Finance Act 2005

Personal tax credits.

3.—(1) Where an individual is entitled under a provision of the Principal Act mentioned in column (1) of the Table to this subsection to have the income tax to be charged on the individual, other than in accordance with the provisions of section 16(2) of the Principal Act, reduced for the year of assessment 2005 or any subsequent year of assessment and the amount of the reduction would, but for this section, be an amount which is the lesser of—

(a) the amount specified in column (2) of that Table, and

(b) the amount which reduces that liability to nil,

the amount of the reduction in accordance with paragraph (a) shall be the amount of the tax credit specified in column (3) of the Table.

TABLE

Statutory Provision

Existing tax credit (full year)

Tax credit for the year 2005 and subsequent years

(1)

(2)

(3)

Section 461

(basic personal tax credit)

(married person)

€3,040

€3,160

(widowed person bereaved in year of assessment)

€3,040

€3,160

(single person)

€1,520

€1,580

Section 461A

(additional tax credit for certain widowed persons)

€300

€400

Section 462

(one-parent family tax credit)

€1,520

€1,580

Section 463

(widowed parent tax credit)

(1st year)

€2,600

€2,800

(2nd year)

€2,100

€2,300

(3rd year)

€1,600

€1,800

(4th year)

€1,100

€1,300

(5th year)

€600

€800

Section 465

(incapacitated child tax credit)

€500

€1,000

Section 468

(blind person's tax credit)

(blind person)

€800

€1,000

(both spouses blind)

€1,600

€2,000

Section 472

(employee tax credit)

€1,040

€1,270

(2) Section 3 (as amended by the Finance Act 2004 ) of the Finance Act 2002 shall have effect subject to the provisions of this section.

(3) Schedule (1) shall apply for the purposes of supplementing subsection (1).