Finance Act 2018

Finance Act 2018 Skip to content Disclaimer Feedback Helpdesk Gaeilge Léim go dtí an t-ábhar Séanadh Aiseolas Deasc chabhrach English Gaeilge English Produced by the Office of the Attorney General Táirgthe ag Oifig an Ard-Aighne Home Legislation Acts of the Oireachtas Statutory Instruments Pre-1922 Legislation Constitution External Resources Bills (Houses of the Oireachtas) Iris Oifigiúil / Official Gazette Revised Acts (LRC) Classified List of Legislation (LRC) Translations (acts.ie) Translations (Houses of the Oireachtas) Government Publications for Sale EU Law (EUR-Lex) FAQ Disclaimer Feedback Helpdesk Search Baile Reachtaíocht Achtanna an Oireachtais Ionstraimí Reachtúla Reachtaíocht Réamh-1922 Bunreacht Acmhainní Seachtracha Billí (Tithe an Oireachtais) Iris Oifigiúil Achtanna Athbhreithnithe (CAD) (An Coimisiún um Athchóiriú an Dlí) Liosta Rangaithe Reachtaíochta Aistriúcháin (achtanna.ie) Aistriúcháin (Tithe an Oireachtais) Foilseacháin Rialtais ar Díol Dlí AE (EUR-Lex) CCanna (Ceisteanna Coitianta) Séanadh Aiseolas Deasc chabhrach Cuardach TitleTeideal Year(s) or rangeBliain nó blianta nó raon TypeCineál All Legislation Acts Statutory Instruments Advanced SearchCuardach Casta HomeBaile ActsAchtanna 2018 Finance Act 2018 Finance Act 2018 Permanent Page URL View by SectionAmharc de réir Ailt View Full ActAmharc ar an Acht Iomlán Bill History Stair Bille Commencement, Amendments, SIs made under the Act Tosach Feidhme, Leasuithe, IRí arna ndéanamh faoin Acht Open PDFOscail PDF Print Full ActPriontáil an tAcht Iomlán Number 30 of 2018 FINANCE ACT 2018 CONTENTS

PART 1

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

Chapter 1

Interpretation

Section 1

Chapter 2

Universal Social Charge

Section 2

Chapter 3

Income Tax

Section 3

Section 4

Section 5

Section 6

Section 7

Section 8

Section 9

Section 10

Section 11

Section 12

Section 13

Section 14

Section 15

Chapter 4

Income Tax, Corporation Tax and Capital Gains Tax

Section 16

Section 17

Section 18

Section 19

Section 20

Section 21

Section 22

Section 23

Section 24

Section 25

Chapter 5

Corporation Tax

Section 26

Section 27

Section 28

Chapter 6

Capital Gains Tax

Section 29

Section 30

Section 31

Section 32

PART 2

Excise

Section 33

Section 34

Section 35

Section 36

Section 37

Section 38

Section 39

Section 40

Section 41

PART 3

Value-Added Tax

Section 42

Section 43

Section 44

Section 45

PART 4

Stamp Duties

Section 46

Section 47

Section 48

Section 49

PART 5

Capital Acquisitions Tax

Section 50

Section 51

Section 52

Section 53

PART 6

Miscellaneous

Section 54

Section 55

Section 56

Section 57

Section 58

Section 59

Section 60

Section 61

Section 62

Section 63

Section 64

Section 65

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 .

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

Part of aggregate income Rate of universal social charge

(1)

PART 2

Part of aggregate income Rate of universal social charge

(1)

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

Part of taxable income

PART 2

Part of taxable income

PART 3

Part of taxable income

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”.

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”.

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”.

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.

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.

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:”.

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.”.

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 Description of payment

Section 189 of the Act of 2005

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 education allowance’ 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 work enterprise allowance’ Back to school clothing and footwear 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’ Carer’s support grant

Section 225 of the Act of 2005

Constant attendance allowance

Section 78 of the Act of 2005

Death benefit - funeral expenses

Section 84 of the Act of 2005

Death benefit - orphans

Section 83 of the Act of 2005

Direct provision allowance A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Direct provision allowance’ Disability allowance

Section 210 of the Act of 2005

Disablement gratuity

Section 75(8) of the Act of 2005

Domiciliary care allowance Section 186F of the Act of 2005 Exceptional needs payment

Section 201 of the Act of 2005

Farm assist

Section 214 of the Act of 2005

Fuel allowance A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Fuel allowance’ Guardian’s payment (contributory)

Section 130 of the Act of 2005

Guardian’s payment (non-contributory)

Section 168 of the Act of 2005

Household benefit package A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Household benefit package’ Humanitarian assistance payment A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Humanitarian assistance payment’ Jobseeker’s allowance

Section 141 of the Act of 2005

Jobseeker’s transitional payment Section 148A of the Act of 2005 Medical care

Section 86 of the Act of 2005

Part-time job incentive scheme A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Part-time job incentive scheme’ Rent allowance

Section 23

of the Housing (Private Rented Dwellings) Act 1982 Supplementary welfare allowance

Section 198 of the Act of 2005

Telephone support allowance A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Telephone support allowance’ Training support grant A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Training support grant’ Urgent needs payment

Section 202 of the Act of 2005

Widowed or surviving civil partner grant

Section 137 of the Act of 2005

Working family payment

Section 228 of the Act of 2005

Youth employment support scheme 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.

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”.

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.

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.

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”.

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 19871 as amended by Commission Regulation (EC) No. 2031/2001 of 6 August 20012 ; ‘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.

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.

Section 843B (capital allowances for buildings used for the purposes of providing childcare services or a fitness centre to employees) 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.”.

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 20144 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.”.

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.”.

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 20145 ; ‘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

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.

Qualifying companies (supplemental) 491. (1) (a) In this subsection ‘internationally traded financial services’ means the services specified in the Schedule to the Industrial Development (Service Industries) Order 2010 ( S.I. No. 81 of 2010 ) other than those falling within the meaning of paragraph (b) or (c) of the definition of ‘relevant trading activities’. (b) A company whose relevant trading activities includes internationally traded financial services shall not be a qualifying company unless a certificate has been provided to it by Enterprise Ireland to the effect that, in the opinion of Enterprise Ireland, the company’s activities are of a kind specified in the Schedule to the Industrial Development (Service Industries) Order 2010 ( S.I. No. 81 of 2010 ).

Qualifying subsidiaries 492. (1) In this Part, a qualifying subsidiary is one that— (a) satisfies the conditions set out in subsection (2) and, except where provided in subsection (3), they continue to be so satisfied until the end of the relevant period, and (b) is a company— (i) to which section 490(3)(a)(i) relates, or (ii) which exists solely for the purpose of carrying on any trade which consists solely of any one or more of the following relevant trading activities— (I) the purchase of goods or materials for use by the qualifying company or its subsidiaries, (II) the sale of goods or materials produced by the qualifying company or its subsidiaries, or (III) the rendering of services to or on behalf of the qualifying company or its subsidiaries.

Chapter 3

Qualifying investments Interpretation (Chapter 3) 493. In this Chapter— ‘business plan’ means a written business plan which contains details of product, sales and profitability development, establishing ex-ante financial viability and which includes both quantitative and qualitative details of the activities the investment is sought to support; ‘expansion risk finance investment’ means the issue of eligible shares to fund entering a new product on the market or entering a new geographic market; ‘follow-on risk finance investment’ means the issue of eligible shares subsequent to an initial risk finance investment or an expansion risk finance investment; ‘initial risk finance investment’ means the first issue of eligible shares other than an expansion risk finance investment.

Eligible shares 494. (1) In this Part ‘eligible shares’ means new shares forming part of a company’s share capital and which comply with this section.

Anti-avoidance: eligible shares 495. (1) In this section ‘distribution’ has the same meaning as in the Corporation Tax Acts.

Qualifying investment (company perspective) 496. (1) In this Part, an investment shall be a qualifying investment where— (a) an individual subscribes for eligible shares in a qualifying company, and (b) the company employs the amount subscribed wholly or mainly for a qualifying purpose within the relevant period, and (c) the investment complies with this section.

Limits on amounts a qualifying company can raise 497. (1) For the purpose of this section— (a) account shall not be taken of any amount subscribed for eligible shares by a person other than an individual who qualifies for relief, (b) eligible shares includes any shares issued on or after 6 April 1984 in respect of which relief was available under this Part (including 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

Qualifying investment (investor perspective) 498. (1) Subject to section 598J(1), a subscription for eligible shares by an individual in a qualifying company of less than €250 in a year of assessment shall not be a qualifying investment.

Anti-avoidance: qualifying investment (investor perspective) 499. (1)(a) For the purposes of this Part, an investment shall not be a qualifying investment in respect of an individual to whom this subsection applies where at any time in the compliance period the company or any of its qualifying subsidiaries— (i) begins to carry on a business previously carried on at any time in that period otherwise than by the company or any of its qualifying subsidiaries, or (ii) acquires the whole or greater part of the assets used for the purposes of a business previously so carried on. (b) This subsection applies to an individual where— (i) any person or group of persons to whom an interest amounting in the aggregate to more than a 50 per cent share in the business (as previously carried on) belonged at any time in the compliance period is a person or a group of persons to whom such an interest in the business carried on by the company, or any of its subsidiaries, belongs or has at any such time belonged, or (ii) any person or group of persons who controls or at any such time has controlled the company is a person or a group of persons who at any such time controlled another company which previously carried on the business, and the individual is that person or one of those persons.

Chapter 4

Employment investment incentive Qualifying investors 500. (1) In this Part, a qualifying investor is an individual who subscribes on his or her own behalf for eligible shares in a qualifying company and complies with this section.

(ii) For the purposes of this section, an individual shall be treated as having an interest in the capital of the company if he or she has at any time in the compliance period had control, within the meaning of section 11, of another company which has since that time and before the end of the relevant period become a subsidiary of the company.

Anti-avoidance: qualifying investors 501. Where an individual subscribes for shares in a company with which the individual is not connected, then he or she shall nevertheless be treated as connected with it if he or she subscribes for the shares as part of any arrangement which provides for another person to subscribe for shares in another company with which the individual or any other individual who is a party to the arrangement is connected.

The relief (Chapter 4) 502. (1) In this section— ‘basic pay rate’, in relation to a qualifying employee of a qualifying company, or a qualifying subsidiary as the case may be, means the employee’s emoluments (other than non-pecuniary emoluments) per hour from the company in respect of an employment held with the company; ‘employment relevant number’ means the total number of qualifying employees in receipt of emoluments from the qualifying company, or a qualifying subsidiary as the case may be, in the year of assessment in which, in relation to a subscription for eligible shares, a subsequent period ends; ‘employment threshold number’ means the total number of qualifying employees in receipt of emoluments from the qualifying company, or a qualifying subsidiary as the case may be, in the year of assessment preceding the year of assessment in which the subscription for eligible shares was made; ‘qualifying employee’, in relation to a qualifying company, or a qualifying subsidiary as the case may be, means an employee (within the meaning of section 983), other than a director, of that company— (a) who throughout his or her period of employment with that company is employed by that company for at least 30 hours duration per week, and (b) his or her employment is capable of lasting at least 12 months; ‘relevant amount’ means total emoluments (other than non-pecuniary emoluments) paid by a qualifying company, or a qualifying subsidiary as the case may be, to qualifying employees as referred to in the definition of ‘employment relevant number’, in the year of assessment in which, in relation to a subscription for eligible shares, a subsequent period ends; ‘threshold amount’ means the total of the emoluments (other than non- pecuniary emoluments) paid by a qualifying company, or a qualifying subsidiary as the case may be, to the qualifying employees referred to in the definition of ‘employment threshold number’, in the year of assessment preceding the year of assessment in which the subscription for eligible shares was made but where there was a general reduction in the basic pay rate of qualifying employees then the threshold amount shall be reduced accordingly; ‘subsequent period’ means the period beginning on the date on which the shares were issued and ending 3 years after that date.

The relief: start-up capital incentive 503. (1) Section 500(5) shall not apply in respect of associates of an investor if the company and the investment comply with this section.

Chapter 5

Start-up relief for entrepreneurs (SURE) Interpretation (Chapter 5) 504. In this Chapter— ‘employment period’ means, as respects a relevant employment, the period beginning on the date on which the shares are issued or, if later, the date on which the employment commences and ending 12 months after that date; ‘full-time employee’ and ‘full-time director’ in relation to a company, mean an employee or director, as the case may be, who is required to devote substantially the whole of his or her time to the service of the company; ‘relevant employment’, in relation to a specified individual, means employment throughout the employment period by the company in which the specified individual makes a relevant investment (being that individual’s first such investment in that company) and where the specified individual is a full-time employee or full-time director of the company; ‘relevant investment’, in relation to a specified individual, means the amount or the aggregate of the amounts of the qualifying investments made in a year of assessment by the specified individual for eligible shares in a qualifying company; ‘specified individual’ has the meaning assigned to it by section 505; ‘specified period’ means, as respects a specified individual, the period beginning on the date on which the shares are issued and ending either one year after that date or, where the company was not at that date carrying on relevant trading activities, one year after the date on which it subsequently began to carry on such activities.

Specified individuals 505. (1) In this Part, a specified individual is an individual who subscribes on his or her own behalf for eligible shares in a qualifying company and complies with this section.

Anti-avoidance: qualifying company (SURE) 506. (1) A company shall not be a qualifying company for the purposes of relief under this Chapter if, in the case of a company in which a relevant investment is made by a specified individual (being that individual’s first such investment in that company), any transaction in the relevant period between the company and another company (being the immediate former employer of the individual), or a company which controls or is under the control of that other company, is otherwise than by means of a transaction at arm’s length, or if— (a) (i) an individual has acquired a controlling interest in the company’s trade after 5 April 1984, and (ii) at any time in the compliance period the individual has or has had a controlling interest in another trade, and (b) the trade carried on by the company or a substantial part of that trade— (i) is concerned with the same or similar types of property or parts of property or provides the same or similar services or facilities as the other trade, or (ii) serves substantially the same or similar outlets or markets as the other trade.

The relief (Chapter 5) 507. (1) Notwithstanding section 502, a specified individual who makes a relevant investment in a qualifying company, the activities of which constitute a qualifying new venture, shall be entitled, subject to subsections (2) and (3), to relief in respect of that relevant investment, which shall be given as a deduction from his or her total income for the year of assessment in which the shares are issued.

(d) To the extent that the amount of the relief which would be due in respect of the specified individual’s first relevant investment or second relevant investment, as the case may be, has not been given in accordance with paragraphs (a) to (c) it shall, subject to section 508, be given for the year of assessment in which the eligible shares in respect of the first such investment or the second such investment, as the case may be, are in fact issued or, if appropriate, a subsequent year of assessment. (e) This subsection applies in respect of not more than 2 relevant investments made by a specified individual on or after 2 June 1995. (f) This subsection applies notwithstanding any limitation in section 865(4) or section 959V(6) on the time within which a claim for a repayment of tax is required to be made, and section 865(6) shall not prevent the Revenue Commissioners from repaying an amount of tax as a consequence of an election made under paragraph (a) or (b) where the specified individual has made a timely claim for relief in accordance with section 508G and a valid claim for a repayment of tax within the meaning of section 865(1)(b).

Chapter 6

Administrative requirements and reporting obligations Carry forward of unused relief 508. (1) Where in a year of assessment an individual— (a) makes a qualifying investment or has an amount of relief carried forward under this section, in excess of €100,000 in respect of which relief is available under section 507 or €150,000 in any other case, or (b) has insufficient total income against which to offset the deductions available under section 502 or section 507, as the case may be, then the individual may claim to have the amount which was not offset against his or her total income in that year carried forward and, in so far as may be, deducted from his or her total income in subsequent years of assessment.

Statement of qualification by qualifying company 508A. (1) A qualifying company shall issue to a qualifying investor, or managers of a designated fund as the case may be, a statement of qualification in respect of a qualifying investment.

Statement of qualification (second stage relief) by qualifying company 508B. (1) A qualifying company shall issue to a qualifying investor, or managers of a designated fund as the case may be, a statement of qualification (second stage relief) in respect of a qualifying investment that qualifies for relief under section 502(2)(b).