IE-2018-act-30 — Finance Act 2018

PART 1 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 Universal Social Charge, Income Tax, Corporation Tax and Capital Gains Tax – 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 substituting “€19,874” for “€19,372”, and (b) by substituting the following Table for the Table to that section: “TABLE PART 1 Rate of universal social charge (2) 0.5 per cent 2 per cent 4.5 per cent 8 per cent PART 2 Rate of universal social charge (2) 0.5 per cent 2 per cent ”. (2) Subsection (1) applies for the year of assessment 2019 and each subsequent year of assessment. PART 1 Universal Social Charge, Income Tax, Corporation Tax and Capital Gains Tax – Chapter 3 Income Tax Amendment of section 15 of Principal Act (rate of charge) 3. As respects the year of assessment 2019 and subsequent years of assessment section 15 of the Principal Act is amended— (a) in subsection (3)(i), by substituting “€26,300” for “€25,550”, and (b) by substituting the following Table for the Table to that section: “TABLE PART 1 Description of rate (3) the standard rate the higher rate PART 2 Description of rate (3) the standard rate the higher rate PART 3 Description of rate (3) the standard rate the higher rate ”. Amendment of section 472AB of Principal Act (earned income tax credit) 4. (1) Section 472AB of the Principal Act is amended in subsection (2)— (a) in paragraph (a), by substituting “€1,350” for “€1,150”, and (b) in paragraph (b), by substituting “€1,350” for “€1,150”. (2) Subsection (1) applies for the year of assessment 2019 and each subsequent year of assessment. Amendment of section 466A of Principal Act (home carer tax credit) 5. (1) Section 466A of the Principal Act is amended in subsection (2) by substituting “€1,500” for “€1,200”. (2) Subsection (1) applies for the year of assessment 2019 and each subsequent year of assessment. Amendment of section 191 of Principal Act (taxation treatment of Hepatitis C compensation payments) 6. (1) Section 191 of the Principal Act is amended— (a) in subsection (1), by inserting the following definitions: “ ‘comparable overseas scheme’ means a scheme, located in a Member State of the European Economic Area (other than the State), whose purpose is to compensate individuals who have been diagnosed positive for Hepatitis C or HIV resulting from the use of blood products; ‘eligible person’ means— (a) a person referred to in subsection (1) of section 4 of the Act, in respect of matters referred to in that section, (b) a person referred to in any Regulations made under section 9 of the Act, in respect of matters referred to in those Regulations, or (c) a person eligible to receive a payment from a comparable overseas scheme;”, (b) by substituting the following for subsection (2): “(2) This section shall apply to any payment in respect of compensation— (a) by the Tribunal in accordance with the Act, (b) following the institution by or on behalf of a person of a civil action for damages in respect of personal injury, or (c) by a comparable overseas scheme, to an eligible person.”, and (c) in subsection (3)(b), by inserting “or a comparable overseas scheme” after “the Tribunal”. (2) Subsection (1) shall come into operation on 1 January 2019. Exemption of certain childcare support payments 7. Chapter 1 of Part 7 of the Principal Act is amended by inserting the following section after section 194A: “Exemption of certain childcare support payments 194AA. (1) In this section— ‘cohabitant’ has the same meaning as it has in Part 44B; ‘eligible child’ means a child in respect of whom a qualifying payment or a relevant payment is made; ‘Minister’ means the Minister for Children and Youth Affairs; ‘qualifying payment’ means a payment made under section 15 of the Childcare Support Act 2018 ; ‘relevant payment’ means a payment made by or on behalf of the Minister under any of the following childcare support programmes or schemes: (a) Community Childcare Subvention; (b) Community Childcare Subvention Plus; (c) Community Childcare Subvention Resettlement; (d) Community Childcare Subvention Resettlement (Transitional); (e) Community Childcare Subvention Universal; (f) Training and Employment Childcare. (2) A qualifying payment shall be exempt from income tax and shall not be reckoned in computing income of the parent or guardian, or the cohabitant of the parent or guardian, of an eligible child for the purposes of the Income Tax Acts. (3) A relevant payment made on or after 1 January 2019 shall be exempt from income tax and shall not be reckoned in computing income of the parent or guardian, or the cohabitant of the parent or guardian, of the eligible child for the purposes of the Income Tax Acts. (4) A relevant payment made before 1 January 2019 shall be treated as if it was exempt from income tax in the year of assessment to which it relates and shall not be reckoned in computing income of the parent or guardian, or the cohabitant of the parent or guardian, of the eligible child for the purposes of the Income Tax Acts.”. Certain benefits in kind: members of the Permanent Defence Force 8. (1) Chapter 3 of Part 5 of the Principal Act is amended by inserting the following section after section 120A: “Certain benefits in kind: members of Permanent Defence Force 120B. (1) Notwithstanding section 118, section 112 shall not apply in relation to any expense incurred by or on behalf of the Minister for Defence— (a) in or in connection with the provision of living accommodation to a member of the Permanent Defence Force on land occupied by, used by, or under the control (whether temporarily or otherwise) of the Permanent Defence Force, or (b) in or in connection with the provision of health care to a member of the Permanent Defence Force. (2) In this section— ‘health care’ means prevention, diagnosis, alleviation or treatment of an ailment, injury, infirmity, defect or disability, and includes care received by a woman in respect of a pregnancy, but does not include— (a) routine ophthalmic treatment, or (b) cosmetic surgery or similar procedures, unless the surgery or procedure is necessary to ameliorate a physical deformity arising from, or directly related to, a congenital abnormality, a personal injury or a disfiguring disease; ‘routine ophthalmic treatment’ means the provision and repairing of spectacles or contact lenses.”. (2) Subsection (1) shall apply for the year of assessment 2018 and each subsequent year of assessment. Benefit in kind: relief relating to electric vehicles 9. Part 5 of the Principal Act is amended— (a) in section 121(2)(b)— (i) in subparagraph (ii), by substituting “running the car,” for “running the car, and”, (ii) in subparagraph (iii)(II), by substituting “31 December 2018,” for “31 December 2018.”, and (iii) by inserting the following subparagraphs after subparagraph (iii): “(iv) notwithstanding subparagraph (ii), where a car made available during the period 1 January 2019 to 31 December 2021 is an electric vehicle and the original market value of the car does not exceed €50,000, no amount shall be treated as emoluments of the employment, (v) notwithstanding subparagraph (ii), where— (I) a car made available to an employee during the period 1 January 2019 to 31 December 2020 is an electric vehicle, (II) the original market value of the car exceeds €50,000, and (III) the car was first made available to the employee during the period 10 October 2017 to 9 October 2018, no amount shall be treated as emoluments of the employment, and (vi) where a car made available during the period 1 January 2019 to 31 December 2021 is an electric vehicle and the original market value of the car exceeds €50,000, the cash equivalent of the benefit of the car ascertained under subsection (3)(a) or (4)(a), as the case may be, shall be computed on the original market value of the car reduced by €50,000.”. and (b) in section 121A(2)(b)— (i) in subparagraph (ii), by substituting “running the van,” for “running the van, and”, (ii) in subparagraph (iii)(II), by substituting “31 December 2018,” for “31 December 2018.”, and (iii) by inserting the following subparagraphs after subparagraph (iii): “(iv) notwithstanding subparagraph (ii), where a van made available during the period 1 January 2019 to 31 December 2021 is an electric vehicle and the original market value of the van does not exceed €50,000, no amount shall be treated as emoluments of the employment, (v) notwithstanding subparagraph (ii), where— (I) a van made available to an employee during the period 1 January 2019 to 31 December 2020 is an electric vehicle, (II) the original market value of the van exceeds €50,000, and (III) the van was first made available to the employee during the period 10 October 2017 to 9 October 2018, no amount shall be treated as emoluments of the employment, and (vi) where a van made available during the period 1 January 2019 to 31 December 2021 is an electric vehicle and the original market value of the van exceeds €50,000, the cash equivalent of the benefit of the van ascertained under subsection (3) shall be computed on the original market value of the van reduced by €50,000.”. Amendment of section 985A of Principal Act (application of section 985 to certain perquisites, etc.) 10. Section 985A of the Principal Act is amended in subsection (1)(a)(iii) by substituting “section 112A or 112AA” for “section 112A”. Amendment of section 128F of Principal Act (key employee engagement programme) 11. (1) Section 128F of the Principal Act is amended— (a) in subsection (1), in the definition of “qualifying share option”, by substituting the following paragraph for paragraph (d): “(d) the total market value of all shares, in respect of which qualifying share options have been granted by the qualifying company to an employee or director, does not exceed— (i) €100,000 in any one year of assessment, (ii) €300,000 in all years of assessment, or (iii) the amount of annual emoluments of the qualifying individual in the year of assessment in which the qualifying share option is granted,”, and (b) in subsection (8), by substituting “The Revenue Commissioners may publish the following information in relation to all qualifying companies:” for all of the words from and including “A qualifying company” down to and including “all qualifying companies:”. (2) Subsection (1)(a) shall come into operation on such day as the Minister for Finance may appoint by order. Retirement benefits 12. (1) The Principal Act is amended by inserting the following section after section 790C: “Relief for additional superannuation contribution under Public Service Pay and Pensions Act 2017 790CA. Any additional superannuation contribution payable under the Public Service Pay and Pensions Act 2017 by a public servant (within the meaning of that Act) shall, in assessing income tax under Schedule E, be allowed to be deducted as an expense incurred in the year in which the contribution is paid.”. (2) Subsection (1) applies for the year of assessment 2019 and each subsequent year of assessment. Amendment of section 126 of Principal Act (tax treatment of certain benefits payable under Social Welfare Acts) 13. Section 126 of the Principal Act is amended— (a) by substituting the following for subsection (1): “(1) In this section— ‘the Acts’ means the Social Welfare Acts; ‘the Act of 2005’ means the Social Welfare Consolidation Act 2005 .”, (b) by inserting the following after subsection (6): “(6A) A payment which is— (a) described in column (1) of the Table to this section, (b) paid on the basis specified in column (2) of that Table, and (c) made by the Minister for Employment Affairs and Social Protection to an individual on or after 1 January 2019, shall be exempt from income tax and shall not be reckoned in computing income for the purposes of the Income Tax Acts. (6B) A payment which— (a) is described in column (1) of the Table to this section, (b) is paid on the basis specified in column (2) of that Table, and (c) was made by the Minister for Employment Affairs and Social Protection to an individual before 1 January 2019, shall be treated as if it was exempt from income tax in the year of assessment to which it relates and shall not be reckoned in computing income for the purposes of the Income Tax Acts.”, (c) by deleting subsection (7), and (d) by inserting the following Table to the section: “TABLE Basis on which payment is made (2) Section 189 of the Act of 2005 A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Back to education allowance’ A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Back to work enterprise allowance’ A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Back to school clothing and footwear allowance’ Section 225 of the Act of 2005 Section 78 of the Act of 2005 Section 84 of the Act of 2005 Section 83 of the Act of 2005 A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Direct provision allowance’ Section 210 of the Act of 2005 Section 75(8) of the Act of 2005 Section 186F of the Act of 2005 Section 201 of the Act of 2005 Section 214 of the Act of 2005 A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Fuel allowance’ Section 130 of the Act of 2005 Section 168 of the Act of 2005 A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Household benefit package’ A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Humanitarian assistance payment’ Section 141 of the Act of 2005 Section 148A of the Act of 2005 Section 86 of the Act of 2005 A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Part-time job incentive scheme’ Section 23 of the Housing (Private Rented Dwellings) Act 1982 Section 198 of the Act of 2005 A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Telephone support allowance’ A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Training support grant’ Section 202 of the Act of 2005 Section 137 of the Act of 2005 Section 228 of the Act of 2005 A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Youth employment support scheme’ ”. Relief arising in special circumstances 14. (1) The Principal Act is amended by inserting the following after section 480A: “Relief arising in special circumstances 480B . (1) Subject to subsection (12), this section applies where emoluments— (a) which are chargeable to income tax under subsection (3) of section 112, and (b) from which income tax has been deducted in accordance with the provisions of Chapter 4 of Part 42 and any regulations made thereunder, are paid on 31 December in a tax year or, if that year is a leap year, on 30 or 31 December in that year (referred to in this section as the ‘relevant date’) to an individual who is paid weekly or fortnightly. (2) Subject to subsections (4) and (5), a reduction, deduction or tax credit provided for under a provision specified in subsection (3) which is applicable to the individual concerned shall be increased by— (a) one fifty-second of the amount of the reduction, deduction or tax credit, as the case may be, where the individual is paid weekly and is so paid on the relevant date, or (b) one twenty-sixth of the amount of the reduction, deduction or tax credit, as the case may be, where the individual is paid fortnightly and is so paid on the relevant date. (3) The provisions referred to in subsection (2) are sections 461, 461A, 462B, 463, 464, 465, 466, 466A, 468, 470(2), 472, 472AB, 472B and 472BA. (4) Where the emoluments paid to the individual concerned on the relevant date are less than the amount calculated as follows— A + B where— A is the amount by which the reductions and deductions applicable to the individual concerned are increased in accordance with paragraph (a) or (b) of subsection (2), as the case may be, and B is the amount by which the tax credits applicable to the individual concerned are increased in accordance with paragraph (a) or (b) of subsection (2), as the case may be, divided by the standard rate of tax for the tax year, the amount of the increase effected by subsection (2) shall be an amount equal to the amount of the emoluments paid to the individual concerned on the relevant date. (5) Where the individual concerned is paid weekly and fortnightly on a relevant date in a tax year, the amount of the increase effected by subsection (2) shall be the greater of the increase resulting from— (a) the application of subsections (2) and (4) to the weekly payment only, and (b) the application of subsections (2) and (4) to the fortnightly payment only. (6) Subject to subsections (8) and (9), the part of taxable income specified in the first row of column (1) of Parts 1, 2 and 3 of the Table to section 15 shall be increased by— (a) one fifty-second of the amount specified, where the individual concerned is paid weekly and is so paid on the relevant date, or (b) one twenty-sixth of the amount specified, where the individual concerned is paid fortnightly and is so paid on the relevant date. (7) Subject to subsections (8) and (9), where— (a) subsection (3) of section 15 applies, and (b) this section applies both in respect of— (i) emoluments paid to the individual concerned which are charged to tax for a year of assessment in accordance with section 1017 or 1031C, and (ii) emoluments paid to the spouse or civil partner of the individual referred to in subparagraph (i), the amount specified in subparagraph (i) of section 15(3) shall be increased by— (I) one fifty-second of the amount specified, where the spouse or civil partner of the individual referred to in subparagraph (i) is paid weekly and is so paid on the relevant date, or (II) one twenty-sixth of the amount specified, where the spouse or civil partner of the individual referred to in subparagraph (i) is paid fortnightly and is so paid on the relevant date. (8) Where the emoluments paid to the individual concerned on the relevant date are less than the amount calculated as follows— A + B where— A is the amount by which the part of taxable income specified in the first row of column (1) of Part 1, 2 or 3, as the case may be, of the Table to section 15 is increased in accordance with subsection (6), and B is the amount, if any, by which the amount specified in subparagraph (i) of section 15(3) is increased in accordance with subsection (7), the aggregate amount of the increase to the part of taxable income specified in the first row of column (1) of Part 1, 2 or 3, as the case may be, of the Table to section 15 effected by the application of subsection (6) and, to the extent that it is applicable, subsection (7), shall be an amount equal to the amount of the emoluments paid to the individual concerned on the relevant date. (9) Where the individual concerned or their spouse or civil partner is, or both the individual and their spouse or civil partner are, paid weekly and fortnightly on a relevant date in a tax year, the amount of the increase effected by the application of subsections (6), (7) and (8) shall be the greatest of the amounts which result from the application of those subsections to each of the possible permutations of only one of the two payments to the individual or their spouse or civil partner, as the case may be, being taken into account for the purpose of calculating the increase effected by the application of those subsections. (10) Subject to subsection (11), where section 188 applies, the specified amount (within the meaning of that section) shall be increased by— (a) one fifty-second of the specified amount, where the individual concerned is paid weekly and is so paid on the relevant date, or (b) one twenty-sixth of the specified amount, where the individual concerned is paid fortnightly and is so paid on the relevant date, but the amount of any such increase shall not exceed the amount of the emoluments paid to the individual on the relevant date. (11) Where the individual concerned is paid weekly and fortnightly on a relevant date in a tax year, the amount of the increase effected by subsection (10) shall be the greater of the increase resulting from— (a) the application of that subsection to the weekly payment only, and (b) the application of that subsection to the fortnightly payment only. (12) This section shall not apply where— (a) the normal day on which emoluments are paid to the individual concerned during a tax year changes either during that year or the preceding year, or (b) a payment of emoluments occurs on a relevant date and that date is not the normal day on which emoluments are paid to the individual concerned. (13) A reference in subsection (12) to the normal day is a reference to the day during the weekly or fortnightly cycle, as the case may be, on which emoluments are paid to the individual concerned.”. (2) Subsection (1) applies for the year of assessment 2018 and each subsequent year of assessment. Amendment of section 825C of Principal Act (special assignee relief programme) 15. Section 825C of the Principal Act is amended— (a) in subsection (2A)(e), by substituting “within 90 days” for “within 30 days”, and (b) in subsection (2B)(b)(i), by substituting for “but in respect of the tax years 2012, 2013 and 2014 where this amount exceeds €500,000, “A” shall be €500,000, and” the following: “but— (A) in respect of the tax years 2012, 2013 and 2014 where this amount exceeds €500,000, ‘A’ shall be €500,000, (B) in respect of the tax years 2019 and 2020, in the case of a relevant employee who first arrives in the State on or after 1 January 2019 for the purposes set out in subsection (2A)(b), where this amount exceeds €1,000,000, ‘A’ shall be €1,000,000, and (C) in respect of the tax year 2020, in the case of a relevant employee who first arrives in the State on or before 31 December 2018 for the purposes set out in subsection (2A)(b), where this amount exceeds €1,000,000, ‘A’ shall be €1,000,000, and”. PART 1 Universal Social Charge, Income Tax, Corporation Tax and Capital Gains Tax – Chapter 4 Income Tax, Corporation Tax and Capital Gains Tax Taxation of payments under Magdalen Restorative Justice Ex-Gratia Scheme 16. (1) Section 205A of the Principal Act is amended— (a) in subsection (1) by substituting the following for the definition of “relevant payment”: “ ‘relevant payment’ means— (a) a payment or payments made, directly or indirectly, to a relevant individual by or on behalf of the Minister for Justice and Equality pursuant to the Magdalen Restorative Justice Ex-Gratia Scheme (that is to say the Scheme administered, under that title, by the Minister for Justice and Equality in furtherance of decisions of the Government of 5 November 2013 and 28 May 2018, respectively), (b) an amount equal to the State Pension (Contributory) as set out in column 2 of Part 1 of Schedule 2 to the Social Welfare Consolidation Act 2005 paid to a relevant individual, (c) an amount equal to the State Pension (Non-Contributory) as set out in Part 3 of the Social Welfare Consolidation Act 2005 paid to a relevant individual, and (d) any payment, other than a payment referred to in paragraphs (a) to (c), made, directly or indirectly, by or on behalf of the Minister for Employment Affairs and Social Protection to a relevant individual, by virtue of that individual being a relevant individual.” , and (b) by substituting the following for subsections (2) and (3): “(2) Income that— (a) consists of a relevant payment, or (b) arises to a person to or in respect of whom a relevant payment is made, from the investment in whole or in part of such a payment or of the income derived from such a payment, being income consisting of dividends or other income which but for this section would be chargeable to tax under Schedule C or under Case III, IV (by virtue of section 59, 745 or 747E) or V of Schedule D or under Schedule F, shall be exempt from income tax and shall not be reckoned in computing total income for the purposes of the Income Tax Acts. (3) Gains that accrue to a person, to or in respect of whom a relevant payment is made, from the disposal of— (a) assets acquired with such a payment, (b) assets acquired with income exempted from income tax under subsection (2), or (c) assets acquired directly or indirectly with the proceeds from the disposal of assets referred to in paragraph (a) or (b), shall not be chargeable gains for the purposes of the Capital Gains Tax Acts. (4) For the purposes of computing whether by virtue of this section a gain is, in whole or in part, a chargeable gain, or whether income is, in whole or in part, exempt from income tax, all such apportionments shall be made as are, in the circumstances, just and reasonable.”. (2) Part 8 of the Principal Act is amended— (a) in section 256(1) by inserting the following after the definition of “PRSA provider”— (i)“ ‘relevant amount’ means any amount of income referred to in section 205A(2) and any amount of gains referred to in section 205A(3);”, and (ii) by inserting the following after subsection (1B) of section 256— “(1C) A deposit shall be a deposit to which this subsection refers as respects any year of assessment if— (a) the deposit is solely in respect of a relevant amount, (b) a declaration of the kind mentioned in section 263D has been made to the Revenue Commissioners, and (c) a notification of the kind mentioned in section 263E has been issued by the Revenue Commissioners to the relevant deposit taker that the deposit is not a relevant deposit.”, (b) in section 261B by substituting “subsection (1A), (1B), or (1C) of section 256” for “subsection (1A) or (1B) of section 256” in each place where it occurs, (c) by inserting the following after section 263C: “Declarations to the Revenue Commissioners in relation to relevant amounts 263D . The declaration referred to in section 256(1C) is a declaration in writing to the Revenue Commissioners which— (a) is made by the person (in this section referred to as the ‘declarer’) to whom any interest on the deposit in respect of which the declaration is made is payable by the relevant deposit taker and is signed by the declarer, (b) is made in such form as may be prescribed, authorised or approved by the Revenue Commissioners, (c) declares that at the time the declaration is made that the deposit is solely in respect of a relevant amount, (d) contains as respects the person— (i) the name and address of the person, (ii) the person’s PPS Number (within the meaning of section 891B), (iii) the name and address of the deposit taker (including the name and address of the branch of the deposit taker, if any) who holds the deposit in respect of which the declaration is made, and (iv) the account number or membership number, as the case may be, of the deposit in respect of which the declaration is made, and (e) contains such other information as the Revenue Commissioners may reasonably require for the purposes of this Chapter. Notification by the Revenue Commissioners relating to deposits of relevant amounts 263E. (1) The notification referred to in section 256(1C) is a notification— (a) in writing by the Revenue Commissioners to a relevant deposit taker confirming that the account identified in the notification is to be treated as not being a relevant deposit unless and until the notification is cancelled in accordance with subsection (2), (b) which contains as respects the person beneficially entitled to the interest in relation to the deposit mentioned in paragraph (a)— (i) the name and address of the person, (ii) the person’s PPS Number (within the meaning of section 891B), and (iii) the account number of the deposit, and (c) which contains such information as the Revenue Commissioners may reasonably decide for the purposes of this Chapter. (2) The Revenue Commissioners may at any time cancel the notification and give notice in writing to that effect to the relevant deposit taker and the person mentioned in subsection (1)(b). Where at any time the Revenue Commissioners have so notified the deposit taker, the deposit shall not be a deposit to which this section applies from that time.”, and (d) in section 267(3) by substituting “section 189(2), section 189A(4), section 192(2) or section 205A(2)” for “section 189(2), section 189A(4) or section 192(2)”. (3) Chapter 5 of Part 26 of the Principal Act is amended in section 730GA by substituting “section 189, 189A, 192 or 205A” for “section 189, 189A or 192”. (4) Chapter 1A of Part 27 of the Principal Act is amended in section 739G(2)(j) by substituting “section 189, 189A, 192 or 205A” for “section 189, 189A or 192”. (5) (a) Subsection (1) shall be deemed to have come into operation on 1 August 2013. (b) As respects income or gains to which subsection (1)(b) applies for the years of assessment 2013 and 2014, section 865(4) of the Principal Act shall apply as if the reference in that subsection to the making of a claim within 4 years after the end of the chargeable period to which the claim relates were a reference to the making of a claim within 4 years after the end of the chargeable period ending on 31 December 2015. Amendment of section 285A of, and Schedule 4A to, Principal Act (acceleration of wear and tear allowances for certain energy-efficient equipment) 17. (1) Section 285A of the Principal Act is amended— (a) by substituting the following for subsection (1): “(1) In this section— ‘energy-efficiency criteria’ has the meaning given to it by subsection (4); ‘energy-efficient equipment’ means equipment complying with the energy-efficiency criteria and named on the specified list; ‘relevant period’ means the period commencing on the date of the making of the Taxes Consolidation Act 1997 (Accelerated Capital Allowances for Energy Efficient Equipment) Order 2008 ( S.I. No. 399 of 2008 ) and ending on 31 December 2020; ‘SEAI’ means Sustainable Energy Ireland - The Sustainable Energy Authority of Ireland; ‘specified list’ has the meaning given to it by subsection (2A); ‘Table’ means the Table in Schedule 4A.”, (b) in subsection (2), by inserting “which at the time it is so provided is unused and not second-hand” after “that person”, (c) by inserting the following subsection after subsection (2): “(2A) (a) Subject to subsection (3), SEAI shall establish and maintain a list of energy-efficient equipment (in this section referred to as the ‘specified list’). (b) SEAI shall publish the specified list on the website of SEAI and by such other means as SEAI considers appropriate. (c) SEAI shall amend the specified list, as necessary, to keep it current by adding thereto or deleting therefrom, as the case may be, and when any such amendment is made to the specified list, SEAI shall publish the amended specified list in accordance with paragraph (b).”, (d) by substituting the following for subsection (4): “(4) For the purposes of this section, the Minister for Communications, Climate Action and Environment, after consultation with and with the approval of the Minister for Finance, shall make an order stating the criteria (in this section referred to as the ‘energy-efficiency criteria’) relating to— (a) the minimum levels of efficiency, performance, speed, storage or efficacy to be met, and (b) the specific certifications and standards to be complied with or tested, or both, as the case may be, for each class of technology specified in column (1) of the Table.”, (e) in subsection (7), by substituting the following for paragraph (b): “(b) Where— (i) expenditure on equipment is incurred on or after 31 January 2008 but before the date of the making of the Taxes Consolidation Act 1997 (Accelerated Capital Allowances for Energy Efficient Equipment) Order 2008 ( S.I. No. 399 of 2008 ), and (ii) that equipment would have qualified as energy-efficient equipment under this section had the order referred to in subparagraph (i) been made at the time the expenditure was incurred, then this section shall apply as if the order referred to in subparagraph (i) had been made at that time.”, and (f) in subsection (9), by substituting “Minister for Communications, Climate Action and Environment” for “Minister for Communications, Energy and Natural Resources”. (2) Schedule 4A to the Principal Act is amended in column (2) of the Table in that Schedule by deleting “and that meet specified efficiency criteria” in each place. Acceleration of wear and tear allowances for gas vehicles and refuelling equipment 18. Chapter 2 of Part 9 of the Principal Act is amended by inserting the following after section 285B: “Acceleration of wear and tear allowances for gas vehicles and refuelling equipment 285C. (1) In this section— ‘biogas’ means gas produced from biomass; ‘biomass’ means the biodegradable fraction of— (a) products, waste and residues from agriculture, forestry and related industries including, in respect of agriculture, vegetal and animal substances, and (b) industrial and municipal waste; ‘CN code’ means a Community subdivision to the combined nomenclature of the European Communities referred to in Article 1 of Council Regulation (EEC) No. 2658/87 of 23 July 1987 1 as amended by Commission Regulation (EC) No. 2031/2001 of 6 August 2001 2 ; ‘compressed natural gas’ means petroleum gases and other gaseous hydrocarbons in gaseous state falling within CN code 2711 21 00; ‘gas refuelling station’ means a premises, or part of a premises, at which gaseous fuel is supplied to a gas vehicle; ‘gas vehicle’ means a mechanically propelled road vehicle in the engine of which gaseous fuel is used for combustion; ‘gaseous fuel’ means compressed natural gas, liquefied natural gas or biogas; ‘liquefied natural gas’ means petroleum gases and other gaseous hydrocarbons in liquefied state falling within CN code 2711 11 00; ‘qualifying expenditure’ means capital expenditure incurred during the relevant period on the provision of— (a) qualifying refuelling equipment, or (b) qualifying vehicles; ‘qualifying refuelling equipment’ means refuelling equipment, which is unused and not second-hand, installed at a gas refuelling station; ‘qualifying vehicle’ means a gas vehicle, which is— (a) constructed or adapted for— (i) the conveyance of goods or burden of any description, (ii) the haulage by road of other vehicles, or (iii) the carriage of passengers, (b) unused and not second-hand, and (c) either— (i) not commonly used as a private vehicle and unsuitable to be so used, or (ii) provided or hired, wholly or mainly, for the purpose of hire to or the carriage of members of the public in the ordinary course of trade; ‘refuelling equipment’ means— (a) a storage tank for gaseous fuel, (b) a compressor, pump, control or meter used for the purposes of refuelling gas vehicles, or (c) equipment for supplying gaseous fuel to the fuel tank of a gas vehicle; ‘relevant period’ means the period commencing on 1 January 2019 and ending on 31 December 2021. (2) Where a person has incurred qualifying expenditure for the purposes of a trade carried on by that person, and for any chargeable period a wear and tear allowance is to be made under section 284 in respect of qualifying refuelling equipment or a qualifying vehicle to which that qualifying expenditure relates, subsection (2) of that section shall apply as if the reference in paragraph (ad) of that subsection to 12. 5 per cent were a reference to 100 per cent. (3) Subsection (2) shall not apply where an allowance on account of the wear and tear of the qualifying refuelling equipment or qualifying vehicle concerned is made in accordance with— (a) section 284(2)(a)(ii), as applied by section 286(2), or (b) section 284(2)(ad), as applied by section 285A(2).”. Amendment of Parts 9 and 36 of, and Schedule 25B to, Principal Act (capital allowances for equipment and buildings used for the purposes of providing childcare services or a fitness centre to employees) 19. (1) Chapter 2 of Part 9 of the Principal Act is amended by inserting the following after section 285A— “Acceleration of wear and tear allowances for childcare and fitness centre equipment 285B. (1) In this section— ‘qualifying expenditure’ means capital expenditure incurred on qualifying machinery or plant by a person carrying on a trade; ‘qualifying machinery or plant’ means machinery or plant in use in a qualifying premises; ‘qualifying premises’ has the same meaning as it has in section 843B. (2) Where a person has incurred qualifying expenditure, and for any chargeable period a wear and tear allowance is to be made under section 284, subsection (2) of that section shall apply as if the reference in paragraph (ad) of that subsection to 12. 5 per cent were a reference to 100 per cent.”. (2) (a) Part 36 of the Principal Act is amended by inserting the following after section 843A— “Capital allowances for buildings used for the purposes of providing childcare services or a fitness centre to employees 843B. (1) In this section— ‘childcare services’ means any form of childminding services or supervised activities to care for children, whether or not provided on a regular basis, in respect of which it can be shown that the applicable requirements of the Child Care Act 1991 (Early Years Services) Regulations 2016 ( S.I. No. 221 of 2016 ) have been complied with; ‘construction’ has the same meaning as it has in section 270; ‘fitness centre’ means a gymnasium used exclusively in providing a range of facilities designed to improve and maintain the physical fitness and health of participants; ‘qualifying expenditure’ means expenditure incurred by an employer, carrying on a trade or a profession, on the construction of a qualifying premises; ‘qualifying premises’ means a building or structure which is in use for the purposes of providing childcare services or the facilities of a fitness centre to employees of the employer, referred to in the immediately preceding definition, which is not accessible nor available for use by the general public and, where that employer is a company, where the employees are employees of that company or of a company connected with that company. (2) The provisions of the Tax Acts relating to the making of allowances or charges in respect of capital expenditure incurred on the construction of an industrial building or structure shall, notwithstanding anything to the contrary in those provisions, apply in relation to qualifying expenditure on a qualifying premises— (a) as if the qualifying premises were, at all times at which it is a qualifying premises, a building or structure in respect of which an allowance is to be made for the purposes of income tax or corporation tax, as the case may be, under Chapter 1 of Part 9 by reason of its use for the purpose specified in section 268(1)(a), and (b) where any activity carried on in the qualifying premises is not a trade, as if (for the purposes only of the making of allowances and charges by virtue of paragraph (a)), it were a trade. (3) In relation to qualifying expenditure incurred on a qualifying premises, section 272 shall apply as if— (a) in subsection (3)(a)(ii) of that section the reference to 4 per cent were a reference to 15 per cent, and (b) in subsection (4)(a) of that section the following were substituted for subparagraph (ii): ‘(ii) where capital expenditure on the construction of the building or structure is incurred, 7 years beginning with the time when the building or structure was first used subsequent to the incurring of that expenditure.’. (4) Notwithstanding section 274(1), no balancing allowance or balancing charge shall be made in relation to a qualifying premises by reason of any event, referred to in that section, which occurs more than 7 years after the qualifying premises was first used subsequent to the incurring of the qualifying expenditure on the construction of the qualifying premises. (5) Where relief is given by virtue of this section in relation to qualifying expenditure incurred on the construction of a building or structure, relief shall not be given in respect of that expenditure under any other provision of the Tax Acts. (6) A person shall not be entitled to allowances under this section while that person is regarded as an undertaking in difficulty for the purposes of the Commission Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty 3 .”. (b) Schedule 25B to the Principal Act is amended by inserting the following after the matter set out opposite reference number 50: “ An amount equal to— (a) the aggregate amount of allowances (including balancing allowances) made to the individual under Chapter 1 of Part 9 as that Chapter is applied by section 843B, including any such allowances or part of any allowances made to the individual for a previous tax year and carried forward from that previous tax year in accordance with Part 9, or (b) where full effect has not been given in respect of that aggregate for that tax year, the part of that aggregate to which full effect has been given for that tax year in accordance with section 278 and section 304 or 305, as the case may be, or any of those sections as applied or modified by any other provision of the Tax Acts. ”. (3) Section 12 of the Finance Act 2017 is repealed. Amendment of section 438A of Principal Act (extension of section 438 to loans by companies controlled by close companies) 20. (1) Section 438A of the Principal Act is amended by— (a) substituting the following for subsection (1): “(1) In this section— ‘loan’ includes advance; ‘relevant arrangement’ means any arrangement, the main purpose, or one of the main purposes, of which is to avoid or reduce a charge to tax under section 438.”, and (b) inserting the following after subsection (3): “(3A) Where a participator, or an associate of a participator, in a close company is party to any relevant arrangement, as a result of which a loan is made to a participator, or an associate of a participator, which, apart from this section, does not give rise to a charge under subsection (1) of section 438, that section shall apply as if the loan had been made by the close company to such participator, or such associate of a participator, as the case may be.”. (2) Subsection (1) shall apply to a relevant arrangement that is entered into on or after 18 October 2018. Amendment of Part 23 of Principal Act (farming and market gardening) 21. Part 23 of the Principal Act is amended— (a) in section 657— (i) in subsection (1), by deleting the definitions of “an individual to whom subsection (1) applies”, “company” and “director”, (ii) by deleting subsections (2) and (3), (iii) in subsection (4)(a), by deleting “other than an individual to whom subsection (1) applies,”, and (iv) in subsection (6), by substituting the following paragraph for paragraph (b): “(b) This subsection shall not apply for any year of assessment in which the individual is not chargeable to tax on profits or gains from farming.”, (b) in section 666(4)— (i) in paragraph (a), by substituting “31 December 2021” for “31 December 2018”, and (ii) in paragraph (b), by substituting “year 2021” for “year 2018”, (c) in section 667B— (i) in subsection (5)(b), by substituting “31 December 2021” for “31 December 2018”, (ii) in subsection (5A)(b), by substituting “Subject to subsection (5B), where” for “Where”, (iii) by inserting the following subsection after subsection (5A): “(5B) The aggregate amount of relief, within the meaning of subsection (5A), granted to a qualifying farmer under this section, section 667D and section 81AA of the Stamp Duties Consolidation Act 1999 shall not exceed the limit of €70,000 as provided for by Article 18 of Commission Regulation (EU) No. 702/2014 of 25 June 2014 4 or that Regulation as may be revised from time to time.”, and (iv) in subsection (7), by substituting “microenterprise or small enterprise in Article 2 of Annex I to Commission Regulation (EU) No. 702/2014 of 25 June 2014 or that Regulation as may be revised from time to time” for “ ‘small and medium-sized enterprises’ in Article 2 of Commission Regulation (EC) No. 1857/2006 of 15 December 2006”, (d) in section 667C— (i) in subsection (2)(b), by substituting “2021” for “2018” in each place, (ii) in subsection (4), by substituting “31 December 2021” for “31 December 2018”, and (iii) in subsection (4A)(a)(vi), by substituting “subsection (1A)(b)(v)(II)(A)” for “subsection (1A)(c)”, and (e) in section 667D— (i) in subsection (2)(e), by substituting “agreement under subsection (2)(d)” for “partnership agreement”, and (ii) by inserting the following subsection after subsection (7): “(8) (a) In this subsection— ‘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 partner in a succession farm partnership for a year of assessment in which a succession tax credit is claimed by the partner, computed as if this section did not apply, and B is the amount of relevant tax payable by the partner for that year of assessment. (b) The aggregate amount of relief granted to a person under this section, section 667B and section 81AA of the Stamp Duties Consolidation Act 1999 shall not exceed the limit of €70,000 as provided for by Article 18 of Commission Regulation (EU) No. 702/2014 of 25 June 2014 or that Regulation as may be revised from time to time.”. Amendment of section 486C of Principal Act (relief from tax for certain start-up companies) 22. Section 486C of the Principal Act is amended in subsection (2)(a) by substituting “31 December 2021” for “31 December 2018”. Amendment of section 97 of Principal Act (computational rules and allowable deductions) 23. (1) Section 97 of the Principal Act is amended by substituting the following for subsection (2J): “(2J) (a) Notwithstanding subsection (2), but subject to the other provisions of this section (including paragraphs (b) and (c) of this subsection), the deduction authorised by subsection (2)(e) shall not exceed— (i) 75 per cent of the deduction that would, but for this subsection, be authorised by subsection (2)(e) in respect of interest accrued on or after 7 April 2009 up to and including 31 December 2016, (ii) 80 per cent of the deduction that would, but for this subsection, be authorised by subsection (2)(e) in respect of interest accrued on or after 1 January 2017 up to and including 31 December 2017, and (iii) 85 per cent of the deduction that would, but for this subsection, be authorised by subsection (2)(e) in respect of interest accrued on or after 1 January 2018 up to and including 31 December 2018, on borrowed money employed in the purchase, improvement or repair of a premises which, at the time the interest accrues, is a residential premises. (b) For the purposes of paragraph (a)— (i) borrowed money employed on the construction of a residential premises on land in which the person chargeable has an estate or interest shall, together with any borrowed money which that person employed in the acquisition of such land, be deemed to be borrowed money employed in the purchase of a residential premises, (ii) where a premises consists in part of residential premises and in part of premises which are not residential premises, paragraph (a) shall apply to the interest accrued on the part of the borrowed money employed in the purchase, improvement or repair of the premises that is attributable, on a just and reasonable basis, to residential premises, and (iii) the interest on borrowed money referred to in paragraph (a) shall be treated as accruing from day to day. (c) This subsection shall not apply in respect of interest accrued on or after 1 January 2019.”. (2) Subsection (1) shall come into operation on 1 January 2019. Amendment of section 216A of Principal Act (rent-a-room relief) 24. (1) Section 216A of the Principal Act is amended by inserting the following subsection after subsection (3B): “(3C) (a) In this subsection, ‘relevant person’ means a person who is resident or ordinarily resident in the State and is incapacitated by reason of mental or physical infirmity. (b) Subject to paragraph (c), subsection (2) shall not apply for a year of assessment to that part of the relevant sums arising to an individual in respect of the use by a person for the purposes of residential accommodation of a room or rooms in a qualifying residence where the person uses the room or rooms for a period which does not exceed 28 consecutive days. (c) Paragraph (b) shall not apply where the person using the room or rooms concerned— (i) is a relevant person, (ii) uses the room or rooms for a minimum of 4 consecutive days per week for not less than 4 consecutive weeks, or (iii) is receiving full-time or part-time instruction at a university, college, school or other educational establishment in the State. (d) Where— (i) the period for which a room or rooms in a qualifying residence is or are used by a person for the purposes of residential accommodation does not exceed 28 consecutive days, and (ii) the individual to whom relevant sums have arisen in respect of that use claims that subparagraph (i), (ii) or (iii) of paragraph (c) applies, the Revenue Commissioners may require the individual to provide proof supporting such claim.”. (2) Subsection (1) applies for the year of assessment 2019 and each subsequent year of assessment. Relief for investment in corporate trades 25. (1) The Principal Act is amended by substituting the following for Part 16: “PART 16 Relief for Investment in Corporate Trades Chapter 1 Interpretation (Part 16) Interpretation 488 . (1) In this Part— ‘associate’ has the same meaning in relation to a person as it has by virtue of subsection (3) of section 433 in relation to a participator; ‘company’ means a body corporate; ‘compliance period’ means the pre-investment period and the relevant period; ‘control’ shall be construed in accordance with subsections (2) to (6) of section 432; ‘director’ shall be construed in accordance with section 433(4); ‘emoluments’ has the same meaning as in section 983; ‘General Block Exemption Regulation’ means Commission Regulation (EU) No. 651/2014 of 17 June 2014 5 ; ‘innovation’ means process innovation or organisational innovation; ‘market value’ shall be construed in accordance with section 548; ‘organisational innovation’ means the implementation of a new organisational method in an undertaking’s business practices, workplace organisation or external relations, other than— (a) changes that are based on organisational methods already in use in the undertaking, (b) changes in management strategy, mergers and acquisitions, or (c) any of the following— (i) ceasing to use a process, (ii) simple capital replacement or extension, (iii) changes resulting purely from changes in factor prices, customisation, localisation, regular, seasonal and other cyclical changes, or (iv) trading of new or significantly improved products; ‘PPS Number’ has the meaning assigned to it in section 891B(1); ‘pre-investment period’, in relation to relief in respect of any eligible shares issued by a company, means the period beginning 2 years before the shares were issued, or if later, beginning on the date the first company in the RICT group was incorporated and ending immediately before the subscription for eligible shares; ‘process innovation’ means the implementation of a new or significantly improved production or delivery method (including significant changes in techniques, equipment or software), other than— (a) minor changes or improvements, (b) increases in production or service capabilities through the addition of manufacturing or logistical systems which are very similar to those already in use, or (c) any of the following— (i) ceasing to use a process, (ii) simple capital replacement or extension, (iii) changes resulting purely from changes in factor prices, customisation, localisation, regular, seasonal and other cyclical changes, or (iv) trading of new or significantly improved products; ‘qualifying new venture’ means a venture consisting of relevant trading activities which are set up and commenced by a new company other than— (a) activities which were previously carried on by another person and to which the company has succeeded, or (b) a venture, the activities of which were previously carried on as part of another person’s trade or profession; ‘relevant period’, in relation to relief in respect of any eligible shares issued by a company, means the period beginning on the date on which the shares were issued and ending 4 years after that date; ‘relief’ means a deduction from total income granted under this Part, and includes relief granted on a share issue at any time after 6 April 1984 (and the foregoing reference to this Part includes this Part as it stood enacted at any time before the commencement of section 23 of the Finance Act 2018 or, as the case may be, the commencement of section 33 (1)(a) of the Finance Act 2011 ) and subsection (2) supplements this definition; ‘R&D+I’ means research and development activities (within the meaning of section 766) and innovation. (2) In this Part a reference to relief under this Part is a reference to, as the case may be— (a) relief as provided under this Part as it operates by virtue of section 502 or, where the context admits, as it operates by virtue of section 503 or, as appropriate, section 507, or (b) relief as provided under all of those sections. (3) References in this Part to a disposal of shares include references to a disposal of an interest or right in or over the shares, and an individual shall be treated for the purposes of this Part as disposing of any shares which the individual is treated by virtue of section 587 as exchanging for other shares. (4) References in this Part to the reduction of any amount include references to its reduction to nil. (5) A word or expression that is used in this Part and is also used in the General Block Exemption Regulation shall have the meaning in this Part that it has in that Regulation. Chapter 2 Qualifying companies Interpretation (Chapter 2) 489. In this Part— ‘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; ‘financial activities’ means the provision of, and all matters relating to the provision of, financing or refinancing facilities by any means which involves, or has an effect equivalent to, the extension of credit; ‘financial assets’ includes shares, gilts, bonds, foreign currencies and all kinds of futures, options and currency and interest rate swaps, and similar instruments, including commodity futures and commodity options, invoices and all types of receivables, obligations evidencing debt (including loans and deposits), leases and loan and lease portfolios, bills of exchange, acceptance credits and all other documents of title relating to the movement of goods, commercial paper, promissory notes and all other kinds of negotiable or transferable instruments; ‘financing or refinancing facilities’ includes— (a) loans, mortgages, leasing, lease rental and hire-purchase, and all similar arrangements, (b) equity or other investment, (c) the factoring of debts and the discounting of bills, invoices and promissory notes, and all similar instruments, and (d) the underwriting of debt instruments and all other kinds of financial securities; ‘linked businesses’ means two or more businesses that are regarded as linked enterprises, within the meaning of Annex 1 of the General Block Exemption Regulation; ‘partner businesses’ means two or more businesses that are regarded as partner enterprises, within the meaning of Annex 1 of the General Block Exemption Regulation; ‘qualifying subsidiary’, in relation to a company, means a subsidiary of that company of a kind which a company may have by virtue of section 492; ‘relevant trading activities’ means activities carried on in the course of a trade the profits or gains of which are charged to tax under Case I of Schedule D, excluding activities related to— (a) adventures or concerns in the nature of trade, (b) dealing in commodities or futures or in shares, securities or other financial assets, (c) financing activities, (d) the provision of professional services (within the meaning of section 128F(1)), (e) dealing in or developing land, (f) the occupation of woodlands within the meaning of section 232, (g) operating or managing hotels, guest houses, self catering accommodation or comparable establishments or managing property used as an hotel, guest house, self catering accommodation or comparable establishment, except where such activity is a tourist traffic undertaking (within the meaning of section 491), (h) operations carried on in the coal industry or in the steel and shipbuilding sectors, and (i) the production of a film (within the meaning of section 481); ‘RICT group’ means the company concerned (that is to say the company referred to in the provision concerned of this Part), its partner businesses and linked businesses, and references to a RICT group shall be taken to refer to any RICT group of which the company is part, and— (a) for the purposes of section 496(5), includes any company that was, at any time, part of a RICT group with the qualifying company or its qualifying subsidiaries but has since been disposed of, (b) for the purposes of sections 500, 508P and 508R, includes any company which is at any point during the compliance period a subsidiary of the qualifying company, whether it becomes a subsidiary before, during or after— (i) the year of assessment in respect of which the individual concerned claims relief and whether or not it is such a subsidiary while he or she is a partner, director or employee, or has an interest in the capital of the company, mentioned in section 500(2)(b), or (ii) the individual concerned receives any value from it; ‘SME’ means a RICT group that would fall within the SME category of Annex 1 of the General Block Exemption Regulation; ‘unlisted’, in respect of a company, means a company none of whose shares, stock or debentures (within the meaning of section 2 of the Companies Act 2014 ) are listed in the official list of a stock exchange, or quoted on an unlisted securities market of a stock exchange other than— (a) on the market known as the Enterprise Securities Market of the Irish Stock Exchange, or (b) on any similar or corresponding market of the stock exchange— (i) in a Member State, or (ii) in an EEA state other than the State. Qualifying companies 490. (1) In this Part, a company shall be a qualifying company if it is incorporated in the State or in another EEA State and, in either case, complies with this section and section 491. (2) At the time the eligible shares are issued— (a) the RICT group shall— (i) be an SME, and (ii) not be an undertaking in difficulty, (b) each company in the RICT group shall— (i) be unlisted, and no arrangements shall be in e