Finance Act 2006

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Relief for service charges.

8.— The Principal Act is amended by substituting, as respects the year of assessment 2006 and subsequent years of assessment, the following for section 477:

“477.— (1) In this section—

‘ appropriate percentage ’, in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year;

‘ claimant ’ has the meaning assigned to it by subsection (2);

‘ financial year ’, in relation to any year, means the period of 12 months ending on 31 December in that year;

‘ group water supply scheme ’ means a scheme referred to in the Housing (Improvement Grants) Regulations 1983 ( S.I. No. 330 of 1983 );

‘ service ’ means the provision by or on behalf of a local authority of—

(a) a supply of water for domestic purposes,

(b) domestic refuse collection or disposal, or

(c) domestic sewage disposal facilities;

‘ service charge ’ means a charge imposed under—

(a) the Local Government (Financial Provisions) (No. 2) Act 1983 , or

(b) section 65A (inserted by the Local Government (Sanitary Services) Act 1962 , and amended by the Local Government (Financial Provisions) (No. 2) Act 1983 ) of the Public Health (Ireland) Act 1878 ,

in respect of the provision by a local authority of any service or services;

‘specified amount’ , in relation to a claimant, means the lesser of—

(a) the amount proved to have been paid in the financial year immediately before the year of assessment in respect of service charges, or

(b) €400,

but if, in respect of the financial year ended on 31 December 2005 a claimant proves that he or she paid an amount greater than €400 by way of a fixed annual charge, then, in relation to that claimant, the specified amount for the year of assessment 2006 shall mean the amount proved to have been so paid.

(2) Where in relation to income tax for a year of assessment an individual (in this section referred to as a ‘claimant’) proves that in the financial year immediately before the year of assessment he or she has paid service charges for that financial year, the income tax to be charged on the claimant for that year of assessment, other than in accordance with section 16(2), shall, subject to subsection (3), be reduced by an amount which is the lesser of—

(a) the amount equal to the appropriate percentage of the specified amount, and

(b) the amount which reduces that income tax to nil.

(3) (a) In the case of a claimant assessed to tax for the year of assessment in accordance with section 1017, any payments made by the spouse of the claimant, in respect of which that spouse would have been entitled to relief under this section if the spouse were assessed to tax for the year of assessment in accordance with section 1016 (apart from subsection (2) of that section), shall be deemed to have been made by the claimant.

(b) In the case of an individual who resides on a full-time basis in the premises to which the service charges relate and pays such service charges on behalf of the claimant, that claimant may disclaim the relief provided by this section in favour of the individual, and such disclaimer shall be in such form as the Revenue Commissioners may require.

(4) Where the service consists of the provision of domestic refuse collection or disposal, is provided and charged for by a person or body of persons other than a local authority, and where such person or body of persons has—

(a) notified its provision to the local authority in whose functional area such service is provided, and

(b) furnished to that local authority such information as the local authority may from time to time request concerning that person or body of persons or the service provided by that person or body of persons,

the service provided shall be deemed for the purposes of this section as having been provided on behalf of the local authority and a payment in respect of such service shall be deemed a payment in respect of service charges.

(5) The provision of a supply of water for domestic purposes effected by a group water supply scheme shall be treated for the purposes of this section as if it were provided on behalf of a local authority, and a payment by an individual member of such a scheme in respect of such provision shall be deemed to be a payment in respect of service charges.

(6) Where a person makes a claim for relief under this section they shall, when requested by the Revenue Commissioners, indicate the name of the local authority, or person referred to in subsection (4) who provides the service on behalf of a local authority, and whether the charge consists of either or both of—

(a) a charge which is a fixed annual charge, or

(b) a charge determined by other means.

(7) Any deduction made under this section shall be in substitution for and not in addition to any deduction to which the individual might be entitled in respect of the same payment under any other provision of the Income Tax Acts.”.