in respect of which section 784A and subsections (1) and (5) of section 784B of the Principal Act shall accordingly apply), or (II) the ring-fenced amount or, as the case may be, each ring-fenced amount shall thereupon become a non ring-fenced amount, or (ii) has specified income of less than €12,700 on the date of passing of this Act in circumstances where the relevant amount is greater than €63,500— (I) the approved minimum retirement fund shall, to the extent of the excess of the relevant amount over €63,500, thereupon become an approved retirement fund (in respect of which section 784A and subsections (1) and (5) of section 784B of the Principal Act shall accordingly apply), or (II) the ring-fenced amount or, as the case may be, so much of each ring-fenced amount determined in accordance with paragraph (c) shall, to the extent of the excess of the relevant amount over €63,500 thereupon become a non ring-fenced amount. ( c ) For the purposes of giving effect to paragraph (b)(ii)(II) , where more than one vested PRSA has a ring-fenced amount the individual shall determine how much of each ring-fenced amount shall become a non ring-fenced amount. (7) ( a ) Subsections (1) , (3) , (4) , (5) and (6) have effect from the date of passing of this Act. ( b ) Subsection (2) shall apply as respects the exercise of an option in accordance with section 772(3A)( a ), 784(2A) or 787H(1) of the Principal Act on or after the date of passing of this Act. Provisions relating to loss relief. 18 .— (1) The Principal Act is amended— ( a ) in Chapter 6 of Part 4 by inserting the following after section 87: “Release of debts in certain trades. 87B.— (1) In this section— ‘specified debt’ means any debt incurred by an individual in respect of borrowed money employed in the purchase or development of land held as trading stock (within the meaning of section 89) of a specified trade; ‘specified trade’ means a trade, or a business which is deemed to be a trade by virtue of section 640(2)( a ), consisting of or including dealing in or developing land to which Chapter 1 of Part 22 applies; ‘tax year’ means a year of assessment. (2) If at any time the whole or part of a specified debt of an individual who is engaged in a specified trade is released, the amount released shall be treated as a receipt of the specified trade arising in the tax year in which the release is effected. (3) If, in any case referred to in subsection (2), the specified trade has been permanently discontinued or is treated for tax purposes as if it had been so discontinued, in a tax year before the release was effected, section 91 shall apply as if the amount released were a sum received after the discontinuance. (4) For the purposes of this section, the release of the whole or part of a specified debt is treated as having been effected on the earliest of the following dates— ( a ) the date when the lender has confirmed that release to the borrower, ( b ) the date on which the lender and the borrower have first come to an agreement (whether formal or informal) that the debt or part of the debt is no longer required to be repaid, ( c ) in a case in which the agreement under which the money was borrowed provides for any release or non-collection of the debt or part of the debt, the date when the conditions necessary for that release or non-collection are first satisfied, or ( d ) in a case in which the release is a result of— (i) a discharge from bankruptcy, or (ii) a discharge from debt under the provisions of the Personal Insolvency Act 2012 , the date of that discharge.”, ( b ) in section 91(4) by inserting “or 87B” after “by virtue of section 87”, ( c ) in section 381(1) by inserting “and section 381A” after “Subject to this section”, and ( d ) by inserting the following after section 381: “Restriction of loss relief in certain cases. 381A.— (1) In this section— ‘aggregate income for the tax year’ has the same meaning as in section 531AL; ‘specified loss’, in relation to a tax year and a specified trade, means any loss sustained in the course of the specified trade, which is referable to a deduction allowed in computing the profits or gains of the trade, in respect of either or both— ( a ) interest on borrowed money employed in the purchase or development of land which is held as trading stock (within the meaning of section 89) of the trade, and ( b ) any reduction in the value of land held as trading stock (within the meaning of section 89) of the trade; ‘specified trade’ means a trade, or a business which is deemed to be a trade by virtue of section 640(2)( a ), consisting of or including dealing in or developing land to which Chapter 1 of Part 22 applies; ‘specified trader’, in relation to a specified trade and a tax year, means an individual in respect of whom that part of the total of the individual’s aggregate income for the tax year and the 2 immediately preceding tax years deriving from the specified trade is less than 50 per cent of the total for those 3 tax years of the individual’s aggregate income for the tax year; ‘tax year’ means a year of assessment. (2) Subject to subsection (3), a claim to repayment of income tax under section 381 may not be made as respects a specified loss sustained by a specified trader in a tax year where the specified loss— ( a ) is in respect of interest, unless the interest has been paid, or ( b ) is in respect of a reduction in the value of land, unless the loss has been realised by way of a disposal of the land, prior to the claim being made. (3) Section 381 shall not apply as respects any specified loss where the disposal of the land to which subsection (2)( b ) refers is to a connected person (within the meaning of section 10). (4) For the purposes of determining the amount of any interest which has been paid, and which is referable to a specified loss sustained in any particular tax year, interest is treated as having been paid in respect of an earlier tax year in preference to a later tax year. (5) For the purposes of determining the amount of a specified loss sustained in any particular tax year which is referable to a deduction allowed in respect of either interest or a reduction in the value of land— ( a ) the deduction allowed in respect of interest is treated as being deducted after all other deductions, and ( b ) the deduction allowed in respect of a reduction in the value of land is treated as being deducted immediately prior to the deduction allowed in respect of interest.”. (2) Subsection (1) comes into operation— ( a ) as respects paragraphs (a) and (b) , in respect of any specified debt (within the meaning of section 87B (inserted by paragraph (a )) of the Principal Act) released on or after 13 February 2013, and ( b ) as respects paragraphs (c) and (d) , in respect of interest becoming payable or a reduction in the value of land held as trading stock (within the meaning of section 89 of the Principal Act) occurring on or after 13 February 2013. PART 1 Income Levy, Universal Social Charge, Income Tax, Corporation Tax and Capital Gains Tax – Chapter 4 Income Levy, Income Tax, Corporation Tax and Capital Gains Tax Donations to approved bodies. 19 .— (1) The Principal Act is amended in section 848A— ( a ) in subsection (1)( a ) by deleting the definition of “appropriate certificate”, ( b ) in subsection (1)( a ) by inserting the following definitions: “ ‘annual certificate’, in relation to a relevant donation to an approved body by a donor who is an individual, means a certificate which is in such form as the Revenue Commissioners may prescribe and which contains— (i) statements to the effect that— (I) the donation satisfies the requirements of subsection (3), (II) the donor has paid or will pay to the Revenue Commissioners income tax of an amount equal to income tax at the specified rate for the relevant year of assessment on the grossed up amount of the donation, but not being— (A) income tax which the donor is entitled to charge against any other person or to deduct, retain or satisfy out of any payment which the donor is liable to make to any other person, or (B) appropriate tax within the meaning of Chapter 4 of Part 8, and (III) the donor acknowledges that the provisions of subsection (9B) apply to a repayment of tax to an approved body, and (ii) the personal public service number of the donor, and includes a certificate which has been renewed by the donor with the approved body in a manner approved by the Revenue Commissioners for the subsequent year of assessment; ‘enduring certificate’, in relation to a relevant donation to an approved body by a donor who is an individual, means a certificate which is in such form as the Revenue Commissioners may prescribe and which contains— (i) the year of assessment from which the certificate applies, (ii) statements to the effect that the donor is aware that— (I) a donation made during the specified period (in this definition referred to as the ‘first specified period’) has to satisfy the requirements of subsection (3), (II) income tax of an amount equal to income tax at the specified rate for the relevant year of assessment on the grossed up amount of a donation has been or will be paid to the Revenue Commissioners, but not being— (A) income tax which the donor is entitled to charge against any other person or to deduct, retain or satisfy out of any payment which the donor is liable to make to any other person, or (B) appropriate tax within the meaning of Chapter 4 of Part 8, and (III) the donor acknowledges that the provisions of subsection (9B) apply to a repayment of tax to an approved body, and (iii) the personal public service number of the donor, and includes a certificate which has been renewed by the donor with the approved body in a manner approved by the Revenue Commissioners for the specified period immediately succeeding the first specified period; ‘personal public service number’ has the same meaning as in section 262 of the Social Welfare Consolidation Act 2005 ; ‘specified period’, in relation to an enduring certificate, means the year of assessment from which the certificate applies and each of the 4 immediately succeeding years of assessment; ‘specified rate’ means 31 per cent;”, ( c ) in subsection (1) by substituting the following for paragraph ( b ): “( b ) For the purposes of this section and in relation to a donation by a donor who is an individual, references to the grossed up amount are to the amount which after deducting income tax at the specified rate for the relevant year of assessment leaves the amount of the donation.”, ( d ) in subsection (1) by inserting the following after paragraph ( b ): “( ba ) An annual certificate renewed by a donor in the manner referred to in the definition of ‘annual certificate’ shall be deemed to contain the statements referred to in paragraph (i) of that definition. ( bb ) An enduring certificate renewed by a donor in the manner referred to in the definition of ‘enduring certificate’ shall be deemed to contain the statements referred to in paragraph (ii) of that definition.”, ( e ) in subsection (2) by substituting “the provisions of subsection (4) or (9),” for “the provisions of subsection (4), subsection (7) or subsection (9),”, ( f ) in subsection (3)( e ) by substituting the following for subparagraphs (ii) and (iii): “(ii) has given an annual certificate or, as the case may be, an enduring certificate in relation to the donation to the approved body, and (iii) has, for the relevant year of assessment, paid the tax referred to in such annual certificate or enduring certificate, as the case may be, and is not entitled to claim a repayment of that tax or any part of that tax.”, ( g ) in subsection (3A) by substituting the following for paragraph ( a ): “( a ) Notwithstanding any other provision of this section, where— (i) the aggregate of the amounts of all donations made by an individual in any year of assessment to an approved body or approved bodies is in excess of €1,000,000, or (ii) the aggregate of the amounts of all donations made by an individual in any year of assessment to an approved body or approved bodies with which the individual is associated is in excess of 10 per cent of the total income of the individual for that year of assessment, the amount of the excess in each case shall not be treated as a relevant donation for the purposes of this section.”, ( h ) in subsection (6)— (i) by deleting “or in a year of assessment”, and (ii) by substituting “amount” for “amounts”, ( i ) by deleting subsections (7) and (8), ( j ) by substituting the following for subsection (9): “(9) Where a donation is a relevant donation made to an approved body by a donor who is an individual, the Tax Acts shall apply in relation to the approved body as if— ( a ) the grossed up amount of the donation were an annual payment which was the income of the approved body received by it under deduction of tax in the amount and at the specified rate of tax for the relevant year of assessment, and ( b ) the provisions of those Acts which apply in relation to a claim to repayment of tax applied in relation to any claim to repayment of such tax by an approved body; but, if the total amount of the tax referred to in paragraph (i) of the definition of ‘annual certificate’ or paragraph (ii) of the definition of ‘enduring certificate’, as the case may be, is not paid, the amount of any repayment which would otherwise be made to an approved body in accordance with this section shall not exceed the amount of tax actually paid by the donor.”, ( k ) by inserting the following after subsection (9A): “(9B) Where a repayment of tax has been made to an approved body in accordance with this section, the amount of tax so repaid shall not be regarded as tax paid by the donor for the purposes of a repayment of tax to that donor under section 865 or any other provision of the Income Tax Acts.”, ( l ) in subsection (10) by substituting “annual certificate or enduring certificate, as the case may be,” for “appropriate certificate”, and ( m ) in subsection (11) by substituting “annual certificate or enduring certificate, as the case may be,” for “appropriate certificate”. (2) Schedule 25B to the Principal Act is amended by deleting “Reference Number 52” and the matter set out opposite that reference number. (3) This section shall apply as respects a relevant donation (within the meaning of section 848A of the Principal Act) made on or after 1 January 2013. Farm taxation. 20 .— (1) Chapter 2 of Part 23 of the Principal Act is amended— ( a ) in section 666(4)— (i) in paragraph ( a ) by substituting “31 December 2015” for “31 December 2012”, and (ii) in paragraph ( b ) by substituting “year 2015” for “year 2012”, ( b ) in section 667B by substituting the following for subsection (1): “(1) In this section ‘qualifying farmer’ means an individual— ( a ) (i) who in the year of assessment 2007 or any subsequent year of assessment first qualifies for grant aid under the scheme of Installation Aid for Young Farmers operated by the Department of Agriculture, Food and the Marine under Council Regulation (EEC) No. 797/85 of 12 March 1985 1 or that Regulation as may be revised from time to time, or (ii) who— (I) first becomes chargeable to income tax under Case I of Schedule D in respect of profits or gains from the trade of farming for the year of assessment 2007 or any subsequent year of assessment, (II) has not attained the age of 35 years at the commencement of the year of assessment referred to in clause (I), and (III) at any time in the year of assessment so referred to satisfies the conditions set out in subsection (2) or (3), and ( b ) who, where the requirements of subparagraph (i) or (ii) of paragraph ( a ) are first satisfied in the year of assessment 2012 or any subsequent year of assessment (in this paragraph referred to as the ‘first year of assessment’), submits a business plan to— (i) Teagasc, for the purpose of this section, or (ii) Teagasc or the Minister for Agriculture, Food and the Marine, for any other purpose, on or before 31 October in the year following the first year of assessment.”, ( c ) in section 667B(5)( b ) by substituting “31 December 2015” for “31 December 2012”, ( d ) in section 667B by inserting the following after subsection (5): “(5A) ( a ) In this subsection— ‘qualifying period’, in relation to a qualifying farmer, means the year of assessment in which an individual becomes a qualifying farmer and each of the 3 immediately succeeding years of assessment; ‘relevant tax’ means any income tax or universal social charge; ‘relief’ means an amount equivalent to an amount determined by the formula— A — B where— A is the amount of relevant tax that would be payable by a qualifying farmer for a year of assessment falling within the qualifying period computed as if subsection (5) had not been enacted, and B is the amount of relevant tax payable by the qualifying farmer for that year of assessment. ( b ) Where a qualifying period commences in the year of assessment 2012 or any subsequent year of assessment, the qualifying farmer shall be entitled to relief in respect of deductions under section 666(1), by virtue of subsection (5), of an amount not exceeding— (i) in the aggregate in the qualifying period, €70,000, and (ii) in any one year of assessment falling within the qualifying period, €40,000.”, ( e ) in section 667B(6) by substituting “in paragraph ( a )(ii)(III) of the definition of ‘qualifying farmer’ in subsection (1)” for “in paragraph ( b )(iii) of the definition of ‘qualifying farmer’ in subsection (1)”, ( f ) in section 667B by inserting the following after subsection (6): “(7) This section shall apply to a qualifying farmer who comes within the definition of ‘small and medium-sized enterprises’ in Article 2 of Commission Regulation (EC) No. 1857/2006 of 15 December 2006 2 , and in respect of whom subsection (5) applies for the year of assessment 2012 or any subsequent year of assessment.”, ( g ) in section 667C(1) by substituting the following for the definition of ‘registered farm partnership’: “ ‘registered farm p