Finance Act 2010

Limitation on amount of certain reliefs used by certain high income individuals.

23.— (1) Chapter 2A of Part 15 of the Principal Act is amended—

(a) in section 485C(1) by inserting the following definitions after the definition of “excess relief”:

“ ‘ income threshold amount ’, in relation to a tax year and an individual, means—

(a) €125,000, or

(b) in a case where the individual’s income for the tax year includes ring-fenced income and his or her adjusted income for the tax year is less than €400,000, the amount determined by the formula—

€125,000 × A

B

where—

A is the individual’s adjusted income for the year, and

B is an amount determined by the formula—

T + S

where T and S have the same meanings respectively as they have in the definition of ‘adjusted income’;

‘ relief threshold amount ’, in relation to a tax year and an individual, means €80,000;”,

(b) in section 485C(1) by deleting the definition of “threshold amount”,

(c) in section 485D—

(i) in paragraph (a) by substituting “the income threshold amount” for “the threshold amount”,

(ii) in paragraph (b) by substituting “the relief threshold amount” for “the threshold amount”, and

(iii) by substituting “20 per cent of the individual’s adjusted income” for “one-half of the individual’s adjusted income”,

(d) in section 485E by substituting the following for the construction of “Y” in the formula in that section—

“Y is the greater of—

(i) the relief threshold amount, and

(ii) 20 per cent of the individual’s adjusted income for the tax year.”,

and

(e) in section 485FB(6)(b) by substituting “the income threshold amount” for “the threshold amount”.

(2) Subsection (1) applies as respects the year of assessment 2010 and subsequent years of assessment.